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Otter Tail Q3 EPS falls on weakness in electric and plastics segments, narrows FY outlook

By Reuters News


Overview

  • US utility and manufacturing firm's Q3 diluted EPS fell yr/yr to $1.41

  • Q3 operating revenue declined 1.6% yr/yr

  • Company affirmed midpoint and narrowed range of 2026 annual earnings guidance


Outlook

  • Otter Tail narrows 2026 diluted EPS guidance to $3.89-$4.19

  • Company maintains midpoint and narrows 2026 adjusted diluted EPS guidance to $5.73-$6.03

  • Company says inflationary cost pressures and rising customer demand remain challenges


Result Drivers

  • ELECTRIC SEGMENT - Revenue fell mainly due to lower fuel recovery revenues and higher production tax credits, partially offset by rate increases and favorable weather

  • PLASTICS SEGMENT - Lower sales volumes and declining PVC pipe prices, along with softer housing market, weighed on results

  • MANUFACTURING SEGMENT - Higher sales volumes and improved end market demand drove revenue growth


Company press release:


Key Details

Metric

Beat/Miss

Actual

Consensus Estimate

Q3 EPS

$1.41


Analyst Coverage

  • The current average analyst rating on the shares is "hold" and the breakdown of recommendations is no "strong buy" or "buy", 5 "hold" and no "sell" or "strong sell"

  • The average consensus recommendation for the electric utilities peer group is "buy."

  • Wall Street's median 12-month price target for Otter Tail Corporation is $86.00, about 4.8% below its October 30 closing price of $90.35

  • The stock recently traded at 17 times the next 12-month earnings vs. a P/E of 16 three months ago


Reuters Recommended Reads

  • Nov 2 - Utility holding company PSEG Q3 revenue falls, maintains 2026 guidance

  • Nov 2 - Entergy Q3 profit beats estimates on retail sales; raises dividend

  • Oct 31 - Power bills and data centers cast rare spotlight on utilities in US midterms


For questions concerning the data in this report, contact Estimates.Support@lseg.com. For any other questions or feedback, contact reuters.support@thomsonreuters.com.


(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)

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