Otter Tail Corporation · NASDAQ:OTTR
Otter Tail — Q3 2026 Earnings Presentation
35 slides from Otter Tail's earnings presentation, Nov 3, 2026
Slide 1: Q3 2026 Earnings Conference Call
Q3 2026 Earnings Conference Call
Slide 2: Safe Harbor and Non-GAAP Financial Measures
Safe Harbor and Non-GAAP Financial Measures Forward Looking Statement Except for historical information contained here, the statements in this release are forward-looking and made pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. The words “anticipate,”
Slide 3: Company Overview and Investment Thesis
Company Overview Investment Thesis ELECTRIC MANUFACTURING Best in class utility: 1 Strong EPS growth and low Founded in 1907 Owned and operated customer rates for over 20 years Serve approximately 134,000 customers in Diverse end-markets Strategic diversification: MN, ND, SD 2 Enhances consolidated
Slide 4: Key Highlights
Key Highlights Financial Results • Reported quarterly diluted EPS of $1.41 • Adjusted ROE of 13%1 (trailing twelve months) on an equity layer of 61% Positioned for Future Growth • Minnesota rate case progressed during the period • Advanced ongoing renewable and transmission capital investment projec
Slide 5: Financial Summary
Financial Summary YTD financial results remain on track; affirming midpoint of 2026 adjusted earnings guidance of $5.88* Quarter-to-Date Year-to-Date Net Income Diluted EPS Net Income Diluted EPS in millions in millions -24% -10% $1.86 $224.1 $5.32 $78.3 $201.7 $4.79 $1.41 $59.5 2025 2026 2025 2026
Slide 6: Electric Platform
OTTERTAIL CORPORATION Electric Platform y Orenian POWER COMPANY
Slide 7: Minnesota Rate Case
Minnesota Rate Case Docket 25-359 • Last rate request filed in 2020 • Interim rate revenue of $28.6 million went Modified Request Filed with the into effect January 1, 2026, subject to Minnesota Public Utilities Commission refund August 2026 • Remaining procedural schedule: • ALJ report: January 202
Slide 8: Minnesota Integrated Resource Plan
Minnesota Integrated Resource Plan Docket E017/RP-26-90 • Outlines preferred plan for meeting customers' anticipated capacity and energy Request Filed with the Minnesota Public needs over 15-year period Utilities Commission • Requests new resource additions, and May 2026 reflects projects in develop
Slide 9: Rate Base Investment Plan
Rate Base Investment Plan Significant Rate Base Growth $ in billions 10% CAGR $3.26 $3.42 1:1 $3.11 Conversion of rate base growth into Electric EPS growth $2.77 $2.40 ~ 90% $2.11 of our capital investment is expected to be recovered through riders and existing rates 2025 (A) 2026 (F) 2027 (F) 2028
Slide 10: Generation and Storage Project Updates
Generation and Storage Project Updates Solway Abercrombie Hoot Lake Solar Solar Battery Est. investment: Est. investment: Est. investment: $80M $450M $120M 50 MW facility 295 MW facility 75 MW of storage capacity Est. completion date: Est. completion date: Est. completion date: 2027 2028 2028 Recove
Slide 11: Transmission Project Updates
Transmission Project Updates MISO LRTP1 MISO LRTP Tranche 1 Tranche 2.1 JTIQ2 Est. investment: Est. investment: Est. investment: $475M $800M - $1B $450M - $500M Est. completion date: Est. completion date: Est. completion date: 2030 2034 2034 Recovery mechanism: Recovery mechanism: Recovery mechanism
Slide 12: Load Growth Opportunities
Load Growth Opportunities Phases to Secure Large Load Existing Opportunity Well positioned to attract large loads • Attractive service territory - low market energy prices 1,400 MW Letter of and high renewable production 1 35% Data Center • Locations identified with minimal delivery costs to site In
Slide 13: Customer Rates and Affordability
Customer Rates and Affordability Proven Track Record Looking Ahead Our Electric Rates Compared to Regional and National Averages1 5-Year 2021 2022 2023 2024 2025 CAGR Rate Base Growth 10% (12)% Affordability enablers: (15)% (14)% (16)% Net MISO system-wide recovery 3 - 4% (19)% Renewable energy tax
Slide 14: Manufacturing Platform
OTTERTAIL CORPORATION Manufacturing Platform BTD TO. PLASTICS rorthernipe products 14
Slide 15: Industry Conditions: Manufacturing
Industry Conditions: Manufacturing BTD Manufacturing and T.O. Plastics Industries Served Industry Conditions Recreational Vehicle Lawn & Garden Dealer inventory levels have largely normalized Construction Agriculture industry conditions remain challenged, with early signs of Agriculture improvement
Slide 16: Plastics Pricing and Volume Trends
Plastics Pricing and Volume Trends Northern Pipe Products and Vinyltech Corporation Historical Average Sales Price of PVC Pipe1 2026 Year-Over-Year Trends1 Q3 YTD Average Sales Prices ↓ 9% ↓ 14% PVC pipe prices have trended downward Sales Volumes ↓ 5% ↑ 6% since late 2022 Material Input Costs ↑ 10%
Slide 17: Financial Results
CORPORATION OTTERTAIL
Slide 18: QTD Diluted EPS
QTD Diluted EPS $1.86 $— $(0.03) $1.41 $(0.34) $(0.08) Q3 2025 Electric Manufacturing Plastics Corporate Q3 2026 Diluted EPS Diluted EPS 18
Slide 19: QTD Diluted EPS: Electric and Manufacturing Detail
QTD Diluted EPS Segment Level Detail $0.10 $0.04 $0.11 $0.65 $0.65 $(0.16) $(0.03) $(0.02) Electric $(0.04) Q3 2025 Capital Electric Weather O&M Depreciation Interest Other Q3 2026 Diluted EPS Recovery Rates Expense Expense Expense Diluted EPS (Riders & AFUDC) Manufacturing $0.04 $0.09 $0.06 $(0.04)
Slide 20: QTD Diluted EPS: Plastics and Corporate Detail
QTD Diluted EPS Segment Level Detail $1.03 $(0.05) $0.69 Plastics $(0.16) $(0.05) $(0.02) $(0.06) Q3 2025 Sales Product Material Other Other Q3 2026 Diluted EPS Volume Pricing Cost Manufacturing Diluted EPS Costs Corporate $0.09 $(0.01) $(0.07) $0.01 Q3 2025 Investment Income Taxes Q3 2026 Diluted E
Slide 21: Balance Sheet
Balance Sheet $ in millions Capital Structure and ROE1 Line of Credit Availability Cash, Cash Equivalents and with comparison to EEI Peers 2 Marketable Securities 39% 59% $179 13.3% Available Available $253 9.9% $170 Available Available 61% 41% $41 Outstanding Otter Tail Corporation EEI Otter Tail C
Slide 22: 2026 Outlook
2026 Outlook Actual 2026 Adjusted Guidance1 2026 Adjusted Guidance1 August 3, 2026 November 2, 2026 Diluted EPS 2025 Low High Low High Electric $ 2.32 $ 2.61 $ 2.69 $ 2.62 $ 2.68 Manufacturing 0.27 0.32 0.38 0.32 0.36 Plastics 4.05 2.97 3.19 2.95 3.11 Corporate (0.09) (0.22) (0.18) (0.16) (0.12) Tot
Slide 23: Capital Expenditures
Capital Expenditures Customer-Focused Capital Investment Plan 2026 2027 2028 2029 2030 Total in millions $850M Electric Incremental investment opportunity for Electric1 Renewable Generation and Storage $ 251 $ 295 $ 89 $ 4 $ 6 $ 645 Disciplined Transmission capital 80 167 167 186 255 855 Driven by:
Slide 24: Financing Plan
Financing Plan No external equity needs through at least 2030 2027 - 5YR $ in millions 2026 2030 (F) Total Long-Term Debt Financing plan Otter Tail Power Company supports utility Disciplined Issuances capital $ 170 $ 620 $ 790 investments Retirements deployment 0 (162) (162) without focused on:Corpo
Slide 25: Long-Term Plastics Earnings Profile
Long-Term Plastics Earnings Profile Northern Pipe Products and Vinyltech Corporation $ in millions $195 $201 $188 $170 $128 $98 $48 $45 - $50 $24 2018 - 2020 2021 2022 2023 2024 2025 2026 (F) Continued Sales Inflationary 2028 (F) Average Adjusted Product Volume Increase Net Income* Price Increase in
Slide 26: Financial Objectives
Financial Objectives Total Shareholder Return: 10-12% Key underlying assumptions Long-term EPS growth • Electric segment long-term EPS Dividend yield: ~ 3% growth rate approximates rate rate: 7-9% (2028 base year) base CAGR • Plastics segment earnings of Dividend Growth Rate: 6-8% $45M-$50M in 2028
Slide 27: Appendix
OTTERTAIL CORPORATION Appendix
Slide 28: YTD Diluted EPS
YTD Diluted EPS $0.24 $0.06 $5.32 $4.79 $(0.74) $(0.09) 2025 Electric Manufacturing Plastics* Corporate 2026 Diluted EPS Adjusted Diluted EPS* * Adjusted to remove the after-tax impact of the legal settlement expense recognized during Q2 2026. See the non-GAAP reconciliations included in the Appendi
Slide 29: YTD Diluted EPS: Electric and Manufacturing Detail
YTD Diluted EPS Segment Level Detail $0.29 $0.35 $1.93 $1.69 $0.08 $(0.32) $(0.08) $(0.06) $(0.02) Electric 2025 Sales Electric Rates Capital O&M Depreciation Interest Other 2026 Diluted EPS Volume Recovery Expense Expense Expense Diluted EPS (Riders & AFUDC) $0.11 Manufacturing $0.06 $0.04 $0.27 $0
Slide 30: YTD Diluted EPS: Plastics and Corporate Detail
YTD Diluted EPS Segment Level Detail $0.23 $3.33 $0.04 $2.59 $(0.89) $(0.03) $(0.02) $(0.07) Plastics 2025 Sales Product Material Other SG&A Other 2026 Diluted EPS Volume Pricing Cost Manufacturing Expense Adjusted Costs Diluted EPS* Corporate $0.09 $(0.01) $(0.01) $(0.07) $0.00 2025 SG&A Investment
Slide 31: Dividend and Payout Ratio
Dividend and Payout Ratio 8% CAGR $2.31 $2.10 $1.87 $1.75 $1.56 $1.65 87 consecutive years of $1.40 $1.48 dividend payments $1.34 $1.25 $1.28 Indicated dividend for 2026: $2.31 (10.0% increase) Dividend payout ratio impacted by exceptional Plastics segment financial results driving a lower ratio 78%
Slide 32: Debt Maturity Schedule
Debt Maturity Schedule Weighted average interest rate: 4.68% $100 $100 $100 $90 $90 $80 $70 $70 $64 $60 $60 $50 $50 $50 $50 $42 $40 $26 $15 $10 2026 2027 // 2029 2030 2031 // 2034 2035 2036 2037 // 2039 2040 // 2044 // 2048 2049 2050 2051 2052 // 2054 2055 2056 Otter Tail Corporation Otter Tail Powe
Slide 33: Otter Tail Power Regulatory Framework
Otter Tail Power Regulatory Framework Jurisdiction Minnesota North Dakota South Dakota Utility Commissioners Appointed Elected Elected Rate Case Test Year Future Future Historical1 Allowed Return on Equity 9.48% 10.10% Blackbox Return on Rate Base 7.18% 7.53% 7.09% Disciplined Earnings Sharing Mecha
Slide 34: Non-GAAP Reconciliations
Non-GAAP Reconciliations Adjusted Return on Equity The following table presents a reconciliation of return on equity to adjusted return on equity on a consolidated basis for the period presented Trailing Twelve Months Ended September 30, 2026 Consolidated Return on Equity 9.4 % After-Tax Impact of L
Slide 35: Non-GAAP Reconciliations
Non-GAAP Reconciliations Adjusted Annual Earnings Guidance and Adjusted Forecasted Return on Equity The following table presents reconciliations of our 2026 diluted earnings per share guidance range to our adjusted diluted earnings per share guidance range and our 2026 forecasted return on equity to