Otter Tail Corp. reported first-quarter 2026 diluted earnings per share of $1.73 and said it is keeping its full-year EPS guidance at $5.22 to $5.62.
Operating cash flow jumped to $70.6 million from $39.5 million a year earlier, while capital spending rose to $185.3 million, driven largely by electric segment investments in solar, wind repowering and related projects. The company ended the quarter with $658.9 million in total available liquidity, including $348.4 million in cash and cash equivalents.
The board declared a quarterly dividend of $0.5775 per share, payable June 10 to shareholders of record May 15.
In the electric segment, operating revenue rose 10.8% to $165.9 million from $149.7 million, and net income increased 42.7% to $35.3 million from $24.7 million. Retail MWh sales climbed 2.6% to 1.72 million, while heating degree days fell 8.6% from 3,451 to 3,155. The company said the segment benefited from higher retail revenues, increased fuel recovery revenues, stronger commercial sales volumes and rider recovery tied to rate base investments. Those gains were partly offset by unfavorable weather and higher operating, maintenance, depreciation and interest costs.
The manufacturing segment posted a sharper improvement in profit. Revenue increased 9.6% to $89.6 million from $81.7 million, and net income surged to $4.3 million from $1.5 million. The company said sales volumes rose 4%, while steel costs, which are passed through to customers, increased 5%. It also cited better margins, improved production efficiencies and a cost structure aligned with current demand.
The plastics segment moved in the opposite direction on revenue but remained highly profitable. Operating revenue fell 13.5% to $91.6 million from $105.9 million, while net income dropped 24.2% to $32.9 million from $43.4 million. Average sales prices declined 19%, though volumes increased 7%. The company said the higher volume was helped by specialty pipe sales and late-quarter demand from distributors and contractors ahead of possible resin cost increases. Input material costs fell 12%, cushioning the decline.
At the corporate level, net income improved to $137,000 from a loss of $1.6 million a year earlier, helped by a higher tax benefit and lower employee healthcare claims.
For the full year, Otter Tail said it expects earnings to come roughly 49% from the electric segment and 51% from manufacturing and plastics, compared with its longer-term mix of about 70% electric and 30% non-electric. The market has reacted to these announcements by moving the company's shares -2.69% to a price of $88.1555. Check out the company's full 8-K submission here.
