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Q2 2026 Earnings Conference Call OTTERTAIL CORPORATION Of
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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,” “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. Non-GAAP Financial Measures This presentation includes certain non-GAAP financial measures which remove the after-tax impact of the legal settlement expense recognized during the second quarter of 2026. The Company believes these non-GAAP financial measures can provide more information to assist investors in evaluating current period performance and in assessing future performance. These non-GAAP measures, including adjusted net income, adjusted diluted earnings per share and adjusted return on equity, should be considered supplemental to, and not a substitute for, GAAP results and may not be comparable to similarly titled measures used by other companies. Reconciliations to the most directly comparable GAAP measures are included in the Appendix to this presentation. 2 Investor Relations Contacts Beth Eiken Devin Scott Manager of Investor Relations Director of Finance beiken@ottertail.com dscott@ottertail.com
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3 Company Overview 1 Best in class utility: Strong EPS growth and low customer rates 2 Strategic diversification: Enhances consolidated ROE and cash flow 3 Internally financed growth: No external equity needs through at least 2030 Investment Thesis Founded in 1907 Serve approximately 134,000 customers in MN, ND, SD Diverse end-markets High utilization of asset base ELECTRIC MANUFACTURING Regulated and vertically integrated electric utility Owned and operated for over 20 years
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4 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 • Filed 15-year integrated resource plan in Minnesota • Capitalized on growth opportunities from additional capacity in Georgia and Arizona 2026 Outlook • Initiating adjusted diluted EPS guidance range of $5.68 to $6.081 Key Highlights 1 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
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Financial Summary $ in millions, except per share data 5 $77.7 $69.6 2025 Net Income 2026 Adjusted Net Income* Quarter-to-Date $145.8 $142.2 2025 Net Income 2026 Adjusted Net Income* -10% $1.85 $1.66 2025 Diluted EPS 2026 Adjusted Diluted EPS* Net Income Diluted EPS Year-to-Date -2% $3.46 $3.38 2025 Diluted EPS 2026 Adjusted Diluted EPS* 2026 Adjusted EPS Guidance Midpoint: $5.88* Net Income 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
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Electric Platform 6
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Minnesota Rate Case 7 • Last rate request filed in 2020 • Interim rate revenue of $28.6 million went into effect January 1, 2026, subject to refund • Procedural schedule: • Intervenor testimony: June 2026 • Rebuttal testimony: July 2026 • ALJ report: January 2027 • Decision expected: April 2027 • Amended net revenue increase request to $42.3M from $44.8M as part of rebuttal testimony • Final rate implementation expected in the second half of 2027 Net revenue increase: $42.3M (16.7% increase) ROE: 10.65% (existing 9.48%) Equity layer: 53.5% (existing 52.5%) Amended Request Filed with the Minnesota Public Utilities Commission July 2026 Docket 25-359
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Minnesota Integrated Resource Plan 8 • Outlines preferred plan for meeting customers' anticipated capacity and energy needs over 15-year period • Requests new resource additions, and reflects projects in development or under construction from previously approved resource plan • Anticipate a hearing and final order in Q2 2027 Natural Gas 50 MW 2031-2032 Wind 50 MW 2035 Wind 50 MW 2040 Request Filed with the Minnesota Public Utilities Commission May 2026 Docket E017/RP-26-90
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Rate Base Investment Plan 9 $2.11 $2.40 $2.77 $3.11 $3.26 $3.42 2025 (A) 2026 (F) 2027 (F) 2028 (F) 2029 (F) 2030 (F) Significant Rate Base Growth $ in billions 10% CAGR 1:1 Conversion of rate base growth into Electric EPS growth ~ 90% of our capital investment is expected to be recovered through riders and existing rates
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10 Generation and Storage Project Updates Solway Solar Est. investment: $80M Est. completion date: 2027 Recovery mechanism: Approved riders in MN and SD Hoot Lake Battery Est. investment: $120M Est. completion date: 2028 Recovery mechanism: Approved rider in MN Abercrombie Solar Est. investment: $450M Est. completion date: 2028 Recovery mechanism: Approved riders in MN and SD
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11 Transmission Project Updates MISO LRTP1 Tranche 1 MISO LRTP Tranche 2.1 JTIQ2 Est. investment: $800M - $1B Est. completion date: 2034 Recovery mechanism: MISO tariff with state riders Est. investment: $475M Est. completion date: 2030 Recovery mechanism: MISO tariff with state riders Est. investment: $450M - $500M Est. completion date: 2034 Recovery mechanism: MISO tariff with generator payments 1 Long Range Transmission Plan 2 Joint Targeted Interconnection Queue
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Load Growth Opportunities 12 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 • Large load tariff filed in all jurisdictions (MN, ND and SD) Load growth opportunity driven by • Data centers • Clean fuel • Agriculture processing • Thermal storage facilities Benefits of adding large loads • Distributes fixed costs across larger customer base • Capital investment and earnings opportunity Phases to Secure Large Load Existing Opportunity 1 Letter of Intent 2 3 1,400 MW 35% Data Center 65% Other 0 MW 0 MW Term Sheet Electric Service Agreement Phase 1 and 2 large load additions not included in load growth or capex forecast
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Customer Rates and Affordability 13 Our Electric Rates Compared to Regional and National Averages1 Proven Track Record Looking Ahead (23)% (23)% (29)% (30)% (34)% (15)% (12)% (14)% (16)% (19)% 2021 2022 2023 2024 2025 Otter Tail Power's 2025 rates: 19% below regional average 34% below national average 5-Year CAGR Rate Base Growth 10% Affordability enablers: Net MISO system-wide recovery 3 - 4% Renewable energy tax credits 2 - 3% Other (reduced energy purchases, load growth, etc.) 0 - 1% 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
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Manufacturing Platform 14
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15 Industry Conditions: Manufacturing BTD Manufacturing and T.O. Plastics Industries Served Industry Conditions Weak Stable Strong Recreational Vehicle Lawn & Garden Construction Agriculture Industrial Horticulture Dealer inventory levels have largely normalized Agriculture industry conditions remain challenged due to weak farm economy Long-term fundamentals remain strong
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16 Plastics Pricing and Volume Trends Northern Pipe Products and Vinyltech Corporation Jan-19 Jan-20 Jan-21 Jan-22 Jan-23 Jan-24 Jan-25 Jan-26 Historical Average Sales Price of PVC Pipe1 2019 2020 2021 2022 2023 2024 2025 2026 Year-Over-Year Trends1 Q2 YTD Average Sales Prices ↓ 14% ↓ 16% Sales Volumes ↑ 15% ↑ 11% Material Input Costs ↓ 2% ↓ 7% 2026 PVC pipe prices have trended downward since late 2022 1 Internal sales pricing, volumes and material costs only
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Financial Results 17
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QTD Diluted EPS 18 $1.85 $(0.01) $0.03 $(0.14) $(0.07) $1.66 Q2 2025 Diluted EPS Electric Manufacturing Plastics Corporate Q2 2026 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
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QTD Diluted EPS Segment Level Detail 19 $0.46 $0.04 $0.11 $0.07 $(0.14) $(0.03) $(0.02) $(0.04) $0.45 Q2 2025 Diluted EPS Sales Volume Electric Rates Capital Recovery O&M Expense Depreciation Expense Interest Expense Other Q2 2026 Diluted EPS $0.08 $0.03 $0.06 $(0.02) $(0.04) $0.11 Q2 2025 Diluted EPS Sales Volume Product Pricing and Mix Production Cost SG&A Expense Q2 2026 Diluted EPS Electric Manufacturing (Riders & AFUDC)
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QTD Diluted EPS Segment Level Detail 20 $1.26 $0.21 $(0.35) $0.02 $(0.02) $1.12 Q2 2025 Diluted EPS Sales Volume Product Pricing Material Cost SG&A Expense Q2 2026 Adjusted Diluted EPS* $0.05 $(0.03) $0.01 $(0.05) $(0.02) Q2 2025 Diluted EPS SG&A Expense Investment Income Income Taxes & Other Q2 2026 Diluted EPS Plastics Corporate * 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
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Balance Sheet $ in millions 21 60% 41% 40% 59% 14.6% 9.8% Equity Debt ROE (TTM) Otter Tail Corporation EEI Line of Credit Availability $67 $170 $153 Otter Tail CorporationOtter Tail Power Available Available Outstanding $278 06/30/26 Capital Structure and ROE1 with comparison to EEI Peers2 Cash and Cash Equivalents Credit Ratings Otter Tail Corporation Otter Tail Power Company Moody's Fitch S&P Moody's Fitch S&P Long-term issuer default Baa2 BBB BBB Baa1 BBB+ BBB+ Senior unsecured debt N.A. BBB N.A N.A. A- N.A. Outlook Stable Stable Positive Stable Stable Stable 1 Otter Tail Corporation's ROE (TTM) is 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 2 Otter Tail Corporation data as of June 30, 2026. EEI peer data obtained from S&P Capital IQ, and is based on the latest information available
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2026 Outlook 22 Diluted EPS Actual 2026 Guidance February 16, 2026 2026 Adjusted Guidance1 August 3, 2026 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 $ 5.22 $ 5.62 $ 5.68 $ 6.08 Return on Equity 15.6 % 11.5 % 12.3 % 12.5 % 13.3 % 1 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
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Capital Expenditures 23 Disciplined capital deployment focused on: in millions 2026 2027 2028 2029 2030 Total Electric Renewable Generation and Storage $ 251 $ 295 $ 89 $ 4 $ 6 $ 645 Transmission 80 167 167 186 255 855 Distribution 55 49 53 54 57 268 Other 50 36 24 23 20 153 Electric Total $ 436 $ 547 $ 333 $ 267 $ 338 $ 1,921 Manufacturing & Plastics 31 27 29 23 19 129 Total $ 467 $ 574 $ 362 $ 290 $ 357 $ 2,050 $750M Incremental investment opportunity for Electric1 Driven by: • Up to 200 MW of wind generation • Accelerating transmission investment • Delivery investment relating to new large loads 1 Every $100M of incremental capital investment increases our rate base CAGR by ~ 65 basis points Customer-Focused Capital Investment Plan
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Financing Plan 24 Disciplined capital deployment focused on: $ in millions 2026 2027 - 2030 (F) 5YR Total Long-Term Debt Otter Tail Power Company Issuances $ 170 $ 620 $ 790 Retirements — (162) (162) Otter Tail Corporation Issuances — — — Retirements (80) — (80) Net Debt Increase $ 90 $ 458 $ 548 Equity $ — $ — $ — No external equity needs through at least 2030 Financing plan supports utility investments without external equity over 5-year period
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$24 $98 $195 $188 $201 $170 $130 $48 2018 - 2020 Average 2021 2022 2023 2024 2025 2026 (F) Adjusted Net Income* 2028 (F) 25 Long-Term Plastics Earnings Profile Northern Pipe Products and Vinyltech Corporation $45 - $50 Continued Product Price Declines Sales Volume Increase Inflationary Increase in Input Costs $ in millions * 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
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Investment Targets 26 Key underlying assumptions • Electric segment long-term EPS growth rate approximates rate base CAGR • Plastics segment earnings of $45M-$50M in 2028 • Long-term earnings mix target reached in 2028 Total Shareholder Return: 10-12% Long-term EPS growth rate: 7-9% (2028 base year) Dividend yield: ~ 3% Dividend Growth Rate: 6-8% Targeted payout ratio: 50-60% Long-Term Earnings Mix: 70% Electric / 30% Manufacturing
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Appendix 27
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YTD Diluted EPS 28 $3.46 $0.24 $0.09 $(0.38) $(0.03) $3.38 2025 Diluted EPS Electric Manufacturing Plastics Corporate 2026 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
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YTD Diluted EPS Segment Level Detail 29 $1.04 $0.09 $(0.03) $0.25 $0.18 $(0.16) $(0.05) $(0.04) $1.28 2025 Diluted EPS Sales Volume Weather Electric Rates Capital Recovery O&M Expense Depreciation Expense Interest Expense 2026 Diluted EPS $0.12 $0.03 $0.11 $(0.07) $0.02 $0.21 2025 Diluted EPS Sales Volume Product Pricing and Mix SG&A Expense Depreciation Expense 2026 Diluted EPS Electric Manufacturing (Riders & AFUDC)
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YTD Diluted EPS Segment Level Detail 30 $2.29 $0.29 $(0.72) $0.09 $(0.04) $1.91 2025 Diluted EPS Sales Volume Product Pricing Material Cost Other 2026 Adjusted Diluted EPS* $0.01 $(0.01) $(0.02) $(0.02) 2025 Diluted EPS SG&A Expense Income Tax Benefit & Other 2026 Diluted EPS Plastics Corporate * 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
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Dividend payout ratio impacted by exceptional Plastics segment financial results driving a lower ratio Dividend and Payout Ratio 31 $1.25 $1.28 $1.34 $1.40 $1.48 $1.56 $1.65 $1.75 $1.87 $2.10 $2.31 78% 70% 65% 65% 63% 37% 24% 25% 26% 32% 39% Dividend Amount Payout Ratio 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 Indicated* 87 consecutive years of dividend payments Indicated dividend for 2026: $2.31 (10.0% increase) Targeted dividend growth rate: 6-8% 8% CAGR * 2026 indicated dividend payout ratio is calculated using the midpoint of our adjusted earnings guidance, which removes the after-tax impact of the legal settlement expense recognized during Q2 2026
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$42 $70 $50 $40 $60 $50 $100 $50 $26 $10 $90 $100 $64 $15 $100 $90 $60 $50 $70 $80 Otter Tail CorporationOtter Tail Power 2026 2027 2029 2030 2031 2034 2035 2036 2037 2039 2040 2044 2048 2049 2050 2051 2052 2054 2055 2056 Debt Maturity Schedule 32 Weighted average interest rate: 4.68% // // // // // //
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Otter Tail Power Regulatory Framework 33 Disciplined capital deployment focused on: 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% Earnings Sharing Mechanism No Yes2 No Rider Recovery for: Renewable Generation Yes Yes Yes Non-Renewable Generation No Yes Yes Transmission Yes Yes Yes Customer and Distribution Technology Yes Yes Yes Cost of Energy Recovery Adjustment Annually Monthly Monthly Decoupled Rates No No No 1 Historical test year with known and measurable adjustments 2 Earnings above a 10.20% return on equity will be shared with 70% refunded to North Dakota customers
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Non-GAAP Reconciliations 34 Three Months Ended June 30, Six Months Ended June 30, $ in millions, except per share data 2026 2025 2026 2025 Adjusted Net Income Plastics Segment Net Income (Loss) $ (30.1) $ 53.1 $ 2.9 $ 96.5 Add: Legal Settlement Expense 103.5 — 103.5 — Less: Tax Effect of Adjustment1 (26.3) — (26.3) — Plastics Segment Adjusted Net Income 47.1 53.1 80.1 96.5 Consolidated Net Income (Loss) (7.6) 77.7 65.0 145.8 Add: Legal Settlement Expense 103.5 — 103.5 — Less: Tax Effect of Adjustment1 (26.3) — (26.3) — Consolidated Adjusted Net Income $ 69.6 $ 77.7 $ 142.2 $ 145.8 Adjusted Diluted Earnings Per Share Plastics Segment Diluted Earnings (Loss) Per Share $ (0.72) $ 1.26 $ 0.07 $ 2.29 Add: Earnings Per Share Impact of After-Tax Legal Settlement Expense 1.84 — 1.84 — Plastics Segment Adjusted Diluted Earnings Per Share 1.12 1.26 1.91 2.29 Consolidated Diluted Earnings (Loss) Per Share (0.18) 1.85 1.54 3.46 Add: Earnings Per Share Impact of After-Tax Legal Settlement Expense 1.84 — 1.84 — Consolidated Adjusted Diluted Earnings Per Share $ 1.66 $ 1.85 $ 3.38 $ 3.46 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 consolidated basis for the periods presented 1 The tax effect of the adjustment was calculated using a 25.4% tax rate, determined based on a 21.0% federal statutory rate and a 4.4% blended state income tax rate
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Non-GAAP Reconciliations 35 Diluted EPS Guidance: Low Diluted EPS Guidance: High Unadjusted Adjustment Adjusted Unadjusted Adjustment Adjusted Electric $ 2.61 $ — $ 2.61 $ 2.69 $ — $ 2.69 Manufacturing 0.32 — 0.32 0.38 — 0.38 Plastics 1.13 1.84 2.97 1.35 1.84 3.19 Corporate (0.22) — (0.22) (0.18) — (0.18) Total $ 3.84 $ 1.84 $ 5.68 $ 4.24 $ 1.84 $ 6.08 Return on Equity / Adjusted Return on Equity 8.7 % 3.8 % 12.5 % 9.5 % 3.8 % 13.3 % Trailing Twelve Months Ended June 30, 2026 Consolidated Return on Equity 10.5 % After-Tax Impact of Legal Settlement Expense1 4.1 Adjusted Return on Equity 14.6 % $ in millions Plastics Segment Midpoint of 2026 Earnings Guidance $ 52.8 After-Tax Impact of Legal Settlement Expense 77.2 Midpoint of Adjusted 2026 Earnings Guidance $ 130.0 Adjusted Return on Equity The following table presents a reconciliation of return on equity to adjusted return on equity on a consolidated basis for the period presented Adjusted Forecasted Earnings The following table presents a reconciliation of the midpoint of our revised 2026 earnings guidance and the midpoint of our 2026 adjusted earnings guidance for the Plastics segment Adjusted Annual Earnings Guidance and Adjusted Forecasted Return on Equity The following table presents reconciliations of our 2026 diluted earnings per share guidance range to our adjusted diluted earnings per share guidance range and our 2026 forecasted return on equity to our adjusted forecasted return on equity 1 Return on equity impact when excluding the legal settlement expense and related income tax benefit from our net income and average total shareholders' equity