Otter Tail Corp. (OTTR)
NASDAQ:OTTR
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Otter Tail
(NASDAQ:OTTR)
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Rating:72Outperform
Price Target:
$98.00
▲(12.03% Upside)
Action:ReiteratedDate:04/15/26
The score is driven primarily by solid financial quality (strong profitability and improving leverage) and an attractive valuation (low P/E with a decent dividend). These are partially offset by inconsistent free cash flow and the earnings call’s near-term EPS pressure from non-utility segments, while technicals indicate only modest positive trend strength.
Positive Factors
Regulated rate base growth
A sustained 10% rate base CAGR and a $1.9B capex plan provide predictable, regulated earnings growth. As rate base expands under cost-of-service regulation, allowed returns convert capital investment into steady utility income, supporting multi-year EPS and cash generation visibility.
Negative Factors
Plastics segment volatility
Sharp PVC price declines and falling Plastics profitability create a multi-year earnings drag and forecasting uncertainty. Even with normalization by 2028, large short-term swings in this cyclical business reduce consolidated margin stability and can depress free cash flow during troughs.
Read all positive and negative factors
Positive Factors
Negative Factors
Regulated rate base growth
A sustained 10% rate base CAGR and a $1.9B capex plan provide predictable, regulated earnings growth. As rate base expands under cost-of-service regulation, allowed returns convert capital investment into steady utility income, supporting multi-year EPS and cash generation visibility.
Read all positive factors
Otter Tail (OTTR) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$3.61B
Dividend Yield2.54%
Average Volume (3M)264.95K
Price to Earnings (P/E)12.3
Beta (1Y)0.43
Revenue Growth-3.18%
EPS Growth-8.62%
CountryUS
Employees2,133
SectorIndustrials
Sector Strength72
IndustryDiversified Utilities
Share Statistics
EPS (TTM)1.23
Shares Outstanding41,953,526
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 Cap1.22
Enterprise Value/Revenue3.39
Enterprise Value/Gross Profit8.70
Enterprise Value/Ebitda9.17
Forecast
1Y Price TargetN/A
Price Target UpsideN/A
Rating ConsensusHold
Number of Analyst Covering2
EPS Forecast (FY)5.45
Revenue Forecast (FY)$1.29B
Otter Tail Business Overview & Revenue Model
Company Description
Otter Tail Corporation, together with its subsidiaries, engages in electric utility, manufacturing, and plastic pipe businesses in the United States. The company's Electric segment produces, transmits, distributes, and sells electric energy in Min...
How the Company Makes Money
Otter Tail makes money through two main channels: (1) its regulated electric utility operations and (2) its manufacturing operations. In the electric segment, revenue is primarily earned from selling electricity to retail customers (and, where app...
Otter Tail Earnings Call Summary
Earnings Call Date:Feb 16, 2026
(Q4-2025)
| % Change Since: |
Next Earnings Date:May 04, 2026
Earnings Call Sentiment Neutral
The call conveyed clear strengths in the regulated electric utility business — solid rate base growth (10% five-year CAGR), positive electric segment momentum (7% YoY and projected +14% in 2026), strong liquidity ($386M cash) and a sector-leading ROE of 16% — along with disciplined capital planning and shareholder-friendly actions (10% dividend increase). Offsetting these positives are meaningful near-term headwinds in the Manufacturing and Plastics segments (Plastics down 15% in 2025 and an expected ~36% decline in 2026), declines in consolidated EPS (9% YoY) and project/timing risks on transmission and large loads. Management expects Plastics to normalize by 2028 and reiterated no external equity needs through 2030. Overall the operational and financial foundation is solid, but near-term earnings pressure from non-utility segments and some project timing risks balance the upside.Positive Updates
Full-Year EPS and Guidance Context
Reported 2025 diluted EPS of $6.55 (down 9% YoY) and the result was toward the upper end of 2025 guidance; initiating 2026 EPS guidance range of $5.22–$5.62 with a midpoint of $5.42.
Negative Updates
Decline in Consolidated EPS
Consolidated diluted EPS declined 9% YoY to $6.55 in 2025 and 2026 guidance midpoint ($5.42) implies a further decrease versus 2025.
Read all updates
Q4-2025 Updates
Positive
Negative
Full-Year EPS and Guidance Context
Reported 2025 diluted EPS of $6.55 (down 9% YoY) and the result was toward the upper end of 2025 guidance; initiating 2026 EPS guidance range of $5.22–$5.62 with a midpoint of $5.42.
Read all positive updates
Company Guidance
Otter Tail initiated 2026 diluted EPS guidance of $5.22–$5.62 (midpoint $5.42) — a midpoint that it says will produce an above‑average ROE of ~12% — while reiterating a five‑year Otter Tail Power rate base CAGR of 10% (converting to EPS growth near a one‑to‑one ratio) and a $1.9 billion five‑year capital plan; Electric segment earnings are expected to rise ~14% in 2026 alongside a ~14% increase in average rate base (driven by wind repower and solar), Manufacturing earnings are expected to increase ~7%, and Plastics earnings are expected to decline ~36% in 2026 (with PVC prices ~20% below 2025 on average and Plastics normalizing to $45–$50M of annual earnings by 2028). Key numeric items supporting the guidance include interim Minnesota and South Dakota rate revenues of $28.6M and $5.7M, respectively; a $120M, 75 MW / 4‑hour battery project expected online in 2028; a completed wind repower improving output ~20% and extending 10 years of tax credits; projected five‑year customer bill CAGR of 3–4%; consolidated 2025 EPS of $6.55, $386M cash on hand, utility ROE of 16% on a 63% equity layer, no external equity needed through at least 2030, and targets of long‑term EPS growth of 7–9% and total shareholder return of 10–12%.Otter Tail Financial Statement Overview
Summary
Income Statement
78
Positive
Balance Sheet
74
Positive
Cash Flow
62
Positive
| Breakdown | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|
Income Statement | |||||
| Total Revenue | 1.30B | 1.33B | 1.35B | 1.46B | 1.20B |
| Gross Profit | 362.70M | 583.10M | 565.15M | 570.50M | 424.07M |
| EBITDA | 463.79M | 515.83M | 499.12M | 486.15M | 341.95M |
| Net Income | 275.89M | 301.66M | 294.19M | 284.18M | 176.77M |
Balance Sheet | |||||
| Total Assets | 3.96B | 3.65B | 3.24B | 2.90B | 2.75B |
| Cash, Cash Equivalents and Short-Term Investments | 440.50M | 294.65M | 230.37M | 119.00M | 1.54M |
| Total Debt | 1.10B | 1.01B | 905.48M | 832.02M | 855.16M |
| Total Liabilities | 2.10B | 1.98B | 1.80B | 1.68B | 1.76B |
| Stockholders Equity | 1.86B | 1.67B | 1.44B | 1.22B | 990.78M |
Cash Flow | |||||
| Free Cash Flow | 97.92M | 94.08M | 117.36M | 218.18M | 59.41M |
| Operating Cash Flow | 385.99M | 452.73M | 404.50M | 389.31M | 231.24M |
| Investing Cash Flow | -290.72M | -411.37M | -289.29M | -175.07M | -171.51M |
| Financing Cash Flow | -3.72M | 22.92M | -3.83M | -96.78M | -59.36M |
Otter Tail Technical Analysis
Positive
87.48
Price Trends
87.14
Positive
85.37
Positive
82.42
Positive
Market Momentum
0.50
Positive
48.68
Neutral
21.20
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 87.48 is below the 20-day moving average (MA) of 87.79, above the 50-day MA of 87.14, and above the 200-day MA of 82.42, indicating a neutral trend. The MACD of 0.50 indicates Positive momentum. The RSI at 48.68 is Neutral, neither overbought nor oversold. The STOCH value of 21.20 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 |
|---|---|---|---|---|---|---|---|
72 Outperform | $3.61B | 12.26 | 16.10% | 2.54% | -3.18% | -8.62% | |
66 Neutral | $2.84B | 21.08 | 10.59% | 2.36% | 8.26% | 12.47% | |
63 Neutral | $10.79B | 15.43 | 7.44% | 2.01% | 2.89% | -14.66% | |
62 Neutral | $5.82B | 12.44 | 7.85% | 3.91% | 7.03% | 6.64% | |
59 Neutral | $4.51B | 21.88 | ― | 4.09% | 4.90% | -4.42% | |
54 Neutral | $3.41B | 16.17 | 7.25% | 5.10% | 2.14% | -6.51% |
* Industrials Sector Average
OTTR
Otter Tail
88.16
11.23
14.60%
AVA
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41.75
1.93
4.85%
BKH
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76.07
17.96
30.90%
MGEE
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77.49
-11.11
-12.54%
NWE
Northwestern
72.48
16.24
28.88%
Otter Tail Corporate Events
Executive/Board ChangesShareholder Meetings
Otter Tail shareholders approve executive pay and bylaw changes
Positive
Apr 15, 2026
Otter Tail Corporation held its 2026 Annual Shareholder Meeting virtually on April 13, 2026, with 34,713,440 of 41,953,525 eligible shares represented in person or by proxy. Shareholders re-elected directors Jeanne H. Crain, John D. Erickson and N...
Business Operations and StrategyExecutive/Board Changes
Otter Tail Announces Executive Leadership and CFO Succession
Positive
Apr 14, 2026
On April 13, 2026, Otter Tail Corporation’s board implemented a series of executive transitions as part of a long‑term succession plan. Tim Rogelstad, a 37‑year veteran who has led Otter Tail Power Company since 2014, was elected...
Private Placements and Financing
Otter Tail Announces Private Placement of Senior Notes
Neutral
Mar 23, 2026
On March 19, 2026, Otter Tail Power Company entered into a private placement Note Purchase Agreement to issue $170 million of senior unsecured notes, comprising $100 million of 5.33% Series 2026A notes due March 19, 2036, and $70 million of 6.04% ...
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.