Otter Tail Q4 revenue slightly misses analyst expectations on lower sales prices

Overview

• U.S. utility and manufacturing firm's Q4 revenue slightly missed analyst expectations

• Company initiated 2026 EPS guidance range of $5.22 to $5.62

• Electric segment net income rose in Q4, driven by higher sales volumes and favorable weather

Outlook

• Otter Tail initiates 2026 EPS guidance range of $5.22 to $5.62

• Company expects Plastics segment earnings to decline 36% in 2026

• Otter Tail anticipates 14% increase in Electric segment earnings in 2026

Result Drivers

• ELECTRIC SEGMENT - Higher sales volumes and favorable weather contributed to increased net income, despite higher depreciation and interest expenses

• MANUFACTURING SEGMENT - Segment ended year with increased sales volumes as customers replenished inventories, despite earlier soft demand

• PLASTICS SEGMENT - Decline in net income due to lower sales prices, partially offset by increased sales volumes and decreased input costs

Key Details

Analyst Coverage

• The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 1 "strong buy" or "buy", 2 "hold" and no "sell" or "strong sell"

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

• Wall Street's median 12-month price target for Otter Tail Corp is $83.00, about 5.9% below its February 13 closing price of $88.16

• The stock recently traded at 15 times the next 12-month earnings vs. a P/E of 13 three months ago

Press Release: ID:nBwcnSmTa

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