Otter Tail Corp (OTTR) · Nov 3, 2026 · Earnings

Otter Tail earnings miss as Plastics weakness offsets utility stability

Miss — Diluted EPS $1.41 vs ~$1.55 consensus

Otter Tail earnings missed consensus as Plastics prices and volumes fell, while the utility remained stable and full-year guidance held at the midpoint.

Otter Tail is a diversified operator whose long-term story depends on regulated electric rate-base growth cushioning the more cyclical Manufacturing and Plastics businesses. Its utility platform is pursuing roughly $1.9 billion of 2026–2030 capital investment and about 10% rate-base growth, while the industrial businesses are working through softer demand and cost pressure.

The quarter missed the market’s earnings bar. Diluted EPS was $1.41 versus published estimates around $1.55, while revenue was $320.5 million versus roughly $327.9 million expected. That is a clear miss, not merely a year-over-year decline.

The utility did its job, but it could not offset the industrial drag. Electric net income rose slightly despite lower revenue, supported by rate increases, rate-base recovery, favorable weather and renewable-project investment. The filing says, “Net Income increased $0.1 million as the benefits of interim rate increases, favorable weather, the recovery of additional rate base investments, and higher allowance for funds used during construction associated with continued investments in our large solar projects were largely offset by higher operating and maintenance expenses.”

Plastics remains the central weakness. The segment’s earnings fell sharply as average selling prices declined 9%, volumes fell 5%, and resin and other input costs increased 10%. Management had already flagged the volume pull-forward and housing softness, so the direction was known; the quarter confirms that the downturn is still materially eroding profitability. The filing states, “Net Income decreased $14.5 million, primarily due to lower sales prices and volumes, as discussed above, and a 10% increase in PVC resin and other input material costs.”

Manufacturing showed demand recovery without profit recovery. Revenue increased 16.6% and sales volumes rose 13%, but net income dropped 34.4% because higher labor and selling, general and administrative costs and weaker margins absorbed the volume improvement. The filing says, “Sales volumes increased 13%, reflecting improved demand in the construction, recreational vehicle, lawn and garden, and industrial markets.” 〔0〕

Guidance was reaffirmed, but only at the midpoint. The company narrowed its full-year adjusted EPS range to $5.73–$6.03 from $5.68–$6.08, leaving the midpoint unchanged at $5.88. That prevents the quarter from becoming a broader outlook cut, but it does not erase the earnings miss or the fact that nine-month adjusted EPS is down to $4.79 from $5.32. The filing says, “Affirmed the midpoint of our annual earnings guidance and narrowed the range.”

Bottom line: This was a modestly negative quarter: the regulated utility remains on track, but Plastics profitability and Manufacturing margins were weaker than expected. Holding the full-year midpoint limits the damage, yet the current earnings mix is less healthy than the headline guidance suggests.

What to watch next

Minnesota rate-case decision and Q4 earnings report

Original filing on SEC EDGAR

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