Otter Tail Corporation · NASDAQ:OTTR
Otter Tail — Q2 2026 Earnings Presentation
35 slides from Otter Tail's earnings presentation, Aug 4, 2026
Slide 1: Q2 2026 Earnings Conference Call
Q2 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 loss per share of $0.18 and adjusted diluted EPS of $1.661 • Adjusted ROE of 15%1 (trailing twelve months) on an equity layer of 60% Positioned for Future Growth • Secured route permits for two of our large regional transmission projects
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 -10% -2% $1.85 $1.66 $3.46 $3.38 $77.7 $69.6 $145.8 $142.2 2025 2026 2025 2026 2025 2026 2025 2026 Net Income Adjusted Diluted EPS Adjusted Net Income Adjusted Diluted EP
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 into effect January 1, 2026, subject to Amended Request Filed with the refund Minnesota Public Utilities Commission • Procedural schedule: July 2026 • Intervenor testimony: June 2026 • Re
Slide 8: Minnesota Integrated Resource Plan
Minnesota Integrated Resource Plan Docket E017/RP-26-90 • Outlines preferred plan for meeting Request Filed with the Minnesota Public customers' anticipated capacity and energy needs over 15-year period Utilities Commission May 2026 • Requests new resource additions, and 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 Est. completion date: Est. completion date: Est. completion date: 2027 2028 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 $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 Agriculture challenged due to weak farm economy Long-ter
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 Q2 YTD Average Sales Prices ↓ 14% ↓ 16% PVC pipe prices have trended downward Sales Volumes ↑ 15% ↑ 11% since late 2022 Material Input Costs ↓ 2
Slide 17: Financial Results
CORPORATION OTTERTAIL
Slide 18: QTD Diluted EPS
QTD Diluted EPS $1.85 $0.03 $(0.01) $1.66 $(0.14) $(0.07) Q2 2025 Electric Manufacturing Plastics Corporate Q2 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
Slide 19: QTD Diluted EPS: Electric and Manufacturing
QTD Diluted EPS Segment Level Detail $0.07 $0.11 $0.04 $0.46 $0.45 $(0.14) $(0.03) $(0.02) Electric $(0.04) Q2 2025 Sales Electric Capital O&M Depreciation Interest Other Q2 2026 Diluted EPS Volume Rates Recovery Expense Expense Expense Diluted EPS (Riders & AFUDC) $0.06 Manufacturing $0.03 $(0.02)
Slide 20: QTD Diluted EPS: Plastics and Corporate
QTD Diluted EPS Segment Level Detail $0.21 $1.26 $0.02 $1.12 Plastics $(0.35) $(0.02) Q2 2025 Sales Product Material SG&A Q2 2026 Diluted EPS Volume Pricing Cost Expense Adjusted Diluted EPS* $0.05 Corporate $0.01 $(0.03) $(0.05) $(0.02) Q2 2025 SG&A Investment Income Taxes Q2 2026 Diluted EPS Expen
Slide 21: Balance Sheet
Balance Sheet $ in millions Capital Structure and ROE1 Line of Credit Availability Cash and Cash Equivalents with comparison to EEI Peers 2 40% 59% $153 Available 14.6% $278 9.8% $170 Available $67 60% 41% Outstanding Otter Tail Corporation EEI Otter Tail Corporation Otter Tail Power 06/30/26 Equity
Slide 22: 2026 Outlook
2026 Outlook Actual 2026 Guidance 2026 Adjusted Guidance1 February 16, 2026 August 3, 2026 Diluted EPS 2025 Low High Low High Electric $ 2.32 $ 2.61 $ 2.69 $ 2.61 $ 2.69 Manufacturing 0.27 0.26 0.32 0.32 0.38 Plastics 4.05 2.49 2.71 2.97 3.19 Corporate (0.09) (0.14) (0.10) (0.22) (0.18) Total $ 6.55
Slide 23: Capital Expenditures
Capital Expenditures Customer-Focused Capital Investment Plan 2026 2027 2028 2029 2030 Total in millions $750M 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 — (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 $130 $98 $45 - $50 $48 $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: 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 27: Appendix
OTTERTAIL CORPORATION Appendix
Slide 28: YTD Diluted EPS
YTD Diluted EPS $0.24 $0.09 $3.46 $3.38 $(0.38) $(0.03) 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 Appendix
Slide 29: YTD Diluted EPS: Electric and Manufacturing
YTD Diluted EPS Segment Level Detail $0.18 $0.25 $1.28 $0.09 $(0.16) $1.04 $(0.05) $(0.04) $(0.03) Electric 2025 Sales Weather Electric Rates Capital O&M Depreciation Interest 2026 Diluted EPS Volume Recovery Expense Expense Expense Diluted EPS (Riders & AFUDC) Manufacturing $0.11 $0.02 $0.21 $0.03
Slide 30: YTD Diluted EPS: Plastics and Corporate
YTD Diluted EPS Segment Level Detail $0.29 $2.29 $0.09 $1.91 $(0.72) $(0.04) Plastics 2025 Sales Product Material Other 2026 Diluted EPS Volume Pricing Cost Adjusted Diluted EPS* $0.01 Corporate $(0.01) $(0.02) $(0.02) 2025 SG&A Income Tax 2026 Diluted EPS Expense Benefit & Other Diluted EPS * Adjus
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 Net Income (Loss) and Adjusted Diluted Earnings Per Share The following table presents reconciliations of net income (loss) to adjusted net income and diluted earnings (loss) per share to adjusted diluted earnings per share for our Plastics segment and on a consolid
Slide 35: Non-GAAP Reconciliations
Non-GAAP Reconciliations Adjusted Return on Equity Adjusted Forecasted Earnings The following table presents a reconciliation of return on equity to adjusted return on equity The following table presents a reconciliation of the midpoint of our revised 2026 earnings on a consolidated basis for the pe