The GAAP loss and sharply lowered guidance from the antitrust settlement create headline risk, but the adjusted EPS beat and raised adjusted guidance suggest underlying operations are solid. Watch for court approval of the settlement and monitor the Plastics segment's pricing recovery; the stock may trade on the adjusted numbers once the settlement overhang clears.
Price Chart
Executive Summary
Otter Tail reported Q2 2026 adjusted diluted EPS of $1.66, beating the $1.49 consensus by 11.2%, but reported a GAAP diluted loss of $0.18 due to a $103.5M antitrust litigation settlement. The company slashed its 2026 GAAP EPS guidance to $3.84-$4.24 from $5.22-$5.62, though initiated adjusted EPS guidance of $5.68-$6.08, which is above the original range. The massive one-time charge and resulting GAAP loss overshadow the operational beat, creating a bearish headline for the stock despite strong underlying segment performance.
Key Financial Metrics
Key Facts
- Reported GAAP diluted loss per share of $0.18 vs consensus EPS of $1.49
- Adjusted diluted EPS of $1.66 beat consensus by 11.2%
- Recognized a $103.5M pre-tax charge for PVC antitrust class action settlement
- Updated 2026 GAAP EPS guidance to $3.84-$4.24 from $5.22-$5.62
- Initiated 2026 adjusted EPS guidance of $5.68-$6.08, above original GAAP range
- Electric segment revenue fell 5.8% YoY to $121.3M; net income down 2.6%
- Plastics segment swung to a net loss of $30.1M from $53.1M profit YoY due to settlement
- Manufacturing segment revenue grew 12.4% YoY to $88.5M; net income up 31.3%
- Quarterly dividend maintained at $0.5775 per share
- Operating cash flow for H1 2026 was $182.7M, up from $159.4M YoY
Financial Impact
$103.5M pre-tax antitrust settlement charge drove a GAAP net loss of $7.6M vs $77.7M profit in Q2 2025
Risk Factors
- Court may not grant final approval of the $103.5M antitrust settlement, prolonging litigation uncertainty
- PVC pipe pricing continues to decline, pressuring Plastics segment margins
- Electric segment revenue declining on production tax credit pass-through and plant outages
- Higher debt levels ($170M new long-term debt issued) increase interest expense burden
Market Snapshot
Investment Themes
Documents Analyzed
This report is based on 6 SEC documents filed with EDGAR.
| Document | Accession Number |
|---|---|
| 8-K Filing (Primary) | 0001466593-26-000068 |
| Document: ottr-20260803.htm | 0001466593-26-000068 |
| Document: 0001466593-26-000068-index-headers.html | 0001466593-26-000068 |
| Document: 0001466593-26-000068-index.html | 0001466593-26-000068 |
| Document: 0001466593-26-000068.txt | 0001466593-26-000068 |
| 8-K Data (Synthetic) | 0001466593-26-000068 |
Track record builds as more directional reports settle.
Filters
| Type | Now | ||||
|---|---|---|---|---|---|
Sep 1, 2026 8w ago | 8-K | $89.59 $88.04 | ▼ −1.73% | ▼ −2.05% | $90.47 (+0.98%) |
Aug 4, 2026 12w ago | 8-K | $92.82 $89.59 | ▲ +3.48% | ▲ +2.24% | $90.47 (+2.53%) |
Jun 18, 2026 18w ago | 8-K | $87.50 $93.26 | ▼ −6.58% | ▼ −6.05% | $90.47 (−3.39%) |
Jun 5, 2026 20w ago | 8-K | $86.77 $90.49 | ▲ +4.29% | ▲ +2.43% | $90.47 (+4.26%) |
May 29, 2026 21w ago | 8-K | $86.66 $88.87 | ▲ +2.55% | ▲ +4.34% | $90.47 (+4.40%) |
May 15, 2026 23w ago | 8-K | $87.80 $89.59 | ▲ +2.04% | ▼ −0.08% | $90.47 (+3.04%) |
May 5, 2026 25w ago | 8-K | $88.74 $85.80 | ▼ −3.31% | ▼ −8.27% | $90.47 (+1.95%) |
Apr 14, 2026 28w ago | 8-K | $88.33 $88.29 | ▼ −0.05% | ▼ −6.34% | $90.47 (+2.42%) |
Mar 2, 2026 34w ago | DEFA14A | $85.70 $85.73 | ▲ +0.04% | ▲ +7.97% | $90.47 (+5.57%) |
US Market Status
Subscribe to SecBot
Get Real-Time SEC Filing Intelligence
Comprehensive SEC filing analysis delivered the moment filings hit EDGAR. Sentiment scoring, impact analysis, and actionable insights for every material event.
Create a free account Live analysis, Telegram alerts, watchlists and the MCP server for subscribers