Otter Tail Corp. (OTTR)
NASDAQ:OTTR
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Otter Tail
(NASDAQ:OTTR)
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Rating:71Outperform
Price Target:
$97.00
â–²(10.03% Upside)
Action:ReiteratedDate:05/09/26
The score is driven primarily by solid fundamentals (strong margins, manageable leverage) tempered by negative TTM free cash flow. Valuation is favorable (P/E ~12.6 with a ~2.45% yield), and the earnings call was constructive with reaffirmed guidance and strong liquidity, while technical signals remain mostly neutral.
Positive Factors
Rate base growth plan
A multi-year 10% rate-base CAGR and $1.9B planned electric investment create a durable earnings runway for the regulated utility. Because returns are largely set via regulatory mechanisms, steady rate-base growth can sustainably expand allowed earnings and support long-term EPS conversion near management's 1:1 expectation.
Negative Factors
Plastics segment weakness
Material and persistent Plastics weakness is a durable drag on consolidated results: a 19% price decline and multi-year earnings contraction through 2027 reduces segment cash flows and margin contribution. Given structural end-market exposure and import competition, recovery timing and profitability remain uncertain.
Read all positive and negative factors
Positive Factors
Negative Factors
Rate base growth plan
A multi-year 10% rate-base CAGR and $1.9B planned electric investment create a durable earnings runway for the regulated utility. Because returns are largely set via regulatory mechanisms, steady rate-base growth can sustainably expand allowed earnings and support long-term EPS conversion near management's 1:1 expectation.
Read all positive factors
Otter Tail (OTTR) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$3.70B
Dividend Yield2.54%
Average Volume (3M)264.95K
Price to Earnings (P/E)12.6
Beta (1Y)0.40
Revenue Growth-0.54%
EPS Growth-5.27%
CountryUS
Employees2,133
SectorIndustrials
Sector Strength72
IndustryDiversified Utilities
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 Cap1.23
Enterprise Value/Revenue2.76
Enterprise Value/Gross Profit7.63
Enterprise Value/Ebitda7.64
Forecast
1Y Price TargetN/A
Price Target UpsideN/A
Rating ConsensusHold
Number of Analyst Covering2
EPS Forecast (FY)5.69
Revenue Forecast (FY)$1.32B
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:May 04, 2026
(Q1-2026)
| % Change Since: |
Next Earnings Date:Aug 03, 2026
Earnings Call Sentiment Positive
The call presents a broadly positive operational and financial picture driven by strong Electric segment performance, completed strategic projects (wind repowering and Vinyltech expansion), solid liquidity and reaffirmed 2026 guidance. Offsetting items include meaningful near-term pressure in the Plastics segment (notably a 19% drop in PVC pricing and a 24% decline in Plastics EPS), a lost 430 MW potential large load, transmission siting/regulatory risks and higher near-term O&M and depreciation from rate base growth. Management reiterated long-term rate base growth targets (10% CAGR) and financing plans to avoid equity issuance through at least 2030, suggesting confidence in funding and strategy. Overall, the positives (utility growth, balance sheet strength, completed capital projects, reaffirmed guidance) outweigh the challenges, though Plastics remains a material drag in the near term.Positive Updates
Quarterly EPS Improvement
Diluted EPS of $1.73 in Q1 2026 vs $1.62 in Q1 2025, a 7% increase driven by strong Electric and Manufacturing performance.
Negative Updates
Plastics Earnings Pressure
Plastics segment earnings decreased $0.24 per share (down 24%) in Q1 2026, driven primarily by a 19% decline in average PVC pipe sales prices year-over-year; company expects Plastics earnings to continue receding through 2027 with projected 2028 earnings of $45M–$50M and acknowledges forecast uncertainty.
Read all updates
Q1-2026 Updates
Positive
Negative
Quarterly EPS Improvement
Diluted EPS of $1.73 in Q1 2026 vs $1.62 in Q1 2025, a 7% increase driven by strong Electric and Manufacturing performance.
Read all positive updates
Company Guidance
Otter Tail reaffirmed 2026 diluted EPS guidance of $5.22–$5.62 (Q1 EPS was $1.73, up 7% YoY) and expects that to produce an ROE of about 12%, while targeting long‑term EPS growth of 7%–9% and total shareholder returns of 10%–12%; the company also reiterated a 5‑year electric rate base CAGR of 10% supported by $1.9 billion of planned Electric investments (with up to $750 million incremental opportunity) and sufficient liquidity (> $650 million, including ~ $350 million cash) to fund the plan without external equity through at least 2030. Quarterly segment metrics included Electric earnings up $0.25/share (43%), Manufacturing up $0.06/share, Plastics down $0.24/share (24%); Plastics trends: PVC average selling prices down 19% YoY, volumes +7%, input costs down 12%; Plastics earnings are expected to decline through 2027 with 2028 earnings projected at $45–$50 million. Other operational and timing metrics reiterated: interim Minnesota rate revenues of $28.6 million, removal of a 430‑MW prospective load (Phase 1 pipeline +≈500 MW), a $230 million wind repowering (≈20% output increase), Phase 2 Vinyltech adding 15% capacity, a 75‑MW battery targeted online in 2028, projected customer bills rising ~3%–4% CAGR over five years, and a $170 million private placement ( $100M funded in March, $70M in June) with no further debt issuance expected in 2026.Otter Tail Financial Statement Overview
Summary
Income Statement
78
Positive
Balance Sheet
72
Positive
Cash Flow
55
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 | 596.68M | 463.79M | 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
88.16
Price Trends
87.15
Positive
85.45
Positive
82.47
Positive
Market Momentum
0.45
Positive
50.82
Neutral
26.58
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 88.16 is above the 20-day moving average (MA) of 87.83, above the 50-day MA of 87.15, and above the 200-day MA of 82.47, indicating a bullish trend. The MACD of 0.45 indicates Positive momentum. The RSI at 50.82 is Neutral, neither overbought nor oversold. The STOCH value of 26.58 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 |
|---|---|---|---|---|---|---|---|
71 Outperform | $3.70B | 12.62 | 15.21% | 2.54% | -0.54% | -5.27% | |
68 Neutral | $4.45B | 15.97 | 5.80% | 4.09% | 9.06% | -29.09% | |
67 Neutral | $3.37B | 8.98 | 7.65% | 5.10% | -1.47% | 7.23% | |
63 Neutral | $10.79B | 15.43 | 7.44% | 2.01% | 2.89% | -14.66% | |
62 Neutral | $2.71B | 14.58 | 10.94% | 2.36% | 8.91% | 10.48% | |
61 Neutral | $5.73B | -623.04 | 5.53% | 3.91% | 3.58% | -1.83% |
* Industrials Sector Average
OTTR
Otter Tail
88.03
11.77
15.43%
AVA
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40.82
3.48
9.31%
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Black Hills
75.23
19.54
35.09%
MGEE
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73.65
-14.68
-16.62%
NWE
Northwestern
72.39
19.05
35.71%
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.