Short answer
Otter Tail Corp (OTTR) filed its fiscal 2025 10-K annual report with the SEC on Feb 18, 2026. It reported revenue of $1.3B (−2.0% year over year) and net income of $276M.
- Top risk flagged: Regulatory risk from North Dakota Public Service Commission opposition to cost recovery for MISO Tranche 2.1 renewable projects, impacting capital investment opportunities
FY2025 key financial metrics · XBRL
- Revenue
- $1.3B
- −2.0% YoY
- Net income
- $276M
- −8.5% YoY
- Operating margin
- 26.5%
- −2.1 pp YoY
- EPS (diluted)
- $6.55
- −8.6% YoY
- ROE
- 14.8%
- −3.3 pp YoY
- Operating cash flow
- $386M
- −14.7% YoY
Source: XBRL data from the Otter Tail Corp (OTTR) FY2025 10-K on SEC EDGAR. USD.
Otter Tail Corp FY2025 10-K analysis
AI summary of each section, grounded in the filing text
Business Overview
- Core business model: Diversified holding company with primary electric utility (Otter Tail Power) plus manufacturing and plastic pipe segments
- New emphasized projects: $450-$500M Bison-Hankinson-Big Stone South 345 kV transmission line, Solway Solar 50 MW solar (operational ~2027), Abercrombie Solar 295 MW (operational ~2028), Hoot Lake 75 MW battery storage (operational ~2028)
- Strategic shift: Modified 2050 CO2 reduction goal to 90% from 97%, eliminated 2030 target, reflecting evolving energy landscape and external variables driving carbon emissions
- Quantitative metric: Employee count 2,198 full-time at 2025 year-end, with Electric and Manufacturing segments largest; investment in $230M wind facility upgrades adding 40 MW capacity
- Noteworthy fact: Plastics segment earnings surged since 2021 due to favorable PVC pipe market conditions, expected to normalize by 2027 impacting earnings mix from electric 43% in 2025 (up from 39% prior)
Management Discussion & Analysis
- Revenue $1.304B in 2025, down 2.0% YoY ($26.5M decrease) driven by Plastics price declines and Manufacturing volume drops
- Operating margin 26.5% in 2025 vs 28.6% in 2024; Electric segment margin 21.5% vs 21.7%, Manufacturing 5.4% vs 5.6%, Plastics 54.6% vs 58.6%
- Best segment: Electric operating income $121.5M, up 6.8%; worst: Plastics operating income $231.1M, down 15.0% ($40.8M decrease)
- Operating cash flow $386M, down $67M; Capex $291M, down $71M; Dividends $88.1M, up $9.8M; Issued $100M long-term debt, net financing cash outflow $3.7M
- Management expects regulatory approvals impacting revenue; risks include potential delays/cancellations in $800M-$1B transmission projects due to FERC complaints
Risk Factors
- Regulatory risk from North Dakota Public Service Commission opposition to cost recovery for MISO Tranche 2.1 renewable projects, impacting capital investment opportunities
- Supply chain vulnerability to Gulf Coast hurricane disruptions affecting PVC resin supply, critical for Plastics segment
- Customer concentration risk, with 47% of Plastics segment revenue from two customers in 2025
- Competitive risk from transition to low carbon generation technologies amid evolving regulatory and market expectations
- Financial risk from potential stranded costs and impairments due to early closure of Coyote Station coal plant mandated to exit Minnesota capacity by 2029
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