At a glance
Otter Tail Corporation is worth $3.76B, about 14 times its fiscal 2025 earnings. Revenue fell 2.0% to $1.30B in fiscal 2025, with 21.2% kept as profit; over 5 years it has grown 8.1% a year. It pays a 2.53% dividend yield, raised every year for at least 9 years, and returned $373.0M to shareholders in dividends and buybacks over FY2021–FY2025. The stock returned +17.8% over the past year with dividends reinvested and +10.5% a year over five years, against +11.5% and +11.7% for the S&P 500. At its worst it fell 40.9% in the 2020 crash (S&P 500: 33.7%) and 24.7% in the 2022 bear market (S&P 500: 24.5%), and was back at its earlier high 17 months and 9 months after the lows.
The business in plain English
Otter Tail Corporation is a holding company with five operating companies in three segments. Its primary business is Otter Tail Power, a regulated electric utility dating back to 1907. It serves about 134,000 customers in more than 400 mostly rural communities across western Minnesota, eastern North Dakota and northeastern South Dakota. Most customers cannot choose another supplier. The utility earns money through rates that regulators approve. These rates let it recover its costs and earn a return on the plants and power lines it builds. It also earns money moving power for others and from wholesale power markets.
The other two segments make products. Plastics (Northern Pipe Products and Vinyltech) makes PVC (polyvinyl chloride) pipe at plants in North Dakota and Arizona. The pipe goes mainly into municipal water systems, and most of it ships to the western United States and Canada. Manufacturing (BTD Manufacturing and T.O. Plastics) does metal fabrication and makes heat-shaped plastic products in Georgia, Illinois and Minnesota.
In the year ended December 31, 2025, revenue was about $1.30 billion: Electric 43.5%, Plastics 32.4% and Manufacturing 24.1%. Cash from the product businesses helps fund utility investment. Over time the company aims to earn about 70% of its profit from Electric. Since 2021, strong PVC pipe markets have tilted profits toward Plastics. Management expects those conditions to return to normal gradually through 2027.
Price history
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OTTR +17.8% over the year to Oct 28, 2026, total return with dividends reinvested.
How it makes money
By product or service
| Product Sales | $737.3M | 56.5% |
| Electric | $566.8M | 43.5% |
By business segment
| Electric | $566.8M | 43.5% |
| Plastics | $422.8M | 32.4% |
| Manufacturing | $314.5M | 24.1% |
Latest results
- In Q2 FY2026 (ended Jun 30, 2026), revenue was $334.7M, up 0.5% from a year earlier, and net income was $-7.6M (-109.8%).
- For fiscal 2025, revenue was $1.30B (-2.0% year over year; +8.1% a year from FY2020 to FY2025) with a 21.2% net margin.
Financial health check
| Revenue growth a year (FY2020–FY2025) | +8.1% good |
|---|---|
| Operating margin | 26.5% good |
| Free cash flow margin | 7.5% watch |
| Return on equity (FY2025) | 14.8% watch |
| Return on assets (FY2025) | 7% watch |
| Net cash (cash minus debt) | $-770.4M weak |
| Fiscal year | Revenue | Net income | Free cash flow |
|---|---|---|---|
| FY2020 | $883.2M | $95.9M | $-159.6M |
| FY2021 | $1.20B | $176.8M | $59.4M |
| FY2022 | $1.46B | $284.2M | $218.2M |
| FY2023 | $1.35B | $294.2M | $117.4M |
| FY2024 | $1.33B | $301.7M | $94.1M |
| FY2025 | $1.30B | $275.9M | $97.9M |
Valuation snapshot
| Market value | $3.76B |
|---|---|
| P/E ratio | 13.7 |
| Dividend yield | 2.53% |
Rank among 1514 US companies
Market value at each year end
Otter Tail’s market value went from $1.60B at the end of 2016 to $3.76B on Oct 28, 2026, about 2.3 times as much; since the end of 2025 it is up 11%.
Show as a table
| Year end | Market value | Change |
|---|---|---|
| Oct 28, 2026 | $3.76B | +11.1% |
| 2025 | $3.39B | +9.6% |
| 2024 | $3.09B | -12.9% |
| 2023 | $3.54B | +45.0% |
| 2022 | $2.44B | -17.6% |
| 2021 | $2.97B | +69.6% |
| 2020 | $1.75B | -14.2% |
| 2019 | $2.04B | +3.6% |
| 2018 | $1.97B | +12.0% |
| 2017 | $1.76B | +9.7% |
| 2016 | $1.60B |
Price behavior
| YTD | 1 yr | 3 yr | 5 yr | 10 yr | |
|---|---|---|---|---|---|
| OTTR price data to Oct 28, 2026 | +13.1% | +17.8% | +11.1% | +10.5% | +12.9% |
Show as a table
| Year | Price data |
|---|---|
| 2026 (to date) | +13.1% |
| 2025 | +12.4% |
| 2024 | -11.2% |
| 2023 | +48.1% |
| 2022 | -15.6% |
| 2021 | +72.8% |
| 2020 | -14.0% |
| 2019 | +6.3% |
| 2018 | +15.1% |
| 2017 | +12.4% |
| 2016 | +59.4% |
| 2015 | -10.1% |
| 2014 | +10.2% |
| 2013 | +22.0% |
| 2012 | +19.7% |
| 2011 | +3.3% |
| 2010 | -3.7% |
| 2009 | +12.3% |
| 2008 | -29.8% |
| 2007 | +14.8% |
| 2006 | +11.9% |
| 2008 financial crisis stocks fell Oct 9, 2007 – Mar 9, 2009 | Lost 52.6% over that stretch · deepest drop along the way 65.9%, back to its old high 75.1 months after the low |
|---|---|
| 2020 COVID crash stocks fell Feb 19, 2020 – Mar 23, 2020 | Lost 34.1% over that stretch · deepest drop along the way 40.9%, back to its old high 16.7 months after the low |
| 2022 bear market stocks fell Jan 3, 2022 – Oct 12, 2022 | Lost 8.2% over that stretch · deepest drop along the way 24.7%, back to its old high 9.4 months after the low |
Insider activity
Form 4 filings from 2025-10-29 to 2026-10-29 (25 read): 0 open-market purchases and 3 sales ($394K).
| Date | Insider | Type | Value |
|---|---|---|---|
| Aug 7, 2026 | Paul L Knutson VP, Human Resources | sell | $326K |
| Aug 11, 2026 | Paul L Knutson VP, Human Resources | sell | $45K |
| Aug 10, 2026 | Paul L Knutson VP, Human Resources | sell | $23K |
Who owns it
Large shareholders (13G filings)
| Vanguard Portfolio Management | 7.06% | Mar 31, 2026 |
| Vanguard Capital Management | 5.19% | Mar 31, 2026 |
| STATE STREET CORPORATION | 5.1% | Jun 30, 2026 |
ETFs with the most weight in OTTR
| PSCU Invesco S&P SmallCap Utilities & Communication Services ETF | 4.92% |
| FSCC Federated Hermes MDT Small Cap Core ETF | 0.96% |
| XSLV Invesco S&P SmallCap Low Volatility ETF | 0.78% |
| SDVD FT Vest SMID Rising Dividend Achievers Target Income ETF | 0.66% |
| SDVY First Trust SMID Cap Rising Dividend Achievers ETF | 0.64% |
| EES WisdomTree U.S. SmallCap Fund | 0.46% |
| FVD First Trust Value Line Dividend Index Fund | 0.45% |
| FYT First Trust Small Cap Value AlphaDEX Fund | 0.39% |
What could go wrong
- PVC pipe boom expected to fade. Unusual PVC pipe market conditions since 2021 drove strong growth in Plastics revenue, earnings and cash flow. Management expects those conditions to return to normal through 2027, and Plastics earnings and cash flow to come down.
- Dependence on scarce PVC resin supply. The pipe plants rely on a few vendors and a limited supply of PVC resin, their main raw material. Most is made on the hurricane-prone Gulf Coast. Supply disruptions or resin price swings can hurt results.
- Co-owned coal plants face tougher rules. The utility co-owns coal-fired power plants. Tighter environmental rules could require costly upgrades or make the plants too expensive to run, and it may not recover all those costs. Co-ownership can also make adapting harder.
- Large building plan needs regulator approval. Growth rests on large utility construction projects planned years ahead. Regulators may delay approval or not let the company recover all its costs through rates. Projects can also run over budget or behind schedule.
- Reliance on a few big customers. Two customers made up 16% of Electric segment revenue in 2025. The manufacturing businesses also depend on their customers' plans and end markets. Losing a major customer could hurt results.
- Mild weather and extreme storms. Unusually mild weather cuts power demand, and frozen ground delays construction projects that use PVC pipe. Severe storms, floods or wildfires could damage facilities and cost more than insurance covers.
Recent events
- Executive or board change
- Quarterly results released
- Major agreement signed
- New debt or financial obligation
- Major agreement signed
- Other company announcement
- Quarterly results released
- Shareholder vote results
- Executive or board change; Investor presentation or announcement
- Major agreement signed; New debt or financial obligation
For income and retirement investors
Otter Tail has raised its regular dividend for at least 9 straight years through fiscal 2025. Dividends per share grew from $1.48 in 2020 to $2.10 in 2025, about 7.2% a year. The company aims to raise the dividend 6% to 8% a year. The 2025 dividend used 31.9% of earnings but 89.9% of free cash flow (cash left after capital spending), leaving little to spare. Otter Tail made no share repurchases from 2021 through 2025, and its share count rose 1.1% from October 2021 to July 2026. The yield was 2.53% as of October 28, 2026.
The stock has fallen hard in downturns. It lost 65.9% in the 2008 financial crisis and needed about 75 months to recover. It fell 40.9% in the 2020 COVID crash, recovering in about 17 months. It fell 24.7% in the 2022 bear market, recovering in about 9 months. Single stocks carry more risk than diversified funds, since one company's setbacks can hit both price and dividend.
Questions investors ask
How does Otter Tail make money?
Otter Tail makes money from three businesses. Its utility, Otter Tail Power, provides electricity at regulator-approved rates to about 134,000 customers in western Minnesota, eastern North Dakota and northeastern South Dakota. It brought in 43.5% of revenue in the year ended December 31, 2025. The Plastics segment makes PVC pipe, mainly for municipal water systems, and brought in 32.4%. The Manufacturing segment does metal fabrication and makes heat-shaped plastic products, bringing in 24.1%. Total revenue was about $1.30 billion.
Does Otter Tail raise its dividend every year?
Yes, for at least 9 straight years through fiscal 2025, and the record may go back further. The dividend was $2.10 per share in 2025, up from $1.87 in 2024 and $1.48 in 2020. The company aims for yearly increases of 6% to 8%. The yield was 2.53% as of October 28, 2026. The dividend used 31.9% of 2025 earnings but 89.9% of free cash flow (cash left after capital spending). Earnings cover it more comfortably than spare cash does.
Will Otter Tail's earnings keep growing?
Not in a straight line. In its annual report filed February 18, 2026, management said it expects unusually strong PVC pipe market conditions to return to normal gradually through 2027. That would bring Plastics earnings and cash flow down. After that, it aims for earnings per share growth of 7% to 9% a year. Earnings per share fell from $7.17 in 2024 to $6.55 in 2025. The company reported a net loss of about $7.6 million for the quarter ended June 30, 2026, versus a profit a year earlier.
Is Otter Tail stock as steady as a typical utility stock?
Not entirely. About 56.5% of 2025 revenue came from pipe and manufactured products rather than regulated electricity. So results depend partly on construction and industrial demand. The share price rose 72.8% in 2021 and 48.1% in 2023 but fell 15.6% in 2022 and 11.2% in 2024. It dropped 65.9% in the 2008 financial crisis. Beta measures how closely a stock moves with the overall market. Otter Tail's one-year beta was 0.09 as of October 28, 2026, so its price moved largely on its own over that year.
Which ETFs hold Otter Tail stock?
About 83 ETFs hold Otter Tail shares. Its biggest weight is in the Invesco S&P SmallCap Utilities & Communication Services ETF (PSCU), at 4.92% of the fund. Weights are much smaller elsewhere. Examples are 0.96% in the Federated Hermes MDT Small Cap Core ETF (FSCC), 0.78% in the Invesco S&P SmallCap Low Volatility ETF (XSLV) and 0.64% in the First Trust SMID Cap Rising Dividend Achievers ETF (SDVY). In these funds, Otter Tail is one small piece of a diversified basket.