Slide 1: Q3 2025 Earnings Conference Call
Q3 2025 Earnings Conference Call
Slide 2: Safe Harbor: Forward Looking Statement
Safe Harbor 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,” “believe,” “can,” “confident,” “
Slide 3: Company Overview and Investment Thesis
Company Overview Investment Thesis ELECTRIC MANUFACTURING Best in class utility: 1 EPS growth rate of 10% Founded in 1907 Owned and operated for over 20 years Serve approximately 134,000 customers in Diverse end-markets Strategic diversification: MN, ND, SD 2 Enhances consolidated ROE High utilizati
Slide 4: Key Highlights
Key Highlights Financial Results • Consolidated quarterly earnings exceeded our expectations; Q3 2025 diluted EPS of $1.86 • ROE (trailing twelve months) of 16% on an equity layer of 64% Positioned for Future Growth • Rate base growth CAGR updated to 10% from 9% • Increased long-term EPS growth rate
Slide 5: Financial Summary
Financial Summary $ in millions, except per share data Quarter-to-Date Year-to-Date Net Income Diluted EPS Net Income Diluted EPS -8% -9% $85.5 $246.8 $78.3 $2.03 $1.86 $224.1 $5.87 $5.32 Q3 2024 Q3 2025 Q3 2024 Q3 2025 YTD 2024 YTD 2025 YTD 2024 YTD 2025 Increased 2025 EPS Guidance Midpoint to $6.4
Slide 6: Electric Platform
OTTERTAIL CORPORATION . Electric Platform OrrEnian POWER COMPANY
Slide 7: Minnesota Rate Case
Minnesota Rate Case Docket 25-359 • Last rate request filed in 2020 Request Filed with the Minnesota Public • Proposed interim rates of $31.8 Utilities Commission October 2025 million (12.6% increase) expected to go into effect January 2026 Net revenue • Interim rates subject to ROE: Equity layer: i
Slide 8: South Dakota Rate Case
South Dakota Rate Case Docket EL25-022 • Last requested rate review was in 2018 • Interim rates of $5.7 million to go into Request Filed with the South Dakota effect December 1, 2025, subject to Public Utilities Commission (SDPUC) refund June 2025 • Procedural schedule: Net revenue • Staff and inter
Slide 9: Rate Base Investment Plan
Rate Base Investment Plan Uplifted Rate Base Growth CAGR Significant Rate Base Growth $ in billions 10% CAGR $3.21 $3.41 1:1 Conversion of rate base growth $3.00 into Electric EPS growth $2.65 $2.36 ~ 90% $2.12 of our capital investment is $1.89 expected to be recovered through riders and existing r
Slide 10: Generation Project Updates
Generation Project Updates Wind Solway Abercrombie Repowering Solar Solar Est. investment: Est. investment: Est. investment: $230M $80M $450M Est. completion date: Est. completion date: Est. completion date: 2024 and 2025 2026-2027 2028 Recovery mechanism: Recovery mechanism: Recovery mechanism: App
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 $700M $450M Est. completion date: Est. completion date: Est. completion date: 2032 2034 2034 Recovery mechanism: Recovery mechanism: Recovery mechanism: MISO tariff
Slide 12: Load Growth Opportunities
Load Growth Opportunities Phases to Secure Large Load Well positioned to attract large loads Existing Opportunity • Approved tariffs in place • Locations identified with minimal delivery costs to Letter of site 1 540 MW Intent • Attractive service territory - low market energy prices and high renewa
Slide 13: Customer Rates and Affordability
Customer Rates and Affordability Average Summer Residential Rate in Cents per kWh1 Otter Tail Power's 2024 rates 16.5 16% below regional average 15.7 United States 30% below national average 14.6 Balanced approach: Investing to 13.6 13.8 13.2 13.1 13.1 Regional ensure safe, reliable, efficient 12.7
Slide 14: Manufacturing Platform
Manufacturing Platform © @ vil BTD TO. PLASTICS rorthernipe products vil
Slide 15: Industry Conditions: Manufacturing
Industry Conditions: Manufacturing BTD Manufacturing and T.O. Plastics Industries Served Industry Conditions Recreational Vehicle End market demand negatively Lawn & Garden impacted by: • Higher levels of new and used Construction inventory • Challenging macroeconomic Agriculture backdrop, including
Slide 16: Plastics Pricing and Volume Trends
Plastics Pricing and Volume Trends Northern Pipe Products and Vinyltech Corporation Historical Sales Price of PVC Pipe1 2025 Year-Over-Year Trends1 QTD YTD Sales Prices ↓ 17% ↓ 14% PVC pipe prices have steadily declined since late 2022 Sales Volumes ↑ 4% ↑ 9% Material Input Costs ↓ 16% ↓ 13% 18 2018
Slide 17: Expansion Projects
Expansion Projects Positioned for Long-Term Growth Vinyltech Corporation • Completion dates: • Phase 1 - Q4 2024 • Phase 2 - early 2026 (estimated) • Multi-phase expansion project, increasing production capacity (including large- diameter pipe) and resin and pipe storage • Plastics segment productio
Slide 18: Financial Results
OTTERTAIL CORPORATION Financial Results
Slide 19: QTD Diluted EPS
QTD Diluted EPS $2.03 $0.04 $0.08 $1.86 $(0.03) $(0.26) Q3 2024 Electric Manufacturing Plastics Corporate Q3 2025 19
Slide 20: QTD Diluted EPS: Electric and Manufacturing
QTD Diluted EPS Segment Level Detail $0.07 $0.05 $0.68 $0.65 $(0.02) Electric $(0.06) $(0.03) $(0.04) Q3 Sales Weather Electric Rates O&M Depreciation Other Q3 2024 Volume & Rider Expense Expense 2025 Revenue $0.06 Manufacturing $0.09 $(0.02) $(0.01) $0.03 $0.05 $(0.02) Q3 Sales Product Pricing Prod
Slide 21: QTD Diluted EPS: Plastics and Corporate
QTD Diluted EPS Segment Level Detail $1.29 $0.05 $0.10 $1.03 Plastics $(0.39) $(0.02) Q3 Sales Product Material Other Q3 2024 Volume Pricing Cost Manufacturing Costs 2025 Corporate $0.04 $0.09 $0.03 $0.01 $0.01 Q3 SG&A Investment Income Tax Q3 2024 Expense Income Benefit & Other 2025 21
Slide 22: Balance Sheet
Balance Sheet $ in millions Consolidated Capital Structure Line of Credit Availability Cash and Cash Equivalents and Return on Equity 38.6% 37.8% 36.3% $209.5 22.1% Available $325.8 19.3% $170.0 16.2% Available $10.5 61.4% 62.2% 63.7% Outstanding 2023 2024 9/30/2025 Otter Tail Corporation Otter Tail
Slide 23: 2025 Outlook
2025 Outlook Increasing and Narrowing Guidance 2025 Guidance 2025 Guidance Actual August 4, 2025 November 3, 2025 Diluted EPS 2023 2024 Low High Low High Electric $ 2.01 $ 2.16 $ 2.29 $ 2.35 $ 2.31 $ 2.35 Manufacturing 0.51 0.33 0.21 0.27 0.22 0.26 Plastics 4.47 4.77 3.64 3.88 3.86 4.05 Corporate 0.
Slide 24: EPS Growth
EPS Growth Robust Growth Across Our Business $7.17 $7.00 $6.78 $6.47 Consolidated EPS (5YR CAGR): 22.6% $4.23 Consolidated EPS w/o Disciplined Plastics1 (5YR CAGR): 8.5% capital deployment $2.34 Proven track record of delivering focused on: $2.53 $2.51 EPS growth in line or above $2.40 $2.12 target
Slide 25: Capital Expenditures
Capital Expenditures Customer-Focused Capital Investment Plan 2026 (F) 2027 (F) 2028 (F) 2029 (F) 2030 (F) Total in millions $350M Electric Incremental investment opportunity for Electric Renewable Generation $ 169 $ 177 $ 154 $ 4 $ 6 $ 510 Disciplined Transmission capital 88 183 208 206 309 994 Dri
Slide 26: Financing Plan
Financing Plan $ in millions 2026 (F) 2027 - 2030 (F) 5YR Total Long-Term Debt Financing plan Otter Tail Power Company supports utility Disciplined Issuances capital $ 120 $ 620 $ 740 investments Retirements deployment (162) (162) without focused on:Corporation Otter Tail external equity Issuances o
Slide 27: Normalized Plastics Earnings
Normalized Plastics Earnings Northern Pipe Products and Vinyltech Corporation $ in millions $195 $201 $188 $167 $98 $45 - $50 $24 2018 - 2020 2021 2022 2023 2024 2025 (F) Continued Sales Inflationary 2028 (F) Average product volume increase price increase in input declines; costs generally on trend
Slide 28: Investment Targets
Investment Targets 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 Ta
Slide 29: Appendix
SOTTERTAIL CORPORATION am m= Appendix
Slide 30: YTD Diluted EPS
YTD Diluted EPS $5.87 $0.04 $0.06 $5.32 $(0.13) $(0.52) 2024 Electric Manufacturing Plastics Corporate 2025 30
Slide 31: YTD Diluted EPS: Electric and Manufacturing
YTD Diluted EPS Segment Level Detail $0.07 $0.06 $1.65 $0.11 $1.69 $(0.10) $(0.06) $(0.04) Electric 2024 Sales Weather Electric Rates Depreciation Interest Other 2025 Volume & Rider Expense Expense Revenue $0.34 Manufacturing $0.03 $0.21 $(0.08) $(0.05) $(0.03) 2024 Sales Product Pricing Production
Slide 32: YTD Diluted EPS: Plastics and Corporate
YTD Diluted EPS Segment Level Detail $0.38 $3.85 $0.24 $3.33 $(1.03) $(0.06) $(0.02) $(0.03) Plastics 2024 Sales Product Material Other SG&A Depreciation 2025 Volume Pricing Cost Manufacturing Expense Expense Costs Corporate $0.04 $0.09 $0.02 $0.03 2024 Investment Income Tax 2025 Income Benefit & Ot
Slide 33: Debt Maturity Schedule
Debt Maturity Schedule Weighted average interest rate: 4.53% $100 $100 $90 $90 $80 $70 $64 $60 $60 $50 $50 $50 $50 $42 $40 $26 $15 $10 2026 2027 // 2029 2030 2031 // 2034 2035 // 2037 // 2039 2040 // 2044 // 2048 2049 2050 2051 2052 // 2054 2055 Otter Tail Corporation Otter Tail Power 33
Slide 34: Dividend and Payout Ratio
Dividend and Payout Ratio 7% CAGR $2.10 $1.87 $1.65 $1.75 86 consecutive years of $1.56 $1.48 dividend payments $1.40 $1.34 $1.25 $1.28 Indicated dividend for 2025: $2.10 (12.3% increase) Dividend payout ratio impacted by exceptional Plastics segment financial results driving a lower ratio 78% Targe
Slide 35: 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% 8.75% Earnings Sharing Mechanism No Yes2 Yes3 Disciplined Rider Recovery for: cap