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[8-K] Otter Tail Corp Reports Material Event

Filing Impact
(High)
Filing Sentiment
(Neutral)
Form Type
8-K

Rhea-AI Filing Summary

Otter Tail Corporation reported solid first quarter 2026 results, with diluted earnings per share of $1.73, up from $1.62 a year earlier, and net income of $72.6 million. Total operating revenues rose to $347.0 million from $337.4 million, driven by strong Electric and Manufacturing performance.

The Electric segment increased net income to $35.3 million on higher rates and fuel recovery, while Manufacturing nearly tripled net income to $4.3 million. Plastics remained highly profitable with $32.9 million of net income despite lower pricing. Trailing twelve‑month return on equity was 15%.

Management affirmed its 2026 diluted EPS guidance range of $5.22–$5.62 and a targeted long‑term EPS growth rate of 7–9%. The board declared a quarterly dividend of $0.5775 per share, payable June 10, 2026, and the company ended the quarter with total available liquidity of $658.9 million.

Positive

  • None.

Negative

  • None.
Item 2.02 Results of Operations and Financial Condition Financial
Disclosure of earnings results, typically an earnings press release or preliminary financials.
Item 9.01 Financial Statements and Exhibits Exhibits
Financial statements, pro forma financial information, and exhibit attachments filed with this report.
Total Operating Revenues $347.0M Three months ended March 31, 2026
Net Income $72.6M Three months ended March 31, 2026
Diluted EPS $1.73 Q1 2026, up from $1.62 in Q1 2025
2026 EPS Guidance $5.22–$5.62 Full‑year 2026 diluted earnings per share range
Return on Equity 15% Trailing twelve months ended March 31, 2026
Operating Cash Flow $70.6M Net cash provided by operating activities, Q1 2026
Capital Expenditures $185.3M Investing activities, largely Electric segment, Q1 2026
Quarterly Dividend $0.5775/share Declared May 4, 2026, payable June 10, 2026
diluted earnings per share financial
"Produced diluted earnings per share of $1.73 in the first quarter of 2026."
Diluted earnings per share is a measure of a company's profit allocated to each share of stock, taking into account all possible shares that could be created through stock options, convertible bonds, or other securities. It shows the lowest possible earnings per share if all these potential shares were issued, helping investors understand the worst-case scenario for their ownership. This figure matters because it provides a more conservative view of a company's profitability per share.
return on equity financial
"Return on equity of 15% over the trailing twelve months."
Return on equity shows how effectively a company uses its shareholders' money to generate profit. It is calculated by dividing the company's net profit by its shareholders' equity, indicating how much profit is earned for each dollar invested by owners. Higher return on equity suggests the company is good at turning investments into earnings, which can be an important factor for investors assessing its profitability and efficiency.
rate base growth financial
"customer-focused rate base growth plan. We obtained approval of our fully settled South Dakota rate case"
interim rates financial
"We also implemented interim rates at the start of the year for our ongoing Minnesota rate case."
heating degree days financial
"The following table shows heating degree days as a percent of normal."
Heating degree days (HDD) measure how cold a location is over time by adding up how many degrees the daily average temperature falls below a set comfortable threshold (commonly 65°F/18°C); each degree below that threshold for one day counts as one HDD. Investors use HDD to gauge likely demand for heating fuels, utility revenues, and seasonal sales—think of it like counting “cold units” that predict how much heating activity and related spending to expect.
capital expenditures financial
"Investing activities for the three months ended March 31, 2026 included capital expenditures of $185.3 million."
Capital expenditures are the money a company spends to buy or improve big assets like buildings, equipment, or machines that will last a long time. These investments matter because they help the company grow and operate more efficiently, similar to how upgrading a home’s appliances or adding a new room can make it better and more valuable.
Total Operating Revenues $347,026,000
Net Income $72,610,000
Diluted EPS $1.73
Return on Equity 15%
2026 EPS Guidance $5.22–$5.62
Guidance

The company reaffirmed 2026 diluted EPS guidance of $5.22 to $5.62 and targets long-term EPS growth of 7–9% with a total shareholder return of 10–12%.

0001466593false00014665932026-05-042026-05-04

UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
FORM 8-K
CURRENT REPORT
Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934
Date of report (Date of earliest event reported): May 4, 2026
OTTER TAIL CORPORATION
(Exact name of registrant as specified in its charter)
Minnesota
(State or other jurisdiction of incorporation or organization)
0-53713
(Commission File Number)
27-0383995
(I.R.S. Employer Identification No.)
215 South Cascade StreetP.O. Box 496Fergus FallsMN 56538-0496
(Address of principal executive offices, including zip code)
(866410-8780
(Registrant’s telephone number, including area code)
Not Applicable
(Former name or former address, if changed since last report)
Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:
 Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)
 Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)
 Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))
 Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))
Securities registered pursuant to Section 12(b) of the Securities Exchange Act of 1934:
Title of each classTrading Symbol(s)Name of each exchange on which registered
Common Shares, par value $5.00 per shareOTTRThe Nasdaq Stock Market LLC
Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 or Rule 12b-2 of the Securities Exchange Act of 1934.
Emerging growth company
If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act.  ☐



Item 2.02    Results of Operations and Financial Condition
On May 4, 2026 Otter Tail Corporation issued a press release announcing its consolidated financial results for the first quarter of 2026. A copy of the press release is furnished herewith as Exhibit 99.1.
The information in this Item 2.02 (including Exhibit 99.1 attached hereto) shall not be deemed "filed" for purposes of Section 18 of the Securities Exchange Act of 1934, nor shall it be deemed incorporated by reference in any filing under the Securities Act of 1933 or the Securities Exchange Act of 1934, except as shall be expressly set forth by specific reference in such filing.
Item 9.01    Financial Statements and Exhibits
(d)
Exhibits
99.1
Press Release issued May 4, 2026.
104Cover Page Interactive Data File (embedded within the Inline XBRL document).



SIGNATURE
Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.
OTTER TAIL CORPORATION
Date: May 5, 2026
By:/s/ Tyler J. Nelson
Tyler J. Nelson
Vice President and Chief Financial Officer


Press Release
image4.jpg
May 4, 2026
Otter Tail Corporation Announces First Quarter Earnings and Affirms 2026 EPS Guidance
FERGUS FALLS, Minnesota - Otter Tail Corporation (Nasdaq: OTTR) today announced financial results for the quarter ended March 31, 2026.
SUMMARY
Produced diluted earnings per share of $1.73 in the first quarter of 2026.
Return on equity of 15% over the trailing twelve months.
Affirmed 2026 diluted earnings per share guidance range of $5.22 to $5.62.
CEO OVERVIEW
"We are pleased with our first quarter financial results and are well positioned to achieve our financial objectives for the year,” said CEO Chuck MacFarlane. “Across our businesses, our team members executed on our near-term priorities for the benefit of our customers and shareholders.
“Otter Tail Power delivered on our regulatory priorities while making significant progress on our customer-focused rate base growth plan. We obtained approval of our fully settled South Dakota rate case in the first quarter and implemented our new base rates at the beginning of April. We also implemented interim rates at the start of the year for our ongoing Minnesota rate case.
“We completed our wind repowering project earlier this year on budget despite weather-related headwinds delaying the in-service timing. We continue to make progress on our solar, battery storage and large regional transmission projects. Our team members secured the solar panels needed for our two solar development projects during the first quarter, eliminating tariff-related risk and avoiding the potential cost increase for the benefit of our customers.
“We are pleased with the results produced by our Manufacturing segment businesses as our team members’ cost-management efforts over the past year positively contributed to our quarterly results. We are also encouraged by increasing sales volumes in several of our end markets.
“Our Plastics segment businesses benefitted from better-than-expected demand for our products while average sales prices continued to recede in line with our expectations. We completed the second phase of our Vinyltech expansion project earlier this year and look forward to leveraging the additional production capacity. With the conclusion of the second phase, this completes a multi-year expansion project that added 15 percent of additional production capacity, and increased manufacturing space and raw material storage capabilities. This investment will allow us to better serve our customers, pursue growth opportunities and enhance our employee experience.
“We are maintaining our 2026 diluted earnings per share guidance range of $5.22 to $5.62. The fundamentals of our diversified portfolio remain strong, and we are confident in our ability to deliver on our customer-focused growth plan over the long term. Our targeted long-term earnings per share growth rate is 7 to 9 percent, with a total shareholder return of 10 to 12 percent.”
QUARTERLY DIVIDEND
On May 4, 2026, the corporation’s Board of Directors declared a quarterly common stock dividend of $0.5775 per share. This dividend is payable on June 10, 2026 to shareholders of record on May 15, 2026.
CASH FLOWS AND LIQUIDITY
Our consolidated cash provided by operating activities for the three months ended March 31, 2026 was $70.6 million compared to $39.5 million for the three months ended March 31, 2025. The increase in cash provided by operating activities was primarily due to a decrease in working capital requirements, largely driven by the timing of vendor payments and the recovery of fuel cost and rider revenue from our utility customers.
Investing activities for the three months ended March 31, 2026 included capital expenditures of $185.3 million. Our capital investments were largely within our Electric segment and included investments in our solar, wind repowering and other projects.
Financing activities for the three months ended March 31, 2026 included the issuance of $100.0 million of long-term debt by Otter Tail Power; the proceeds of which were used to repay short-term borrowings, fund capital investments and support operating activities. Financing activities for the period also included net short-term borrowings totaling $7.7 million and dividend payments of $24.3 million.
As of March 31, 2026 we had $170.0 million and $140.5 million of available liquidity under our Otter Tail Corporation and Otter Tail Power credit facilities, respectively, along with $348.4 million of available cash and cash equivalents, resulting in total available liquidity of $658.9 million.




SEGMENT PERFORMANCE
Electric Segment
Three Months Ended March 31,
($ in thousands)20262025Change% Change
Operating Revenues$165,870 $149,720 $16,150 10.8 %
Net Income35,250 24,708 10,542 42.7 
Retail MWh Sales1,715,724 1,673,004 42,720 2.6 %
Heating Degree Days3,155 3,451 (296)(8.6)
The following table shows heating degree days as a percent of normal.
Three Months Ended March 31,
20262025
Heating Degree Days
92.2 %100.9 %
The following table summarizes the estimated effect on diluted earnings per share of the difference in retail kilowatt-hour (kwh) sales under actual weather conditions and expected retail kwh sales under normal weather conditions for the three months ended March 31, 2026 and 2025.
 2026 vs Normal2026 vs
 2025
2025 vs Normal
Effect on Diluted Earnings Per Share$(0.05)$(0.05)$— 
Operating Revenues increased $16.2 million driven by higher retail revenues due to increased rates, higher fuel recovery revenues, increased commercial sales volumes and the recovery of our investments through riders. These increases were partially offset by the impact of unfavorable weather and higher production tax credits, the benefit of which is provided to customers.
Interim rates in Minnesota and South Dakota became effective in January 2026 and December 2025, respectively, and updated base rates in North Dakota went into effect in March 2025. Higher fuel recovery revenues resulted from increased generation from our natural gas and coal-fired facilities. Finally, we benefited from the recovery of our significant rate base investments over the past twelve months, including investments in our wind repowering and solar facility projects.
Net Income increased $10.5 million primarily due to higher retail revenues, partially offset by higher operating and maintenance expenses, including increased labor costs, as well as higher depreciation and interest expense associated with our rate base investments.
Manufacturing Segment
Three Months Ended March 31,
(in thousands)20262025$ Change% Change
Operating Revenues$89,559 $81,685 $7,874 9.6 %
Net Income4,283 1,532 2,751 179.6 
Operating Revenues increased $7.9 million primarily due to a 5% increase in steel costs, which are passed on to customers, and a 4% increase in sales volumes. Demand improved in certain markets we serve, including the construction and recreational vehicle markets, compared to softer demand and tighter inventory management efforts during the same period last year.
Net Income increased $2.8 million primarily due to higher margins resulting from the mix of products sold, improved production efficiencies and a cost structure aligned with current demand levels. Higher sales volumes also contributed to the increase in earnings. The impact of higher margins and sales volumes was partially offset by higher general and administrative expenses.




Plastics Segment
Three Months Ended March 31,
(in thousands)20262025$ Change% Change
Operating Revenues$91,597 $105,948 $(14,351)(13.5)%
Net Income32,940 43,439 (10,499)(24.2)
Operating Revenues decreased $14.4 million primarily due to a 19% decrease in average sales prices compared with the same period last year, continuing the multi‑year decline in product pricing from peak levels in late 2022. This decrease was partially offset by a 7% increase in sales volumes. Sales volumes benefited from the opportunistic sale of specialty pipe during the period. Late in the quarter, we also benefited from distributor and contractor demand as they sought to secure inventories in advance of potential PVC resin cost increases.
Net Income decreased $10.5 million as a result of decreased sales prices, partially offset by the increase in sales volumes and a 12% decrease in PVC resin and other input material costs.
Corporate
Three Months Ended March 31,
(in thousands)20262025$ Change% Change
Net Income (Loss)
$137 $(1,580)$1,717 n/m
Net Income improved $1.7 million compared to the same period last year, primarily driven by a higher tax benefit and lower employee healthcare claims under our self-insured healthcare program. These improvements were partially offset by market-driven losses on our corporate-owned life insurance investments.
2026 OUTLOOK
We continue to anticipate 2026 diluted earnings per share to be in the range of $5.22 to $5.62. We expect our earnings mix in 2026 to be approximately 49% from our Electric segment and 51% from our Manufacturing and Plastics segments, net of corporate costs. Our anticipated earnings mix in 2026 deviates from our long-term expected earnings mix of 70% Electric and 30% Non-Electric as we expect Plastics segment earnings to remain elevated in 2026 compared to our long-term view of normal earnings for this segment.
The segment components of our 2026 diluted earnings per share guidance compared with actual earnings for 2025 are as follows:
2025 EPS
by Segment
2026 EPS Guidance
LowHigh
Electric$2.32 $2.61 $2.69 
Manufacturing0.27 0.26 0.32 
Plastics4.05 2.49 2.71 
Corporate(0.09)(0.14)(0.10)
Total$6.55 $5.22 $5.62 
Return on Equity15.6 %11.5 %12.3 %
CONFERENCE CALL AND WEBCAST
The corporation will host a live webcast on Tuesday, May 5, 2026 at 10:00 a.m. CT to discuss its financial and operating performance.
The presentation will be posted on our website before the webcast. To access the live webcast, go to www.ottertail.com/presentations and select “Webcast.” Please allow time prior to the call to visit the site and download any software needed to listen in. An archived copy of the webcast will be available on our website shortly after the call.
If you are interested in asking a question during the live webcast, visit and follow the link provided in the press release announcing the upcoming conference call.
FORWARD-LOOKING STATEMENTS
Except for historical information contained here, the statements in this release are forward-looking and made pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. The words “anticipate,” “believe,” “can,” “confident,” “could,” “estimate,” “expect,” “future,” “goal,” “intend,” “likely,” “may,” “optimistic,” “opportunity,” “outlook,” “plan,” “possible,” “position,” “potential,” “predict,” “probable,” “projected,” “should,” “target,” “will,” “would” and similar words and expressions are intended to identify forward-looking statements. Such statements are based upon the current beliefs and expectations of management. Forward-looking statements made herein, which may include statements regarding 2026 earnings and earnings per share, long-term earnings, earnings-per-share growth and earnings mix, anticipated levels of energy generation from renewable resources, anticipated reductions in carbon dioxide emissions, future investments and capital expenditures, rate base levels and rate base growth, future raw materials costs, future raw materials availability and supply constraints, future operating revenues and operating results, and expectations regarding regulatory proceedings, as well as other assumptions and statements, involve known and unknown risks and uncertainties that may cause our actual results in current or future periods to differ materially from the forecasted




assumptions and expected results. The Company’s risks and uncertainties include, among other things, uncertainty of future investments and capital expenditures; rate base levels and rate base growth; risks associated with energy markets; the availability and pricing of resource materials; inflationary cost pressures; attracting and maintaining a qualified and stable workforce; changing macroeconomic and industry conditions that impact the demand for our products, pricing and margin; long-term investment risk; seasonal weather patterns and extreme weather events; future business volumes with key customers; reductions in our credit ratings; our ability to access capital markets on favorable terms; assumptions and costs relating to funding our employee benefit plans; our subsidiaries’ ability to make dividend payments; cybersecurity threats or data breaches; the impact of government executive orders, legislation and regulation including foreign trade policy; environmental, health and safety laws and regulations; changes in tax laws and regulations; the impact of climate change including compliance with legislative and regulatory changes to address climate change; expectations regarding regulatory proceedings, assigned service areas, the construction of major facilities, capital structure, and allowed customer rates; actual and threatened claims or litigation; and operational and economic risks associated with our electric generating and manufacturing facilities. These and other risks are more fully described in our filings with the Securities and Exchange Commission, including our most recently filed Annual Report on Form 10-K, as updated in subsequently filed Quarterly Reports on Form 10-Q, as applicable. Forward-looking statements speak only as of the date they are made, and we expressly disclaim any obligation to update any forward-looking information.
Category: Earnings
About the Corporation: Otter Tail Corporation, a member of the S&P SmallCap 600 Index, has interests in diversified operations that include an electric utility and manufacturing businesses. Otter Tail Corporation stock trades on the Nasdaq Global Select Market under the symbol OTTR. The latest investor and corporate information is available at www.ottertail.com. Corporate offices are in Fergus Falls, Minnesota, and Fargo, North Dakota.
Investor Contacts:    Beth Eiken, Manager of Investor Relations, (701) 451-3571
Media Contact:    Stephanie Hoff, Director of Corporate Communications, (218) 739-8535
# # #




OTTER TAIL CORPORATION
CONSOLIDATED STATEMENTS OF INCOME (unaudited)
Three Months Ended March 31,
(in thousands, except per-share amounts)20262025
Operating Revenues
Electric$165,870 $149,720 
Product Sales181,156 187,633 
Total Operating Revenues347,026 337,353 
Operating Expenses
Electric Production Fuel20,773 14,321 
Electric Purchased Power27,013 30,870 
Electric Operating and Maintenance Expense50,255 48,881 
Cost of Products Sold (excluding depreciation)107,536 104,387 
Nonelectric Selling, General, and Administrative Expenses
21,771 21,292 
Depreciation and Amortization29,979 29,375 
Electric Property Taxes4,462 4,228 
Total Operating Expenses261,789 253,354 
Operating Income85,237 83,999 
Other Income and (Expense)
Interest Expense(12,636)(11,553)
Nonservice Components of Postretirement Benefits443 1,282 
Other Income (Expense), net4,442 4,456 
Income Before Income Taxes77,486 78,184 
Income Tax Expense4,876 10,085 
Net Income$72,610 $68,099 
Weighted-Average Common Shares Outstanding:
Basic41,904 41,826 
Diluted42,071 42,062 
Earnings Per Share:
Basic$1.73 $1.63 
Diluted$1.73 $1.62 




OTTER TAIL CORPORATION
CONSOLIDATED BALANCE SHEETS (unaudited)
March 31,December 31,
(in thousands)20262025
Assets
Current Assets
Cash and Cash Equivalents$348,354 $386,193 
Receivables, net of allowance for credit losses183,215 145,496 
Inventories157,055 158,598 
Investments
54,887 54,311 
Regulatory Assets25,431 20,437 
Other Current Assets30,018 34,690 
Total Current Assets798,960 799,725 
Noncurrent Assets
Investments78,684 78,823 
Property, Plant and Equipment, net of accumulated depreciation3,064,991 2,876,685 
Regulatory Assets86,942 86,062 
Intangible Assets, net of accumulated amortization4,381 4,642 
Goodwill37,572 37,572 
Other Noncurrent Assets81,279 80,770 
Total Noncurrent Assets3,353,849 3,164,554 
Total Assets$4,152,809 $3,964,279 
Liabilities and Shareholders' Equity
Current Liabilities
Short-Term Debt$67,971 $60,242 
Current Maturities of Long-Term Debt79,964 79,951 
Accounts Payable132,821 93,606 
Accrued Salaries and Wages27,875 35,666 
Accrued Taxes19,414 18,460 
Regulatory Liabilities19,102 16,600 
Other Current Liabilities44,734 46,433 
Total Current Liabilities391,881 350,958 
Noncurrent Liabilities and Deferred Credits
Pension Benefit Liability
32,189 32,376 
Other Postretirement Benefits Liability32,128 31,813 
Regulatory Liabilities302,075 297,398 
Deferred Income Taxes307,852 305,931 
Deferred Tax Credits14,281 14,321 
Other Noncurrent Liabilities101,447 106,156 
Total Noncurrent Liabilities and Deferred Credits789,972 787,995 
Commitments and Contingencies
Capitalization
Long-Term Debt1,063,164 963,566 
Shareholders’ Equity
  Common Shares209,768 209,528 
  Additional Paid-In Capital431,829 434,195 
  Retained Earnings1,265,926 1,217,567 
  Accumulated Other Comprehensive Income269 470 
Total Shareholders' Equity1,907,792 1,861,760 
Total Capitalization2,970,956 2,825,326 
Total Liabilities and Shareholders' Equity$4,152,809 $3,964,279 




OTTER TAIL CORPORATION
CONSOLIDATED STATEMENTS OF CASH FLOWS (unaudited)
Three Months Ended March 31,
(in thousands)20262025
Operating Activities
Net Income$72,610 $68,099 
Adjustments to Reconcile Net Income to Net Cash Provided by Operating Activities:
Depreciation and Amortization29,979 29,375 
Deferred Tax Credits(40)(192)
Deferred Income Taxes977 1,797 
Investment Losses
1,646 37 
Stock Compensation Expense6,380 5,758 
Other, net(1,565)(969)
Change in Operating Assets and Liabilities:
Receivables(37,719)(38,087)
Inventories1,829 1,526 
Regulatory Assets(1,856)(3,091)
Other Assets7,046 5,732 
Accounts Payable2,979 (16,360)
Accrued and Other Liabilities(17,886)(13,888)
Regulatory Liabilities6,651 1,652 
Pension and Other Postretirement Benefits(420)(1,920)
Net Cash Provided by Operating Activities70,611 39,469 
Investing Activities
Capital Expenditures(185,281)(58,012)
Proceeds from Disposal of Noncurrent Assets2,966 1,276 
Purchases of Investments and Other Assets(4,693)(4,175)
Net Cash Used in Investing Activities(187,008)(60,911)
Financing Activities
Net Borrowings (Repayments) of Short-Term Debt
7,729 (10,762)
Proceeds from Issuance of Long-Term Debt100,000 50,000 
Dividends Paid(24,251)(22,003)
Payments for Shares Withheld for Employee Tax Obligations(3,973)(3,134)
Other, net(947)(2,496)
Net Cash Provided by Financing Activities
78,558 11,605 
Net Change in Cash and Cash Equivalents(37,839)(9,837)
Cash and Cash Equivalents at Beginning of Period386,193 294,651 
Cash and Cash Equivalents at End of Period$348,354 $284,814 




OTTER TAIL CORPORATION
SEGMENT RESULTS (unaudited)
Three Months Ended March 31,
(in thousands)20262025
Operating Revenues
Electric$165,870 $149,720 
Manufacturing89,559 81,685 
Plastics91,597 105,948 
Total Operating Revenues$347,026 $337,353 
Operating Income (Loss)
Electric$39,922 $29,043 
Manufacturing6,129 2,426 
Plastics44,703 58,876 
Corporate(5,517)(6,346)
Total Operating Income$85,237 $83,999 
Net Income (Loss)
Electric$35,250 $24,708 
Manufacturing4,283 1,532 
Plastics32,940 43,439 
Corporate137 (1,580)
Total Net Income$72,610 $68,099 



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