Otter Tail Corporation (OTTR)

Otter Tail Power Company Files 15-Year Resource Plan with Minnesota RegulatorsMay 15, 2026 1:00 PM
Business Wire Today Otter Tail Power Company, a wholly owned subsidiary of Otter Tail Corporation (Nasdaq: OTTR), filed its 2027–2041 Integrated Resource Plan (IRP) with the Minnesota Public Utilities Commission, outlining how it plans to meet customers’ electricity needs over the next 15 years. “Our responsibility is to deliver cost-effective, reliable electricity to our customers,” said Otter Tail Power President Todd Wahlund. “This plan reflects the decisions we find best meet those expectations over the long term.” The plan includes proposals to add a 50-megawatt natural gas plant expected to be in service in 2031–2032 and two 50-MW wind projects expected in service in 2035 and 2040. Otter Tail Power said the proposed additions are intended to help meet electricity demand and maintain system reliability. The IRP also reflects projects in development following its last Resource Plan approval, including the 50-MW Solway Solar expected to be in service in 2026, the 295-MW Abercrombie Solar expected to be in service in 2028, a 75-MW battery storage facility, and additional wind generation. The company develops its resource plans using forecasts for customer demand, available generation resources, and market conditions across its service territory. The Minnesota Public Utilities Commission will review the plan through a regulatory process that includes opportunities for public and stakeholder input. Otter Tail Power expects to file a separate IRP in North Dakota in 2027. South Dakota does not currently have an IRP requirement. “Resource planning is an ever-evolving process,” said Wahlund. “We’ll continue to monitor issues that may impact our plan as we continue our commitment to providing reliable and affordable electricity to our customers.” Forward Looking Statements This release includes forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. Forward-looking statements can be identified by words such as “expect,” “may,” “plan,” “will” and other similar words and expressions. Such statements are based on the current beliefs and expectations of management. Forward-looking statements made herein, which may include statements regarding our plan to meet customers’ electricity needs, the type of generation resources selected, the timing of the additions, the financial and operational impact of the final outcome of the review as well as other assumptions and statements, involve known and unknown risks and uncertainties that may cause our actual plans or results to differ from our assumptions or expectations. Our risks are more fully described in our filings with the Securities and Exchange Commission, including our most recently filed Annual Report on Form 10-K, as updated in subsequently filed Quarterly Reports on Form 10-Q, as applicable. Forward-looking statements speak only as of the date they are made, and we expressly disclaim any obligation to update any forward-looking information. About the Corporation Otter Tail Corporation, a member of the S&P SmallCap 600 Index, has interests in diversified operations that include an electric utility and manufacturing businesses. Otter Tail Corporation stock trades on the Nasdaq Global Select Market under the symbol OTTR. The latest investor and corporate information is available at www.ottertail.com. Corporate offices are in Fergus Falls, Minnesota and Fargo, North Dakota. View source version on businesswire.com: https://www.businesswire.com/news/home/20260515440406/en/ Investor contact: Beth Eiken, Manager of Investor Relations, (701) 451-3571
Media Contact: Stephanie Hoff, Director of Corporate Communications, (218) 739-8535 Original: Otter Tail Power Company Files 15-Year Resource Plan with Minnesota Regulators

Otter Tail Corporation Announces First Quarter Earnings and Affirms 2026 EPS GuidanceMay 4, 2026 6:00 PM
Business Wire Otter Tail Corporation (Nasdaq: OTTR) today announced financial results for the quarter ended March 31, 2026. SUMMARY Produced diluted earnings per share of $1.73 in the first quarter of 2026. Return on equity of 15% over the trailing twelve months. Affirmed 2026 diluted earnings per share guidance range of $5.22 to $5.62. CEO OVERVIEW "We are pleased with our first quarter financial results and are well positioned to achieve our financial objectives for the year,” said CEO Chuck MacFarlane. “Across our businesses, our team members executed on our near-term priorities for the benefit of our customers and shareholders. “Otter Tail Power delivered on our regulatory priorities while making significant progress on our customer-focused rate base growth plan. We obtained approval of our fully settled South Dakota rate case in the first quarter and implemented our new base rates at the beginning of April. We also implemented interim rates at the start of the year for our ongoing Minnesota rate case. “We completed our wind repowering project earlier this year on budget despite weather-related headwinds delaying the in-service timing. We continue to make progress on our solar, battery storage and large regional transmission projects. Our team members secured the solar panels needed for our two solar development projects during the first quarter, eliminating tariff-related risk and avoiding the potential cost increase for the benefit of our customers. “We are pleased with the results produced by our Manufacturing segment businesses as our team members’ cost-management efforts over the past year positively contributed to our quarterly results. We are also encouraged by increasing sales volumes in several of our end markets. “Our Plastics segment businesses benefitted from better-than-expected demand for our products while average sales prices continued to recede in line with our expectations. We completed the second phase of our Vinyltech expansion project earlier this year and look forward to leveraging the additional production capacity. With the conclusion of the second phase, this completes a multi-year expansion project that added 15 percent of additional production capacity, and increased manufacturing space and raw material storage capabilities. This investment will allow us to better serve our customers, pursue growth opportunities and enhance our employee experience. “We are maintaining our 2026 diluted earnings per share guidance range of $5.22 to $5.62. The fundamentals of our diversified portfolio remain strong, and we are confident in our ability to deliver on our customer-focused growth plan over the long term. Our targeted long-term earnings per share growth rate is 7 to 9 percent, with a total shareholder return of 10 to 12 percent.” QUARTERLY DIVIDEND On May 4, 2026, the corporation’s Board of Directors declared a quarterly common stock dividend of $0.5775 per share. This dividend is payable on June 10, 2026 to shareholders of record on May 15, 2026. CASH FLOWS AND LIQUIDITY Our consolidated cash provided by operating activities for the three months ended March 31, 2026 was $70.6 million compared to $39.5 million for the three months ended March 31, 2025. The increase in cash provided by operating activities was primarily due to a decrease in working capital requirements, largely driven by the timing of vendor payments and the recovery of fuel cost and rider revenue from our utility customers. Investing activities for the three months ended March 31, 2026 included capital expenditures of $185.3 million. Our capital investments were largely within our Electric segment and included investments in our solar, wind repowering and other projects. Financing activities for the three months ended March 31, 2026 included the issuance of $100.0 million of long-term debt by Otter Tail Power; the proceeds of which were used to repay short-term borrowings, fund capital investments and support operating activities. Financing activities for the period also included net short-term borrowings totaling $7.7 million and dividend payments of $24.3 million. As of March 31, 2026 we had $170.0 million and $140.5 million of available liquidity under our Otter Tail Corporation and Otter Tail Power credit facilities, respectively, along with $348.4 million of available cash and cash equivalents, resulting in total available liquidity of $658.9 million. SEGMENT PERFORMANCE Electric Segment   Three Months Ended March 31,         ($ in thousands)   2026     2025   Change   % Change Operating Revenues $ 165,870   $ 149,720   $ 16,150     10.8 % Net Income   35,250     24,708     10,542     42.7                   Retail MWh Sales   1,715,724     1,673,004     42,720     2.6 % Heating Degree Days   3,155     3,451     (296 )   (8.6 ) The following table shows heating degree days as a percent of normal.   Three Months Ended March 31,   2026     2025   Heating Degree Days 92.2 %   100.9 % The following table summarizes the estimated effect on diluted earnings per share of the difference in retail kilowatt-hour (kwh) sales under actual weather conditions and expected retail kwh sales under normal weather conditions for the three months ended March 31, 2026 and 2025.   2026 vs Normal   2026 vs 2025   2025 vs Normal Effect on Diluted Earnings Per Share $ (0.05 )   $ (0.05 )   $ — Operating Revenues increased $16.2 million driven by higher retail revenues due to increased rates, higher fuel recovery revenues, increased commercial sales volumes and the recovery of our investments through riders. These increases were partially offset by the impact of unfavorable weather and higher production tax credits, the benefit of which is provided to customers. Interim rates in Minnesota and South Dakota became effective in January 2026 and December 2025, respectively, and updated base rates in North Dakota went into effect in March 2025. Higher fuel recovery revenues resulted from increased generation from our natural gas and coal-fired facilities. Finally, we benefited from the recovery of our significant rate base investments over the past twelve months, including investments in our wind repowering and solar facility projects. Net Income increased $10.5 million primarily due to higher retail revenues, partially offset by higher operating and maintenance expenses, including increased labor costs, as well as higher depreciation and interest expense associated with our rate base investments. Manufacturing Segment   Three Months Ended March 31,         (in thousands)   2026     2025   $ Change   % Change Operating Revenues $ 89,559   $ 81,685   $ 7,874   9.6 % Net Income   4,283     1,532     2,751     179.6   Operating Revenues increased $7.9 million primarily due to a 5% increase in steel costs, which are passed on to customers, and a 4% increase in sales volumes. Demand improved in certain markets we serve, including the construction and recreational vehicle markets, compared to softer demand and tighter inventory management efforts during the same period last year. Net Income increased $2.8 million primarily due to higher margins resulting from the mix of products sold, improved production efficiencies and a cost structure aligned with current demand levels. Higher sales volumes also contributed to the increase in earnings. The impact of higher margins and sales volumes was partially offset by higher general and administrative expenses. Plastics Segment   Three Months Ended March 31,         (in thousands)   2026     2025   $ Change   % Change Operating Revenues $ 91,597   $ 105,948   $ (14,351 )   (13.5 )% Net Income   32,940     43,439     (10,499 )   (24.2 ) Operating Revenues decreased $14.4 million primarily due to a 19% decrease in average sales prices compared with the same period last year, continuing the multi-year decline in product pricing from peak levels in late 2022. This decrease was partially offset by a 7% increase in sales volumes. Sales volumes benefited from the opportunistic sale of specialty pipe during the period. Late in the quarter, we also benefited from distributor and contractor demand as they sought to secure inventories in advance of potential PVC resin cost increases. Net Income decreased $10.5 million as a result of decreased sales prices, partially offset by the increase in sales volumes and a 12% decrease in PVC resin and other input material costs. Corporate   Three Months Ended March 31,         (in thousands)   2026     2025     $ Change   % Change Net Income (Loss) $ 137   $ (1,580 )   $ 1,717   n/m Net Income improved $1.7 million compared to the same period last year, primarily driven by a higher tax benefit and lower employee healthcare claims under our self-insured healthcare program. These improvements were partially offset by market-driven losses on our corporate-owned life insurance investments. 2026 OUTLOOK We continue to anticipate 2026 diluted earnings per share to be in the range of $5.22 to $5.62. We expect our earnings mix in 2026 to be approximately 49% from our Electric segment and 51% from our Manufacturing and Plastics segments, net of corporate costs. Our anticipated earnings mix in 2026 deviates from our long-term expected earnings mix of 70% Electric and 30% Non-Electric as we expect Plastics segment earnings to remain elevated in 2026 compared to our long-term view of normal earnings for this segment. The segment components of our 2026 diluted earnings per share guidance compared with actual earnings for 2025 are as follows:       2025 EPS by Segment   2026 EPS Guidance       Low   High Electric     $ 2.32     $ 2.61     $ 2.69   Manufacturing       0.27       0.26       0.32   Plastics       4.05       2.49       2.71   Corporate       (0.09 )     (0.14 )     (0.10 ) Total     $ 6.55     $ 5.22     $ 5.62   Return on Equity       15.6 %     11.5 %     12.3 % CONFERENCE CALL AND WEBCAST The corporation will host a live webcast on Tuesday, May 5, 2026 at 10:00 a.m. CT to discuss its financial and operating performance. The presentation will be posted on our website before the webcast. To access the live webcast, go to www.ottertail.com/presentations and select “Webcast.” Please allow time prior to the call to visit the site and download any software needed to listen in. An archived copy of the webcast will be available on our website shortly after the call. If you are interested in asking a question during the live webcast, visit and follow the link provided in the press release announcing the upcoming conference call. FORWARD-LOOKING STATEMENTS 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,” “could,” “estimate,” “expect,” “future,” “goal,” “intend,” “likely,” “may,” “optimistic,” “opportunity,” “outlook,” “plan,” “possible,” “position,” “potential,” “predict,” “probable,” “projected,” “should,” “target,” “will,” “would” and similar words and expressions are intended to identify forward-looking statements. Such statements are based upon the current beliefs and expectations of management. Forward-looking statements made herein, which may include statements regarding 2026 earnings and earnings per share, long-term earnings, earnings-per-share growth and earnings mix, anticipated levels of energy generation from renewable resources, anticipated reductions in carbon dioxide emissions, future investments and capital expenditures, rate base levels and rate base growth, future raw materials costs, future raw materials availability and supply constraints, future operating revenues and operating results, and expectations regarding regulatory proceedings, as well as other assumptions and statements, involve known and unknown risks and uncertainties that may cause our actual results in current or future periods to differ materially from the forecasted assumptions and expected results. The Company’s risks and uncertainties include, among other things, uncertainty of future investments and capital expenditures; rate base levels and rate base growth; risks associated with energy markets; the availability and pricing of resource materials; inflationary cost pressures; attracting and maintaining a qualified and stable workforce; changing macroeconomic and industry conditions that impact the demand for our products, pricing and margin; long-term investment risk; seasonal weather patterns and extreme weather events; future business volumes with key customers; reductions in our credit ratings; our ability to access capital markets on favorable terms; assumptions and costs relating to funding our employee benefit plans; our subsidiaries’ ability to make dividend payments; cybersecurity threats or data breaches; the impact of government executive orders, legislation and regulation including foreign trade policy; environmental, health and safety laws and regulations; changes in tax laws and regulations; the impact of climate change including compliance with legislative and regulatory changes to address climate change; expectations regarding regulatory proceedings, assigned service areas, the construction of major facilities, capital structure, and allowed customer rates; actual and threatened claims or litigation; and operational and economic risks associated with our electric generating and manufacturing facilities. These and other risks are more fully described in our filings with the Securities and Exchange Commission, including our most recently filed Annual Report on Form 10-K, as updated in subsequently filed Quarterly Reports on Form 10-Q, as applicable. Forward-looking statements speak only as of the date they are made, and we expressly disclaim any obligation to update any forward-looking information. Category: Earnings About the Corporation: Otter Tail Corporation, a member of the S&P SmallCap 600 Index, has interests in diversified operations that include an electric utility and manufacturing businesses. Otter Tail Corporation stock trades on the Nasdaq Global Select Market under the symbol OTTR. The latest investor and corporate information is available at www.ottertail.com. Corporate offices are in Fergus Falls, Minnesota, and Fargo, North Dakota. OTTER TAIL CORPORATION CONSOLIDATED STATEMENTS OF INCOME (unaudited)       Three Months Ended March 31, (in thousands, except per-share amounts)     2026       2025   Operating Revenues         Electric   $ 165,870     $ 149,720   Product Sales     181,156       187,633   Total Operating Revenues     347,026       337,353   Operating Expenses         Electric Production Fuel     20,773       14,321   Electric Purchased Power     27,013       30,870   Electric Operating and Maintenance Expense     50,255       48,881   Cost of Products Sold (excluding depreciation)     107,536       104,387   Nonelectric Selling, General, and Administrative Expenses     21,771       21,292   Depreciation and Amortization     29,979       29,375   Electric Property Taxes     4,462       4,228   Total Operating Expenses     261,789       253,354   Operating Income     85,237       83,999   Other Income and (Expense)         Interest Expense     (12,636 )     (11,553 ) Nonservice Components of Postretirement Benefits     443       1,282   Other Income (Expense), net     4,442       4,456   Income Before Income Taxes     77,486       78,184   Income Tax Expense     4,876       10,085   Net Income   $ 72,610     $ 68,099             Weighted-Average Common Shares Outstanding:         Basic     41,904       41,826   Diluted     42,071       42,062   Earnings Per Share:         Basic   $ 1.73     $ 1.63   Diluted   $ 1.73     $ 1.62   OTTER TAIL CORPORATION CONSOLIDATED BALANCE SHEETS (unaudited)     March 31,   December 31, (in thousands)   2026       2025   Assets       Current Assets       Cash and Cash Equivalents $ 348,354   $ 386,193 Receivables, net of allowance for credit losses   183,215       145,496   Inventories   157,055       158,598   Investments   54,887       54,311   Regulatory Assets   25,431       20,437   Other Current Assets   30,018       34,690   Total Current Assets   798,960       799,725   Noncurrent Assets       Investments   78,684       78,823   Property, Plant and Equipment, net of accumulated depreciation   3,064,991       2,876,685   Regulatory Assets   86,942       86,062   Intangible Assets, net of accumulated amortization   4,381       4,642   Goodwill   37,572       37,572   Other Noncurrent Assets   81,279       80,770   Total Noncurrent Assets   3,353,849       3,164,554   Total Assets $ 4,152,809     $ 3,964,279           Liabilities and Shareholders' Equity       Current Liabilities       Short-Term Debt $ 67,971     $ 60,242   Current Maturities of Long-Term Debt   79,964       79,951   Accounts Payable   132,821       93,606   Accrued Salaries and Wages   27,875       35,666   Accrued Taxes   19,414       18,460   Regulatory Liabilities   19,102       16,600   Other Current Liabilities   44,734       46,433   Total Current Liabilities   391,881       350,958   Noncurrent Liabilities and Deferred Credits       Pension Benefit Liability   32,189       32,376   Other Postretirement Benefits Liability   32,128       31,813   Regulatory Liabilities   302,075       297,398   Deferred Income Taxes   307,852       305,931   Deferred Tax Credits   14,281       14,321   Other Noncurrent Liabilities   101,447       106,156   Total Noncurrent Liabilities and Deferred Credits   789,972       787,995   Commitments and Contingencies       Capitalization       Long-Term Debt   1,063,164       963,566   Shareholders’ Equity       Common Shares   209,768       209,528   Additional Paid-In Capital   431,829       434,195   Retained Earnings   1,265,926       1,217,567   Accumulated Other Comprehensive Income   269       470   Total Shareholders' Equity   1,907,792       1,861,760   Total Capitalization   2,970,956       2,825,326   Total Liabilities and Shareholders' Equity $ 4,152,809     $ 3,964,279   OTTER TAIL CORPORATION CONSOLIDATED STATEMENTS OF CASH FLOWS (unaudited)     Three Months Ended March 31, (in thousands)   2026       2025   Operating Activities       Net Income $ 72,610     $ 68,099   Adjustments to Reconcile Net Income to Net Cash Provided by Operating Activities:       Depreciation and Amortization   29,979       29,375   Deferred Tax Credits   (40 )     (192 ) Deferred Income Taxes   977       1,797   Investment Losses   1,646       37   Stock Compensation Expense   6,380       5,758   Other, net   (1,565 )     (969 ) Change in Operating Assets and Liabilities:       Receivables   (37,719 )     (38,087 ) Inventories   1,829       1,526   Regulatory Assets   (1,856 )     (3,091 ) Other Assets   7,046       5,732   Accounts Payable   2,979       (16,360 ) Accrued and Other Liabilities   (17,886 )     (13,888 ) Regulatory Liabilities   6,651       1,652   Pension and Other Postretirement Benefits   (420 )     (1,920 ) Net Cash Provided by Operating Activities   70,611       39,469   Investing Activities       Capital Expenditures   (185,281 )     (58,012 ) Proceeds from Disposal of Noncurrent Assets   2,966       1,276   Purchases of Investments and Other Assets   (4,693 )     (4,175 ) Net Cash Used in Investing Activities   (187,008 )     (60,911 ) Financing Activities       Net Borrowings (Repayments) of Short-Term Debt   7,729       (10,762 ) Proceeds from Issuance of Long-Term Debt   100,000       50,000   Dividends Paid   (24,251 )     (22,003 ) Payments for Shares Withheld for Employee Tax Obligations   (3,973 )     (3,134 ) Other, net   (947 )     (2,496 ) Net Cash Provided by Financing Activities   78,558       11,605   Net Change in Cash and Cash Equivalents   (37,839 )     (9,837 ) Cash and Cash Equivalents at Beginning of Period   386,193       294,651   Cash and Cash Equivalents at End of Period $ 348,354     $ 284,814   OTTER TAIL CORPORATION SEGMENT RESULTS (unaudited)     Three Months Ended March 31, (in thousands)   2026       2025   Operating Revenues       Electric $ 165,870     $ 149,720   Manufacturing   89,559       81,685   Plastics   91,597       105,948   Total Operating Revenues $ 347,026     $ 337,353           Operating Income (Loss)       Electric $ 39,922     $ 29,043   Manufacturing   6,129       2,426   Plastics   44,703       58,876   Corporate   (5,517 )     (6,346 ) Total Operating Income $ 85,237     $ 83,999           Net Income (Loss)       Electric $ 35,250     $ 24,708   Manufacturing   4,283       1,532   Plastics   32,940       43,439   Corporate   137       (1,580 ) Total Net Income $ 72,610     $ 68,099     View source version on businesswire.com: https://www.businesswire.com/news/home/20260504710333/en/ Investor Contacts: Beth Eiken, Manager of Investor Relations, (701) 451-3571
Media Contact: Stephanie Hoff, Director of Corporate Communications, (218) 739-8535 Original: Otter Tail Corporation Announces First Quarter Earnings and Affirms 2026 EPS Guidance

Otter Tail Corporation Announces President and CFO TransitionsApril 14, 2026 12:00 PM
Business Wire
Otter Tail Corporation (Nasdaq: OTTR) today announced executive leadership transitions in conjunction with the long-term succession plan approved by its Board of Directors.

This press release features multimedia. View the full release here: https://www.businesswire.com/news/home/20260414793214/en/Mr. Tim Rogelstad
Effective April 13, 2026, Tim Rogelstad has been elected President of Otter Tail Corporation. In his new role, Mr. Rogelstad will oversee the electric and manufacturing platforms and report to Chuck MacFarlane, Otter Tail Corporation Chief Executive Officer.


Mr. Rogelstad previously served as President of Otter Tail Power Company, the Corporation’s electric utility, and as Senior Vice President, Electric Platform of the Corporation.


Mr. Rogelstad has been with Otter Tail Power Company since 1989 and has held roles of increasing responsibility across the electric utility and the Corporation during his 37-year career. He has served as the President of Otter Tail Power Company since 2014 and has been instrumental in advancing the Corporation’s electric platform strategy and operational performance.


Concurrent with this move, Todd Wahlund was elected Senior Vice President of Otter Tail Corporation and President of Otter Tail Power Company and will report to Mr. Rogelstad. Mr. Wahlund previously served as Vice President and Chief Financial Officer of Otter Tail Corporation and brings extensive financial and utility expertise from his 34 years at Otter Tail across finance, operations, and his 20 years at the electric utility platform.


Also effective April 13, 2026, Tyler Nelson has been elected Vice President and Chief Financial Officer of Otter Tail Corporation. In this role, he will report to Mr. MacFarlane. Mr. Nelson most recently served as Vice President of Finance and Treasurer and previously held the role of Vice President of Accounting. He joined the Corporation in 2020, following his role as Corporate Controller for Titan Machinery. Earlier in his career, Mr. Nelson worked in public accounting with Grant Thornton.


Otter Tail CEO Chuck MacFarlane said, “These leadership transitions are the result of long-standing and thoughtful succession planning by the Board and management team. Tim has spent nearly four decades with Otter Tail Power Company and the Corporation and has consistently demonstrated strong leadership, sound judgment, and a deep understanding of our businesses. His election as President reflects the confidence the Board has in his ability to help lead the Corporation’s operating platforms forward. Todd’s transition to President of Otter Tail Power Company leverages his extensive expertise at the electric utility and ensures seasoned leadership as it continues to execute its long-term strategy. Tyler has played a key role in Otter Tail’s financial leadership and brings continuity, discipline, and a strong understanding of our financial operations to the CFO role. Collectively, these appointments position Otter Tail well for continued execution and long-term success.”


About Otter Tail Corporation


Otter Tail Corporation, a member of the S&P SmallCap 600 Index, has interests in diversified operations that include an electric utility and manufacturing businesses. Otter Tail Corporation stock trades on the Nasdaq Global Select Market under the symbol OTTR. The latest investor and corporate information is available at www.ottertail.com. Corporate offices are in Fergus Falls, Minnesota and Fargo, North Dakota.

View source version on businesswire.com: https://www.businesswire.com/news/home/20260414793214/en/
Investor contact: Beth Eiken, Manager of Investor Relations, (701) 451-3571

Media Contact: Stephanie Hoff, Director of Corporate Communications, (218) 739-8535


Original: Otter Tail Corporation Announces President and CFO Transitions

Otter Tail Power Company Completes Rate Review in South DakotaMarch 10, 2026 3:45 PM
Business Wire
Otter Tail Power Company, a wholly owned subsidiary of Otter Tail Corporation (Nasdaq: OTTR), today announced the South Dakota Public Utilities Commission approval of the settlement agreement reached between Otter Tail Power and commission staff, concluding the rate proceeding.


Investor highlights:



Net revenue increase of $3.3 million



Achieved 58% of original request; 75% after considering adjustments for rider treatment



Blackbox settlement regarding return on equity and capital structure



Return on rate base of 7.09%



Moratorium on increases to base rates until December 1, 2029, with certain exceptions



“Today’s outcome reflects a constructive regulatory process, and is expected to support safe, reliable and economical electric service for our South Dakota customers,” said Otter Tail Power President Tim Rogelstad. “We appreciate the collaboration with the South Dakota Commission and staff throughout the proceeding.”


Final rates are anticipated to be implemented on April 1, 2026. Even with the increase, Otter Tail Power is expected to continue having some of the lowest electric rates in the region and country.


Forward Looking Statements


This release includes forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. Forward-looking statements can be identified by words such as “anticipate,” “expect,” “will” and other similar words and expressions. Such statements are based on the current beliefs and expectations of management. Forward-looking statements made herein, which may include statements regarding the approved net revenue increase, the authorized return on rate base, our ongoing capital investment plans, the anticipated financial and operational impact of the South Dakota rate review and the implementation of final rates as well as other assumptions and statements, involve known and unknown risks and uncertainties that may cause our actual plans or results to differ from our assumptions or expectations.


Our risks are more fully described in our filings with the Securities and Exchange Commission, including our most recently filed Annual Report on Form 10-K, as updated in subsequently filed Quarterly Reports on Form 10-Q, as applicable. Forward-looking statements speak only as of the date they are made, and we expressly disclaim any obligation to update any forward-looking information.


About the Corporation


Otter Tail Corporation, a member of the S&P SmallCap 600 Index, has interests in diversified operations that include an electric utility and manufacturing businesses. Otter Tail Corporation stock trades on the Nasdaq Global Select Market under the symbol OTTR. The latest investor and corporate information is available at www.ottertail.com. Corporate offices are in Fergus Falls, Minnesota and Fargo, North Dakota.

View source version on businesswire.com: https://www.businesswire.com/news/home/20260310932622/en/
Investor contact: Beth Eiken, Manager of Investor Relations, (701) 451-3571

Media Contact: Stephanie Hoff, Director of Corporate Communications, (218) 739-8535


Original: Otter Tail Power Company Completes Rate Review in South Dakota

Otter Tail Corporation Announces Annual Earnings and Initiates 2026 Earnings GuidanceFebruary 16, 2026 6:00 PM
Business Wire
Otter Tail Corporation (Nasdaq: OTTR) today announced financial results for the quarter and year ended December 31, 2025.


SUMMARY



Produced annual diluted earnings per share of $6.55.



Achieved a consolidated return on equity of 16% on an equity ratio of 63%.



Initiated 2026 diluted earnings per share guidance range of $5.22 to $5.62, a return on equity projection of 12% at the midpoint.



CEO OVERVIEW


"We are pleased with our 2025 financial results as they exceeded our expectations for the year,” said President and CEO Chuck MacFarlane. “Our results are fueled by our team members’ efforts, and I am proud of the ways they delivered for our customers and shareholders amidst dynamic market conditions.


“Throughout 2025, Otter Tail Power navigated a full agenda and our team members rose to the occasion. We made significant progress on a number of our capital projects, including our wind repowering, solar development and large regional transmission projects, all while executing on our regulatory priorities. We filed rate cases in South Dakota and Minnesota for the first time since 2018 and 2020, respectively. Even with the proposed increases, Otter Tail Power will continue to have some of the lowest electric rates in the region and country.


“Otter Tail Power’s capital spending plan for 2026 through 2030 remains robust. We have identified a pipeline of high-quality projects that provide safe, reliable and increasingly clean electric service for our customers. We are reaffirming our five-year rate base compounded annual growth rate of 10 percent.


“Our Manufacturing segment businesses continued to face soft end market demand following a sharp decline in sales volumes beginning in the third quarter of 2024. Our team members did an excellent job aligning our cost structure with the current demand environment while ensuring we remained well-positioned to respond when conditions improved. This positioning became important towards the end of 2025 as customer order activity picked up, enabling us to end the year with momentum.


“Our Plastics segment businesses continued to provide significant value to our organization even as segment earnings receded from record levels last year, and I am proud of how our team members navigated these changing market conditions. We benefitted from increased sales volumes enabled by the incremental production capacity and large-diameter capability added at Vinyltech in late 2024, partially offsetting the impact of lower PVC pipe sales prices. We expect to complete the second phase of our Vinyltech expansion project in early 2026.


“We are initiating our 2026 diluted earnings per share guidance range of $5.22 to $5.62 and affirming our long-term financial targets. The fundamentals of our business and diversified portfolio remain strong and we are confident in our ability to deliver on our growth plan for the benefit of our customers and shareholders. We continue to target a long-term earnings per share growth rate of 7 to 9 percent, resulting in a total shareholder return of 10 to 12 percent.”


CASH FLOWS AND LIQUIDITY


Our consolidated cash provided by operating activities was $386.0 million in 2025, compared to $452.7 million in 2024. The decrease was primarily driven by higher working capital requirements, including the timing of fuel cost and rider recoveries from our utility customers, and lower earnings.


Investing activities during the year included capital expenditures of $288.1 million. These expenditures were primarily within our Electric segment and included investments in our wind repowering initiatives, solar facilities, and other projects.


Financing activities in 2025 included the issuance of $100.0 million of long-term debt at Otter Tail Power, with the proceeds used to repay short-term borrowings, fund capital investments, and support operating activities. Other financing activities during the year included dividend payments of $88.1 million.


As of December 31, 2025, we had $319.3 million of available liquidity under our credit facilities and $386.2 million of available cash and cash equivalents, for total available liquidity of $705.5 million.


ANNUAL SEGMENT OPERATING RESULTS


Electric Segment




($ in thousands)






 






2025






 






 






2024






 






$ Change






 






% Change








Operating Revenues






$






566,756






 






$






524,515






 






$






42,241






 






8.1






%








Net Income






 






97,586






 






 






90,963






 






 






6,623






 






7.3






 








 






 






 






 






 






 






 






 








Retail MWh Sales






 






5,917,736






 






 






5,681,268






 






 






236,468






 






4.2






%








Heating Degree Days






 






6,117






 






 






5,313






 






 






804






 






15.1






 








Cooling Degree Days






 






492






 






 






440






 






 






52






 






11.8






 







The following table shows heating and cooling degree days as a percent of normal.




 






2025






 






2024








Heating Degree Days






97.1






%






 






83.7






%








Cooling Degree Days






102.5






%






 






93.8






%







The following table summarizes the estimated effect on diluted earnings per share of the difference in retail kilowatt-hour (kwh) sales under actual weather conditions and expected retail kwh sales under normal weather conditions in 2025 and 2024.




 






2025 vs

Normal






 






2025 vs

2024






 






2024 vs

Normal








Effect on Diluted Earnings Per Share






$






(0.03






)






 






$






0.10






 






$






(0.13






)







Operating Revenues increased $42.2 million largely due to increased fuel recovery revenues, recovery of our rate base investments, increased residential and commercial sales volumes, and the impact of favorable weather compared to last year. The increase in fuel recovery revenue was driven by increased customer demand as well as higher market energy and natural gas prices. These factors were partially offset by a net decrease in rider revenues resulting from higher production tax credits during the year following the completion of certain of our wind repowering projects and the commencement of tax credit generation which decreased income tax expense and offset rider revenue. These credits are passed through to customers, reducing operating revenue.


Net Income increased $6.6 million primarily due to higher retail revenues, as discussed above, and lower operating and maintenance expenses. These items were partially offset by higher depreciation and interest expense related to our rate base investments and the associated financing costs. In addition, a decrease in pension and postretirement related gains further offset the increase in operating revenues and decrease in operating and maintenance expenses.


Manufacturing Segment




(in thousands)






 






2025






 






 






2024






 






$ Change






 






% Change








Operating Revenues






$






314,547






 






$






342,592






 






$






(28,045






)






 






(8.2






)%








Net Income






 






11,517






 






 






13,681






 






 






(2,164






)






 






(15.8






)







Operating Revenues decreased $28.0 million primarily driven by a 6% decline in sales volumes, with reductions across several end markets, including agriculture, lawn and garden and recreational vehicles. Sales volumes were negatively affected by soft demand and inventory management efforts by manufacturers and dealers throughout much of the year, continuing a trend that began in the third quarter of 2024. A 1% decrease in steel costs, which are passed through to customers, also contributed to the decrease in operating revenues.


Net Income decreased $2.2 million primarily driven by lower sales volumes, as described above, and higher general and administrative expenses. These impacts were partially offset by higher profit margins from improved production efficiencies and reduced production costs, as we continue to align our cost structure with current demand levels.


Plastics Segment




(in thousands)






 






2025






 






 






2024






 






$ Change






 






% Change








Operating Revenues






$






422,755






 






$






463,441






 






$






(40,686






)






 






(8.8






)%








Net Income






 






170,400






 






 






200,747






 






 






(30,347






)






 






(15.1






)







Operating Revenues decreased $40.7 million primarily driven by a 15% decline in average sales prices compared to last year. Prices have been declining for several years after peaking in late 2022. The impact of lower sales prices was partially offset by an 8% increase in sales volumes, largely driven by additional production capacity following the completion of the first phase of our expansion project at Vinyltech in late 2024.


Net Income decreased $30.3 million as a result of decreased sales prices, as described above, partially offset by a 14% decrease in PVC resin and other input material costs and the 8% increase in sales volumes.


Corporate




(in thousands)






 






2025






 






 






 






2024






 






 






$ Change






 






% Change








Net Loss






$






(3,610






)






 






$






(3,729






)






 






$






119






 






(3.2






)%







FOURTH QUARTER OPERATING RESULTS


Consolidated Results




(in thousands, except per share amounts)






 






2025






 






 






2024






 






$ Change






 






% Change








Operating Revenues






$






308,099






 






$






303,111






 






$






4,988






 






 






1.6






%








Operating Expenses






 






240,480






 






 






236,287






 






 






4,193






 






 






1.8






 








Operating Income






 






67,619






 






 






66,824






 






 






795






 






 






1.2






 








Other Expense






 






6,014






 






 






3,821






 






 






2,193






 






 






57.4






 








Income Before Income Taxes






 






61,605






 






 






63,003






 






 






(1,398






)






 






(2.2






)








Income Tax Expense






 






9,831






 






 






8,153






 






 






1,678






 






 






20.6






 








Net Income






 






51,774






 






 






54,850






 






 






(3,076






)






 






(5.6






)








Diluted Earnings Per Share






$






1.23






 






$






1.30






 






$






(0.07






)






 






(5.4






)%







Electric Segment


Electric segment net income was $26.4 million, a $4.9 million increase from the fourth quarter of 2024. The increase was primarily driven by lower operating and maintenance expenses, higher residential and commercial sales volumes, and the impact of favorable weather compared to the same period last year. These benefits were partially offset by higher depreciation and interest expense associated with our rate base investments and related financing costs.


Manufacturing Segment


Manufacturing segment net income was $2.6 million, an increase of $3.2 million from a net loss of $0.6 million in the fourth quarter of 2024. The increase was primarily driven by an 11% increase in sales volumes and improved profit margins compared to the same period in the prior year. For much of the year, sales volumes were impacted by soft end market demand and inventory destocking by manufacturers and dealers. In the fourth quarter, however, sales volumes increased as customers began replenishing inventories. These favorable impacts were partially offset by higher general and administrative expenses compared to the prior year.


Plastics Segment


Plastics segment net income was $30.4 million, an $8.6 million decrease from the fourth quarter of 2024. The decrease was primarily driven by lower sales prices, which continued to decline throughout the year and were 20% lower in the fourth quarter compared to the same period last year. The impact of lower sales prices was partially offset by decreases in PVC resin and other input material costs and by higher sales volumes. The cost of input materials, including PVC resin, decreased 22% largely due to global supply and demand dynamics. Sales volumes increased 4% compared to the same period last year, largely driven by our increased production capacity.


Corporate


Corporate net loss was $7.6 million, an increase of $2.6 million from the net loss of $5.0 million in the fourth quarter of 2024. This increase was primarily the result of higher income tax expense, driven by higher state income taxes compared to last year.


2026 OUTLOOK


We anticipate 2026 diluted earnings per share to be in the range of $5.22 to $5.62. We expect our earnings mix in 2026 to be approximately 49% from our Electric segment and 51% from our Manufacturing and Plastics segments, net of corporate costs. Our anticipated earnings mix in 2026 deviates from our long-term expected earnings mix of 70% Electric and 30% Non-Electric as we expect Plastics segment earnings to remain elevated in 2026 compared to our long-term view of normal earnings for this segment.


The segment components of our 2026 diluted earnings per share guidance compared with actual earnings for 2025 are as follows:




 






 






 






2025 EPS

by Segment






 






2026 EPS Guidance








 






 






 






Low






 






High








Electric






 






 






$






2.32






 






 






$






2.61






 






 






$






2.69






 








Manufacturing






 






 






 






0.27






 






 






 






0.26






 






 






 






0.32






 








Plastics






 






 






 






4.05






 






 






 






2.49






 






 






 






2.71






 








Corporate






 






 






 






(0.09






)






 






 






(0.14






)






 






 






(0.10






)








Total






 






 






$






6.55






 






 






$






5.22






 






 






$






5.62






 








Return on Equity






 






 






 






15.6






%






 






 






11.5






%






 






 






12.3






%







The following items contribute to our 2026 earnings guidance:


Electric Segment - We expect segment earnings to increase 14% in 2026 based on the following:



Returns generated from an increase in average rate base of 14% in 2026.



Interim revenues commencing January 1, 2026 from our general rate case filed in Minnesota and anticipated final rates from our South Dakota general rate case.



Increased operating and maintenance expenses from higher labor costs, planned outage costs at Big Stone Plant, and investments to promote system reliability.



Increased depreciation and interest expense from our capital investments and associated financing.



Manufacturing Segment - We expect segment earnings to increase 7% in 2026 based on the following assumptions:



Flat to modest increase in sales volumes in our contract metal fabrication business as conditions in certain end markets remain challenged.



Increased sales volumes of horticulture products from improved end market conditions.



Improved productivity partially offset by inflationary cost increases.



Plastics Segment - We expect segment earnings to decline 36% in 2026 based on the following assumptions:



Continued decline in average product sales prices throughout 2026, as pricing continues to recede from the high point in 2022.



Increased sales volumes from the new capacity added at our Phoenix facility, partially offset by a subdued housing market.



Flat raw material costs in 2026 compared to 2025 as global supply and demand factors for PVC resin appear supportive of current pricing.



Corporate Costs - We expect our corporate costs to increase primarily from lower investment income and higher labor costs.


CAPITAL EXPENDITURES


The following provides a summary of actual capital expenditures for the year ended December 31, 2025, and anticipated annual capital expenditures for the next five years, along with average rate base and annual rate base growth of our Electric segment:




(in millions)






 






 






 






 






2025






 






 






 






 






2026






 






 






 






2027






 






 






 






2028






 






 






 






2029






 






 






 






2030






 






 






Total




2026 - 2030








Electric Segment:






 






 






 






 






 






 






 






 






 






 






 






 






 






 






 






 






 








Renewable Generation and Storage






 






 






 






$






91






 






 






 






$






251






 






 






$






295






 






 






$






89






 






 






$






4






 






 






$






6






 






 






$






645








Transmission






 






 






 






 






50






 






 






 






 






80






 






 






 






167






 






 






 






167






 






 






 






186






 






 






 






255






 






 






 






855








Distribution






 






 






 






 






88






 






 






 






 






55






 






 






 






49






 






 






 






53






 






 






 






54






 






 






 






57






 






 






 






268








Other






 






 






 






 






42






 






 






 






 






50






 






 






 






36






 






 






 






24






 






 






 






23






 






 






 






20






 






 






 






153








Total Electric Segment






 






 






 






 






271






 






 






 






 






436






 






 






 






547






 






 






 






333






 






 






 






267






 






 






 






338






 






 






 






1,921








Manufacturing and Plastics Segments






 






 






 






 






17






 






 






 






 






31






 






 






 






27






 






 






 






29






 






 






 






23






 






 






 






19






 






 






 






129








Total Capital Expenditures






 






 






 






$






288






 






 






 






$






467






 






 






$






574






 






 






$






362






 






 






$






290






 






 






$






357






 






 






$






2,050








 






 






 






 






 






 






 






 






 






 






 






 






 






 






 






 






 






 








Total Electric Utility Average Rate Base






 






 






 






$






2,108






 






 






 






$






2,403






 






 






$






2,773






 






 






$






3,108






 






 






$






3,260






 






 






$






3,423






 






 






 








Annual Rate Base Growth






 






 






 






 






11.4






%






 






 






 






14.0






%






 






 






15.4






%






 






 






12.1






%






 






 






4.9






%






 






 






5.0






%






 






 







Our updated five-year capital expenditure plan includes Electric segment investments in solar and battery storage resources, transmission and distribution assets, and investments in system reliability and technology. Our Electric segment capital expenditure plan produces a compounded annual growth rate on average rate base of 10% over the next five years and will serve as a key driver in increasing Electric segment earnings over this timeframe. Our capital expenditure plan in our Manufacturing and Plastics segments includes a mix of investments to replace and upgrade existing equipment and investments to add additional capacity or productivity to our operations.


CONFERENCE CALL AND WEBCAST


The corporation will host a live webcast on Tuesday, February 17, 2026, at 10:00 a.m. CT to discuss its financial and operating performance.


The presentation will be posted on our website before the webcast. To access the live webcast, go to www.ottertail.com/presentations and select “Webcast.” Please allow time prior to the call to visit the site and download any software needed to listen in. An archived copy of the webcast will be available on our website shortly after the call.


If you are interested in asking a question during the live webcast, visit and follow the link provided in the press release announcing the upcoming conference call.


FORWARD-LOOKING STATEMENTS


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,” “could,” “estimate,” “expect,” “future,” “goal,” “intend,” “likely,” “may,” “optimistic,” “opportunity,” “outlook,” “plan,” “possible,” “position,” “potential,” “predict,” “probable,” “projected,” “should,” “target,” “will,” “would” and similar words and expressions are intended to identify forward-looking statements. Such statements are based upon the current beliefs and expectations of management. Forward-looking statements made herein, which may include statements regarding 2026 earnings and earnings per share, long-term earnings, earnings per share growth and earnings mix, anticipated levels of energy generation from renewable resources, anticipated reductions in carbon dioxide emissions, future investments and capital expenditures, rate base levels and rate base growth, future raw materials costs, future raw materials availability and supply constraints, future operating revenues and operating results, and expectations regarding regulatory proceedings, as well as other assumptions and statements, involve known and unknown risks and uncertainties that may cause our actual results in current or future periods to differ materially from the forecasted assumptions and expected results. The Company’s risks and uncertainties include, among other things, uncertainty of future investments and capital expenditures; rate base levels and rate base growth; risks associated with energy markets; the availability and pricing of resource materials; inflationary cost pressures; attracting and maintaining a qualified and stable workforce; changing macroeconomic and industry conditions that impact the demand for our products, pricing and margin; long-term investment risk; seasonal weather patterns and extreme weather events; future business volumes with key customers; reductions in our credit ratings; our ability to access capital markets on favorable terms; assumptions and costs relating to funding our employee benefit plans; our subsidiaries’ ability to make dividend payments; cybersecurity threats or data breaches; the impact of government executive orders, legislation and regulation including foreign trade policy; environmental, health and safety laws and regulations; changes in tax laws and regulations; the impact of climate change including compliance with legislative and regulatory changes to address climate change; expectations regarding regulatory proceedings, assigned service areas, the construction of major facilities, capital structure, and allowed customer rates; actual and threatened claims or litigation; and operational and economic risks associated with our electric generating and manufacturing facilities. These and other risks are more fully described in our filings with the Securities and Exchange Commission, including our most recently filed Annual Report on Form 10-K, as updated in subsequently filed Quarterly Reports on Form 10-Q, as applicable. Forward-looking statements speak only as of the date they are made, and we expressly disclaim any obligation to update any forward-looking information.


Category: Earnings


About the Corporation: Otter Tail Corporation, a member of the S&P SmallCap 600 Index, has interests in diversified operations that include an electric utility and manufacturing businesses. Otter Tail Corporation stock trades on the Nasdaq Global Select Market under the symbol OTTR. The latest investor and corporate information is available at www.ottertail.com. Corporate offices are in Fergus Falls, Minnesota, and Fargo, North Dakota.




OTTER TAIL CORPORATION








CONSOLIDATED STATEMENTS OF INCOME (unaudited)








 








 






Three Months Ended

December 31,






 






Twelve Months Ended

December 31,








(in thousands, except per-share amounts)






 






2025






 






 






 






2024






 






 






 






2025






 






 






 






2024






 








Operating Revenues






 






 






 






 






 






 






 








Electric






$






149,708






 






 






$






139,818






 






 






$






566,756






 






 






$






524,515






 








Product Sales






 






158,391






 






 






 






163,293






 






 






 






737,302






 






 






 






806,033






 








Total Operating Revenues






 






308,099






 






 






 






303,111






 






 






 






1,304,058






 






 






 






1,330,548






 








Operating Expenses






 






 






 






 






 






 






 








Electric Production Fuel






 






18,993






 






 






 






15,936






 






 






 






75,048






 






 






 






60,945






 








Electric Purchased Power






 






22,796






 






 






 






19,055






 






 






 






78,658






 






 






 






61,561






 








Electric Operating and Maintenance Expense






 






47,479






 






 






 






54,055






 






 






 






184,310






 






 






 






190,422






 








Cost of Products Sold (excluding depreciation)






 






91,113






 






 






 






91,560






 






 






 






402,664






 






 






 






434,522






 








Nonelectric Selling, General, and Administrative Expenses






 






26,132






 






 






 






24,169






 






 






 






82,566






 






 






 






80,065






 








Depreciation and Amortization






 






29,731






 






 






 






27,541






 






 






 






118,107






 






 






 






107,121






 








Electric Property Taxes






 






4,236






 






 






 






3,971






 






 






 






17,023






 






 






 






15,662






 








Total Operating Expenses






 






240,480






 






 






 






236,287






 






 






 






958,376






 






 






 






950,298






 








Operating Income






 






67,619






 






 






 






66,824






 






 






 






345,682






 






 






 






380,250






 








Other Income and (Expense)






 






 






 






 






 






 






 








Interest Expense






 






(12,163






)






 






 






(10,591






)






 






 






(47,226






)






 






 






(41,815






)








Nonservice Components of Postretirement Benefits






 






894






 






 






 






2,412






 






 






 






3,334






 






 






 






9,609






 








Other Income (Expense), net






 






5,255






 






 






 






4,358






 






 






 






20,487






 






 






 






18,848






 








Income Before Income Taxes






 






61,605






 






 






 






63,003






 






 






 






322,277






 






 






 






366,892






 








Income Tax Expense






 






9,831






 






 






 






8,153






 






 






 






46,384






 






 






 






65,230






 








Net Income






$






51,774






 






 






$






54,850






 






 






$






275,893






 






 






$






301,662






 








 






 






 






 






 






 






 






 








Weighted-Average Common Shares Outstanding:






 






 






 






 






 






 






 








Basic






 






41,877






 






 






 






41,801






 






 






 






41,864






 






 






 






41,778






 








Diluted






 






42,149






 






 






 






42,088






 






 






 






42,117






 






 






 






42,072






 








Earnings Per Share:






 






 






 






 






 






 






 








Basic






$






1.24






 






 






$






1.31






 






 






$






6.59






 






 






$






7.22






 








Diluted






$






1.23






 






 






$






1.30






 






 






$






6.55






 






 






$






7.17






 









OTTER TAIL CORPORATION








CONSOLIDATED BALANCE SHEETS (unaudited)








 








 






December 31,








(in thousands)






 






2025






 






 






2024








Assets






 






 






 








Current Assets






 






 






 








Cash and Cash Equivalents






$






386,193






 






$






294,651








Receivables, net of allowance for credit losses






 






145,496






 






 






145,964








Inventories






 






158,598






 






 






148,885








Investments






 






54,311






 






 






753








Regulatory Assets






 






20,437






 






 






9,962








Other Current Assets






 






34,690






 






 






29,826








Total Current Assets






 






799,725






 






 






630,041








Noncurrent Assets






 






 






 








Investments






 






78,823






 






 






121,177








Property, Plant and Equipment, net of accumulated depreciation






 






2,876,685






 






 






2,692,460








Regulatory Assets






 






86,062






 






 






98,673








Intangible Assets, net of accumulated amortization






 






4,642






 






 






5,743








Goodwill






 






37,572






 






 






37,572








Other Noncurrent Assets






 






80,770






 






 






66,416








Total Noncurrent Assets






 






3,164,554






 






 






3,022,041








Total Assets






$






3,964,279






 






$






3,652,082








 






 






 






 








Liabilities and Shareholders' Equity






 






 






 








Current Liabilities






 






 






 








Short-Term Debt






$






60,242






 






$






69,615








Current Maturities of Long-Term Debt






 






79,951






 






 






—








Accounts Payable






 






93,606






 






 






113,574








Accrued Salaries and Wages






 






35,666






 






 






34,398








Accrued Taxes






 






18,460






 






 






17,314








Regulatory Liabilities






 






16,600






 






 






29,307








Other Current Liabilities






 






46,433






 






 






45,582








Total Current Liabilities






 






350,958






 






 






309,790








Noncurrent Liabilities and Deferred Credits






 






 






 








Pension Benefit Liability






 






32,376






 






 






32,614








Other Postretirement Benefits Liability






 






31,813






 






 






27,385








Regulatory Liabilities






 






297,398






 






 






288,928








Deferred Income Taxes






 






305,931






 






 






267,745








Deferred Tax Credits






 






14,321






 






 






14,990








Other Noncurrent Liabilities






 






106,156






 






 






98,397








Total Noncurrent Liabilities and Deferred Credits






 






787,995






 






 






730,059








Commitments and Contingencies






 






 






 








Capitalization






 






 






 








Long-Term Debt






 






963,566






 






 






943,734








Shareholders’ Equity






 






 






 








Common Shares






 






209,528






 






 






209,140








Additional Paid-In Capital






 






434,195






 






 






429,089








Retained Earnings






 






1,217,567






 






 






1,029,738








Accumulated Other Comprehensive Income






 






470






 






 






532








Total Shareholders' Equity






 






1,861,760






 






 






1,668,499








Total Capitalization






 






2,825,326






 






 






2,612,233








Total Liabilities and Shareholders' Equity






$






3,964,279






 






$






3,652,082









OTTER TAIL CORPORATION








CONSOLIDATED STATEMENTS OF CASH FLOWS (unaudited)








 








 






Twelve Months Ended

December 31,








(in thousands)






 






2025






 






 






 






2024






 








Operating Activities






 






 






 








Net Income






$






275,893






 






 






$






301,662






 








Adjustments to Reconcile Net Income to Net Cash Provided by Operating Activities:






 






 






 








Depreciation and Amortization






 






118,107






 






 






 






107,121






 








Deferred Tax Credits






 






(669






)






 






 






(182






)








Deferred Income Taxes






 






33,187






 






 






 






23,057






 








Investment Gains






 






(6,701






)






 






 






(5,482






)








Stock Compensation Expense






 






9,119






 






 






 






9,529






 








Other, net






 






(4,040






)






 






 






(3,111






)








Change in Operating Assets and Liabilities:






 






 






 








Receivables






 






468






 






 






 






11,179






 








Inventories






 






(4,751






)






 






 






3,691






 








Regulatory Assets






 






(10,779






)






 






 






5,194






 








Other Assets






 






(3,721






)






 






 






(11,640






)








Accounts Payable






 






(24,120






)






 






 






14,826






 








Accrued and Other Liabilities






 






7,257






 






 






 






(10,371






)








Regulatory Liabilities






 






2,190






 






 






 






16,821






 








Pension and Other Postretirement Benefits






 






(5,455






)






 






 






(9,563






)








Net Cash Provided by Operating Activities






 






385,985






 






 






 






452,731






 








Investing Activities






 






 






 








Capital Expenditures






 






(288,068






)






 






 






(358,650






)








Proceeds from Disposal of Noncurrent Assets






 






6,925






 






 






 






8,849






 








Purchases of Investments and Other Assets






 






(9,581






)






 






 






(61,573






)








Net Cash Used in Investing Activities






 






(290,724






)






 






 






(411,374






)








Financing Activities






 






 






 








Net Repayments of Short-Term Debt






 






(9,373






)






 






 






(11,807






)








Proceeds from Issuance of Long-Term Debt






 






100,000






 






 






 






120,000






 








Dividends Paid






 






(88,064






)






 






 






(78,266






)








Payments for Shares Withheld for Employee Tax Obligations






 






(3,134






)






 






 






(6,457






)








Other, net






 






(3,148






)






 






 






(549






)








Net Cash Provided by (Used in) Financing Activities






 






(3,719






)






 






 






22,921






 








Net Change in Cash and Cash Equivalents






 






91,542






 






 






 






64,278






 








Cash and Cash Equivalents at Beginning of Period






 






294,651






 






 






 






230,373






 








Cash and Cash Equivalents at End of Period






$






386,193






 






 






$






294,651






 









OTTER TAIL CORPORATION








SEGMENT RESULTS (unaudited)








 








 






Three Months Ended

December 31,






 






Twelve Months Ended

December 31,








(in thousands)






 






2025






 






 






 






2024






 






 






 






2025






 






 






 






2024






 








Operating Revenues






 






 






 






 






 






 






 








Electric






$






149,708






 






 






$






139,818






 






 






$






566,756






 






 






$






524,515






 








Manufacturing






 






77,183






 






 






 






66,632






 






 






 






314,547






 






 






 






342,592






 








Plastics






 






81,208






 






 






 






96,661






 






 






 






422,755






 






 






 






463,441






 








Total Operating Revenues






$






308,099






 






 






$






303,111






 






 






$






1,304,058






 






 






$






1,330,548






 








 






 






 






 






 






 






 






 








Operating Income (Loss)






 






 






 






 






 






 






 








Electric






$






33,122






 






 






$






25,680






 






 






$






121,549






 






 






$






113,789






 








Manufacturing






 






3,717






 






 






 






(606






)






 






 






16,900






 






 






 






19,092






 








Plastics






 






41,212






 






 






 






52,769






 






 






 






231,079






 






 






 






271,905






 








Corporate






 






(10,432






)






 






 






(11,019






)






 






 






(23,846






)






 






 






(24,536






)








Total Net Income






$






67,619






 






 






$






66,824






 






 






$






345,682






 






 






$






380,250






 








 






 






 






 






 






 






 






 








Net Income (Loss)






 






 






 






 






 






 






 








Electric






$






26,376






 






 






$






21,478






 






 






$






97,586






 






 






$






90,963






 








Manufacturing






 






2,587






 






 






 






(590






)






 






 






11,517






 






 






 






13,681






 








Plastics






 






30,362






 






 






 






38,919






 






 






 






170,400






 






 






 






200,747






 








Corporate






 






(7,551






)






 






 






(4,957






)






 






 






(3,610






)






 






 






(3,729






)








Total Net Income






$






51,774






 






 






$






54,850






 






 






$






275,893






 






 






$






301,662






 







 

View source version on businesswire.com: https://www.businesswire.com/news/home/20260216441136/en/
Investor Contacts: Beth Eiken, Manager of Investor Relations, (701) 451-3571

Media Contact: Stephanie Hoff, Director of Corporate Communications, (218) 739-8535


Original: Otter Tail Corporation Announces Annual Earnings and Initiates 2026 Earnings Guidance