Corrected: Otter Tail posts Q2 net loss on $103.5 mln legal settlement, initiates adjusted EPS outlook

Otter Tail

03/08/2026 23:30

Corrects third Overview bullet to clarify 2026 adjusted EPS outlook was initiated, not cut

Overview
US utility and manufacturing firm's Q2 net loss driven by $103.5 mln legal settlement
Adjusted diluted EPS for Q2 was $1.66, excluding legal settlement impact
Company cuts 2026 GAAP EPS guidance, initiates adjusted EPS outlook

Outlook
Otter Tail cuts 2026 diluted EPS guidance to $3.84-$4.24 from $5.22-$5.62
Company initiates 2026 adjusted diluted EPS guidance of $5.68-$6.08
Otter Tail raises Manufacturing and Plastics segments guidance on improved demand and pricing and better-than-expected results, respectively

Result Drivers
LEGAL SETTLEMENT - Q2 net loss in Plastics segment primarily due to $103.5 mln legal settlement expense related to antitrust litigation
STRONG PLASTICS VOLUMES - Plastics segment adjusted results supported by 15% increase in sales volumes as customers purchased ahead of PVC resin price hikes and new Phoenix facility capacity
HIGHER MANUFACTURING SALES - Manufacturing segment saw improved financial results due to higher sales volumes and favorable product mix, especially in recreational vehicle, construction and horticulture markets

Company press release: ID:nBw7cZSLCa

Key Details
Metric
Beat/Miss
Actual
Consensus Estimate
Q2 Loss Per Share
 
$0.18
 
Q2 Dividend
 
$0.5775
 

Analyst Coverage
The current average analyst rating on the shares is "hold" and the breakdown of recommendations is no "strong buy" or "buy", 4 "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 Corp is $90.50, about 2.4% above its July 31 closing price of $88.42
The stock recently traded at 16 times the next 12-month earnings vs. a P/E of 16 three months ago

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(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.)