Otter Tail Corporation Reports Strong Q2 2025 Results with 6-8% EPS Growth, Maintains 9-11% TSR Target

Reuters
Jun 30
Otter Tail Corporation Reports Strong Q2 2025 Results with 6-8% EPS Growth, Maintains 9-11% TSR Target

Otter Tail Corporation has released its Q2 2025 results, highlighting its continued commitment to strategic diversification and growth. The company's earnings mix is targeted at 65% Electric and 35% Manufacturing, aligning with their long-term vision of building a diversified organization anchored by a strong electric utility foundation. The company has maintained an uninterrupted dividend for 86 years, contributing to a targeted total shareholder return (TSR) of 9-11%. The Electric segment remains a key component of the company's growth strategy, with significant rate base growth plans. The Manufacturing platform is generating incremental cash to support these growth plans without the need for equity issuance, thereby preserving the ability to fund dividends and improve credit quality. The company is focused on achieving a long-term EPS growth rate of 6-8%, while also emphasizing the importance of internally financed investments and high utilization of its asset base to minimize risk. Otter Tail Corporation's strategic approach is designed to deliver consistent and predictable earnings streams, supported by growth opportunities with existing customers and the deployment of capital at historically attractive rates of return. The balanced growth and income model remains a cornerstone of the company's operations, aimed at reducing overall portfolio risk while delivering value to shareholders, customers, and employees.

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