Otter Tail Corporation (OTTR)
NASDAQUtilitiesConglomeratesSnapshot 2026-09-04
$89.79+0.58%
Close 2026-09-04 · 1-day change
NASDAQUtilitiesConglomeratesSnapshot 2026-09-04
QuarterlyIQ Insights · OTTR
How strong the business is — where it ranks within its sector on capital efficiency and cash generation, and how well management has been executing.
How this business ranks within utilities on a research-validated quality screen. As of 2026-09-04.
The screen ranks OTTR against its sector on four durable signals: share dilution, return on capital, free-cash-flow yield, and FCF margin. Historically the highest-quality names tended toward better typical outcomes and fewer bad years over multi-year holds (strongest at three years, modest at one), and that pattern showed up even before the price moved. It characterizes business quality, not price direction.
Each leg is a sector-relative percentile (higher is better); 3 of 4 legs were available for this name. The composite is built from these four; the raw value follows each percentile for context.
A forward quality tilt, not a price prediction, and context for your own research rather than a recommendation. Not investment advice.
How management runs the business: capital, margins, balance sheet, and how reliably they guide and deliver.
Each factor is a parallel diagnostic with a clear read of what it shows and how names like it have historically fared. Never aggregated into a single score.
Operating income rose in 1 of the last 3 quarter-over-quarter moves. Historically, Utilities names rated weak grew net income 58% of the time over the next year (vs 69% for the rest of the cohort, n=1101).
Not investment advice. Scores describe historical and current data; they are not forecasts of future returns. Consult a licensed advisor before making investment decisions.
A guidance track record builds as the company issues and delivers on guidance.
Priorities management has stated in recent disclosures, with status and evidence drawn from earnings calls, filings, and press releases.
Advance strategic initiatives including regulatory approvals, rate base growth, and capital projects to support customer service and earnings growth.
Stated as a priority in 3 of last 3 quarters. Management highlighted regulatory progress including rate case approvals and transmission project permits, supporting a customer-focused growth plan. Electric segment retail MWh sales grew 2.6% in 2026-Q1 and 4.7% in 2026-Q2, with operating revenues up 10.8% in 2026-Q1 but down 5.8% in 2026-Q2 due to timing and weather. The trajectory shows delivering on regulatory and growth initiatives with some quarterly variability.
“CEO: 'Our team advanced our strategic initiatives during the quarter and delivered on our near-term priorities and growth plan...secured route permits for two large regional transmission projects.'”
“CEO: 'Otter Tail Power delivered on our regulatory priorities while making significant progress on our customer-focused rate base growth plan.'”
“CEO: 'We made significant progress on capital projects including wind repowering, solar development, and large regional transmission projects, while executing regulatory priorities.'”
Resolve ongoing U.S. PVC pipe antitrust litigation through settlement agreements to reduce uncertainty and costs.
Stated as a priority in 2 of last 3 quarters. Management disclosed settlement agreements in 2026-Q2 resolving PVC pipe antitrust litigation with a $103.5 million expense recognized. This reduces legal uncertainty and costs. The priority is newly emphasized in 2026-Q2 with substantive delivery via settlement expense recognition.
Manage capital structure by issuing long-term debt to fund capital investments and repay short-term borrowings.
Stated as a priority in 3 of last 3 quarters. Management consistently issued long-term debt ($100M in 2026-Q1 and $170M in 2026-Q2) to repay short-term borrowings and fund capital investments. This reflects active capital allocation to support operations and growth. The trajectory is delivering as planned.
Sustain financial performance with targeted earnings growth and dividend payments to shareholders.
Stated as a priority in 3 of last 3 quarters. Management targets long-term EPS growth of 7-9% and total shareholder return of 10-12%. Actual annual EPS was $6.55 in 2025, with 2026 guidance lowered to $3.84-$4.24 due to litigation impact. Dividends increased from $0.525 to $0.5775 per share. The trajectory shows mixed delivery with recent EPS guidance reduction but sustained dividend growth.
Implement planned executive leadership transitions to ensure continuity and strong management.
Newly stated in 2026-Q2. Management announced executive leadership transitions including election of Tim Rogelstad as President of Otter Tail Corporation and other key roles to ensure organizational continuity. This is a one-time leadership succession event with no direct financial metrics.
Over the trailing year it converted 0.98x of net income into operating cash flow. Historically, Utilities names rated fragile grew net income 55% of the time over the next year (vs 70% for the rest of the cohort, n=929).
Most sensitive to the broad stock market.
Not enough signal to read sensitivity to real (inflation-adjusted) rates, long-term interest rates, Fed net liquidity, the US dollar (low R² over the window).
14 material management or governance events in the past 24 months, led by capital-allocation actions. Historically, Utilities names rated neutral grew net income 71% of the time over the next year (vs 64% for the rest of the cohort, n=224).
Not investment advice. As of 2026-09-04.
“CEO: 'During the second quarter, we entered into settlement agreements with the three putative classes in the PVC pipe U.S. antitrust litigation...pay $103.5 million.'”
“Material event: 'Putative federal class action lawsuits alleging antitrust violations were filed against Otter Tail and subsidiaries.'”
“Financing activities included issuance of $170 million long-term debt by Otter Tail Power to repay short-term borrowings and fund capital investments.”
“Financing activities included issuance of $100 million long-term debt by Otter Tail Power to repay short-term borrowings and fund capital investments.”
“Financing activities included issuance of $100 million long-term debt at Otter Tail Power to repay short-term borrowings and fund capital investments.”
“CEO: 'We continue to target a long-term earnings per share growth rate of 7 to 9 percent and total shareholder return of 10 to 12 percent.'”
“CEO: 'Our targeted long-term earnings per share growth rate is 7 to 9 percent, with a total shareholder return of 10 to 12 percent.'”
“CEO: 'We continue to target a long-term earnings per share growth rate of 7 to 9 percent, resulting in a total shareholder return of 10 to 12 percent.'”