Otter Tail Power's capital spending plan for 2026 through 2030 remains robust with a pipeline of high-quality projects, reaffirming a five-year rate base compounded annual growth rate of 10 percent. The company received the Edison Electric Institute Award for the fifth consecutive year for top performing small-capitalization utility with a total shareholder return of 158 percent over the five-year period ending September 30, 2025.
Cyborg Score Rationale
The company achieved a consolidated return on equity of 16% in 2025, supported by strong Electric segment results and solid cash flow from operations of $386.0 million. Manufacturing faced soft demand but ended 2025 with momentum as customer order activity picked up. However, Plastics faces continued earnings pressure with a forecasted 36% drop in 2026 and recovery not expected until 2028.
Top Insights
Electric segment grew operating revenue 8.1% and net income 7.3% in 2025, helped by higher sales volumes, fuel recovery and favorable weather.
The company increased its annual indicated dividend rate to $2.31 per share, a 10 percent increase over the 2025 rate.
Early 2026 wind repowering project upgrades are expected to result in a 20 percent increase in output.
Recent and pending rate cases in South Dakota and Minnesota could drive meaningful revenue increases, with Minnesota's case potentially adding $44.8 million annually.
Named Competitors
Regional Electric Utilities — Competing utilities in Minnesota, North Dakota, South Dakota service territories
Industrial Manufacturing — Custom machine parts and thermoformed plastic products manufacturing
PVC Pipe Manufacturers — Polyvinyl chloride pipes for municipal water and infrastructure applications
Recent Developments
(February 2026) 2025 EPS of $6.55 announced, exceeding expectations with 16% ROE
(February 2026) 2026 guidance set at $5.22-$5.62 EPS with $467M capital expenditure planned
(January 2026) Dividend increased by 10% to annual indicated rate of $2.31 per share
(Early 2026) Wind repowering project completed, upgrading wind towers at four owned facilities
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