Otter Tail (OTTR)
Market Price (8/21/2026): $92.09 | Market Cap: $3.9 BilSector: Utilities | Industry: Electric Utilities
Otter Tail (OTTR)
Market Price (8/21/2026): $92.09Market Cap: $3.9 BilSector: UtilitiesIndustry: Electric Utilities
Investment Highlights Why It Matters Detailed financial logic regarding cash flow yields vs trend-riding momentum.
Attractive yieldTotal YieldTotal Yield = Earnings Yield + Dividend Yield, Earnings Yield = Net Income / Market Cap Dividend Yield = Total Dividends / Market Cap is 7.4%, Dividend Yield is 2.4%, ERPEquity Risk Premium (ERP) = Total Yield - Risk Free Rate, Reflects the premium above risk free assets offered by the investment. is 3.0% Attractive cash flow generationCFO/Rev LTMCash Flow from Operations / Revenue (Sales), Last Twelve Months (LTM) is 31% Low stock price volatilityVol 12M is 21% Megatrend and thematic driversMegatrends include Renewable Energy Transition, and Water Infrastructure. Themes include Solar Energy Generation, Wind Energy Development, Show more. | Trading close to highsDist 52W High is -1.8%, Dist 3Y High is -3.1% Weak multi-year price returns2Y Excs Rtn is -28%, 3Y Excs Rtn is -60% Meaningful short interestShort Interest % of Basic SharesShort Interest % of Basic Shares = (Short Interest Quantity) / (Basic Shares Outstanding). A high fraction of short interest can indicate potential risk of a short squeeze. is 12% | Weak revenue growthRev Chg 3Y AvgRevenue Change % averaged over trailing 3 years is -1.1% Not cash flow generativeFCF/Rev LTMFree Cash Flow / Revenue (Sales), Last Twelve Months (LTM) is -6.0% Significant short interestShort Interest Days-to-CoverDTC = (Short Interest Share Quantity) / (Average Daily Trading Volume). Reflects how many days it would take to cover (close out) the short interest based on average volumes. High DTC can signify an increased risk of a short squeeze. is 22.94 Key risksOTTR key risks include [1] regulatory and operational challenges to its significant capital investment strategy in its Electric segment and [2] earnings volatility from the cyclical nature of its non-utility Manufacturing and Plastics segments. |
| Attractive yieldTotal YieldTotal Yield = Earnings Yield + Dividend Yield, Earnings Yield = Net Income / Market Cap Dividend Yield = Total Dividends / Market Cap is 7.4%, Dividend Yield is 2.4%, ERPEquity Risk Premium (ERP) = Total Yield - Risk Free Rate, Reflects the premium above risk free assets offered by the investment. is 3.0% |
| Attractive cash flow generationCFO/Rev LTMCash Flow from Operations / Revenue (Sales), Last Twelve Months (LTM) is 31% |
| Low stock price volatilityVol 12M is 21% |
| Megatrend and thematic driversMegatrends include Renewable Energy Transition, and Water Infrastructure. Themes include Solar Energy Generation, Wind Energy Development, Show more. |
| Trading close to highsDist 52W High is -1.8%, Dist 3Y High is -3.1% |
| Weak multi-year price returns2Y Excs Rtn is -28%, 3Y Excs Rtn is -60% |
| Meaningful short interestShort Interest % of Basic SharesShort Interest % of Basic Shares = (Short Interest Quantity) / (Basic Shares Outstanding). A high fraction of short interest can indicate potential risk of a short squeeze. is 12% |
| Weak revenue growthRev Chg 3Y AvgRevenue Change % averaged over trailing 3 years is -1.1% |
| Not cash flow generativeFCF/Rev LTMFree Cash Flow / Revenue (Sales), Last Twelve Months (LTM) is -6.0% |
| Significant short interestShort Interest Days-to-CoverDTC = (Short Interest Share Quantity) / (Average Daily Trading Volume). Reflects how many days it would take to cover (close out) the short interest based on average volumes. High DTC can signify an increased risk of a short squeeze. is 22.94 |
| Key risksOTTR key risks include [1] regulatory and operational challenges to its significant capital investment strategy in its Electric segment and [2] earnings volatility from the cyclical nature of its non-utility Manufacturing and Plastics segments. |
Qualitative Assessment
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Otter Tail (OTTR) stock has gained about 5% since 4/30/2026 because of the following key factors:
1. Mixed Fiscal Q2 2026 Earnings with Significant Litigation Impact.
Otter Tail reported adjusted diluted earnings per share (EPS) of $1.66 for fiscal Q2 2026, which ended on June 30, 2026, surpassing the Zacks Consensus Estimate of $1.48 by 12.16%. However, the company also reported a diluted loss per share of $0.18 for the quarter, a notable decrease from $1.85 per share in the prior year, primarily due to a $103.5 million settlement agreement related to PVC pipe U.S. antitrust litigation. This combination of strong operational performance, as reflected in the adjusted EPS beat, and a substantial one-time charge, contributed to the stock's stable yet fluctuating price. Revenue for the quarter was $334.38 million, slightly missing the Zacks Consensus Estimate by 0.04%.
2. Updated Adjusted Earnings Guidance and Reaffirmed Long-Term Targets.
The company updated its fiscal year 2026 diluted EPS guidance to a range of $3.84 to $4.24, down from its original guidance of $5.22 to $5.62, mainly due to the litigation settlement expenses. Concurrently, Otter Tail initiated an adjusted diluted EPS guidance range of $5.68 to $6.08 for fiscal year 2026, which excludes the after-tax impact of the litigation settlement and reflects an increase from its initial adjusted guidance range. Furthermore, Otter Tail reaffirmed its long-term EPS growth rate target of 7% to 9% and a total shareholder return of 10% to 12%. This mixed guidance, with a lowered reported EPS outlook but an increased adjusted EPS outlook and stable long-term growth targets, provided investors with a balanced view, supporting the stock's sideways trend.
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Otter Tail (OTTR) stock has gained about 5% since 4/30/2026 because of the following key factors:
1. Mixed Fiscal Q2 2026 Earnings with Significant Litigation Impact.
Otter Tail reported adjusted diluted earnings per share (EPS) of $1.66 for fiscal Q2 2026, which ended on June 30, 2026, surpassing the Zacks Consensus Estimate of $1.48 by 12.16%. However, the company also reported a diluted loss per share of $0.18 for the quarter, a notable decrease from $1.85 per share in the prior year, primarily due to a $103.5 million settlement agreement related to PVC pipe U.S. antitrust litigation. This combination of strong operational performance, as reflected in the adjusted EPS beat, and a substantial one-time charge, contributed to the stock's stable yet fluctuating price. Revenue for the quarter was $334.38 million, slightly missing the Zacks Consensus Estimate by 0.04%.
2. Updated Adjusted Earnings Guidance and Reaffirmed Long-Term Targets.
The company updated its fiscal year 2026 diluted EPS guidance to a range of $3.84 to $4.24, down from its original guidance of $5.22 to $5.62, mainly due to the litigation settlement expenses. Concurrently, Otter Tail initiated an adjusted diluted EPS guidance range of $5.68 to $6.08 for fiscal year 2026, which excludes the after-tax impact of the litigation settlement and reflects an increase from its initial adjusted guidance range. Furthermore, Otter Tail reaffirmed its long-term EPS growth rate target of 7% to 9% and a total shareholder return of 10% to 12%. This mixed guidance, with a lowered reported EPS outlook but an increased adjusted EPS outlook and stable long-term growth targets, provided investors with a balanced view, supporting the stock's sideways trend.
3. Neutral Analyst Sentiment and Price Targets.
Analysts maintained a consensus "Hold" rating for Otter Tail stock during the period, with an average price target ranging from $86.00 to $90.50. As of early August 2026, the stock was trading around $90.16 to $90.45. This general agreement among analysts that the stock would perform similarly to the overall market, coupled with price targets near its current trading levels, indicated limited catalysts for significant price appreciation or depreciation, thus contributing to the stock's stability.
4. Solid Operational Performance Across Diversified Segments.
During fiscal Q2 2026, Otter Tail's core business segments demonstrated robust performance. The Electric segment continued to advance strategic initiatives, including securing route permits for two regional transmission projects and progressing with an ongoing Minnesota rate case. The Manufacturing segment showed improved financial results driven by a favorable product mix and increased sales volumes in key end markets such as recreational vehicles, construction, and horticulture. Additionally, the Plastics segment outperformed expectations due to strong sales volumes as customers sought to secure PVC pipe in anticipation of announced resin price increases. These underlying operational strengths across its diversified business model helped to mitigate the negative impact of the litigation settlement and provided a foundation for the stock's steady performance.
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Stock Movement Drivers
Fundamental Drivers
The 4.5% change in OTTR stock from 4/30/2026 to 8/20/2026 was primarily driven by a 48.0% change in the company's P/E Multiple.| (LTM values as of) | 4302026 | 8202026 | Change |
|---|---|---|---|
| Stock Price ($) | 88.12 | 92.04 | 4.5% |
| Change Contribution By: | |||
| Total Revenues ($ Mil) | 1,304 | 1,315 | 0.8% |
| Net Income Margin (%) | 21.2% | 14.8% | -29.9% |
| P/E Multiple | 13.4 | 19.8 | 48.0% |
| Shares Outstanding (Mil) | 42 | 42 | -0.2% |
| Cumulative Contribution | 4.5% |
Market Drivers
4/30/2026 to 8/20/2026| Return | Correlation | |
|---|---|---|
| OTTR | 4.5% | |
| Market (SPY) | 6.1% | 8.7% |
| Sector (XLU) | -6.6% | 52.7% |
Fundamental Drivers
The 5.2% change in OTTR stock from 1/31/2026 to 8/20/2026 was primarily driven by a 50.8% change in the company's P/E Multiple.| (LTM values as of) | 1312026 | 8202026 | Change |
|---|---|---|---|
| Stock Price ($) | 87.45 | 92.04 | 5.2% |
| Change Contribution By: | |||
| Total Revenues ($ Mil) | 1,299 | 1,315 | 1.2% |
| Net Income Margin (%) | 21.5% | 14.8% | -30.9% |
| P/E Multiple | 13.1 | 19.8 | 50.8% |
| Shares Outstanding (Mil) | 42 | 42 | -0.2% |
| Cumulative Contribution | 5.2% |
Market Drivers
1/31/2026 to 8/20/2026| Return | Correlation | |
|---|---|---|
| OTTR | 5.2% | |
| Market (SPY) | 10.5% | 10.7% |
| Sector (XLU) | 1.9% | 49.4% |
Fundamental Drivers
The 23.1% change in OTTR stock from 7/31/2025 to 8/20/2026 was primarily driven by a 87.0% change in the company's P/E Multiple.| (LTM values as of) | 7312025 | 8202026 | Change |
|---|---|---|---|
| Stock Price ($) | 74.75 | 92.04 | 23.1% |
| Change Contribution By: | |||
| Total Revenues ($ Mil) | 1,321 | 1,315 | -0.4% |
| Net Income Margin (%) | 22.4% | 14.8% | -33.7% |
| P/E Multiple | 10.6 | 19.8 | 87.0% |
| Shares Outstanding (Mil) | 42 | 42 | -0.3% |
| Cumulative Contribution | 23.1% |
Market Drivers
7/31/2025 to 8/20/2026| Return | Correlation | |
|---|---|---|
| OTTR | 23.1% | |
| Market (SPY) | 21.7% | 12.0% |
| Sector (XLU) | 4.4% | 36.5% |
Fundamental Drivers
The 22.7% change in OTTR stock from 7/31/2023 to 8/20/2026 was primarily driven by a 74.2% change in the company's P/E Multiple.| (LTM values as of) | 7312023 | 8202026 | Change |
|---|---|---|---|
| Stock Price ($) | 74.98 | 92.04 | 22.7% |
| Change Contribution By: | |||
| Total Revenues ($ Mil) | 1,424 | 1,315 | -7.7% |
| Net Income Margin (%) | 19.3% | 14.8% | -23.1% |
| P/E Multiple | 11.4 | 19.8 | 74.2% |
| Shares Outstanding (Mil) | 42 | 42 | -0.8% |
| Cumulative Contribution | 22.7% |
Market Drivers
7/31/2023 to 8/20/2026| Return | Correlation | |
|---|---|---|
| OTTR | 22.7% | |
| Market (SPY) | 72.5% | 29.7% |
| Sector (XLU) | 41.9% | 33.4% |
Price Returns Compared
| 2021 | 2022 | 2023 | 2024 | 2025 | 2026 | Total [1] | |
|---|---|---|---|---|---|---|---|
| Returns | |||||||
| OTTR Return | 73% | -16% | 48% | -11% | 12% | 16% | 151% |
| Peers Return | 21% | 6% | -12% | 21% | 17% | 12% | 80% |
| S&P 500 Return | 27% | -19% | 24% | 23% | 16% | 13% | 105% |
Monthly Win Rates [3] | |||||||
| OTTR Win Rate | 92% | 50% | 75% | 50% | 50% | 62% | |
| Peers Win Rate | 63% | 48% | 47% | 57% | 63% | 62% | |
| S&P 500 Win Rate | 75% | 42% | 67% | 75% | 67% | 50% | |
Max Drawdowns [4] | |||||||
| OTTR Max Drawdown | -9% | -35% | -24% | -26% | -13% | -8% | |
| Peers Max Drawdown | -14% | -21% | -27% | -12% | -15% | -13% | |
| S&P 500 Max Drawdown | -5% | -25% | -10% | -8% | -19% | -9% | |
[1] Cumulative total returns since the beginning of 2021
[2] Peers: BKH, IDA, NWE, MGEE, VMI. See OTTR Returns vs. Peers.
[3] Win Rate = % of calendar months in which monthly returns were positive
[4] Max drawdown represents maximum peak-to-trough decline within a year
[5] 2026 data is for the year up to 8/20/2026 (YTD)
How Low Can It Go
| Event | OTTR | S&P 500 |
|---|---|---|
| Summer-Fall 2023 Five Percent Yield Shock | ||
| % Loss | -16.8% | -9.5% |
| % Gain to Breakeven | 20.1% | 10.5% |
| Time to Breakeven | 50 days | 24 days |
| 2022 Inflation Shock & Fed Tightening | ||
| % Loss | -16.2% | -24.5% |
| % Gain to Breakeven | 19.3% | 32.4% |
| Time to Breakeven | 38 days | 427 days |
| 2020 COVID-19 Crash | ||
| % Loss | -40.9% | -33.7% |
| % Gain to Breakeven | 69.3% | 50.9% |
| Time to Breakeven | 507 days | 140 days |
| 2015-2016 China Devaluation / Global Growth Scare | ||
| % Loss | -10.3% | -12.2% |
| % Gain to Breakeven | 11.5% | 13.9% |
| Time to Breakeven | 51 days | 62 days |
| 2013 Taper Tantrum | ||
| % Loss | -11.7% | -0.2% |
| % Gain to Breakeven | 13.2% | 0.2% |
| Time to Breakeven | 49 days | 1 days |
| 2011 US Debt Ceiling Crisis & European Contagion | ||
| % Loss | -17.4% | -17.9% |
| % Gain to Breakeven | 21.1% | 21.8% |
| Time to Breakeven | 58 days | 123 days |
In The Past
Otter Tail's stock fell -8.1% during the 2025 US Tariff Shock. Such a loss loss requires a 8.8% gain to breakeven.
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| Event | OTTR | S&P 500 |
|---|---|---|
| 2020 COVID-19 Crash | ||
| % Loss | -40.9% | -33.7% |
| % Gain to Breakeven | 69.3% | 50.9% |
| Time to Breakeven | 507 days | 140 days |
| 2008-2009 Global Financial Crisis | ||
| % Loss | -57.0% | -53.4% |
| % Gain to Breakeven | 132.3% | 114.4% |
| Time to Breakeven | 1552 days | 1085 days |
In The Past
Otter Tail's stock fell -8.1% during the 2025 US Tariff Shock. Such a loss loss requires a 8.8% gain to breakeven.
Preserve Wealth
Limiting losses and compounding gains is essential to preserving wealth.
Asset Allocation
Actively managed asset allocation strategies protect wealth. Learn more.
About Otter Tail (OTTR)
Otter Tail Corporation (OTTR) is a diversified holding company primarily operating in three distinct business segments: an electric utility, manufacturing, and plastics pipe production. Its foundational business is the Electric segment, which generates, transmits, and distributes electricity to approximately 133,000 residential, industrial, and commercial customers across Minnesota, North Dakota, and South Dakota. This segment utilizes a varied energy portfolio, including coal, wind, hydro, and natural gas, while also participating in the Midcontinent Independent System Operator (MISO) markets.
The company's Manufacturing segment provides a range of services and products. It engages in contract machining, metal parts stamping, fabrication, and painting. Additionally, this segment produces plastic thermoformed products such as horticultural containers, life science and industrial packaging, material handling components, and extruded raw material stock. These manufacturing activities serve diverse industries including recreational vehicles, agriculture, construction, lawn and garden, industrial equipment, medical, and electronics, with products like blister packs, clamshells, and returnable pallets.
Lastly, Otter Tail's Plastics segment focuses on manufacturing polyvinyl chloride (PVC) pipes. These pipes are primarily utilized for critical infrastructure applications such as municipal water, rural water, wastewater, storm drainage, and water reclamation systems. The segment markets its PVC pipe products to wholesalers and distributors, leveraging both independent sales representatives and internal sales teams to reach its customer base.
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Here are a couple of analogies for Otter Tail:
Think of Otter Tail as a regional electric utility, similar to a smaller Xcel Energy, that also operates a portfolio of industrial businesses manufacturing plastic pipes and specialized components.
Imagine a diversified industrial manufacturer, similar to certain business units within a company like 3M, that also owns and operates its own regional electric utility.
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- Electric Utility Services: Provides generation, transmission, distribution, and sale of electric energy.
- Contract Machining: Offers custom machining services for various industrial components.
- Metal Parts Fabrication: Specializes in stamping, fabrication, and painting of metal components.
- Plastic Thermoformed Products: Manufactures horticultural containers, industrial packaging, material handling components, and specialized packaging like clamshells and blister packs.
- Extruded Raw Material Stock: Produces extruded plastic stock materials for recreational vehicle, agricultural, and industrial equipment industries.
- PVC Pipes: Manufactures polyvinyl chloride pipes for municipal, rural water, wastewater, and storm drainage systems.
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Otter Tail Corporation (OTTR) serves a diverse customer base across its Electric Utility, Manufacturing, and Plastics segments. While its Electric segment serves individuals, its Manufacturing and Plastics segments primarily serve other businesses and governmental entities. Since specific major customer company names are not provided in the description, the customers are best described by category.
The company's major customer categories include:
- Residential Customers: Individuals who purchase electric energy for their homes in Minnesota, North Dakota, and South Dakota through the Electric segment.
- Commercial and Industrial Businesses: This broad category encompasses a wide range of business customers. For the Electric segment, it includes industrial and other commercial customers consuming electricity. For the Manufacturing segment, it includes companies in industries such as recreational vehicle, agricultural, construction, lawn and garden, industrial and energy equipment, horticulture, medical and life sciences, recreation, and electronics. For the Plastics segment, it includes wholesalers and distributors of polyvinyl chloride pipes.
- Municipal and Rural Utilities/Entities: For the Plastics segment, this includes customers involved with municipal water, rural water, wastewater, storm drainage, and water reclamation systems, which utilize the company's polyvinyl chloride pipes.
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Charles S. MacFarlane, President and Chief Executive Officer
Charles S. MacFarlane was named President and Chief Executive Officer of Otter Tail Corporation on April 13, 2015. Before this role, he served as the corporation's President and Chief Operating Officer for a year. From 2003 and 2007, respectively, he held the positions of President and Chief Executive Officer of Otter Tail Power Company, the electric utility subsidiary. He joined Otter Tail Power Company in 2001 as Director of Financial Analysis and Planning and previously worked for Xcel Energy.
Todd R. Wahlund, Chief Financial Officer and Vice President
Todd R. Wahlund assumed the role of Vice President and Chief Financial Officer of Otter Tail Corporation effective January 1, 2024. For five years prior, he served as the Chief Financial Officer and Vice President, Finance, at Otter Tail Power Company. His career at Otter Tail Corporation also includes roles as Vice President of Financial Planning and Treasurer (2017) and Vice President of Finance, Planning and Mergers and Acquisitions (2012). He began his career with Otter Tail Power Company in 1992 as a General Accountant and progressed through various leadership positions within the company, including Manager of Financial Analysis, Manager of Business Planning, Director of Risk Management and Business Planning, Vice President of Renewable Energy Development and Risk Management, and Vice President of Renewables and Power Services.
Timothy J. Rogelstad, Senior Vice President, Electric Platform; President, Otter Tail Power Company
Timothy J. Rogelstad is responsible for the operations of Otter Tail Power Company. He joined Otter Tail Power Company in 1989 as an Engineer in the System Engineering Department and has held positions such as Supervisor of Transmission Planning and Manager of Delivery Planning.
John S. Abbott, Senior Vice President, Manufacturing Platform; President, Varistar
John S. Abbott became President of Varistar, the entity supporting Otter Tail Corporation's manufacturing portfolio, in February 2015. Prior to joining Otter Tail Corporation, he served as an officer and president of a group of restaurant equipment companies at Standex International. He possesses more than 30 years of experience in sales, marketing, and operating, with over 15 years in president or group president roles within manufacturing-based companies, including acquisition and integration experience.
Jennifer O. Smestad, Senior Vice President, General Counsel, and Corporate Secretary
Jennifer O. Smestad serves as the Senior Vice President, General Counsel, and Corporate Secretary for Otter Tail Corporation.
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1. Regulatory and Environmental Risks in the Electric Segment
Otter Tail Corporation's Electric segment operates within a heavily regulated environment, exposing it to significant regulatory and environmental risks. These risks include challenges in obtaining timely and adequate rate recovery, which could impede the company's ability to recover investments or earn expected returns. Additionally, the company faces evolving environmental regulations, including compliance with greenhouse gas emissions rules and the adoption of new technologies for the transition to low-carbon energy sources. Delays and resistance on transmission projects due to siting challenges from landowners and local governments further introduce uncertainty around planned grid investments. Adverse regulatory decisions could materially impact future financial results and share value.2. Volatile Market Conditions and Raw Material Costs in the Plastics Segment
The Plastics segment is highly susceptible to market risks, including fluctuations in demand and pricing for its products, particularly polyvinyl chloride (PVC) resin, which serves as a key raw material. Recent periods saw elevated earnings for the Plastics segment due to favorable market conditions and high PVC pipe prices; however, these conditions are normalizing, leading to projected sharp declines in earnings for this segment. The company has reported that rising raw material costs have generally impacted profitability. This volatility and dependence on PVC resin prices significantly influence the company's overall consolidated earnings per share.3. Large Capital Investments and Associated Operational Risks
Otter Tail Corporation's strategy involves substantial capital investments, particularly within its Electric segment, to support initiatives like renewable energy projects, battery storage, and transmission infrastructure. These large investments are subject to various operational risks, including regulatory changes, commodity pricing fluctuations, and potential construction delays. Furthermore, the company faces risks of underutilized investments, delays in rate recovery, and volatile revenue streams influenced by factors such as rising interest rates, slow demographic growth, and uncertainty in electricity demand. Operational inefficiencies and declining cash flow have also been noted as challenges impacting profitability.AI Analysis | Feedback
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Here are the addressable market sizes for Otter Tail Corporation's main products and services:
- Electric Utility Services: Otter Tail Corporation's Electric segment operates as a regulated utility, producing, transmitting, distributing, and selling electric energy in parts of Minnesota, North Dakota, and South Dakota. The addressable market for a regulated electric utility is generally defined by its service territory and customer base rather than a single overall market size in dollars. For context, North Dakota's total retail electricity sales were approximately $2.36 billion in 2024. In Minnesota, the average retail price of electricity was 12.04 cents per kilowatt-hour in 2025.
- Manufacturing Segment (Metal Fabrication): This segment engages in contract machining, metal parts stamping, fabrication, and painting. The addressable market for these services is the broader metal fabrication and forming industry. The U.S. metal fabrication market was valued at US$362.4 billion in 2020 and is projected to surpass US$473.7 billion by 2031. Separately, the U.S. metal forming industry generated approximately $340.0 billion in revenue in 2022. The market size for this product category is for the U.S. region.
- Manufacturing Segment (Plastic Thermoformed Products/Packaging): This includes plastic thermoformed horticultural containers, life science and industrial packaging, and material handling components. The North America thermoforming plastic market was valued at USD 15.21 billion and is anticipated to reach USD 23.05 billion by 2031. This market size is for the North America region.
- Plastics Segment (PVC Pipes): This segment manufactures polyvinyl chloride (PVC) pipes for various uses, including municipal water and wastewater systems. The market size for plastic pipe in the U.S. was $21 billion in 2023. This market size is for the U.S. region.
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Otter Tail Corporation (OTTR) is expected to experience future revenue growth over the next 2-3 years, driven by several key factors across its diversified business segments.
One primary driver is the company's significant Electric Utility Rate Base Growth and Strategic Investments in Renewable Energy. Otter Tail Power Company has outlined a robust five-year capital spending plan, totaling approximately $1.9 billion, which is projected to achieve a 10% compounded annual growth rate in its electric utility rate base through 2030. These investments are focused on developing generation, storage, and transmission projects, including wind repowering, solar installations, and battery storage, which are expected to directly translate into electric segment revenue growth.
Another significant driver is the realization of Favorable Outcomes from Electric Utility Rate Cases. The company anticipates meaningful revenue increases from recent and pending rate cases in its service territories. For instance, an approved rate case in South Dakota is expected to add $5.7 million in annual revenue, while a pending case in Minnesota could contribute an additional $44.8 million, with interim increases already boosting 2026 revenue. These rate adjustments are crucial for the regulated utility segment to recover investments and operating costs, thereby increasing revenue.
The Increased Sales Volumes in the Plastics Segment due to Capacity Expansion is also poised to contribute to revenue growth. Despite expected declines in average PVC pipe prices, the company projects higher sales volumes driven by the phase two capacity expansion at its Vinyltech facility, which came online in early 2026. The Plastics segment saw an 8% increase in volumes in Q4 2025 due to expanded capacity in late 2024, indicating a positive trend for volume-driven revenue.
Finally, Volume Recovery and Improved Product Mix within the Manufacturing Segment are expected to drive revenue. Following a period of soft end-market demand, Otter Tail's Manufacturing segment experienced a pickup in customer order activity towards the end of 2025. For 2026, the company anticipates a 7% earnings growth in this segment, fueled by modest volume recovery and higher volumes in BTD and horticulture products, along with productivity improvements. This recovery in demand and a more favorable product mix will directly impact manufacturing revenue.
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Share Repurchases
- There is no readily available information on significant share repurchases over the last 3-5 years; the last twelve months (LTM) up to December 2025 showed null activity for stock repurchases.
Share Issuance
- Shares outstanding increased slightly by 0.1% from Q3 2025 to Q4 2025, with 42 million shares outstanding in Q4 2025.
Capital Expenditures
- Otter Tail Corporation's five-year capital expenditure plan totals $2.05 billion from 2026 to 2030, with $1.92 billion allocated to the electric segment and $129 million to manufacturing and plastics.
- These capital expenditures primarily focus on investments in renewable energy and transmission projects, including wind repowering, solar installations, and battery storage, aimed at enhancing the safety and reliability of electric services and supporting rate base growth.
- In 2024, the company's capital expenditures amounted to $358.7 million, which also encompassed the completion of the first phase of the Vinyltech expansion project in the Plastics segment to boost large-diameter PVC pipe production capability.
Peer Outperformance in Electric Utilities
| Ticker | Name | Rev Growth 3Y Avg | P/E | 1Y | 3Y | 5Y | 5Y Gap |
|---|---|---|---|---|---|---|---|
| OTTR | Otter Tail | -1.1% | 19.8x | 13.5% | 20.2% | 93.6% | — |
| ETR | Entergy | 0.7% | 27.1x | 22.5% | 148.9% | 125.3% | +32pp |
| Industry | Names | 1Y med | 3Y med | 5Y med | Top 3 by 5Y |
|---|---|---|---|---|---|
| Independent Power Producers & Energy Traders | 5 | -2.1% | 136.0% | 203.0% | HNRG 658% · OKLO 324% · NRG 203% |
| Electric Utilities ← | 24 | 8.0% | 48.9% | 44.9% | VST 741% · GNE 177% · ETR 125% |
| Gas Utilities | 10 | 12.0% | 44.5% | 40.9% | ATO 94% · NFG 94% · NJR 75% |
| Multi-Utilities | 18 | 9.8% | 47.6% | 39.8% | PCG 97% · MDU 95% · NI 91% |
| Water Utilities | 12 | 11.1% | 3.5% | -15.1% | CWCO 176% · ARTNA 10% · AWR 9% |
| Renewable Electricity | 5 | -22.2% | -60.4% | -93.8% | ORA 66% · CWEN 36% · AGIG -94% |
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Peer Comparisons
| Peers to compare with: |
Financials
| Median | |
|---|---|
| Name | |
| Mkt Price | 86.26 |
| Mkt Cap | 5.0 |
| Rev LTM | 1,747 |
| Op Inc LTM | 369 |
| FCF LTM | -178 |
| FCF 3Y Avg | -58 |
| CFO LTM | 446 |
| CFO 3Y Avg | 453 |
Growth & Margins
| Median | |
|---|---|
| Name | |
| Rev Chg LTM | 3.2% |
| Rev Chg 3Y Avg | -0.2% |
| Rev Chg Q | 3.7% |
| QoQ Delta Rev Chg LTM | 0.8% |
| Op Inc Chg LTM | 4.1% |
| Op Inc Chg 3Y Avg | 6.4% |
| Op Mgn LTM | 22.4% |
| Op Mgn 3Y Avg | 21.5% |
| QoQ Delta Op Mgn LTM | 0.1% |
| CFO/Rev LTM | 27.0% |
| CFO/Rev 3Y Avg | 30.6% |
| FCF/Rev LTM | -12.3% |
| FCF/Rev 3Y Avg | -3.8% |
Valuation
| Median | |
|---|---|
| Name | |
| Mkt Cap | 5.0 |
| P/S | 2.8 |
| P/Op Inc | 14.8 |
| P/EBIT | 14.5 |
| P/E | 19.9 |
| P/CFO | 10.6 |
| Total Yield | 7.4% |
| Dividend Yield | 2.4% |
| FCF Yield 3Y Avg | -1.2% |
| D/E | 0.4 |
| Net D/E | 0.4 |
Returns
| Median | |
|---|---|
| Name | |
| 1M Rtn | -0.4% |
| 3M Rtn | 0.1% |
| 6M Rtn | 3.4% |
| 12M Rtn | 20.2% |
| 3Y Rtn | 55.9% |
| 1M Excs Rtn | -3.3% |
| 3M Excs Rtn | -2.3% |
| 6M Excs Rtn | -8.0% |
| 12M Excs Rtn | -0.1% |
| 3Y Excs Rtn | -16.8% |
Comparison Analyses
Segment Financials
Revenue by Segment| $ Mil | 2025 | 2024 | 2023 | 2022 | 2021 |
|---|---|---|---|---|---|
| Electric | 567 | 525 | 528 | 550 | 480 |
| Plastics | 423 | 463 | 418 | 513 | 380 |
| Manufacturing | 315 | 343 | 403 | 398 | 336 |
| Total | 1,304 | 1,331 | 1,349 | 1,460 | 1,197 |
| $ Mil | 2022 | 2021 | 2020 | 2019 | 2018 |
|---|---|---|---|---|---|
| Plastics | 265 | 133 | 38 | 28 | 33 |
| Electric | 113 | 107 | 107 | 98 | 88 |
| Manufacturing | 29 | 24 | 16 | 18 | 18 |
| Corporate | -16 | -14 | -13 | -10 | -10 |
| Total | 390 | 250 | 148 | 135 | 129 |
| $ Mil | 2025 | 2024 | 2023 | 2022 | 2021 |
|---|---|---|---|---|---|
| Plastics | 170 | 201 | 188 | 195 | 98 |
| Electric | 98 | 91 | 84 | 80 | 72 |
| Manufacturing | 12 | 14 | 21 | 21 | 17 |
| Corporate | -4 | -4 | 1 | -12 | -11 |
| Total | 276 | 302 | 294 | 284 | 177 |
| $ Mil | 2025 | 2024 | 2023 | 2022 | 2021 |
|---|---|---|---|---|---|
| Electric | 3,007 | 2,786 | 2,534 | 2,352 | 2,284 |
| Corporate | 528 | 426 | 293 | 178 | 57 |
| Manufacturing | 244 | 254 | 251 | 246 | 251 |
| Plastics | 186 | 186 | 164 | 126 | 163 |
| Total | 3,964 | 3,652 | 3,243 | 2,902 | 2,755 |
Price Behavior
| Market Price | $92.04 | |
| Market Cap ($ Bil) | 3.9 | |
| First Trading Date | 03/26/1990 | |
| Distance from 52W High | -1.8% | |
| 50 Days | 200 Days | |
| DMA Price | $90.25 | $86.10 |
| DMA Trend | up | up |
| Distance from DMA | 2.0% | 6.9% |
| 3M | 1YR | |
| Volatility | 23.0% | 21.2% |
| Downside Capture | -8.83 | 10.26 |
| Upside Capture | 22.93 | 22.56 |
| Correlation (SPY) | 5.6% | 12.5% |
| 1M | 2M | 3M | 6M | 1Y | 3Y | |
|---|---|---|---|---|---|---|
| Beta | -0.10 | -0.13 | -0.03 | 0.08 | 0.17 | 0.51 |
| Up Beta | -1.69 | -1.41 | -1.24 | -0.21 | 0.13 | 0.54 |
| Down Beta | 1.81 | 0.79 | 0.77 | 0.44 | 0.39 | 0.44 |
| Up Capture | -35% | -4% | 2% | 7% | 12% | 20% |
| Bmk +ve Days | 11 | 22 | 35 | 67 | 138 | 427 |
| Stock +ve Days | 10 | 24 | 34 | 66 | 131 | 377 |
| Down Capture | -10% | -18% | 4% | 7% | 1% | 79% |
| Bmk -ve Days | 11 | 21 | 28 | 59 | 114 | 326 |
| Stock -ve Days | 12 | 19 | 29 | 60 | 120 | 373 |
[1] Upside and downside betas calculated using positive and negative benchmark daily returns respectively
Based On 1-Year Data
| Annualized Return | Annualized Volatility | Sharpe Ratio | Correlation with OTTR | |
|---|---|---|---|---|
| OTTR | 11.9% | 21.3% | 0.43 | - |
| Sector ETF (XLU) | 3.9% | 14.9% | 0.04 | 39.2% |
| Equity (SPY) | 20.3% | 12.9% | 1.16 | 12.5% |
| Gold (GLD) | 36.2% | 28.7% | 1.07 | 1.9% |
| Commodities (DBC) | 44.1% | 20.2% | 1.69 | -11.2% |
| Real Estate (VNQ) | 13.3% | 13.8% | 0.66 | 41.0% |
| Bitcoin (BTCUSD) | -38.8% | 43.2% | -1.01 | 5.4% |
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Based On 5-Year Data
| Annualized Return | Annualized Volatility | Sharpe Ratio | Correlation with OTTR | |
|---|---|---|---|---|
| OTTR | 14.2% | 27.7% | 0.48 | - |
| Sector ETF (XLU) | 8.2% | 17.3% | 0.33 | 43.0% |
| Equity (SPY) | 12.8% | 17.2% | 0.57 | 34.4% |
| Gold (GLD) | 20.4% | 18.6% | 0.89 | 7.0% |
| Commodities (DBC) | 10.2% | 19.6% | 0.40 | 4.6% |
| Real Estate (VNQ) | 2.4% | 18.9% | 0.02 | 43.5% |
| Bitcoin (BTCUSD) | 9.3% | 52.7% | 0.36 | 14.5% |
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Based On 10-Year Data
| Annualized Return | Annualized Volatility | Sharpe Ratio | Correlation with OTTR | |
|---|---|---|---|---|
| OTTR | 13.5% | 29.7% | 0.48 | - |
| Sector ETF (XLU) | 8.9% | 19.3% | 0.39 | 61.0% |
| Equity (SPY) | 15.2% | 17.9% | 0.72 | 49.6% |
| Gold (GLD) | 12.4% | 16.2% | 0.63 | 7.7% |
| Commodities (DBC) | 8.1% | 18.1% | 0.37 | 13.4% |
| Real Estate (VNQ) | 4.9% | 20.7% | 0.20 | 57.3% |
| Bitcoin (BTCUSD) | 61.0% | 66.1% | 1.01 | 14.0% |
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Returns Analyses
Earnings Returns History
Updated 8/13/2026| Forward Returns | |||
|---|---|---|---|
| Earnings Date | 1D Returns | 5D Returns | 21D Returns |
| 8/4/2026 | 3.0% | 2.5% | |
| 5/5/2026 | -2.0% | -2.5% | -4.7% |
| 2/17/2026 | -1.7% | -3.1% | -0.9% |
| 11/4/2025 | 5.2% | 8.6% | 6.6% |
| 8/5/2025 | 6.2% | 4.7% | 10.6% |
| 5/6/2025 | -6.8% | -3.4% | -4.7% |
| 2/18/2025 | 6.1% | 5.9% | 7.8% |
| 11/5/2024 | 3.8% | 3.7% | 2.4% |
| ... | |||
| SUMMARY STATS | |||
| # Positive | 15 | 18 | 17 |
| # Negative | 10 | 7 | 7 |
| Median Positive | 5.2% | 5.6% | 6.6% |
| Median Negative | -2.2% | -3.4% | -4.7% |
| Max Positive | 10.7% | 16.9% | 13.6% |
| Max Negative | -9.8% | -20.4% | -16.7% |
| Forward Returns | |||
|---|---|---|---|
| Earnings Date | 1D Returns | 5D Returns | 21D Returns |
| 8/4/2026 | 3.0% | 2.5% | |
| 5/5/2026 | -2.0% | -2.5% | -4.7% |
| 2/17/2026 | -1.7% | -3.1% | -0.9% |
| 11/4/2025 | 5.2% | 8.6% | 6.6% |
| 8/5/2025 | 6.2% | 4.7% | 10.6% |
| 5/6/2025 | -6.8% | -3.4% | -4.7% |
| 2/18/2025 | 6.1% | 5.9% | 7.8% |
| 11/5/2024 | 3.8% | 3.7% | 2.4% |
| 8/6/2024 | -2.1% | -4.4% | -12.0% |
| 5/7/2024 | -0.4% | 2.0% | -0.1% |
| 2/13/2024 | -9.8% | -9.5% | -16.7% |
| 10/31/2023 | 10.3% | 16.9% | 7.5% |
| 8/1/2023 | 9.6% | 12.2% | 4.1% |
| 5/2/2023 | 6.4% | 8.2% | 2.9% |
| 2/14/2023 | -4.6% | 8.6% | 7.7% |
| 11/1/2022 | -7.6% | -20.4% | -10.9% |
| 8/2/2022 | 10.7% | 8.7% | 7.6% |
| 5/3/2022 | 3.4% | 7.3% | 13.6% |
| 2/15/2022 | -0.6% | 0.8% | 2.8% |
| 11/2/2021 | 0.5% | 4.4% | 5.0% |
| 8/3/2021 | 4.3% | 4.2% | 8.1% |
| 5/4/2021 | 0.5% | 1.4% | 1.7% |
| 2/16/2021 | -2.3% | -1.6% | 9.0% |
| 11/3/2020 | 7.2% | 5.2% | 3.9% |
| 8/4/2020 | 2.8% | 9.9% | 1.8% |
| SUMMARY STATS | |||
| # Positive | 15 | 18 | 17 |
| # Negative | 10 | 7 | 7 |
| Median Positive | 5.2% | 5.6% | 6.6% |
| Median Negative | -2.2% | -3.4% | -4.7% |
| Max Positive | 10.7% | 16.9% | 13.6% |
| Max Negative | -9.8% | -20.4% | -16.7% |
SEC Filings
Expand for More| Report Date | Filing Date | Filing |
|---|---|---|
| 06/30/2026 | 08/05/2026 | 10-Q |
| 03/31/2026 | 05/06/2026 | 10-Q |
| 12/31/2025 | 02/18/2026 | 10-K |
| 09/30/2025 | 11/05/2025 | 10-Q |
| 06/30/2025 | 08/06/2025 | 10-Q |
| 03/31/2025 | 05/07/2025 | 10-Q |
| 12/31/2024 | 02/19/2025 | 10-K |
| 09/30/2024 | 11/07/2024 | 10-Q |
| 06/30/2024 | 08/07/2024 | 10-Q |
| 03/31/2024 | 05/08/2024 | 10-Q |
| 12/31/2023 | 02/14/2024 | 10-K |
| 09/30/2023 | 11/03/2023 | 10-Q |
| 06/30/2023 | 08/02/2023 | 10-Q |
| 03/31/2023 | 05/03/2023 | 10-Q |
| 12/31/2022 | 02/15/2023 | 10-K |
| 09/30/2022 | 11/02/2022 | 10-Q |
| Report Date | Filing Date | Filing |
|---|---|---|
| 06/30/2026 | 08/05/2026 | 10-Q |
| 03/31/2026 | 05/06/2026 | 10-Q |
| 12/31/2025 | 02/18/2026 | 10-K |
| 09/30/2025 | 11/05/2025 | 10-Q |
| 06/30/2025 | 08/06/2025 | 10-Q |
| 03/31/2025 | 05/07/2025 | 10-Q |
| 12/31/2024 | 02/19/2025 | 10-K |
| 09/30/2024 | 11/07/2024 | 10-Q |
| 06/30/2024 | 08/07/2024 | 10-Q |
| 03/31/2024 | 05/08/2024 | 10-Q |
| 12/31/2023 | 02/14/2024 | 10-K |
| 09/30/2023 | 11/03/2023 | 10-Q |
| 06/30/2023 | 08/02/2023 | 10-Q |
| 03/31/2023 | 05/03/2023 | 10-Q |
| 12/31/2022 | 02/15/2023 | 10-K |
| 09/30/2022 | 11/02/2022 | 10-Q |
| 06/30/2022 | 08/03/2022 | 10-Q |
| 03/31/2022 | 05/04/2022 | 10-Q |
| 12/31/2021 | 02/16/2022 | 10-K |
| 09/30/2021 | 11/03/2021 | 10-Q |
| 06/30/2021 | 08/06/2021 | 10-Q |
| 03/31/2021 | 05/07/2021 | 10-Q |
| 12/31/2020 | 02/19/2021 | 10-K |
| 09/30/2020 | 11/06/2020 | 10-Q |
| 06/30/2020 | 08/07/2020 | 10-Q |
| 03/31/2020 | 05/08/2020 | 10-Q |
| 12/31/2019 | 02/20/2020 | 10-K |
| 09/30/2019 | 11/08/2019 | 10-Q |
Recent Forward Guidance
Updated 8/5/2026Latest: Q2 2026 Earnings Reported 8/4/2026
| Forward Guidance | Guidance Change | ||||||
|---|---|---|---|---|---|---|---|
| Metric | Low | Mid | High | % Chg | % Delta | Change | Prior |
| 2026 EPS | 3.84 | 4.04 | 4.24 | -25.5% | Lowered | Guidance: 5.42 for 2026 | |
| 2026 Adjusted EPS | 5.68 | 5.88 | 6.08 | ||||
| 2026 Earnings per share growth rate | 7.0% | 8.0% | 9.0% | 0.0% | Affirmed | Guidance: 8.0% for 2026 | |
| 2026 Total shareholder return | 0.1 | 0.11 | 0.12 | 0.0% | Affirmed | Guidance: 0.11 for 2026 | |
Prior: Q1 2026 Earnings Reported 5/5/2026
| Forward Guidance | Guidance Change | ||||||
|---|---|---|---|---|---|---|---|
| Metric | Low | Mid | High | % Chg | % Delta | Change | Prior |
| 2026 EPS | 5.22 | 5.42 | 5.62 | 0 | Affirmed | Guidance: 5.42 for 2026 | |
| 2026 EPS Growth | 7.0% | 8.0% | 9.0% | ||||
| 2026 Total Shareholder Return | 0.1 | 0.11 | 0.12 | ||||
| 2026 Electric EPS | 2.61 | 2.65 | 2.69 | ||||
| 2026 Manufacturing EPS | 0.26 | 0.29 | 0.32 | ||||
| 2026 Plastics EPS | 2.49 | 2.6 | 2.71 | ||||
| 2026 Corporate EPS | -0.14 | -0.12 | -0.1 | ||||
Q4 2025 Earnings Reported 2/17/2026
| Forward Guidance | Guidance Change | ||||||
|---|---|---|---|---|---|---|---|
| Metric | Low | Mid | High | % Chg | % Delta | Change | Prior |
| 2026 Diluted Earnings Per Share | 5.22 | 5.42 | 5.62 | -16.2% | Lower New | Guidance: 6.47 for 2025 | |
| 2026 Electric Segment Earnings Growth | 14.0% | ||||||
| 2026 Manufacturing Segment Earnings Growth | 7.0% | ||||||
| 2026 Plastics Segment Earnings Growth | -36.0% | ||||||
| 2026 Return on Equity | 0.12 | 0.12 | 0.12 | ||||
Q3 2025 Earnings Reported 11/4/2025
| Forward Guidance | Guidance Change | ||||||
|---|---|---|---|---|---|---|---|
| Metric | Low | Mid | High | % Chg | % Delta | Change | Prior |
| 2025 EPS | 6.32 | 6.47 | 6.62 | 3.4% | Raised | Guidance: 6.26 for 2025 | |
| 2030 Rate Base Compounded Annual Growth Rate | 10.0% | ||||||
| 2030 Long-term EPS Growth Rate | 7.0% | 8.0% | 9.0% | ||||
| 2030 Total Shareholder Return | 0.1 | 0.11 | 0.12 | ||||
Insider Activity
Updated 8/11/2026| # | Owner | Title | Holding | Action | Filing Date | Price | Shares | Transacted Value | Value of Held Shares | Form |
|---|---|---|---|---|---|---|---|---|---|---|
| 1 | Knutson, Paul L | VP, Human Resources | Direct | Sell | 8112026 | 93.11 | 3,500 | 325,885 | 2,001,399 | Form |
| # | Owner | Title | Holding | Action | Filing Date | Price | Shares | Transacted Value | Value of Held Shares | Form |
|---|---|---|---|---|---|---|---|---|---|---|
| 1 | Knutson, Paul L | VP, Human Resources | Direct | Sell | 8112026 | 93.11 | 3,500 | 325,885 | 2,001,399 | Form |
Industry Resources
| Utilities Resources |
| Data.gov Energy Infrastructure |
| Data.gov Energy Resources |
| Utility Dive |
| Electric Utilities Resources |
| T&D World |
| Edison Electric Institute (EEI) |
| Smart Energy International |
External Quote Links
| Y Finance | Barrons |
| TradingView | Morningstar |
| SeekingAlpha | ValueLine |
| Motley Fool | Robinhood |
| CNBC | Etrade |
| MarketWatch | Unusual Whales |
| YCharts | Perplexity Finance |
| FinViz |
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