Otter Tail (OTTR) investor relations material

Executive summary

• Q1 2026 diluted EPS reached $1.73, up from $1.62 in Q1 2025, with net income of $72.6 million and trailing twelve-month ROE at 15% on a 61% equity layer.

• Leadership transition completed, ensuring continuity and strategic focus.

• Major regulatory milestones achieved, including South Dakota rate case resolution, interim rates in Minnesota, and ongoing capital investments in renewables and transmission.

• Wind repowering and Vinyltech expansion projects completed, increasing capacity and production tax credits.

• Consolidated operating revenues rose 2.9% year-over-year to $347.0 million, driven by higher electric rates and increased sales volumes.

Financial highlights

• Diluted EPS of $1.73 for Q1 2026, net income of $72.6 million (+6.6% YoY), and operating revenues of $347.0 million (+2.9% YoY).

• Electric segment earnings grew 14% year-over-year, with Q1 2026 EPS of $1.73.

• Manufacturing segment earnings increased $0.06/share, with net income up 179.6% to $4.3 million.

• Plastics segment earnings fell 24% as PVC pipe prices declined 19% year-over-year, but sales volumes rose 7%.

• Available liquidity at quarter-end was $658.9 million, including $348.4 million in cash.

Outlook and guidance

• 2026 diluted EPS guidance reaffirmed at $5.22–$5.62, with a midpoint of $5.42 and projected ROE of 11.5–12.3%.

• Long-term EPS growth targeted at 7–9%, with total shareholder return of 10–12%.

• Dividend growth rate targeted at 6–8%, with a 2026 indicated dividend of $2.31 (10% increase).

• Five-year rate base CAGR of 10% targeted, with EPS growth expected to match rate base growth.

• Plastics segment earnings expected to decline through 2027, normalizing in 2028 at $45–$50 million.