Press Release
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November 2, 2026
Otter Tail Corporation Announces Third Quarter Results and Affirms the Midpoint of Annual Earnings Guidance
FERGUS FALLS, Minnesota - Otter Tail Corporation (Nasdaq: OTTR) today announced financial results for the quarter ended September 30, 2026.
SUMMARY
•Produced quarterly diluted earnings per share of $1.41.
•Affirmed the midpoint of our annual earnings guidance and narrowed the range.
CEO OVERVIEW
“Our team members continue to deliver on our strategic growth plan and near-term priorities amidst a challenging operating environment,” said CEO Chuck MacFarlane.
“Otter Tail Power continues to perform well, as our team is executing on our regulatory priorities and robust rate base growth plan. We are making progress on our ongoing Minnesota rate case and our integrated resource plan filed with the Minnesota Public Utilities Commission earlier this year. Our team is advancing our ongoing renewable generation and transmission capital investment projects despite increasing challenges in transmission development. We are focused on strong project execution for the benefit of our customers and shareholders.
“We are encouraged by increasing sales volumes within our Manufacturing segment. End market demand continues to improve and our team is effectively executing on our strategy of providing value-added service to our customers. Our businesses are being impacted by inflationary cost pressures and the challenge of responding to increasing customer demand.
“As expected, Plastics segment financial results for the quarter were negatively impacted by lower sales volumes and a continued decline in the average sales price of our PVC pipe. Sales volumes decreased as our customers advanced their purchases of our PVC pipe earlier this year in response to announced resin price increases. In addition, a softening housing market also contributed to the decline in volumes for the period. Despite the quarterly decrease, our team continues to effectively leverage the large diameter capacity added at our PVC pipe facility in Arizona, helping to offset the decrease.
“We remain well positioned to deliver on our financial objectives for the year. We are maintaining the midpoint and narrowing the range of our 2026 annual earnings guidance.
“The fundamentals of our diversified portfolio remain strong, and we are confident in our ability to deliver on our strategic growth plan over the long-term. We continue to target a long-term earnings per share growth rate of 7 to 9 percent and a total shareholder return of 10 to 12 percent.”
QUARTERLY DIVIDEND
On November 2, 2026, the corporation’s Board of Directors declared a quarterly common stock dividend of $0.5775 per share. This dividend is payable on December 10, 2026 to shareholders of record on November 13, 2026.
CASH FLOWS AND LIQUIDITY
Consolidated cash provided by operating activities was $307.9 million for the nine months ended September 30, 2026, compared with $288.9 million for the same period in 2025. The increase was primarily driven by lower working capital requirements, largely reflecting the timing of the recovery of fuel costs and rider revenues from our utility customers.
Investing activities for the nine months ended September 30, 2026 included $451.6 million of capital expenditures. Our capital investments were largely within our Electric segment and primarily related to our Abercrombie and Solway solar projects, wind repowering initiative, and transmission and distribution system investments.
Financing activities for the nine months ended September 30, 2026 included the issuance of $170.0 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 $72.8 million of dividend payments and $31.5 million of net repayments of short-terms borrowings.
As of September 30, 2026 available liquidity totaled $601.8 million, consisting of $170.0 million and $178.5 million available under our Otter Tail Corporation and Otter Tail Power credit facilities, respectively, and $253.3 million of cash, cash equivalents and marketable securities.



SEGMENT PERFORMANCE
Electric Segment
Three Months Ended September 30,
($ in thousands)20262025Change% Change
Operating Revenues$134,979 $138,597 $(3,618)(2.6)%
Net Income27,418 27,308 110 0.4 
Retail MWh Sales1,385,582 1,373,054 12,528 0.9 %
Heating Degree Days7 25 (18)(72.0)
Cooling Degree Days460 326 134 41.1 
The following table shows heating degree days and cooling degree days as a percent of normal.
Three Months Ended September 30,
20262025
Heating Degree Days
17.1 %61.0 %
Cooling Degree Days
131.4 %93.1 %
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 September 30, 2026 and 2025.
2026 vs Normal2026 vs
 2025		2025 vs Normal
Effect on Diluted Earnings Per Share$0.03 $0.04 $(0.01)
Operating Revenues decreased $3.6 million, primarily due to an $11.9 million aggregate decrease in fuel recovery revenues and the impact of increased production tax credits, neither of which affects net income. These decreases were partially offset by a $5.9 million increase from rate increases in Minnesota and South Dakota, a $2.7 million increase from the recovery of additional rate base investments, and a $2.3 million increase from favorable weather.
Net Income increased $0.1 million as the benefits of interim rate increases, favorable weather, the recovery of additional rate base investments, and higher allowance for funds used during construction associated with continued investments in our large solar projects were largely offset by higher operating and maintenance expenses, including increased labor, vegetation management, and plant outage-related costs, as well as higher depreciation and interest expense associated with rate base growth.
Manufacturing Segment
Three Months Ended September 30,
(in thousands)20262025$ Change% Change
Operating Revenues$89,709 $76,951 $12,758 16.6 %
Net Income2,569 3,916 (1,347)(34.4)
Operating Revenues increased $12.8 million primarily due to higher sales volumes and the pass through of increased steel costs. Sales volumes increased 13%, reflecting improved demand in the construction, recreational vehicle, lawn and garden, and industrial markets after experiencing softer market conditions and customer inventory reduction efforts during the same period last year.
Net Income decreased $1.3 million driven by higher selling, general, and administrative expenses and lower gross profit margins. Gross margins were negatively impacted by inflationary cost pressures and lower productivity as we added headcount to meet growing demand. These impacts were partially offset by higher sales volumes and increased scrap sales.



Plastics Segment
Three Months Ended September 30,
(in thousands)20262025$ Change% Change
Operating Revenues$95,825 $110,015 $(14,190)(12.9)%
Net Income28,970 43,495 (14,525)(33.4)
Operating Revenues decreased $14.2 million compared to the same period last year, reflecting a 9% decrease in average sales prices and a 5% decrease in sales volumes. Average sales prices continued to moderate from the peak level reached in late 2022. Lower sales volumes were primarily driven by the timing of customer purchases, including purchases made earlier in the year ahead of announced PVC resin cost increases, and softer demand for our products in certain regional markets due, in part, to softness in the housing market. Increased production capacity at our Phoenix facility partially offset the volume declines.
Net Income decreased $14.5 million, primarily due to lower sales prices and volumes, as discussed above, and a 10% increase in PVC resin and other input material costs, primarily driven by global PVC resin supply and demand dynamics.
Corporate
Three Months Ended September 30,
(in thousands)20262025$ Change% Change
Net Income$506 $3,573 $(3,067)(85.8)%
Net Income decreased $3.1 million compared to the same period last year, primarily due to lower income tax benefits recognized during the quarter and lower investment income resulting from a decrease in short-term investment balances.
2026 OUTLOOK
We are affirming the midpoint and narrowing our 2026 diluted earnings per share guidance range to $3.89 to $4.19 and our 2026 adjusted diluted earnings per share guidance range to $5.73 to $6.03.
The segment components of our 2026 guidance compared with actual earnings for 2025 are as follows:
August 3, 2026November 2, 2026
2025 EPS
by Segment
2026 EPS Guidance
2026 Adjusted EPS Guidance(1)
2026 EPS Guidance
2026 Adjusted EPS Guidance(1)
LowHighLowHighLowHighLowHigh
Electric$2.32 $2.61 $2.69 $2.61 $2.69 $2.62 $2.68 $2.62 $2.68 
Manufacturing0.27 0.32 0.38 0.32 0.38 0.32 0.36 0.32 0.36 
Plastics4.05 1.13 1.35 2.97 3.19 1.11 1.27 2.95 3.11 
Corporate(0.09)(0.22)(0.18)(0.22)(0.18)(0.16)(0.12)(0.16)(0.12)
Total$6.55 $3.84 $4.24 $5.68 $6.08 $3.89 $4.19 $5.73 $6.03 
Return on Equity15.6 %8.7 %9.5 %n/an/a8.7 %9.3 %n/an/a
Adjusted Return on Equity(1)
n/a
n/a
n/a
12.5 %13.3 %n/an/a12.5 %13.1 %
(1) Adjusted Diluted EPS and Adjusted Return on Equity are non-GAAP financial measures or metrics. Adjusted Diluted EPS Guidance, for both the Plastics segment and on a consolidated basis, can be reconciled to GAAP diluted EPS Guidance by excluding an adjustment of $1.84 which reflects the impact of legal settlement expenses recorded during the nine months ended September 30, 2026. Adjusted Return on Equity can be reconciled to anticipated return on equity calculated using a GAAP basis net income and GAAP basis shareholders’ equity, by excluding the impact of legal settlement expenses recorded during the nine months ended September 30, 2026 from anticipated net income and average shareholders’ equity for the annual period, which increases anticipated return on equity by 380 basis points.
CONFERENCE CALL AND WEBCAST
The corporation will host a live webcast on Tuesday, November 3, 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 the Events and Presentations section of the www.ottertail.com website 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.
NON-GAAP FINANCIAL MEASURES
This press release includes certain adjusted financial measures (non-GAAP financial measures). The Company believes these non-GAAP financial measures, when reviewed in conjunction with GAAP financial measures, can provide more information to assist investors in evaluating current period performance and in assessing future performance. For these reasons, internal management reporting also includes non-GAAP financial measures.



We use Adjusted Net Income, Adjusted Earnings per Share, and Adjusted Return on Equity in evaluating the operating performance and profitability of our business. Management believes that these measures provide useful information to investors by facilitating period-to-period comparisons of operating results excluding the effects of the legal settlement expense and related income tax benefit. We define Adjusted Net Income as net income excluding legal settlement expenses and the related income tax benefit. We define Adjusted Earnings per Share as diluted net income per share excluding the per share impact of legal settlement expenses and the related income tax benefit. We define Adjusted Return on Equity as annual Adjusted Net Income divided by the average of total consolidated shareholders’ equity excluding the impact of legal settlement expenses and the related income tax benefit.
These non-GAAP financial measures should be considered in addition to, and not superior to or as a substitute for, the GAAP financial measures presented in this release and the Company's financial statements and other publicly filed reports. Non-GAAP financial measures presented in this release may not be comparable to similarly titled measures used by other companies. Investors are encouraged to review the reconciliations of adjusted financial measures used in this release to their most directly comparable GAAP financial measures. Adjusted Net Income and Adjusted Diluted Earnings per Share are reconciled to their most directly comparable GAAP measures in the non-GAAP Reconciliations section. Guidance for Adjusted Diluted Earnings per Share and Adjusted Return on Equity are forward-looking non-GAAP financial measures that are reconciled to their respective most directly comparable GAAP financial measures in footnote (1) under 2026 Outlook.
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.
Investor Contacts:    Beth Eiken, Manager of Investor Relations, (701) 451-3571
Media Contact:    Stephanie Hoff, Director of Corporate Communications, (218) 739-8535



OTTER TAIL CORPORATION
CONSOLIDATED STATEMENTS OF INCOME (unaudited)
Three Months Ended September 30,Nine Months Ended September 30,
(in thousands, except per-share amounts)2026202520262025
Operating Revenues
Electric$134,979 $138,597 $422,167 $417,048 
Product Sales185,534 186,966 579,755 578,911 
Total Operating Revenues320,513 325,563 1,001,922 995,959 
Operating Expenses
Electric Production Fuel21,114 25,442 52,499 56,055 
Electric Purchased Power5,539 9,495 45,821 55,862 
Electric Operating and Maintenance Expense50,174 41,144 155,123 136,830 
Cost of Products Sold (excluding depreciation)119,465 101,198 345,411 311,551 
Nonelectric Selling, General, and Administrative Expenses
20,067 17,792 64,007 56,434 
Depreciation and Amortization30,608 29,554 91,398 88,376 
Electric Property Taxes4,649 4,333 14,232 12,788 
Legal Settlement Expenses— — 103,500 — 
Total Operating Expenses251,616 228,958 871,991 717,896 
Operating Income68,897 96,605 129,931 278,063 
Other Income and (Expense)
Interest Expense(13,141)(11,790)(38,667)(35,063)
Nonservice Components of Postretirement Benefits668 304 2,161 2,441 
Other Income (Expense), net7,542 5,990 19,262 15,231 
Income Before Taxes63,966 91,109 112,687 260,672 
Income Tax Expense (Benefit)4,503 12,817 (11,777)36,553 
Net Income$59,463 $78,292 $124,464 $224,119 
Weighted-Average Common Shares Outstanding:
Basic41,959 41,877 41,939 41,859 
Diluted42,168 42,138 42,123 42,106 
Earnings Per Share:
Basic$1.42 $1.87 $2.97 $5.35 
Diluted$1.41 $1.86 $2.95 $5.32 



OTTER TAIL CORPORATION
CONSOLIDATED BALANCE SHEETS (unaudited)
September 30,December 31,
(in thousands)20262025
Assets
Current Assets
Cash and Cash Equivalents$205,829 $386,193 
Restricted Cash103,500 — 
Receivables, net of allowance for credit losses172,566 145,496 
Inventories178,145 158,598 
Investments
1,205 54,311 
Regulatory Assets21,244 20,437 
Other Current Assets69,178 34,690 
Total Current Assets751,667 799,725 
Noncurrent Assets
Investments130,303 78,823 
Property, Plant and Equipment, net of accumulated depreciation3,243,986 2,876,685 
Regulatory Assets91,225 86,062 
Intangible Assets, net of accumulated amortization3,836 4,642 
Goodwill37,572 37,572 
Other Noncurrent Assets103,547 80,770 
Total Noncurrent Assets3,610,469 3,164,554 
Total Assets$4,362,136 $3,964,279 
Liabilities and Shareholders' Equity
Current Liabilities
Short-Term Debt$28,727 $60,242 
Current Maturities of Long-Term Debt121,966 79,951 
Accounts Payable127,118 93,606 
Accrued Salaries and Wages40,549 35,666 
Accrued Taxes16,320 18,460 
Regulatory Liabilities62,510 16,600 
Other Current Liabilities150,239 46,433 
Total Current Liabilities547,429 350,958 
Noncurrent Liabilities and Deferred Credits
Pension Benefit Liability
31,802 32,376 
Other Postretirement Benefits Liability32,861 31,813 
Regulatory Liabilities311,100 297,398 
Deferred Income Taxes294,639 305,931 
Deferred Tax Credits14,094 14,321 
Other Noncurrent Liabilities126,591 106,156 
Total Noncurrent Liabilities and Deferred Credits811,087 787,995 
Commitments and Contingencies
Capitalization
Long-Term Debt1,090,985 963,566 
Shareholders’ Equity
  Common Shares209,928 209,528 
  Additional Paid-In Capital433,609 434,195 
  Retained Earnings1,269,234 1,217,567 
  Accumulated Other Comprehensive Income (Loss)(136)470 
Total Shareholders' Equity1,912,635 1,861,760 
Total Capitalization3,003,620 2,825,326 
Total Liabilities and Shareholders' Equity$4,362,136 $3,964,279 



OTTER TAIL CORPORATION
CONSOLIDATED STATEMENTS OF CASH FLOWS (unaudited)
Nine Months Ended September 30,
(in thousands)20262025
Operating Activities
Net Income$124,464 $224,119 
Adjustments to Reconcile Net Income to Net Cash Provided by Operating Activities:
Depreciation and Amortization91,398 88,376 
Deferred Tax Credits(227)(477)
Deferred Income Taxes(14,588)14,527 
Investment Gains(3,893)(5,519)
Stock Compensation Expense9,735 8,106 
Legal Settlement Expenses103,500 — 
Other, net(8,605)(3,636)
Change in Operating Assets and Liabilities:
Receivables(27,070)(20,730)
Inventories(17,986)(2,837)
Regulatory Assets(8,833)(1,429)
Other Assets(5,492)4,985 
Accounts Payable29,580 (8,702)
Accrued and Other Liabilities2,134 (3,530)
Regulatory Liabilities35,773 (363)
Pension and Other Postretirement Benefits(1,995)(3,941)
Net Cash Provided by Operating Activities307,895 288,949 
Investing Activities
Capital Expenditures(451,586)(213,329)
Proceeds from Disposal of Investments and Other Assets61,627 4,957 
Purchases of Investments and Other Assets(56,236)(7,642)
Net Cash Used in Investing Activities(446,195)(216,014)
Financing Activities
Net Repayments of Short-Term Debt(31,515)(69,615)
Proceeds from Issuance of Long-Term Debt170,000 100,000 
Dividends Paid(72,797)(66,044)
Payments for Shares Withheld for Employee Tax Obligations(3,974)(3,134)
Other, net(278)(3,007)
Net Cash Provided by (Used in) Financing Activities61,436 (41,800)
Net Change in Cash, Cash Equivalents and Restricted Cash(76,864)31,135 
Cash, Cash Equivalents and Restricted Cash at Beginning of Period386,193 294,651 
Cash, Cash Equivalents and Restricted Cash at End of Period$309,329 $325,786 



OTTER TAIL CORPORATION
SEGMENT RESULTS (unaudited)
Three Months Ended September 30,Nine Months Ended September 30,
(in thousands)2026202520262025
Operating Revenues
Electric$134,979 $138,597 $422,167 $417,048 
Manufacturing89,709 76,951 267,731 237,363 
Plastics95,825 110,015 312,024 341,548 
Total Operating Revenues$320,513 $325,563 $1,001,922 $995,959 
Operating Income (Loss)
Electric$29,548 $35,750 $82,868 $88,426 
Manufacturing3,806 5,690 16,434 13,184 
Plastics39,342 58,957 44,612 189,867 
Corporate(3,799)(3,792)(13,983)(13,414)
Total Operating Income$68,897 $96,605 $129,931 $278,063 
Net Income (Loss)
Electric$27,418 $27,308 $81,365 $71,211 
Manufacturing2,569 3,916 11,423 8,930 
Plastics28,970 43,495 31,829 140,038 
Corporate506 3,573 (153)3,940 
Total Net Income$59,463 $78,292 $124,464 $224,119 
Nine Months Ended September 30,
20262025
Adjusted Net Income (Loss)1)
Electric$81,365 $71,211 
Manufacturing11,423 8,930 
Plastics109,040 140,038 
Corporate(153)3,940 
Total Adjusted Net Income$201,675 $224,119 
(1) No adjustments were made to net income (loss) for three months ended September 30, 2026 and 2025.




OTTER TAIL CORPORATION
NON-GAAP RECONCILIATIONS (unaudited)
ADJUSTED NET INCOME (LOSS) AND ADJUSTED DILUTED EARNINGS PER SHARE
The following table presents reconciliations of non-GAAP performance measures to the most directly comparable GAAP performance measures for the periods presented:
Nine Months Ended September 30,
(in thousands)20262025
Plastics Segment
Net Income$31,829 $140,038 
Add: Legal Settlement Expense103,500 — 
Less: Tax Effect of Adjustment(1)
(26,289)— 
Adjusted Net Income$109,040 $140,038 
Consolidated
Net Income$124,464 $224,119 
Add: Legal Settlement Expense
103,500 — 
Less: Tax Effect of Adjustment(1)
(26,289)— 
Adjusted Net Income$201,675 $224,119 
Consolidated
Diluted Earnings Per Share$2.95 $5.32 
Add: Legal Settlement Expense
2.46 — 
Less: Tax Effect of Adjustment(1)
(0.62)— 
Adjusted Diluted Earnings Per Share$4.79 $5.32 
(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.