Slide 1: Q2 2025 Earnings Conference Call
Q2 2025 Earnings Conference Call
Slide 2: Safe Harbor
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,” “could,” “esti
Slide 3: Company Overview
Company Overview Investment Thesis ELECTRIC MANUFACTURING Best in class utility: 1 EPS growth rate of 9% 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 utilizatio
Slide 4: Key Highlights
Key Highlights Financial Results • Quarterly earnings outpaced expectations; Q2 2025 diluted EPS of $1.85 • ROE1 of 17% • Robust balance sheet; well positioned to fund future growth Positioned for Future Growth • Obtained regulatory approval for direct assignment of Abercrombie Solar and Solway Sola
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 -11% -10% $87.0 $2.07 $161.3 $77.7 $1.85 $3.84 $145.8 $3.46 Q2 2024 Q2 2025 Q2 2024 Q2 2025 YTD 2024 YTD 2025 YTD 2024 YTD 2025 Increased 2025 EPS Guidance Midpoint to $6
Slide 6: Electric Platform
OTTERTAIL CORPORATION . Electric Platform OrrEnian POWER COMPANY
Slide 7: Legislative & Regulatory Environment
Legislative & Regulatory Environment One Big Beautiful Bill Act (OBBBA) Environmental Regulations Key Provisions: Key Updates: • Phases-out tax credits under technology-neutral provisions • Regional Haze: EPA granted request for reconsideration of for wind and solar investments North Dakota State Im
Slide 8: South Dakota Rate Case
South Dakota Rate Case • Last requested rate review was in 2018 Request Filed with the South Dakota Public Utilities Commission (SDPUC) • Rate change could be effective June 2025 upon the earlier of: • SDPUC issuing its decision; or Net revenue ROE: Equity layer: increase: • December 1, 2025 $5.7M 1
Slide 9: Rate Base Investment Plan
Rate Base Investment Plan Reaffirming Customer-Focused Rate Base Growth Plan Significant Rate Base Growth Expected Capital Investment $ in billions Recovery Mechanisms New Rate 9.0% Case Existing Rates, 33% CAGR Requests, 3% $2.91 $2.76 $2.52 $2.30 $2.12 Rider Requests, $1.89 64% Expect to convert 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 A Proven Record of Providing Affordable Service 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
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 ↓ 15% ↓ 13% PVC pipe prices have steadily declined since late 2022 Sales Volumes ↑ 11% ↑ 12% Material Input Costs ↓ 15% ↓ 11% 18 20
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 $2.07 $0.02 $0.02 $1.85 $(0.08) $(0.18) Q2 2024 Electric Manufacturing Plastics Corporate Q2 2025 19
Slide 20: QTD Diluted EPS: Electric and Manufacturing
QTD Diluted EPS Segment Level Detail $0.09 $0.02 $0.44 $0.03 $0.46 $(0.04) $(0.03) Electric $(0.03) $(0.02) Q2 Weather Rider Transmission O&M Depreciation Interest Nonservice Q2 2024 Revenue Revenue Expense Expense Expense Cost of 2025 Postretirement Benefits $0.16 Manufacturing $(0.02) $0.02 $0.08
Slide 21: QTD Diluted EPS: Plastics and Corporate
QTD Diluted EPS Segment Level Detail $0.16 $1.44 $0.09 $1.26 Plastics $(0.39) $(0.04) Q2 Sales Product Material Other Q2 2024 Volume Pricing Cost Manufacturing Costs 2025 Corporate $0.01 $0.05 $0.01 $0.03 Q2 Investment COLI Q2 1 2024 Income Investments 2025 1 Market-based returns on corporate-owned
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% 37.0% 22.1% $211.0 19.3% Available $307.2 17.1% $170.0 Available $9.0 61.4% 62.2% 63.0% Outstanding 2023 2024 6/30/2025 Otter Tail Corporation Otter Tail
Slide 23: 2025 Outlook
2025 Outlook Uplifting Guidance 2025 Guidance 2025 Guidance Actual February 17, 2025 August 4, 2025 Diluted EPS 2023 2024 Low High Low High Electric $ 2.01 $ 2.16 $ 2.29 $ 2.35 $ 2.29 $ 2.35 Manufacturing 0.51 0.33 0.21 0.27 0.21 0.27 Plastics 4.47 4.77 3.26 3.50 3.64 3.88 Corporate 0.01 (0.09) (0.0
Slide 24: EPS Growth
EPS Growth Robust Growth Across Our Business $7.17 $7.00 $6.78 $6.26 Consolidated EPS (5YR CAGR): 21.8% $4.23 Consolidated EPS w/o Disciplined Plastics1 (5YR CAGR): 8.4% capital deployment $2.34 Proven track record of delivering focused on: $2.53 $2.50 EPS growth in line or above $2.40 $2.12 target
Slide 25: Capital Expenditures
Capital Expenditures Customer-Focused Capital Investment Plan 2025 (F) 2026 (F) 2027 (F) 2028 (F) 2029 (F) Total $650M in millions Incremental investment Electric opportunity for Electric in later part of 5-year period Renewable Generation $ 101 $ 127 $ 118 $ 179 $ 4 $ 529 and beyond Disciplined Tra
Slide 26: Normalized Plastics Earnings
Normalized Plastics Earnings Northern Pipe Products and Vinyltech Corporation $ in millions $195 $201 $188 $158 $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 27: Investment Targets
Investment Targets Total Shareholder Return: 9-11% Key underlying assumptions • Electric segment rate base Long-term EPS growth and EPS CAGRs of 9% Dividend yield: ~ 3% rate: 6-8%1 • Plastics segment earnings of $45M-$50M in 2028 Dividend Growth Rate: 6-8% • Long-term earnings mix Targeted payout ra
Slide 28: Appendix
SOTTERTAIL CORPORATION am m= Appendix
Slide 29: YTD Diluted EPS
YTD Diluted EPS $3.84 $0.07 $3.46 $(0.17) $(0.26) $(0.02) 2024 Electric Manufacturing Plastics Corporate 2025 29
Slide 30: YTD Diluted EPS: Electric and Manufacturing
YTD Diluted EPS Segment Level Detail $0.13 $0.09 $0.02 $1.04 $0.97 $0.04 $(0.05) $(0.07) $(0.05) $(0.04) Electric 2024 Sales Weather Electric O&M Depreciation Interest Nonservice Other 2025 Volume Rates Expense Expense Expense Cost of & Rider Postretirement Revenue Benefits $0.29 $(0.05) Manufacturi
Slide 31: YTD Diluted EPS: Plastics and Corporate
YTD Diluted EPS Segment Level Detail $0.32 $2.55 $0.14 $2.29 $(0.63) $(0.05) $(0.04) Plastics 2024 Sales Product Material Other SG&A 2025 Volume Pricing Cost Manufacturing Expense Costs Corporate $0.03 $0.02 $0.01 $(0.03) $(0.01) 2024 SG&A Investment COLI 2025 1 Expense Income Investments 1 Market-b
Slide 32: Financing Plan
Financing Plan Supportive of Electric Segment Capital Plan with No Equity Needs 2025 2026 - 2029 (F) 5YR Total in millions Long-Term Debt Otter Tail Power Company Disciplined Issuances capital $ 100 $ 515 $ 615 Retirements deployment (112) (112) focused on:Corporation Otter Tail Issuances Retirement
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