OTTR · Otter Tail Corporation

Otter Tail Corporation reported strong first-quarter 2026 results, with diluted EPS of $1.73 compared to $1.23 in the same period last year, driven by robust performance across its Electric and Manufacturing segments. Electric segment net income increased 42.7% to $35.3 million, benefiting from higher retail revenues due to interim rate increases in Minnesota and South Dakota, higher fuel recovery revenues, and recovery of rate base investments. Manufacturing net income surged 179.6% to $4.3 million, supported by improved sales volumes in construction and recreational vehicle markets, cost management, and favorable product mix. The Plastics segment saw net income decline 24.2% to $32.9 million as average sales prices continued to recede, partially offset by higher sales volumes and lower input costs. The company affirmed its 2026 diluted EPS guidance range of $5.22 to $5.62, with an expected earnings mix of 49% from Electric and 51% from Manufacturing and Plastics, net of corporate costs. Management highlighted progress on regulatory priorities, including approval of the South Dakota rate case and implementation of interim rates in Minnesota, as well as completion of the wind repowering project and solar panel procurement to mitigate tariff risks. The Board declared a quarterly dividend of $0.5775 per share, reflecting confidence in the company's financial position and outlook.