Otter Tail Corporation (OTTR) Stock Analysis

Otter Tail Corporation's Electric segment contributed 43% of consolidated operating revenues in 2025, serving approximately 134,000 customers across western Minnesota, eastern North Dakota, and northeastern South Dakota through Otter Tail Power Company (OTP). The Manufacturing segment — BTD Manufacturing and T.O. Plastics — and the Plastics segment — Northern Pipe Products and Vinyltech — contributed the remaining revenue. The company employed 2,198 full-time employees as of December 31, 2025, with OTP accounting for 726. The long-term earnings mix target is approximately 70% from Electric and 30% from Manufacturing Platform.

OTP operates as a vertically integrated regulated monopoly, earning retail revenues at rates approved by the Minnesota Public Utilities Commission, North Dakota Public Service Commission, and South Dakota Public Utilities Commission, plus wholesale electricity and transmission revenues. Two customers combined accounted for 16% of Electric segment revenues in 2025. In the Manufacturing segment, three customers combined accounted for 44% of segment operating revenues, while in the Plastics segment, two customers accounted for 47% of segment operating revenues. PVC resin — the primary material input for the Plastics segment — is sourced predominantly from Gulf Coast region producers, a geography subject to hurricane disruption risk. Coal is the principal fuel for the jointly owned Big Stone Plant and Coyote Station baseload plants; Coyote Station's coal supply is sourced under a requirements contract requiring all coal necessary for plant operation to be purchased from a single counterparty through 2040.