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Emera (OTCMKTS:EMRAF - Get Free Report) and Otter Tail (NASDAQ: OTTR - Get Free Report) are both utilities companies, but which is the superior stock? We will compare the two businesses based on the strength of their earnings, risk, valuation, profitability, dividends, analyst recommendations and institutional ownership. Analyst Recommendations This is a breakdown of recent recommendations

Otter Tail (NASDAQ:OTTR) reported second-quarter adjusted diluted earnings per share of $1.66, down from $1.85 a year earlier, as lower PVC pipe pricing weighed on its plastics segment. The company raised its full-year adjusted earnings guidance to a range of $5.68 to $6.08 per share, excluding the after-tax effect of a legal settlement related to PVC pipe antitrust litigation.

Chief Executive Officer Chuck MacFarlane said the company advanced utility regulatory and infrastructure initiatives during the quarter while its manufacturing and plastics businesses benefited from higher sales volumes. The updated guidance compares with Otter Tail’s original 2026 adjusted EPS outlook of $5.22 to $5.62.

Plastics pricing declines, while volume rises Otter Tail’s adjusted plastics segment earnings fell $0.14 per share, or 11% from a year earlier, primarily because PVC pipe selling prices declined. The average PVC pipe sales price was down 14% year over year during the second quarter, although the rate of decline moderated, according to management.

Sales volumes increased 15% and exceeded the company’s expectations. MacFarlane said customers appeared to have purchased additional pipe ahead of announced PVC resin price increases. Otter Tail responded by using added capacity at its Phoenix facility, selling more pipe in the quarter than it had in any prior quarter, he said.

For the full year, Otter Tail now expects average PVC pipe prices to decline about 15% from the 2025 average. It expects softer volumes in the second half following the second-quarter order pull-forward, though its full-year volume assumption is largely unchanged.

The company raised its plastics guidance after second-quarter adjusted results surpassed its expectations and after it revised pricing assumptions for the balance of the year. Chief Financial Officer Tyler Nelson said average PVC pipe prices increased sequentially from the first quarter to the second quarter amid strong demand, though the company does not expect that trend to continue through the rest of 2026.

PVC litigation settlement awaits final approval Otter Tail entered settlement agreements with three classes in U.S. PVC pipe antitrust litigation during the quarter. The court has preliminarily approved the agreements, and the company expects final approval in the fourth quarter.

Without admitting wrongdoing, fault or liability, Otter Tail agreed to pay $103.5 million to resolve the litigation. The settlement charge had an after-tax impact of $1.84 per share and was excluded from adjusted results and updated guidance.

Nelson said the company had deposited the full $103.5 million into an escrow account by the end of July. The funds remain on Otter Tail’s balance sheet until final court approval, at which point the company will no longer have access to them.

MacFarlane said the settlement would not change the company’s pricing dynamics or customer relationships. He said resolving the claims reduced uncertainty, distraction, costs and exposure associated with the litigation.

Utility investments and large-load pipeline expand Otter Tail Power secured route permits for both of its MISO Tranche 1 345-kilovolt transmission projects during the second quarter. The two reliability-focused transmission lines span nearly 200 miles in total. The company also said its Solway Solar project remains on track for operation in the first half of 2027, while Abercrombie Solar is targeted for 2028. Its battery storage project is also targeted for a 2028 in-service date.

The utility filed a 15-year integrated resource plan with the Minnesota Public Utilities Commission in May. Its preferred plan includes a 50-megawatt natural gas facility in 2031 or 2032, followed by 50-megawatt wind facilities in 2035 and 2040. The company expects a hearing and final order on the plan in the second quarter of 2027.

President Tim Rogelstad said the natural gas project would be incremental to the company’s previously identified $750 million of incremental investment opportunities. If approved, development work could begin next year, with investment potentially appearing late in the company’s current five-year planning period.

Otter Tail reaffirmed its expected five-year rate base compound annual growth rate of 10% and said it expects utility earnings to grow at a similar rate. Its $1.9 billion customer-focused utility capital plan remains unchanged.

The company’s phase-one large-load pipeline increased by about 350 MW to 1,400 MW. About 35% of the opportunity is associated with a data center, while the balance is tied to clean fuel and thermal-storage projects. Management said it filed large-load tariffs in Minnesota, North Dakota and South Dakota designed to require long-term contracts and financial guarantees and to directly assign new-load costs to the new customers.

Manufacturing outlook improves Manufacturing segment earnings increased $0.03 per share, or 38%, driven by favorable product mix and increased sales volumes in construction, recreational vehicle and horticulture markets. Higher operating costs, including performance-based compensation, partly offset those gains.

Otter Tail raised manufacturing guidance, citing improving end-market conditions, stronger expected second-half volumes, improved price realization and better absorption of fixed costs. Nelson said the manufacturing business generated about a 5% net income return during the first six months and that management sees potential for improvement through higher volumes, efficiencies and productivity gains.

The company said it has additional capacity available at its Georgia manufacturing facility following a recent expansion. Management described recreational vehicle and lawn-and-garden demand as largely stabilized, construction demand as improving and industrial demand as strong, while agricultural conditions remained challenging because of elevated costs, lower relative commodity prices and trade disruption.

Otter Tail ended June with an equity layer equal to 60% of total capital and more than $600 million in available liquidity, including $278 million of cash and cash equivalents. Nelson said the company expects to fund its current rate-based growth plan without issuing external equity. It also plans to retire, rather than refinance, $80 million of parent-level debt maturing in the fourth quarter.

About Otter Tail (NASDAQ:OTTR) Otter Tail Corporation, through its primary subsidiary Otter Tail Power Company, is a regulated electric utility engaged in the generation, transmission and distribution of electricity. The company operates a diversified portfolio of owned and contracted power generation facilities, including coal, natural gas, wind and hydroelectric units, supplemented by long-term power purchase agreements. In addition to utility operations, Otter Tail provides related engineering, construction and maintenance services to support grid reliability and efficiency.

The company’s service territory covers a predominantly rural footprint in the Upper Midwest, including communities in west-central Minnesota, eastern North Dakota, northwest Wisconsin and small portions of South Dakota.

Otter Tail Corporation (OTTR) Q2 2026 Earnings Call Transcript

FERGUS FALLS, Minn.--(BUSINESS WIRE)--Otter Tail Corporation (Nasdaq: OTTR) today announced financial results for the quarter ended June 30, 2026. SUMMARY Reported quarterly diluted loss per share of $0.18 and adjusted diluted earnings per share of $1.66. Updated our annual diluted earnings per share guidance range to $3.84 to $4.24. Initiated annual adjusted diluted earnings per share guidance range of $5.68 to $6.08. CEO OVERVIEW “Our team advanced our strategic initiatives during the quarter.

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Otter Tail Corporation (NASDAQ:OTTR – Get Free Report) crossed above its 200-day moving average during trading on Monday . The stock has a 200-day moving average of $83.62 and traded as high as $86.92. Otter Tail shares last traded at $85.73, with a volume of 233,856 shares traded.

Analyst Ratings Changes Separately, Weiss Ratings lowered Otter Tail from a “buy (b)” rating to a “hold (c+)” rating in a research note on Wednesday, February 25th. One analyst has rated the stock with a Buy rating and two have issued a Hold rating to the stock. According to data from MarketBeat.com, the stock has an average rating of “Hold” and an average price target of $83.00.

View Our Latest Research Report on Otter Tail

Otter Tail Stock Performance The company has a quick ratio of 1.83, a current ratio of 2.28 and a debt-to-equity ratio of 0.52. The company has a market capitalization of $3.60 billion, a PE ratio of 13.07 and a beta of 0.56. The business has a 50 day simple moving average of $86.98 and a 200 day simple moving average of $83.62.

Otter Tail (NASDAQ:OTTR – Get Free Report) last posted its quarterly earnings data on Tuesday, February 17th. The utilities provider reported $1.23 earnings per share (EPS) for the quarter, beating the consensus estimate of $1.16 by $0.07. The firm had revenue of $308.10 million for the quarter, compared to the consensus estimate of $311.15 million. Otter Tail had a net margin of 21.16% and a return on equity of 15.36%. The company’s revenue for the quarter was up 1.6% compared to the same quarter last year. During the same quarter in the prior year, the company posted $1.30 earnings per share. Equities research analysts predict that Otter Tail Corporation will post 5.88 EPS for the current fiscal year.

Otter Tail Increases Dividend The company also recently declared a quarterly dividend, which was paid on Tuesday, March 10th. Shareholders of record on Friday, February 13th were given a dividend of $0.5775 per share. The ex-dividend date of this dividend was Friday, February 13th. This represents a $2.31 dividend on an annualized basis and a yield of 2.7%. This is an increase from Otter Tail’s previous quarterly dividend of $0.53. Otter Tail’s payout ratio is presently 35.21%.

Institutional Investors Weigh In On Otter Tail A number of institutional investors and hedge funds have recently modified their holdings of the company. EverSource Wealth Advisors LLC increased its holdings in Otter Tail by 129.3% in the 4th quarter. EverSource Wealth Advisors LLC now owns 376 shares of the utilities provider’s stock worth $30,000 after buying an additional 212 shares during the period. Caitong International Asset Management Co. Ltd acquired a new stake in shares of Otter Tail in the fourth quarter worth $31,000. Motiv8 Investments LLC acquired a new position in Otter Tail during the fourth quarter valued at $34,000. GAMMA Investing LLC boosted its holdings in Otter Tail by 44.0% in the third quarter. GAMMA Investing LLC now owns 432 shares of the utilities provider’s stock valued at $35,000 after purchasing an additional 132 shares during the last quarter. Finally, SHP Wealth Management acquired a new stake in Otter Tail during the 4th quarter worth about $40,000. Institutional investors and hedge funds own 61.32% of the company’s stock.

Otter Tail Company Profile (Get Free Report)

Otter Tail Corporation, through its primary subsidiary Otter Tail Power Company, is a regulated electric utility engaged in the generation, transmission and distribution of electricity. The company operates a diversified portfolio of owned and contracted power generation facilities, including coal, natural gas, wind and hydroelectric units, supplemented by long-term power purchase agreements. In addition to utility operations, Otter Tail provides related engineering, construction and maintenance services to support grid reliability and efficiency.

The company’s service territory covers a predominantly rural footprint in the Upper Midwest, including communities in west-central Minnesota, eastern North Dakota, northwest Wisconsin and small portions of South Dakota.

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FERGUS FALLS, Minn.--(BUSINESS WIRE)--Otter Tail Corporation (Nasdaq: OTTR) today announced executive leadership transitions in conjunction with the long-term succession plan approved by its Board of Directors.

Effective April 13, 2026, Tim Rogelstad has been elected President of Otter Tail Corporation. In his new role, Mr. Rogelstad will oversee the electric and manufacturing platforms and report to Chuck MacFarlane, Otter Tail Corporation Chief Executive Officer.

Mr. Rogelstad previously served as President of Otter Tail Power Company, the Corporation’s electric utility, and as Senior Vice President, Electric Platform of the Corporation.

Mr. Rogelstad has been with Otter Tail Power Company since 1989 and has held roles of increasing responsibility across the electric utility and the Corporation during his 37‑year career. He has served as the President of Otter Tail Power Company since 2014 and has been instrumental in advancing the Corporation’s electric platform strategy and operational performance.

Concurrent with this move, Todd Wahlund was elected Senior Vice President of Otter Tail Corporation and President of Otter Tail Power Company and will report to Mr. Rogelstad. Mr. Wahlund previously served as Vice President and Chief Financial Officer of Otter Tail Corporation and brings extensive financial and utility expertise from his 34 years at Otter Tail across finance, operations, and his 20 years at the electric utility platform.

Also effective April 13, 2026, Tyler Nelson has been elected Vice President and Chief Financial Officer of Otter Tail Corporation. In this role, he will report to Mr. MacFarlane. Mr. Nelson most recently served as Vice President of Finance and Treasurer and previously held the role of Vice President of Accounting. He joined the Corporation in 2020, following his role as Corporate Controller for Titan Machinery. Earlier in his career, Mr. Nelson worked in public accounting with Grant Thornton.

Otter Tail CEO Chuck MacFarlane said, “These leadership transitions are the result of long‑standing and thoughtful succession planning by the Board and management team. Tim has spent nearly four decades with Otter Tail Power Company and the Corporation and has consistently demonstrated strong leadership, sound judgment, and a deep understanding of our businesses. His election as President reflects the confidence the Board has in his ability to help lead the Corporation’s operating platforms forward. Todd’s transition to President of Otter Tail Power Company leverages his extensive expertise at the electric utility and ensures seasoned leadership as it continues to execute its long‑term strategy. Tyler has played a key role in Otter Tail’s financial leadership and brings continuity, discipline, and a strong understanding of our financial operations to the CFO role. Collectively, these appointments position Otter Tail well for continued execution and long‑term success.”

About Otter Tail Corporation

Otter Tail Corporation, a member of the S&P SmallCap 600 Index, has interests in diversified operations that include an electric utility and manufacturing businesses. Otter Tail Corporation stock trades on the Nasdaq Global Select Market under the symbol OTTR. The latest investor and corporate information is available at www.ottertail.com. Corporate offices are in Fergus Falls, Minnesota and Fargo, North Dakota.

More News From Otter Tail Corporation

Back to Newsroom

FERGUS FALLS, Minn.--(BUSINESS WIRE)--Otter Tail Corporation (Nasdaq: OTTR) today announced financial results for the quarter ended March 31, 2026.

SUMMARY

Produced diluted earnings per share of $1.73 in the first quarter of 2026. Return on equity of 15% over the trailing twelve months. Affirmed 2026 diluted earnings per share guidance range of $5.22 to $5.62. CEO OVERVIEW

"We are pleased with our first quarter financial results and are well positioned to achieve our financial objectives for the year,” said CEO Chuck MacFarlane. “Across our businesses, our team members executed on our near-term priorities for the benefit of our customers and shareholders.

“Otter Tail Power delivered on our regulatory priorities while making significant progress on our customer-focused rate base growth plan. We obtained approval of our fully settled South Dakota rate case in the first quarter and implemented our new base rates at the beginning of April. We also implemented interim rates at the start of the year for our ongoing Minnesota rate case.

“We completed our wind repowering project earlier this year on budget despite weather-related headwinds delaying the in-service timing. We continue to make progress on our solar, battery storage and large regional transmission projects. Our team members secured the solar panels needed for our two solar development projects during the first quarter, eliminating tariff-related risk and avoiding the potential cost increase for the benefit of our customers.

“We are pleased with the results produced by our Manufacturing segment businesses as our team members’ cost-management efforts over the past year positively contributed to our quarterly results. We are also encouraged by increasing sales volumes in several of our end markets.

“Our Plastics segment businesses benefitted from better-than-expected demand for our products while average sales prices continued to recede in line with our expectations. We completed the second phase of our Vinyltech expansion project earlier this year and look forward to leveraging the additional production capacity. With the conclusion of the second phase, this completes a multi-year expansion project that added 15 percent of additional production capacity, and increased manufacturing space and raw material storage capabilities. This investment will allow us to better serve our customers, pursue growth opportunities and enhance our employee experience.

“We are maintaining our 2026 diluted earnings per share guidance range of $5.22 to $5.62. The fundamentals of our diversified portfolio remain strong, and we are confident in our ability to deliver on our customer-focused growth plan over the long term. Our targeted long-term earnings per share growth rate is 7 to 9 percent, with a total shareholder return of 10 to 12 percent.”

QUARTERLY DIVIDEND

On May 4, 2026, the corporation’s Board of Directors declared a quarterly common stock dividend of $0.5775 per share. This dividend is payable on June 10, 2026 to shareholders of record on May 15, 2026.

CASH FLOWS AND LIQUIDITY

Our consolidated cash provided by operating activities for the three months ended March 31, 2026 was $70.6 million compared to $39.5 million for the three months ended March 31, 2025. The increase in cash provided by operating activities was primarily due to a decrease in working capital requirements, largely driven by the timing of vendor payments and the recovery of fuel cost and rider revenue from our utility customers.

Investing activities for the three months ended March 31, 2026 included capital expenditures of $185.3 million. Our capital investments were largely within our Electric segment and included investments in our solar, wind repowering and other projects.

Financing activities for the three months ended March 31, 2026 included the issuance of $100.0 million of long-term debt by Otter Tail Power; the proceeds of which were used to repay short-term borrowings, fund capital investments and support operating activities. Financing activities for the period also included net short-term borrowings totaling $7.7 million and dividend payments of $24.3 million.

As of March 31, 2026 we had $170.0 million and $140.5 million of available liquidity under our Otter Tail Corporation and Otter Tail Power credit facilities, respectively, along with $348.4 million of available cash and cash equivalents, resulting in total available liquidity of $658.9 million.

SEGMENT PERFORMANCE

Electric Segment

Three Months Ended March 31,

($ in thousands)

2026

2025

Change

% Change

Operating Revenues

$

165,870

$

149,720

$

16,150

10.8

%

Net Income

35,250

24,708

10,542

42.7

Retail MWh Sales

1,715,724

1,673,004

42,720

2.6

%

Heating Degree Days

3,155

3,451

(296

)

(8.6

)

The following table shows heating degree days as a percent of normal.

Three Months Ended March 31,

2026

2025

Heating Degree Days

92.2

%

100.9

%

The following table summarizes the estimated effect on diluted earnings per share of the difference in retail kilowatt-hour (kwh) sales under actual weather conditions and expected retail kwh sales under normal weather conditions for the three months ended March 31, 2026 and 2025.

2026 vs Normal

2026 vs

2025

2025 vs Normal

Effect on Diluted Earnings Per Share

$

(0.05

)

$

(0.05

)

$

—

Operating Revenues increased $16.2 million driven by higher retail revenues due to increased rates, higher fuel recovery revenues, increased commercial sales volumes and the recovery of our investments through riders. These increases were partially offset by the impact of unfavorable weather and higher production tax credits, the benefit of which is provided to customers.

Interim rates in Minnesota and South Dakota became effective in January 2026 and December 2025, respectively, and updated base rates in North Dakota went into effect in March 2025. Higher fuel recovery revenues resulted from increased generation from our natural gas and coal-fired facilities. Finally, we benefited from the recovery of our significant rate base investments over the past twelve months, including investments in our wind repowering and solar facility projects.

Net Income increased $10.5 million primarily due to higher retail revenues, partially offset by higher operating and maintenance expenses, including increased labor costs, as well as higher depreciation and interest expense associated with our rate base investments.

Manufacturing Segment

Three Months Ended March 31,

(in thousands)

2026

2025

$ Change

% Change

Operating Revenues

$

89,559

$

81,685

$

7,874

9.6

%

Net Income

4,283

1,532

2,751

179.6

Operating Revenues increased $7.9 million primarily due to a 5% increase in steel costs, which are passed on to customers, and a 4% increase in sales volumes. Demand improved in certain markets we serve, including the construction and recreational vehicle markets, compared to softer demand and tighter inventory management efforts during the same period last year.

Net Income increased $2.8 million primarily due to higher margins resulting from the mix of products sold, improved production efficiencies and a cost structure aligned with current demand levels. Higher sales volumes also contributed to the increase in earnings. The impact of higher margins and sales volumes was partially offset by higher general and administrative expenses.

Plastics Segment

Three Months Ended March 31,

(in thousands)

2026

2025

$ Change

% Change

Operating Revenues

$

91,597

$

105,948

$

(14,351

)

(13.5

)%

Net Income

32,940

43,439

(10,499

)

(24.2

)

Operating Revenues decreased $14.4 million primarily due to a 19% decrease in average sales prices compared with the same period last year, continuing the multi‑year decline in product pricing from peak levels in late 2022. This decrease was partially offset by a 7% increase in sales volumes. Sales volumes benefited from the opportunistic sale of specialty pipe during the period. Late in the quarter, we also benefited from distributor and contractor demand as they sought to secure inventories in advance of potential PVC resin cost increases.

Net Income decreased $10.5 million as a result of decreased sales prices, partially offset by the increase in sales volumes and a 12% decrease in PVC resin and other input material costs.

Corporate

Three Months Ended March 31,

(in thousands)

2026

2025

$ Change

% Change

Net Income (Loss)

$

137

$

(1,580

)

$

1,717

n/m

Net Income improved $1.7 million compared to the same period last year, primarily driven by a higher tax benefit and lower employee healthcare claims under our self-insured healthcare program. These improvements were partially offset by market-driven losses on our corporate-owned life insurance investments.

2026 OUTLOOK

We continue to anticipate 2026 diluted earnings per share to be in the range of $5.22 to $5.62. We expect our earnings mix in 2026 to be approximately 49% from our Electric segment and 51% from our Manufacturing and Plastics segments, net of corporate costs. Our anticipated earnings mix in 2026 deviates from our long-term expected earnings mix of 70% Electric and 30% Non-Electric as we expect Plastics segment earnings to remain elevated in 2026 compared to our long-term view of normal earnings for this segment.

The segment components of our 2026 diluted earnings per share guidance compared with actual earnings for 2025 are as follows:

2025 EPS

by Segment

2026 EPS Guidance

Low

High

Electric

$

2.32

$

2.61

$

2.69

Manufacturing

0.27

0.26

0.32

Plastics

4.05

2.49

2.71

Corporate

(0.09

)

(0.14

)

(0.10

)

Total

$

6.55

$

5.22

$

5.62

Return on Equity

15.6

%

11.5

%

12.3

%

CONFERENCE CALL AND WEBCAST

The corporation will host a live webcast on Tuesday, May 5, 2026 at 10:00 a.m. CT to discuss its financial and operating performance.

The presentation will be posted on our website before the webcast. To access the live webcast, go to www.ottertail.com/presentations and select “Webcast.” Please allow time prior to the call to visit the site and download any software needed to listen in. An archived copy of the webcast will be available on our website shortly after the call.

If you are interested in asking a question during the live webcast, visit and follow the link provided in the press release announcing the upcoming conference call.

FORWARD-LOOKING STATEMENTS

Except for historical information contained here, the statements in this release are forward-looking and made pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. The words “anticipate,” “believe,” “can,” “confident,” “could,” “estimate,” “expect,” “future,” “goal,” “intend,” “likely,” “may,” “optimistic,” “opportunity,” “outlook,” “plan,” “possible,” “position,” “potential,” “predict,” “probable,” “projected,” “should,” “target,” “will,” “would” and similar words and expressions are intended to identify forward-looking statements. Such statements are based upon the current beliefs and expectations of management. Forward-looking statements made herein, which may include statements regarding 2026 earnings and earnings per share, long-term earnings, earnings-per-share growth and earnings mix, anticipated levels of energy generation from renewable resources, anticipated reductions in carbon dioxide emissions, future investments and capital expenditures, rate base levels and rate base growth, future raw materials costs, future raw materials availability and supply constraints, future operating revenues and operating results, and expectations regarding regulatory proceedings, as well as other assumptions and statements, involve known and unknown risks and uncertainties that may cause our actual results in current or future periods to differ materially from the forecasted assumptions and expected results. The Company’s risks and uncertainties include, among other things, uncertainty of future investments and capital expenditures; rate base levels and rate base growth; risks associated with energy markets; the availability and pricing of resource materials; inflationary cost pressures; attracting and maintaining a qualified and stable workforce; changing macroeconomic and industry conditions that impact the demand for our products, pricing and margin; long-term investment risk; seasonal weather patterns and extreme weather events; future business volumes with key customers; reductions in our credit ratings; our ability to access capital markets on favorable terms; assumptions and costs relating to funding our employee benefit plans; our subsidiaries’ ability to make dividend payments; cybersecurity threats or data breaches; the impact of government executive orders, legislation and regulation including foreign trade policy; environmental, health and safety laws and regulations; changes in tax laws and regulations; the impact of climate change including compliance with legislative and regulatory changes to address climate change; expectations regarding regulatory proceedings, assigned service areas, the construction of major facilities, capital structure, and allowed customer rates; actual and threatened claims or litigation; and operational and economic risks associated with our electric generating and manufacturing facilities. These and other risks are more fully described in our filings with the Securities and Exchange Commission, including our most recently filed Annual Report on Form 10-K, as updated in subsequently filed Quarterly Reports on Form 10-Q, as applicable. Forward-looking statements speak only as of the date they are made, and we expressly disclaim any obligation to update any forward-looking information.

Category: Earnings

About the Corporation: Otter Tail Corporation, a member of the S&P SmallCap 600 Index, has interests in diversified operations that include an electric utility and manufacturing businesses. Otter Tail Corporation stock trades on the Nasdaq Global Select Market under the symbol OTTR. The latest investor and corporate information is available at www.ottertail.com. Corporate offices are in Fergus Falls, Minnesota, and Fargo, North Dakota.

OTTER TAIL CORPORATION

CONSOLIDATED STATEMENTS OF INCOME (unaudited)

  Three Months Ended March 31,

(in thousands, except per-share amounts)

2026

2025

Operating Revenues

Electric

$

165,870

$

149,720

Product Sales

181,156

187,633

Total Operating Revenues

347,026

337,353

Operating Expenses

Electric Production Fuel

20,773

14,321

Electric Purchased Power

27,013

30,870

Electric Operating and Maintenance Expense

50,255

48,881

Cost of Products Sold (excluding depreciation)

107,536

104,387

Nonelectric Selling, General, and Administrative Expenses

21,771

21,292

Depreciation and Amortization

29,979

29,375

Electric Property Taxes

4,462

4,228

Total Operating Expenses

261,789

253,354

Operating Income

85,237

83,999

Other Income and (Expense)

Interest Expense

(12,636

)

(11,553

)

Nonservice Components of Postretirement Benefits

443

1,282

Other Income (Expense), net

4,442

4,456

Income Before Income Taxes

77,486

78,184

Income Tax Expense

4,876

10,085

Net Income

$

72,610

$

68,099

Weighted-Average Common Shares Outstanding:

Basic

41,904

41,826

Diluted

42,071

42,062

Earnings Per Share:

Basic

$

1.73

$

1.63

Diluted

$

1.73

$

1.62

OTTER TAIL CORPORATION

CONSOLIDATED BALANCE SHEETS (unaudited)

  March 31,

December 31,

(in thousands)

2026

2025

Assets

Current Assets

Cash and Cash Equivalents

$

348,354

$

386,193

Receivables, net of allowance for credit losses

183,215

145,496

Inventories

157,055

158,598

Investments

54,887

54,311

Regulatory Assets

25,431

20,437

Other Current Assets

30,018

34,690

Total Current Assets

798,960

799,725

Noncurrent Assets

Investments

78,684

78,823

Property, Plant and Equipment, net of accumulated depreciation

3,064,991

2,876,685

Regulatory Assets

86,942

86,062

Intangible Assets, net of accumulated amortization

4,381

4,642

Goodwill

37,572

37,572

Other Noncurrent Assets

81,279

80,770

Total Noncurrent Assets

3,353,849

3,164,554

Total Assets

$

4,152,809

$

3,964,279

Liabilities and Shareholders' Equity

Current Liabilities

Short-Term Debt

$

67,971

$

60,242

Current Maturities of Long-Term Debt

79,964

79,951

Accounts Payable

132,821

93,606

Accrued Salaries and Wages

27,875

35,666

Accrued Taxes

19,414

18,460

Regulatory Liabilities

19,102

16,600

Other Current Liabilities

44,734

46,433

Total Current Liabilities

391,881

350,958

Noncurrent Liabilities and Deferred Credits

Pension Benefit Liability

32,189

32,376

Other Postretirement Benefits Liability

32,128

31,813

Regulatory Liabilities

302,075

297,398

Deferred Income Taxes

307,852

305,931

Deferred Tax Credits

14,281

14,321

Other Noncurrent Liabilities

101,447

106,156

Total Noncurrent Liabilities and Deferred Credits

789,972

787,995

Commitments and Contingencies

Capitalization

Long-Term Debt

1,063,164

963,566

Shareholders’ Equity

Common Shares

209,768

209,528

Additional Paid-In Capital

431,829

434,195

Retained Earnings

1,265,926

1,217,567

Accumulated Other Comprehensive Income

269

470

Total Shareholders' Equity

1,907,792

1,861,760

Total Capitalization

2,970,956

2,825,326

Total Liabilities and Shareholders' Equity

$

4,152,809

$

3,964,279

OTTER TAIL CORPORATION

CONSOLIDATED STATEMENTS OF CASH FLOWS (unaudited)

  Three Months Ended March 31,

(in thousands)

2026

2025

Operating Activities

Net Income

$

72,610

$

68,099

Adjustments to Reconcile Net Income to Net Cash Provided by Operating Activities:

Depreciation and Amortization

29,979

29,375

Deferred Tax Credits

(40

)

(192

)

Deferred Income Taxes

977

1,797

Investment Losses

1,646

37

Stock Compensation Expense

6,380

5,758

Other, net

(1,565

)

(969

)

Change in Operating Assets and Liabilities:

Receivables

(37,719

)

(38,087

)

Inventories

1,829

1,526

Regulatory Assets

(1,856

)

(3,091

)

Other Assets

7,046

5,732

Accounts Payable

2,979

(16,360

)

Accrued and Other Liabilities

(17,886

)

(13,888

)

Regulatory Liabilities

6,651

1,652

Pension and Other Postretirement Benefits

(420

)

(1,920

)

Net Cash Provided by Operating Activities

70,611

39,469

Investing Activities

Capital Expenditures

(185,281

)

(58,012

)

Proceeds from Disposal of Noncurrent Assets

2,966

1,276

Purchases of Investments and Other Assets

(4,693

)

(4,175

)

Net Cash Used in Investing Activities

(187,008

)

(60,911

)

Financing Activities

Net Borrowings (Repayments) of Short-Term Debt

7,729

(10,762

)

Proceeds from Issuance of Long-Term Debt

100,000

50,000

Dividends Paid

(24,251

)

(22,003

)

Payments for Shares Withheld for Employee Tax Obligations

(3,973

)

(3,134

)

Other, net

(947

)

(2,496

)

Net Cash Provided by Financing Activities

78,558

11,605

Net Change in Cash and Cash Equivalents

(37,839

)

(9,837

)

Cash and Cash Equivalents at Beginning of Period

386,193

294,651

Cash and Cash Equivalents at End of Period

$

348,354

$

284,814

OTTER TAIL CORPORATION

SEGMENT RESULTS (unaudited)

  Three Months Ended March 31,

(in thousands)

2026

2025

Operating Revenues

Electric

$

165,870

$

149,720

Manufacturing

89,559

81,685

Plastics

91,597

105,948

Total Operating Revenues

$

347,026

$

337,353

Operating Income (Loss)

Electric

$

39,922

$

29,043

Manufacturing

6,129

2,426

Plastics

44,703

58,876

Corporate

(5,517

)

(6,346

)

Total Operating Income

$

85,237

$

83,999

Net Income (Loss)

Electric

$

35,250

$

24,708

Manufacturing

4,283

1,532

Plastics

32,940

43,439

Corporate

137

(1,580

)

Total Net Income

$

72,610

$

68,099

Otter Tail Corporation (OTTR) Q1 2026 Earnings Call Transcript