Otter Tail Corporation (OTTR) AI Stock Analysis

Otter Tail Corporation operates through three primary segments: Electric, Manufacturing, and Plastics across the United States. Its Electric segment produces, transmits, distributes, and sells electric energy in Minnesota, North Dakota, and South Dakota, serving approximately 133,000 customers from coal, wind, hydro, and natural gas sources. The Manufacturing segment engages in contract machining, metal parts stamping, fabrication, painting, plastic thermoformed horticultural containers, and life science packaging. The Plastics segment manufactures polyvinyl chloride (PVC) pipes used in municipal water systems, rural water supplies, wastewater management, storm drainage, and water reclamation systems.

Between FY2020 and FY2025, Otter Tail recorded a 5-year revenue CAGR of 7.9%. Annual revenue expanded 34.5% in FY2021 to $1.20B and 22.0% in FY2022 to $1.46B, before declining 7.6% in FY2023 to $1.35B, 1.4% in FY2024 to $1.33B, and 2.0% in FY2025 to $1.30B. Net margin expanded from 14.8% in FY2021 to 22.7% in FY2024, but gross margin contracted to 27.8% in FY2025, bringing net income to $275.9M and EPS to $6.56. Over the trailing twelve months, revenue was $1.32B with an operating margin of 24.0%. For the latest quarter ended June 30, 2026, quarterly revenue grew 0.4% year-over-year while quarterly earnings increased 6.8%.

As of June 30, 2026, Otter Tail had $407.2M in cash and short-term investments against total debt of $1.27B, leaving net debt at $859.5M. Total assets stood at $4.29B and shareholders' equity was $1.88B, alongside a current ratio of 1.71 and a debt-to-equity ratio of 0.67. During FY2025, the company generated $386.0M in operating cash flow and $97.9M in free cash flow. Capital allocation in FY2025 included $288.1M in capital expenditures, $88.1M in dividends paid, and $3.1M in share buybacks.

At a last close of $90.13, Otter Tail has a market cap of $3.78B and an enterprise value of $4.68B. Its trailing P/E of 19.5x and forward P/E of 16.1x compare to medians of 24.8x and 17.2x for its US-listed Industrials peers. Its EV-to-EBITDA multiple is 12.6x versus the peer median of 13.9x, while its price-to-sales multiple of 2.9x sits above the peer median of 1.5x. Over the past year, Otter Tail returned 20.4%, ahead of the S&P 500's return of 16.8%, though its 5-year return of 74.4% trailed the index's 83.0%.

Otter Tail pays a quarterly dividend with an annual forward payout of $2.26 per share, yielding 2.50%. The company has paid dividends for 42 consecutive years and generated a 5-year annualized dividend growth rate of 7.2%. Its dividend payout ratio stands at 34.9%, and its last ex-dividend date was August 14, 2026.

Wall Street coverage consists of 4 Hold ratings, with 0 Buy and 0 Sell ratings. The mean price target of $90.50 implies a 0.4% premium relative to the last close of $90.13. For the fiscal year ending December 31, 2026, consensus estimates anticipate revenue of $1.32B and EPS of $6.08, representing a 7.2% decline in earnings. Analysts project EPS to fall another 12.3% to $5.33 in the following fiscal year. Otter Tail beat EPS estimates in 2 of the last 4 quarters, with its next earnings date scheduled for November 2, 2026.

This page is an AI-written research summary of Otter Tail Corporation (OTTR). The text was generated on October 30, 2026 from Quotelinks data as of October 16, 2026 (company profile, annual results, latest balance sheet, valuation, price performance and analyst estimates). An automatic check rejects any draft that contains a figure not found in that data. It is not investment advice; verify figures on the linked tabs before making decisions.

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