Slide 1: Q1 2026 Earnings Conference Call
Q1 2026 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,” “confident,” “
Slide 3: Company Overview
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 • Produced diluted EPS of $1.73 • ROE of 15% (trailing twelve months) on an equity layer of 61% Positioned for Future Growth • Completed fully settled South Dakota rate case • Implemented interim rates for Minnesota rate case • Completed wind repowering project • Pro
Slide 5: Financial Summary
Financial Summary $ in millions, except per share data Quarter-to-Date Net Income Diluted EPS 7% $72.6 $68.1 $1.62 $1.73 Affirming 2026 EPS Guidance Guidance Midpoint: $5.42 Projected ROE: 12% Electric segment earnings growth: 14% Q1 2025 Q1 2026 Q1 2025 Q1 2026 5
Slide 6: Electric Platform
OTTERTAIL CORPORATION Electric Platform y Orenian POWER COMPANY
Slide 7: South Dakota Rate Case
South Dakota Rate Case Docket EL25-022 SD Public Utilities Commission Approval • Last rate request filed in 2018 of Settlement Stipulation March 2026 • Requested: • Net revenue increase of $5.7M Net revenue Return on rate ROE and capital increase: base: structure: • ROE of 10.8% • Equity layer of 53
Slide 8: Minnesota Rate Case
Minnesota Rate Case Docket 25-359 Request Filed with the Minnesota Public • Last rate request filed in 2020 Utilities Commission October 2025 • Interim rate revenue of $28.6 million went into effect January 1, 2026, Net revenue subject to refund ROE: Equity layer: increase: $44.8M 10.65% 53.5% • Fin
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: 2026-2027 2028 2028 Recovery mechanism: Recovery mechanism: Recovery mechanism
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 Letter of and high renewable production 1 1,050 MW Intent • Locations identified with minimal delivery costs to site Load growth
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 challenging due to weak farm economy Long-te
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 Q1 Average Sales Prices ↓ 19% PVC pipe prices have steadily declined since late 2022 Sales Volumes ↑ 7% Material Input Costs ↓ 12% 19 2019 20 20
Slide 17: Financial Results
CORPORATION OTTERTAIL
Slide 18: QTD Diluted EPS
QTD Diluted EPS $0.25 $0.06 $0.04 $1.73 $1.62 $(0.24) Q1 2025 Electric Manufacturing Plastics Corporate Q1 2026 18
Slide 19: QTD Diluted EPS: Electric and Manufacturing Detail
QTD Diluted EPS Segment Level Detail $0.23 $0.04 $0.84 $0.02 $0.06 $(0.03) $(0.02) $0.59 Electric $(0.05) Q1 Sales Weather Electric Rates O&M Depreciation AFUDC Other Q1 2025 Volume & Rider Expense Expense 2026 Revenue $0.02 Manufacturing $0.05 $0.10 $(0.03) $0.02 $0.04 Q1 Sales Product Pricing Prod
Slide 20: QTD Diluted EPS: Plastics and Corporate Detail
QTD Diluted EPS Segment Level Detail $0.08 $1.03 Plastics $0.07 $0.79 $(0.37) $(0.02) Q1 Sales Product Material Other Q1 2025 Volume Pricing Cost Manufacturing Costs 2026 Corporate $(0.04) $(0.01) $0.01 $0.04 $0.00 Q1 SG&A Investment Income Tax Q1 2025 Expense Income Benefit & Other 2026 20
Slide 21: Balance Sheet
Balance Sheet $ in millions Capital Structure and ROE Line of Credit Availability Cash and Cash Equivalents with comparison to EEI Peers 1 39% 59% $141 15.4% Available $348 9.8% $170 Available $79 61% 41% Outstanding Otter Tail Corporation EEI Otter Tail Corporation Otter Tail Power 03/31/26 Equity
Slide 22: 2026 Outlook
2026 Outlook Actual 2026 Guidance Diluted EPS 2024 2025 Low High Electric $ 2.16 $ 2.32 $ 2.61 $ 2.69 Manufacturing 0.33 0.27 0.26 0.32 Plastics 4.77 4.05 2.49 2.71 Corporate (0.09) (0.09) (0.14) (0.10) Total $ 7.17 $ 6.55 $ 5.22 $ 5.62 Return on Equity 19.3 % 15.6 % 11.5 % 12.3 % 22
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 Electric Renewable Generation and Storage $ 251 $ 295 $ 89 $ 4 $ 6 $ 645 Disciplined Transmission capital 80 167 167 186 255 855 Driven by: d
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 $110 $98 $45$48 - $50 $24 2018 - 2020 2021 2022 2023 2024 2025 2026 (F) Continued Sales Inflationary 2028 (F) Average product volume increase price increase in input declines costs
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: 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 29: Debt Maturity Schedule
Debt Maturity Schedule Weighted average interest rate: 4.60% $100 $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 2036 2037 // 2039 2040 // 2044 // 2048 2049 2050 2051 2052 // 2054 2055 Otter Tail Corporation Otter Tail Power 29
Slide 30: 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