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OTTR · Analysis updated Nov 10, 2026, 6:00 PM ET
Why is Otter Tail Corporation (OTTR) stock moving?
Otter Tail reported Q3 2026 diluted EPS of $1.41 and sales of $320.5M, both slightly below consensus ($1.47 and $328.0M). Management affirmed the midpoint of 2026 guidance and narrowed the range. The adjusted EPS range of $5.73-$6.03 sits above the $5.43 estimate, while the GAAP range of $3.89-$4.19 sits well below the $4.48 estimate. The weak spot was Plastics, where PVC volumes fell after customers pulled purchases forward and prices kept declining. Manufacturing volumes are recovering and the Minnesota rate case, the integrated resource plan and renewable and transmission projects are ongoing. The stock fell about 9% on Nov 3 on roughly 565K shares, about three times the typical daily volume in the window, and kept sliding to 78.44 on Nov 6, about 14% below the Nov 2 close of 91.51. Since then it has held in a tight 79-80 range while volume has tapered to 255K. The selloff looks largely like a reset to a lower valuation, and the dividend yield at about 2.9% is now higher. Transmission development challenges and the Plastics decline remain open risks, and the next data points are the rate case outcome and Q4 results.
News behind the analysis
- Otter Tail Corporation Announces Third Quarter 2026 ResultsQ3 diluted EPS was $1.41 and the company affirmed the midpoint of its 2026 earnings guidance while narrowing the range. Management cited lower PVC pipe volumes and prices in Plastics, and a quarterly dividend of $0.5775 was declared.
- Otter Tail Q3 EPS $1.41 Misses $1.47 Estimate, Sales $320.513M Miss $327.985M EstimateThird-quarter EPS and revenue both came in below consensus estimates. The miss on both lines was modest, at about 4% on EPS and 2% on sales.
- Otter Tail Narrows FY2026 GAAP EPS Guidance from $3.84-$4.24 to $3.89-$4.19 vs $4.48 EstThe GAAP EPS range was narrowed around an unchanged midpoint, but it sits well below the $4.48 analyst estimate.
- Otter Tail Narrows FY2026 Adj EPS Guidance from $5.68-$6.08 to $5.73-$6.03 vs $5.43 EstAdjusted EPS guidance was narrowed to $5.73-$6.03 with an unchanged midpoint, which is above the $5.43 analyst estimate.
- Otter Tail Q3 2026 Earnings Call TranscriptManagement discussed progress on the Minnesota rate case and the integrated resource plan, pressure from transmission development, and recovering demand in the Manufacturing segment.
About Otter Tail Corp
Otter Tail Corporation is a Fergus Falls, Minnesota–based holding company. It owns Otter Tail Power, a regulated electric utility serving parts of Minnesota, North Dakota and South Dakota, and it also owns manufacturing and PVC pipe businesses. That mix is unusual for a utility: its plastics business has recently earned roughly half of its profits, while most utilities rely almost entirely on regulated power sales.
How it makes money
The company reports three segments. Electric earns regulated revenue from selling and delivering power, and it is the largest segment by revenue. Manufacturing makes metal parts, equipment and plastic products for industrial, agricultural, recreational-vehicle and other customers. Plastics makes PVC pipe, mostly for water, sewer and construction uses. For 2026, management expected about 49% of earnings to come from Electric and about 51% from Manufacturing and Plastics, mainly because PVC pipe profits were unusually high. Its long-term target is roughly 70% Electric and 30% non-electric.
What usually moves OTTR
- PVC pipe prices and resin input costs
- Electric rate case outcomes in Minnesota and the Dakotas
- Utility capital spending and rate base growth
- Industrial and construction demand for manufactured products
- Interest rates and dividend yield appeal