OTTRNasdaqElectric ServicesUS GAAP · USD

Otter Tail Corp

Otter Tail Corp is a U.S.-based holding company with operations organized into an electric utility, a metal fabrication business, and a plastics business. Through its subsidiaries, it generates, transmits, and distributes electricity in parts of the Upper Midwest, while also manufacturing custom metal components and PVC pipe products for industrial and infrastructure customers.

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Revenue1,304m USD
−2.0 %y/y
Operating profit (EBIT)346m USD
−9.1 %y/y
EBIT margin26.5%
−2.1 ppy/y
Net income276m USD
−8.5 %y/y
Free cash flow386m USD
−14.7 %y/y

Fiscal year 2025 · change from previous year

Development 2020–2025

05001,0001,500m USD2020: 890 m USD2020: EBIT 148 m USD20202021: 1,198 m USD2021: EBIT 250 m USD20212022: 1,469 m USD2022: EBIT 390 m USD20222023: 1,353 m USD2023: EBIT 378 m USD20232024: 1,331 m USD2024: EBIT 380 m USD20242025: 1,304 m USD2025: EBIT 346 m USD20251,304346
RevenueOperating profit (EBIT)

Business

Share of revenue
Electric utility55 %

Generation, transmission, distribution and sale of electric energy in the Upper Midwest.

Metal fabrication15 %

Custom machine parts and metal components for OEM and industrial customers.

Thermoformed plastics9 %

Thermoformed plastic products for horticulture, medical and industrial uses.

PVC pipe21 %

PVC pipe used in municipal water, wastewater and water reclamation projects.

Products

Reported · share of revenue
56.5%43.5%FY2025100 %
  • Product Sales56.5 %
  • Electric43.5 %

Source: 10-K/A FY2025, revenue the company reports per product line (SEC XBRL). Shares are of the lines shown and add up to 100 %.

Customers

The electric segment serves residential, commercial and industrial electricity customers across a predominantly rural service territory in Minnesota, North Dakota and South Dakota. The manufacturing segment sells mainly to OEMs in the U.S., while the plastics segment sells through distributors to contractors, municipalities and other infrastructure-related end users. Customer demand is tied to weather, local economic activity, construction cycles and public infrastructure spending.

Electric utility customers

Households, businesses and farms in western Minnesota, eastern North Dakota and northeastern South Dakota that buy regulated electricity service.

OEM manufacturing customers

Vehicle and equipment manufacturers that buy fabricated metal parts and components for embedded supply-chain use.

Infrastructure distributors and municipalities

Distributors, contractors and local governments that buy PVC pipe for water and wastewater projects.

Thermoformed plastics customers

Customers in horticulture, medical, life sciences, industrial and electronics markets buying formed plastic products and packaging.

Strategy

The company’s strategy is to balance a regulated utility platform with industrial manufacturing and infrastructure products, using diversification to offset segment-specific cycles. It emphasizes reliability, responsiveness, and customer alignment, while investing in utility rate base, manufacturing capabilities and operational flexibility.

Expand and recover utility rate base investmentsMedium term

Regulated investments support long-duration earnings and service reliability.

Preserve manufacturing competitivenessMedium term

Broad capabilities and automation help retain OEM customers and manage cyclicality.

Serve infrastructure demand in plasticsLong term

PVC pipe demand is tied to municipal water and wastewater replacement needs.

Geography

Otter Tail’s operations are centered in the United States, with corporate offices in Fergus Falls, Minnesota and Fargo, North Dakota. Its electric utility serves western Minnesota, eastern North Dakota and northeastern South Dakota, while manufacturing facilities are located in Minnesota, Illinois and Georgia and plastics plants are in North Dakota and Arizona. PVC pipe is sold primarily across the western half of the U.S. and into western Canada.

Risks

Otter Tail faces regulatory, weather and capital-execution risk in its utility business, where returns depend on timely approval and recovery of large investments. Its manufacturing and plastics businesses are exposed to cyclical end markets, customer inventory changes, commodity and tariff pressures, and concentration among a small number of large customers and distributors.

Sorted by severity
LowMediumHighLowMediumHighImpact →Likelihood →Regulatory recovery risk1Cyclical end-market demand2Cybersecurity and physical security3Customer concentration4Tariff and supply-chain cost pressure5Weather-driven demand variability6
Impact is the risk’s severity and likelihood how probable it is over the next few years, both assessed from the company’s reports. Numbers match the list.
  1. Regulatory recovery riskImpact: HighLikelihood: High

    Electric investments require approval and timely rate recovery to earn expected returns.

    Exposure: Electric segment capital projects

  2. Cyclical end-market demandImpact: HighLikelihood: Medium

    OEM, agricultural, construction and infrastructure demand moves with broader economic conditions.

    Exposure: Manufacturing and Plastics segments

  3. Cybersecurity and physical securityImpact: HighLikelihood: Medium

    Utility operations depend on secure control systems and critical infrastructure protection.

    ExposureElectric generationTransmissionDistribution assets
  4. Customer concentrationImpact: HighLikelihood: Low

    A small number of OEMs and distributors account for a large share of segment revenue.

    Exposure: Manufacturing and Plastics segments

  5. Tariff and supply-chain cost pressureImpact: MediumLikelihood: Medium

    Steel, aluminum and other inputs can raise costs and disrupt capital plans.

    Exposure: Electric capex and manufacturing inputs

  6. Weather-driven demand variabilityImpact: MediumLikelihood: Low

    Electric load is seasonal and sensitive to mild temperatures.

    Exposure: Electric segment

Accounting

Judgemental items
Regulatory accounting

Utility revenues and costs depend on approved rates, riders and recovery mechanisms.

Impact: Can shift earnings timing between periods

Depreciation and capitalized utility plant

Large generation and grid investments are depreciated over long lives.

Impact: Affects operating income and asset carrying values

Long-lived asset impairment

Manufacturing and plastics assets depend on demand and pricing assumptions.

Impact: Could require write-downs if cash flows weaken

Contingencies and investigations

Ongoing proceedings can result in settlements, sanctions or future payments.

Impact: May create accruals or one-time charges

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Last updated: 24/09/2026