OTTR Otter Tail Corp

Overview and Growth

Fiscal 2025 results for Otter Tail Corp combined $1.30B of revenue with net income of $275.89M and an operating cash inflow of $385.99M. The $1.30B revenue base provides substantial context for the company’s earnings, cash generation, and capital requirements. Compared with $1.33B in fiscal 2024, revenue decreased 2.3%, a top-line contraction that reduced operating scale. Diluted earnings per share were $6.55, translating the period’s attributable earnings into the amount reported for each diluted share. Diluted EPS decreased by 8.6% from $7.17 in fiscal 2024, showing how the earnings change reached shareholders on a per-share basis. Total assets stood at $3.96B, showing the scale of resources supporting revenue, earnings, liquidity, and financing. Revenue equaled 0.33x of total assets, indicating how much reported top-line activity the company produced relative to its period-end asset base.

Profitability

After reported cost of revenue, the company retained $896.98M as gross profit before recognizing operating expenses and other items. The gross-profit relationship equaled 69.0% of revenue, quantifying the portion retained before operating expenses were recognized. Operating income was $345.68M, the earnings remaining from reported operations after the company’s recognized operating cost structure. Relative to revenue, operating income represented 26.6%, showing how efficiently sales converted into operating profit. After all reported below-operating-line items, the company recorded net income of $275.89M for the fiscal year. Measured against reported revenue, net income produced a 21.2% margin after operating costs and the remaining recognized items. The company recognized $46.38M of income tax for the period, completing the transition from pretax income to net income. The relationship between net income and period-end equity was 14.8%, indicating the profitability achieved on book capital. Return on period-end assets was 7.0%, connecting net income with the company’s total asset base.

Liquidity and Capital Structure

The near-term balance sheet paired $799.73M of current assets with $350.96M of current liabilities at the reporting date. Current assets covered current liabilities by 2.28x, leaving a positive buffer for near-term obligations. Cash and equivalents totaled $386.19M, identifying the most liquid reported component available within the broader current-asset balance. Measured only with cash and equivalents, coverage of current liabilities was 110.0%, excluding receivables and other current assets. Total debt was $1.04B, establishing the amount of borrowing carried within the company’s capital structure. The debt-to-equity relationship was 0.56x, showing how much debt the company carried for each unit of book equity. The debt-to-assets relationship was 26.3%, comparing borrowing with the total asset balance. The liabilities-to-assets relationship was 28.7%, placing reported obligations against the full positive asset balance. The cash-to-assets relationship was 9.7%, comparing reported cash and equivalents with the full positive asset balance. The asset base changed 8.5% from $3.65B in fiscal 2024, leaving current total assets higher year over year. Book equity was 11.6% higher than fiscal 2024 equity of $1.67B, showing how shareholder capital changed year over year.

Cash Flow and Earnings Quality

Operating activities produced a cash inflow of $385.99M, giving the cash-flow counterpart to the accrual-based profit measures reported for the year. Operating cash flow equaled 1.4x of net income, showing how strongly accounting earnings converted into cash from operations. Capital spending was $288.07M, absorbing part of the cash generated from operations before free cash flow. Capital spending absorbed 74.6% of operating cash flow, quantifying the share of cash from operations directed to investment. Free cash flow came to $97.92M, leaving a positive amount after capital expenditures. Relative to revenue, free cash flow equaled 7.5%, showing how much sales converted into cash after investment. Free cash flow equaled 2.5% of total assets, relating post-investment cash generation to the company’s resource base.

Based on the annual report for the fiscal year ending Dec 31, 2025. Analysis generated Sep 24, 2026.