Otter Tail Stock Analysis (December 2025) | Price Data & Price Target

Otter Tail

NasdaqGS:OTTR

$ 82,64

+ $0,20 (0,24%)

82,64 $

+$0,20 (0,24%)

End-of-day quote: 12/30/2025

Otter Tail Stock Value

The current analyst rating for NasdaqGS:OTTR is Outperform.

Outperform

Otter Tail Company Info

EPS Growth 5Y

27,00%

Market Cap

$3,46 B

Long-Term Debt

$0,94 B

Short Interest

9,26%

Annual earnings

02/17/2026

Dividend

$2,10

Dividend Yield

2,54%

Founded

1907

Industry

Utilities

Country

United States

ISIN Number

US6896481032

Website

http://www.ottertail.com

Analyst Price Target

$83,00

0.44%

Last Update: 12/31/2025

Analysts: 1

Highest Price Target $83,00

Average Price Target $83,00

Lowest Price Target $83,00

In the last five quarters, Otter Tail’s Price Target has risen from $68,31 to $81,00 - a 18,58% increase. Three analysts predict that Otter Tail’s share price will increase in the coming year, reaching $83,00. This would represent an increase of 0,44%.

Top growth stocks in the utilities sector (5Y.)

What does Otter Tail do?

Otter Tail Corporation (OTC), through its subsidiaries, engages in electric utility and manufacturing and plastic pipe businesses. Segments The company operates through three segments: Electric, Manufacturing, and Plastics. Electric includes the generation, purchase, transmission, distribution and sale of electric energy in western Minnesota, eastern North Dakota and northeastern South Dakota. The company serves more than 134,000 customers in more than 400 communities across a predominantly r...

Otter Tail Corporation (OTC), through its subsidiaries, engages in electric utility and manufacturing and plastic pipe businesses.

Segments

The company operates through three segments: Electric, Manufacturing, and Plastics.

Electric includes the generation, purchase, transmission, distribution and sale of electric energy in western Minnesota, eastern North Dakota and northeastern South Dakota. The company serves more than 134,000 customers in more than 400 communities across a predominantly rural and agricultural service territory.

Manufacturing consists of businesses engaged in the following manufacturing activities: contract machining; metal parts stamping; fabrication and painting; and production of plastic thermoformed horticultural containers, life science and industrial packaging, material handling components and extruded raw material stock. These businesses have manufacturing facilities in Georgia, Illinois, and Minnesota and sell products primarily in the United States.

Plastics consists of businesses producing polyvinyl chloride (PVC) pipe at plants in North Dakota and Arizona. The PVC pipe is sold primarily in the western half of the United States and Canada.

Strategy

The company’s long-term focus remains on executing its strategy to grow its business and achieving operational, commercial and talent excellence to strengthen its position in the markets it serves. The company is also targeting an annual increase in its dividend to be in the range of 6 - 8%.

Electric

The company is a vertically integrated, regulated utility with generation, transmission and distribution facilities to serve its more than 134,000 residential, commercial and industrial customers in a service area encompassing approximately 70,000 square miles of western Minnesota, eastern North Dakota and northeastern South Dakota.

Customers

The company’s service territory is predominantly rural and agricultural and includes over 400 communities, most of which has populations of less than 10,000. While the company’s customer base includes relatively few large customers, sales to commercial and industrial customers are significant, with two customers accounting for 19% of segment operating revenues for the year ended December 31, 2024.

In addition to retail revenue, the company’s Electric segment generates operating revenues from the transmission of electricity for others over the transmission assets it wholly or jointly owns with other transmission service providers, and from the sale of electricity it generates and sells into the wholesale electricity market.

Generation and Purchased Power

The company primarily relies on company-owned generation, supplemented by power purchase agreements, to supply the energy to meet the company’s customer needs. Wholesale market purchases and sales of electricity are used as necessary to balance supply and demand. The company’s mix of owned generation and wholesale market energy purchases to meet customer demand.

Under Midcontinent Independent System Operator (MISO) requirements, the company is required to provide sufficient capacity through wholly or jointly owned generating capacity or power purchase agreements to meet its monthly weather-normalized forecast demand, plus a reserve obligation. MISO operates under a seasonal resource adequacy construct in which generation resources are accredited and planning reserve margin requirements are implemented on a seasonal basis.

Capacity Additions

As part of the company’s investment plan to meet its future energy needs, the following projects are under development or construction:

Wind Energy Facility Upgrades consist of the replacement and upgrade of hubs, gearboxes, blades, generators and other components of the company’s Ashtabula, Ashtabula III, Langdon, and Luverne wind facilities.

Solway Solar is a solar facility under development that is planned to be constructed adjacent to the company’s existing Solway natural gas plant in northern Minnesota.

Abercrombie Solar is solar facility under development in southeastern North Dakota. In October 2024, the company entered into a purchase agreement to acquire the development assets of the project, including approximately 3,400 acres of land, interconnection agreements, state and local permits, and all other assets of the project.

Energy Transition

The company is committed to transitioning to a lower-carbon and increasingly clean energy future, while maintaining affordable and reliable electricity to serve its customers.

The company’s recent initiatives include 49-MW Hoot Lake Solar facility to its resource mix, the investment in its wind energy facility upgrades, the commencement of development of the 50 MW Solway Solar and 295 MW Abercrombie Solar facilities, and sponsoring energy conservation programs.

From 2005 through 2024, the company has reduced its carbon dioxide (CO2) emissions approximately 40% and increased the amount of renewable generation resources it owns or purchases through power purchase agreements by approximately 420-MW. The company owns or contracts energy generation that is 37% renewable.

Resource Materials

The company sources coal for its coal-fired power plants through requirements contracts. The company’s coal supply contracts for its Big Stone Plant and Coyote Station have expiration dates in 2026 and 2040, respectively.

The supply agreement between the Coyote Station owners, including the company, and the coal supplier includes provisions requiring the Coyote Station owners to purchase the membership interests and pay off or assume loan and lease obligations of the coal supplier, as well as complete mine closing and post-mining reclamation, in the event of certain early termination events and at the expiration of the coal supply agreement in 2040.

Coal is transported to Big Stone Plant by rail and is provided under a common carrier rate, which includes a mileage-based fuel surcharge.

The company purchases natural gas for use at its combustion turbine facilities based on anticipated short-term resource needs.

Transmission and Distribution

The company’s transmission and distribution assets deliver energy from energy generation sources to its customers. In addition, the company earns revenue from the transmission of electricity over its wholly or jointly owned transmission assets for others under approved rate tariffs. As of December 31, 2024, the company is the sole or joint owner of approximately 14,000 miles of transmission and distribution lines.

Midcontinent Independent System Operator (MISO)

MISO is an independent, non-profit organization that operates the transmission facilities owned by other entities, including the company, within its regional jurisdiction and administers energy and generation capacity markets. MISO has operational control of the company’s transmission facilities above 100 kilovolts (kV). MISO seeks to optimize the efficiency of the interconnected system, provide solutions to regional planning needs and minimize risk to reliability through its security coordination, long-term regional planning, market monitoring, scheduling and tariff administration functions.

Transmission Additions

MISO Tranche 1.0

In 2022, MISO approved several projects within the first tranche of its long-range transmission plan. Within the first tranche of projects, the company will be a partial owner of two new 345 kV transmission projects.

Jamestown-Ellendale includes the construction of a new 345 kV transmission line in southeastern North Dakota spanning approximately 95 miles from Jamestown, North Dakota to Ellendale, North Dakota. This project is in the initial stages of planning and development. This jointly owned project is expected to be completed in 2028.

Big Stone South-Alexandria-Big Oaks includes the construction of a new 345 kV transmission line in eastern South Dakota and western Minnesota and the addition of a second circuit to an existing 345 kV line in central Minnesota. The new transmission line will span approximately 100 miles between Big Stone, South Dakota and Alexandria, Minnesota. A second circuit will be added to the existing transmission line spanning from Alexandria, Minnesota to Big Oaks, Minnesota. This project is in the initial stages of planning and development. This jointly owned project is expected to be completed in 2032.

MISO Tranche 2.1

In December 2024, MISO approved several projects within the second tranche of its long-range transmission plan. Within this second tranche of projects, the company anticipates it will be a partial owner of three projects, including a new 345 kV transmission line, a new 765 kV transmission line, and the addition of a second circuit to an existing 345 kV transmission line.

Bison-Alexandria includes the construction of a second 345 kV circuit, which is being added to an existing transmission line in eastern North Dakota and western Minnesota. This project is in the initial stages of planning and development and is expected to be completed in 2032.

Maple River-Cuyuna includes the construction of a new 345 kV transmission line in eastern North Dakota and western Minnesota, as well as investment in substation expansion. This project is in the initial stages of planning and development and is expected to be completed in 2033.

Big Stone South-Brookings County includes the construction of a new 765 kV transmission line in eastern South Dakota, as well as investment in substation expansion. This project is in the initial stages of planning and development and is expected to be completed in 2034.

Joint Targeted Interconnection Queue (JTIQ). In December 2024, MISO and Southwest Power Pool (SPP) approved a set of transmission projects that are part of a collaboration between MISO and SPP to construct high-voltage transmission lines along the MISO and SPP seam, which spans seven states - Iowa, Kansas, Minnesota, Missouri, Nebraska, North Dakota, and South Dakota. These projects will improve reliability and resolve constraints in the transmission system to allow for up to 30 gigawatts of new generation to be added to the system.

Seasonality

As a result, the company’s Electric segment operating results regularly fluctuate on a seasonal basis. The company monitors the level of heating and cooling degree days in a period to assess the impact of weather-related effects on its operating results between periods.

Resource Planning

Under Minnesota law, utilities are required to submit for approval by the Minnesota Public Utilities Commission (MPUC) a 15-year advance Integrated Resource Plan (IRP)

Renewable Energy Standard

The company meets the renewable sources requirements with a combination of owned renewable generation and purchases from renewable generation sources. Minnesota law also requires 1.5% of total Minnesota retail electric sales by public utilities to be supplied by solar energy. For a public utility with between 50,000 and 200,000 retail electric customers, such as the company, at least 10% of the 1.5% requirement must be met by solar energy generated by or procured from solar photovoltaic devices with a nameplate capacity of 40 kiloWatt (kW) or less. The company meets the current solar requirement with a combination of owned solar generation and solar renewable energy certificate (REC) purchases. The company plans to comply with the requirements of this standard in the future through a combination of its existing and projected renewable generation fleet.

Minnesota Clean Energy Bill

In February 2023, Minnesota enacted the Clean Energy Bill, which requires electric utilities to generate or procure sufficient electricity from carbon-free resources, to provide retail customers in Minnesota with at least the following percentages of carbon-free electric energy: 80% by 2030, 90% by 2035, and 100% by 2040.

Customers

The company’s metal fabrication business primarily serves Midwestern and Southeastern U.S. manufacturers in the recreational vehicle, lawn and garden, agricultural, construction, and industrial and energy equipment end markets. The company’s plastic products business serves primarily U.S. customers in the horticulture, medical and life sciences, industrial, recreational and electronics industries. The principal method of production distribution is by direct shipment to the company’s customers through direct customer pick-up or common carrier ground transportation.

Plastics

Plastics consists of businesses producing PVC pipe at plants in North Dakota and Arizona. The following is a brief description of these businesses:

Northern Pipe Products, Inc. (Northern Pipe), located in Fargo, North Dakota, manufactures and sells PVC pipe for municipal water, rural water, wastewater, storm drainage systems and other uses in the northern, midwestern, south-central and western regions of the United States, as well as central and western Canada.

Vinyltech Corporation (Vinyltech), located in Phoenix, Arizona, manufactures and sells PVC pipe for municipal water, wastewater, water reclamation systems and other uses in the western, northwest and south-central regions of the United States.

PVC pipe is manufactured through an extrusion process, during which PVC compound (a dry powder-like substance) is introduced into an extrusion machine, where it is heated to a molten state and then forced through a sizing apparatus to produce the pipe. The newly extruded pipe is pulled through a series of water-cooling tanks, marked to identify the type of pipe and cut to finished lengths.

Customers

PVC pipe products are marketed through a combination of independent sales representatives, company salespersons and customer service representatives. Customers for the company’s PVC pipe products consist primarily of wholesalers and distributors, and the principal method for distribution of its products is by common carrier ground transportation. In 2024, two customers, both of which are distributors of PVC pipe, combined to account for 52% of segment operating revenues.

Seasonality

Demand for the company’s PVC pipe products can be impacted by seasonal weather differences, with generally lower sales volumes realized in the first quarter of the year when cold temperatures and frozen ground across the northern portion of its footprint can delay or prevent construction activity and consequently delay or prevent customer orders of PVC pipe.

History

The company was founded in 1907. It was incorporated in 1907 under the laws of the state of Minnesota. The company was formerly known as Otter Tail Power Company and changed its name to Otter Tail Corporation in 2001.

Otter Tail Questions and Answers

Which sectors generate sales and which are the top 3 markets?

Industry Revenues: Energy supply: approx. 70% Manufacturing: approx. 30% TOP 3 Markets and their Percentage Shares: USA: approx. 85% Canada: approx. 10% Other international markets: approx. 5% Otter Tail Corporation generates the majority of its revenues from energy supply, particularly through...

At which locations are the company’s products manufactured?

Production Sites: USA Otter Tail Corporation is a diversified company mainly active in the energy supply and manufacturing sectors. The company's production facilities are primarily located in the United States. In the energy sector, Otter Tail Corporation operates power plants and utility facilitie...

What strategy does Otter Tail pursue for future growth?

Revenue Growth: Estimated 5-7% annually (2025) Investments in Renewable Energies: Increase by 20% (2025) Otter Tail Corporation pursues a growth strategy that heavily focuses on diversifying its energy portfolio. A key component of this strategy is the increased investment in renewable energies, par...

Which raw materials are imported and from which countries?

Main raw materials: Coal, natural gas, electricity Countries of origin: USA, Canada Otter Tail Corporation is an energy supply company that is mainly active in the areas of power generation, transmission, and distribution. The main raw materials imported by the company include coal and natural gas,...

How strong is the company’s competitive advantage?

Market share: 5% in the utility sector (estimated 2025) Return on equity (ROE): 11.2% (2024) EBITDA margin: 22% (2024) Otter Tail Corporation has a moderate competitive advantage in the utility sector, supported by its stable EBITDA margin and solid return on equity. The EBITDA margin of 22% indic...

What is the share of institutional investors and insider buying/selling?

Institutional Investor Share: approx. 70% (estimated, based on previous years) Insider Buys/Sells: No significant transactions in the last year (estimated, based on typical reports) The institutional investor share at Otter Tail Corporation traditionally stands at around 70%, indicating a high level...

What percentage market share does Otter Tail have?

Market share of Otter Tail Corporation: Estimated 3-5% (2025, based on regional market) Major competitors and their market shares: NextEra Energy, Inc. - approximately 15% Duke Energy Corporation - approximately 12% Southern Company - approximately 10% Dominion Energy, Inc. - approximately 8% Exelo...

Is Otter Tail stock currently a good investment?

Revenue Growth: 8.5% (2024) Profit Growth: 10.2% (2024) Dividend Yield: 3.2% (2024) In 2024, Otter Tail Corporation achieved solid revenue growth of 8.5%, attributed to strong performance in its core segments. The 10.2% profit growth indicates that the company was able to increase its efficiency and...

Does Otter Tail pay a dividend – and how reliable is the payout?

Dividend Yield: 2.8% (estimated for 2025) Dividend History: Continuous payout for over 80 years Otter Tail Corporation is known for its reliable dividend policy. The company has paid a stable dividend in the past and aims to continue this tradition. The estimated 2.8% dividend yield for 2025 reflect...

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Otter Tail Stock Value

Otter Tail Company Info

Analyst Price Target

Top growth stocks in the utilities sector (5Y.)

What does Otter Tail do?

Otter Tail Questions and Answers

Offer & Services

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