OTTROtter Tail Corp

Electric Services

Revenue: $1.3B; 2.0% YoY
Operating margin: 26.5%; 7.2% YoY
EBITDA: $464M; 4.8% YoY
Market cap: $3.8B
Employees: 100; $13M revenue each
Net debt / EBITDA: 1.8×; $825M net debt
AI in 10-K: 0.4; mentions per 10K words

Takeover score 2 of 13

Fixable underperformance 0 of 7

TSR below peersNo
—
3+ of last 5 years
High CEO pay despite TSRNo
—
Median CEO pay ≥ $15M while TSR trails
Earnings not backed by cashNo
140% of net income
Cash flow under 80% of net income
Dilutive SBCNo
1% of revenue
Over 10% of revenue
Payouts exceed cash flowNo
23% of cash flow
Buybacks + dividends over cash flow
Goodwill-heavyNo
1% of assets
Over 40% of assets
Shareholder dissentNo
96% lowest support
Any vote under 80% support

Buyer economics 2 of 4

Low revenue per employeeNo
$13M · 92nd pct
Bottom quartile of its SIC industry
Quiet on AIYes
0.4 per 10K words · 20th pct
Bottom quartile of AI mentions in 10-Ks
Net cashNo
1.8× EBITDA net debt
More cash than debt, positive EBITDA
Buyout-sizedYes
$3.8B market cap
Market cap $500M–$5B

Catalysts 0 of 2

Active 13DNo
0 filings
Active-intent 13D in 18 months
Net insider sellingNo
−$394K net
Net sales over $10M in 12 months

Financials

Metric	FY2021	FY2022	FY2023	FY2024	FY2025	YoY	Trend
Revenue	$1.2B	$1.5B	$1.3B	$1.3B	$1.3B	2.0%
Operating income	$250M	$390M	$378M	$380M	$346M	9.1%
Net income	$177M	$284M	$294M	$302M	$276M	8.5%
Operating cash flow	$231M	$389M	$404M	$453M	$386M	15%
Capex	$172M	$171M	$287M	$359M	$288M	20%
Stock-based comp	$7M	$7M	$8M	$10M	$9M	4.3%
Dividends	$65M	$69M	$73M	$78M	$88M	13%

Deal filings

None.

13D filers

Filed	Filer	Form	Stake	Intent
Oct 3, 2024	CASCADE INVESTMENT, L.L.C.	SC 13D/A	7.1%	Passive
Feb 24, 2020	CASCADE INVESTMENT, L.L.C.	SC 13D/A	8.6%	Passive

Insider trading

Open-market buys, 12 mo: $0 · 0
Open-market sells, 12 mo: $394K · 3
Net: −$394K

Pay vs performance

No pay-versus-performance disclosure yet.