Otter Tail : First Quarter 2026 Earnings Conference Call Presentation
OTTR
Published on 05/05/2026 at 12:15 pm EDT
Q1 2026
ELECTRIC
Founded in 1907
Serve approximately
134,000 customers in MN, ND, SD
Regulated and vertically
integrated electric utility
MANUFACTURING
Owned and operated for over 20 years
Diverse end-markets High utilization of asset base
Investment Thesis
Best in class utility:
Strong EPS growth and low customer rates
1
Strategic diversification: Enhances consolidated ROE and cash flow
2
Internally financed growth: No external equity needs at least through 2030
3
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
Procured solar panels for solar development projects, eliminating tariff risk
Completed Phase 2 of Vinyltech expansion project
2026 Outlook
Affirming 2026 earnings guidance of $5.22 to $5.62
$ in millions, except per share data
Quarter-to-Date
Net Income Diluted EPS
$68.1
$72.6
$1.62
7%
$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
Docket EL25-022
Last rate request filed in 2018
Requested:
Net revenue increase of $5.7M
ROE of 10.8%
Equity layer of 53.54%
Final rates implemented on April 1, 2026
SD Public Utilities Commission Approval of Settlement Stipulation
March 2026
Net revenue increase:
$3.3M
(7.7% increase)
Return on rate base:
7.09%
ROE and capital structure:
Blackbox
Final outcome achieved 58% of request; increases to ~ 75% after considering adjustments for rider treatment
Docket 25-359
Last rate request filed in 2020
Interim rate revenue of $28.6 million went into effect January 1, 2026, subject to refund
Final rate implementation expected in the second half of 2027
Request Filed with the Minnesota Public Utilities Commission
October 2025
Net revenue increase:
$44.8M
(17.7% increase)
ROE:
10.65%
(existing 9.48%)
Equity layer:
53.5%
(existing 52.5%)
Significant Rate Base Growth
$ in billions
10%
CAGR
$3.42
$3.11
$3.26
$2.77
$2.40
$2.11
Conversion of rate base growth into Electric EPS growth
of our capital investment is expected to be recovered through riders and existing rates
2025 (A) 2026 (F) 2027 (F) 2028 (F) 2029 (F) 2030 (F)
Solway Solar
Est. investment:
$80M
Est. completion date:
2026-2027
Recovery mechanism: Approved riders in MN and SD
Abercrombie Solar
Est. investment:
$450M
Est. completion date:
2028
Recovery mechanism: Approved riders in MN and SD
Hoot Lake Battery
Est. investment:
$120M
Est. completion date:
2028
Recovery mechanism:
Approved rider
in MN
MISO LRTP1
Tranche 1
Est. investment:
$475M
Est. completion date:
2030
Recovery mechanism: MISO tariff with state riders
MISO LRTP
Tranche 2.1
Est. investment:
$800M - $1B
Est. completion date:
2034
Recovery mechanism: MISO tariff with state riders
JTIQ2
Est. investment:
$450M - $500M
Est. completion date:
2034
Recovery mechanism: MISO tariff with generator payments
1 Long Range Transmission Plan 11
2 Joint Targeted Interconnection Queue
Well positioned to attract large loads
Attractive service territory - low market energy prices and high renewable production
Locations identified with minimal delivery costs to site
Load growth opportunity driven by
Data centers
Crypto mining
Clean fuel
Agriculture processing
Benefits of adding large loads
Spreads out fixed costs, benefitting existing customers
Capital investment and earnings opportunity
Phases to Secure Large Load
Existing Opportunity
Letter of Intent
1
1,050 MW
Term Sheet
2
0 MW
Electric Service Agreement
3
0 MW
Phase 1 and 2 large load additions not included in load growth or capex forecast
12
Proven Track Record Looking Ahead
Our Electric Rates Compared to Regional and National Averages1
5-Year
2021 2022 2023 2024 2025
CAGR
(15)%
(12)%
(14)%
(16)%
(19)%
Rate Base Growth 10%
Net MISO system-wide recovery
3 - 4%
Renewable energy tax credits
2 - 3%
Other (reduced energy costs, load growth, etc.)
0 - 1%
Affordability enablers:
(23)% (23)%
Otter Tail Power's 2025 rates: 19% below regional average 34% below national average
(29)% (30)%
(34)%
Estimated Customer Bill Impact 3 - 4%
Expected customer bill CAGR may vary by state and could be impacted by external factors, including market energy prices
1 Source: Edison Electric Institute, Typical Bills and Average Rates Report, Summer Residential Rates 13
BTD Manufacturing and T.O. Plastics
Industries Served Industry Conditions
Recreational Vehicle Lawn & Garden Construction Agriculture Industrial Horticulture
Dealer inventory levels have largely normalized
Agriculture industry conditions remain challenging due to weak farm economy
Long-term fundamentals remain strong
Northern Pipe Products and Vinyltech Corporation
Historical Average Sales Price of PVC Pipe1 2026 Year-Over-Year Trends1
PVC pipe prices have steadily declined since late 2022
2019 2020 2021 2022 2023 2024 2025
2026
Average Sales Prices Sales Volumes Material Input Costs
Q1
↓ 19%
↓ 12%
1 Internal sales pricing, volumes and material costs only 16
$1.62
$0.04
$1.73
$(0.24)
$0.25 $0.06
Q1 2025 Electric Manufacturing Plastics Corporate Q1 2026
Segment Level Detail
$0.59
$0.06
$(0.03)
$(0.02)
$(0.05)
$0.23
$0.02 $0.04 $0.84
Electric
Q1
Sales
Weather
Electric Rates
O&M
Depreciation
AFUDC
Other
Q1
2025
Volume
& Rider
Expense
Expense
2026
Revenue
$0.02
$0.05
$0.10
$0.02 $(0.03)
$0.04
Manufacturing
Q1
2025
Sales
Volume
Product Pricing
and Mix
Production
Cost
SG&A
Expense
Q1
2026
Segment Level Detail
$0.07
$0.79
$(0.37)
$(0.02)
Plastics
$1.03 $0.08
Q1 2025
Sales Volume
Product Pricing
Material Cost
Other Manufacturing Costs
Q1 2026
Corporate
$(0.04)
$(0.01)
$0.01
$0.00
$0.04
Q1
2025
SG&A
Expense
Investment
Income
Income Tax
Benefit & Other
Q1
2026
Disclaimer
Otter Tail Corporation published this content on May 05, 2026, and is solely responsible for the information contained herein. Distributed via Public Technologies (PUBT), unedited and unaltered, on May 05, 2026 at 16:12 UTC.