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Otter Tail
(NASDAQ:OTTR)
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Rating:66Neutral
Price Target:
$100.00
â–²(8.30% Upside)
Action:Reiterated
Date:08/05/26
OTTR’s score is driven primarily by weakening recent financial performance—especially TTM revenue/margin compression and negative free cash flow—tempered by a solid balance sheet. Technicals are moderately supportive with price above key moving averages and neutral-to-positive momentum. Valuation is reasonable (P/E ~13.2) with a ~2.5% dividend yield. The latest earnings call adds a modest positive tilt due to raised adjusted guidance and strong liquidity, but near-term headwinds (litigation settlement and Plastics price pressure) keep the overall score in the mid-range.
Positive Factors
Regulated rate-base growth plan
A committed multi-year capital program and 10% rate-base CAGR underpin predictable regulated earnings growth. Rate-base investments typically earn allowed returns and are recoverable via regulators, supporting durable utility cash flows and long-term EPS expansion if projects are prudently approved and executed.
Negative Factors
Sharp revenue and margin compression
A large TTM revenue decline and meaningful margin compression signal weakening top‑line demand and reduced operating leverage. Sustained lower margins reduce internal cash generation, constrain reinvestment, and pressure returns on equity unless structural revenue trends reverse or cost structures adapt.
Read all positive and negative factors
Positive Factors
Negative Factors
Regulated rate-base growth plan
A committed multi-year capital program and 10% rate-base CAGR underpin predictable regulated earnings growth. Rate-base investments typically earn allowed returns and are recoverable via regulators, supporting durable utility cash flows and long-term EPS expansion if projects are prudently approved and executed.
Read all positive factors
Otter Tail (OTTR) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$3.71B
Dividend Yield2.49%
Average Volume (3M)264.95K
Price to Earnings (P/E)13.2
Beta (1Y)0.39
Revenue Growth-0.54%
EPS Growth-5.27%
CountryUS
Employees2,198
SectorIndustrials
Sector Strength72
IndustryConglomerates
Share Statistics
EPS (TTM)8.33
Shares Outstanding41,984,150
10 Day Avg. Volume364,154
30 Day Avg. Volume264,950
Financial Highlights & Ratios
PEG Ratio-1.41
Price to Book (P/B)1.82
Price to Sales (P/S)2.59
P/FCF Ratio34.55
Enterprise Value/Market Cap<0.01
Enterprise Value/Revenue<0.01
Enterprise Value/Gross Profit<0.01
Enterprise Value/Ebitda<0.01
Forecast
1Y Price TargetN/A
Price Target UpsideN/A
Rating ConsensusHold
Number of Analyst Covering2
EPS Forecast (FY)5.9
Revenue Forecast (FY)$1.31B
Otter Tail Business Overview & Revenue Model
Company Description
Otter Tail Corporation, an entity founded in 1907 and based in Fergus Falls, Minnesota, is a diversified enterprise conducting business in the United States across three primary sectors: an electric utility, manufacturing operations, and the produ...
How the Company Makes Money
Otter Tail makes money mainly through two categories of activities: (1) regulated electric utility operations and (2) manufacturing sales.
1) Regulated electric utility (primary earnings driver)
- Retail electricity sales: The company earns reven...
Otter Tail Earnings Call Summary
Earnings Call Date:Aug 03, 2026
(Q2-2026)
| % Change Since: |
Next Earnings Date:Nov 02, 2026
Earnings Call Sentiment Neutral
The call presented a mixed but balanced picture: management delivered notable operational and regulatory milestones (transmission permits, IRP filing, solar/battery progress), raised adjusted EPS guidance, demonstrated manufacturing momentum and strong liquidity, and reaffirmed a long-term growth plan. Offsetting these positives are meaningful near-term headwinds — a $103.5M legal settlement (after-tax impact $1.84/share), Plastics segment pricing pressure (PVC price down ~14% YoY, 2026 price guidance down ~15%), higher corporate and O&M costs, and expected Plastics earnings declines through 2027. Given the combination of strong strategic progress and clear short-term financial impacts, the call is balanced between encouraging long-term execution and tangible near-term challenges.Positive Updates
Guidance Raised and Clear Adjusted EPS Outlook
Initiated 2026 adjusted diluted EPS guidance of $5.68 to $6.08 (up from prior range $5.22 to $5.62). Guidance excludes after-tax impact of the PVC pipe legal settlement.
Negative Updates
Quarterly Adjusted EPS Decline
Reported adjusted diluted EPS of $1.66 in Q2, down 10% year-over-year, driven primarily by Plastics segment pricing pressure and higher corporate costs.
Read all updates
Q2-2026 Updates
Positive
Negative
Guidance Raised and Clear Adjusted EPS Outlook
Initiated 2026 adjusted diluted EPS guidance of $5.68 to $6.08 (up from prior range $5.22 to $5.62). Guidance excludes after-tax impact of the PVC pipe legal settlement.
Read all positive updates
Company Guidance
Otter Tail initiated 2026 adjusted diluted EPS guidance of $5.68–$6.08 (excluding the after‑tax impact of the $103.5M PVC litigation settlement), up from its prior $5.22–$5.62 range; Q2 adjusted EPS was $1.66 (-10% YoY from $1.85) with the settlement representing a $1.84 per‑share after‑tax charge. The company reaffirmed a 5‑year rate‑base CAGR of 10% and a $1.9B Otter Tail Power capital plan, expects Electric segment earnings to grow ~14% year‑over‑year, raised Manufacturing and Plastics guidance, and now expects Plastics 2026 average PVC sales prices to fall ~15% (with annual volumes largely unchanged despite Q2 volumes being +15% YoY); Plastics earnings are expected to decline through 2027 with 2028 earnings targeted at $45–$50M. Financial posture/financing metrics include ~ $600M available liquidity (including $278M cash), a 60% equity layer, $80M parent debt maturing in Q4 to be retired, and no planned equity raises; the company reiterated long‑term EPS growth of 7–9% (10–12% total shareholder return) and projected customer bills to rise 3–4% CAGR over the 5‑year plan. Operational timing and pipeline metrics highlighted Solway Solar in service 1H2027, Abercrombie 2028, storage 2028, two MISO 345 kV lines (nearly 200 miles) permitted, and a large‑load pipeline of ~1,400 MW (up ~350 MW, ~35% data center).Otter Tail Financial Statement Overview
Summary
Income Statement
62
Positive
Balance Sheet
71
Positive
Cash Flow
54
Neutral
| Breakdown | TTM | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 1.65B | 1.30B | 1.33B | 1.35B | 1.46B | 1.20B |
| Gross Profit | 597.22M | 362.70M | 583.10M | 565.15M | 570.50M | 424.07M |
| EBITDA | 607.71M | 487.61M | 515.83M | 499.12M | 486.15M | 341.95M |
| Net Income | 348.50M | 275.89M | 301.66M | 294.19M | 284.18M | 176.77M |
Balance Sheet | ||||||
| Total Assets | 4.15B | 3.96B | 3.65B | 3.24B | 2.90B | 2.75B |
| Cash, Cash Equivalents and Short-Term Investments | 403.24M | 440.50M | 294.65M | 230.37M | 119.00M | 1.54M |
| Total Debt | 1.21B | 1.10B | 1.01B | 905.48M | 832.02M | 855.16M |
| Total Liabilities | 2.25B | 2.10B | 1.98B | 1.80B | 1.68B | 1.76B |
| Stockholders Equity | 1.91B | 1.86B | 1.67B | 1.44B | 1.22B | 990.78M |
Cash Flow | ||||||
| Free Cash Flow | -16.75M | 97.92M | 94.08M | 117.36M | 218.18M | 59.41M |
| Operating Cash Flow | 456.60M | 385.99M | 452.73M | 404.50M | 389.31M | 231.24M |
| Investing Cash Flow | -477.73M | -290.72M | -411.37M | -289.29M | -175.07M | -171.51M |
| Financing Cash Flow | 74.84M | -3.72M | 22.92M | -3.83M | -96.78M | -59.36M |
Otter Tail Technical Analysis
Positive
92.34
Price Trends
89.37
Positive
88.44
Positive
85.64
Positive
Market Momentum
0.43
Positive
56.72
Neutral
39.54
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For OTTR, the sentiment is Positive. The current price of 92.34 is above the 20-day moving average (MA) of 90.91, above the 50-day MA of 89.37, and above the 200-day MA of 85.64, indicating a bullish trend. The MACD of 0.43 indicates Positive momentum. The RSI at 56.72 is Neutral, neither overbought nor oversold. The STOCH value of 39.54 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for OTTR.
Otter Tail Risk Analysis
Otter Tail disclosed 32 risk factors in its most recent earnings report. Otter Tail reported the most risks in the "Legal & Regulatory" category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks
Otter Tail Peers Comparison
UnderperformOutperform
Sector (63)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
66 Neutral | $3.71B | 13.20 | 15.21% | 2.39% | -0.54% | -5.27% | |
65 Neutral | $3.00B | 20.39 | 10.94% | 2.31% | 8.91% | 10.48% | |
64 Neutral | $5.42B | 18.45 | 7.60% | 3.66% | 3.58% | -1.83% | |
63 Neutral | $10.79B | 15.43 | 7.44% | 2.01% | 2.89% | -14.66% | |
61 Neutral | $3.34B | 16.05 | 7.65% | 4.67% | -1.47% | 7.23% | |
60 Neutral | $4.23B | 24.64 | 5.80% | 3.65% | 10.69% | -24.15% |
* Industrials Sector Average
OTTR
Otter Tail
92.82
13.93
17.66%
AVA
Avista
39.21
2.35
6.37%
BKH
Black Hills
72.24
15.54
27.41%
MGEE
MGE Energy
79.91
-2.72
-3.29%
NWE
Northwestern
69.86
17.51
33.45%
Otter Tail Corporate Events
Legal Proceedings
Otter Tail Reaches $30 Million PVC Litigation Settlement
Negative
Jun 18, 2026
In June 2026, Otter Tail Corporation and its subsidiaries Northern Pipe Products and Vinyltech agreed to a $30 million settlement with the End-User Plaintiffs in the consolidated PVC Pipe Antitrust Litigation in the U.S. District Court for the Nor...
Business Operations and StrategyPrivate Placements and Financing
Otter Tail Power Issues $70 Million Senior Notes
Positive
Jun 5, 2026
On June 4, 2026, Otter Tail Power Company issued $70 million of 6.04% Series 2026B senior unsecured notes due June 4, 2056, under a previously signed Note Purchase Agreement totaling $170 million. The utility plans to use the proceeds to fund capi...
Legal Proceedings
Otter Tail Reaches PVC Pipe Antitrust Settlement Agreements
Negative
May 29, 2026
On May 28, 2026, Otter Tail Corporation reached settlement agreements in consolidated federal antitrust litigation over alleged coordinated conduct in the PVC pipe industry, resolving claims brought by Direct Purchaser and Non-Converter Seller Pur...
Business Operations and StrategyRegulatory Filings and Compliance
Otter Tail Power Files 2026 Integrated Resource Plan
Positive
May 15, 2026
On May 15, 2026, Otter Tail Power Company filed its 2026 Integrated Resource Plan with the Minnesota Public Utilities Commission, outlining its preferred approach to meeting customer capacity and energy needs over the next 15 years. The plan calls...
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.