# EDGAR Filing Document

**Accession Number:** 0001466593
**File Stem:** 0001466593-25-000119
**Filing Date:** 2025-11
**Character Count:** 35441
**Document Hash:** ab7546029c9cdbcb333c14b8ca66c7e6
**Contains OCR:** False
**Source Format:** 

## Filing Content

## Filing Summary
**0001466593-25-000119.hdr.sgml**: 20251104

**ACCESSION NUMBER**: 0001466593-25-000119

**CONFORMED SUBMISSION TYPE**: 8-K

**PUBLIC DOCUMENT COUNT**: 14

**CONFORMED PERIOD OF REPORT**: 20251103

**ITEM INFORMATION**: Results of Operations and Financial Condition

**ITEM INFORMATION**: Financial Statements and Exhibits

**FILED AS OF DATE**: 20251104

**DATE AS OF CHANGE**: 20251104

**FILER**: 

**COMPANY DATA:**
- **COMPANY CONFORMED NAME:** Otter Tail Corp
- **CENTRAL INDEX KEY:** 0001466593
- **STANDARD INDUSTRIAL CLASSIFICATION:** ELECTRIC SERVICES [4911]
- **ORGANIZATION NAME:** 01 Energy & Transportation
- **EIN:** 270383995
- **STATE OF INCORPORATION:** MN
- **FISCAL YEAR END:** 1231

**FILING VALUES:**
- **FORM TYPE:** 8-K
- **SEC ACT:** 1934 Act
- **SEC FILE NUMBER:** 000-53713
- **FILM NUMBER:** 251446808

**BUSINESS ADDRESS:**
- **STREET 1:** 215 S CASCADE ST
- **STREET 2:** PO BOX 496
- **CITY:** FERGUS FALLS
- **STATE:** MN
- **ZIP:** 56538-0496
- **BUSINESS PHONE:** 866-410-8780

**MAIL ADDRESS:**
- **STREET 1:** 215 S CASCADE ST
- **STREET 2:** PO BOX 496
- **CITY:** FERGUS FALLS
- **STATE:** MN
- **ZIP:** 56538-0496

**FORMER COMPANY:**
- **FORMER CONFORMED NAME:** Otter Tail Holding Co
- **DATE OF NAME CHANGE:** 20090618

?xml version='1.0' encoding='ASCII'? ottr-20251103

**UNITED STATES**

**SECURITIES AND EXCHANGE COMMISSION**

**WASHINGTON, D.C. 20549**

**FORM 8-K**

**CURRENT REPORT**

**Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934**

**Date of report (Date of earliest event reported): November 3, 2025**

**OTTER TAIL CORPORATION**

(Exact name of registrant as specified in its charter)

---

| | | |
|:---|:---|:---|
| **Minnesota**<br>(State or other jurisdiction of incorporation or organization) | **0-53713**<br>(Commission File Number) | **27-0383995**<br>(I.R.S. Employer Identification No.) |

---

**215 South Cascade Street, P.O. Box 496, Fergus Falls, MN 56538-0496**

(Address of principal executive offices, including zip code)

**(866) 410-8780**

(Registrant's telephone number, including area code)

**Not Applicable**

(Former name or former address, if changed since last report)

Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:

☐ Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)

☐ Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)

☐ Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))

☐ Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))

Securities registered pursuant to Section 12(b) of the Securities Exchange Act of 1934:

---

| | | |
|:---|:---|:---|
| **Title of each class** | **Trading Symbol(s)** | **Name of each exchange on which registered** |
| Common Shares, par value $5.00 per share | OTTR | The Nasdaq Stock Market LLC |

---

Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 or Rule 12b-2 of the Securities Exchange Act of 1934.

Emerging growth company ☐

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐

------

**Item 2.02&nbsp;&nbsp;&nbsp;&nbsp;Results of Operations and Financial Condition**

On November 3, 2025 Otter Tail Corporation issued a press release announcing its consolidated financial results for the third quarter of 2025. A copy of the press release is furnished herewith as Exhibit 99.1.

The information in this Item 2.02 (including Exhibit 99.1 attached hereto) shall not be deemed "filed" for purposes of Section 18 of the Securities Exchange Act of 1934, nor shall it be deemed incorporated by reference in any filing under the Securities Act of 1933 or the Securities Exchange Act of 1934, except as shall be expressly set forth by specific reference in such filing.

**Item 9.01&nbsp;&nbsp;&nbsp;&nbsp;Financial Statements and Exhibits**

---

| | | |
|:---|:---|:---|
| (d) | Exhibits | Exhibits |
| | <u>[99.1](q32025earningsreleaseex991.htm)</u> | <u>[Press Release](q32025earningsreleaseex991.htm)</u> issued November 3, 2025. |
| | 104 | Cover Page Interactive Data File (embedded within the Inline XBRL document). |

---

------

**SIGNATURE**

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.

---

| | | |
|:---|:---|:---|
| | OTTER TAIL CORPORATION | OTTER TAIL CORPORATION |
| Date: November 4, 2025 | By: | /s/ Todd R. Wahlund |
|  |  | Todd R. Wahlund |
|  |  | Chief Financial Officer |

---

## Exhibit 99.1

---

| | |
|:---|:---|
| **Press Release** | &nbsp;&nbsp;![image4.jpg](image4.jpg) |

---

**November 3, 2025**<br>

**Otter Tail Corporation Announces Third Quarter Earnings, Increases Annual Earnings Guidance and Uplifts Long-Term Financial Targets**

**FERGUS FALLS, Minnesota** - Otter Tail Corporation (Nasdaq: OTTR) today announced financial results for the quarter ended September 30, 2025.

**SUMMARY**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Produced diluted earnings per share of $1.86 in the third quarter of 2025.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Increased the midpoint of the 2025 earnings guidance by $0.21 to $6.47.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Updated our electric utility's five-year rate base compounded annual growth rate to 10% from 9%.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Increased our long-term earnings per share growth rate target to 7% to 9%.

**CEO OVERVIEW**

"We are pleased with our third quarter financial results," said President and CEO Chuck MacFarlane. "Our team members continue to execute well on our growth plan despite dynamic market conditions. Due to strong Plastics segment performance, and our revised expectations for the remainder of the year, we are increasing and tightening our 2025 diluted earnings per share guidance to a range of $6.32 to $6.62 from $6.06 to $6.46.

"Otter Tail Power continues to deliver on our significant rate base growth plan and regulatory priorities. In October, we filed a request with the Minnesota Public Utilities Commission to increase our rates by approximately $44.8 million, or 17.7 percent. The increase is largely driven by customer-focused infrastructure investments supporting immediate and long-term reliability, grid resilience efforts, accelerated recovery of Coyote Station and the impact of inflation since our last rate review five years ago. Even with the proposed increase, Otter Tail Power will continue to have some of the lowest electric rates in the region and country. We remain committed to providing safe, reliable and affordable electric service to our customers.

"Our Manufacturing segment businesses continue to face end market demand headwinds. Sales volumes remain below historic levels after sharply declining in the third quarter of 2024. Our cost structure is aligned with current business volumes and we remain well positioned to respond when industry conditions improve. Our quarterly financial results reflect our lower cost structure and improved productivity compared to the same time last year.

"Plastics segment performance exceeded expectations in the third quarter even as our product pricing continues to decline. We continue to benefit from lower input material costs and the new large diameter pipe capacity we added late last year. Additionally, the second phase of our Vinyltech expansion project is progressing well and we look forward to further increasing our capacity in early 2026.

"We are introducing our new five-year capital spending plan and revised long-term financial targets. Otter Tail Power's new investment plan totals $1.9 billion and is expected to produce a rate base compounded annual growth rate of 10 percent. Driven by our updated capital investment plan, we are updating our targeted long-term earnings per share growth rate to 7 to 9 percent, resulting in a targeted total shareholder return of 10 to 12 percent.

"We remain optimistic about the fundamentals of our business and confident in our ability to deliver on our growth plan. Our customer-focused investments position us to provide high-quality electric service and products to our customers while delivering on our investment targets over the long-term. The combination of a high-performing utility coupled with our strategic diversification continues to serve us and our stakeholders well."

**QUARTERLY DIVIDEND**

On November 3, 2025, the corporation's Board of Directors declared a quarterly common stock dividend of $0.525 per share. This dividend is payable December 10, 2025 to shareholders of record on November 14, 2025.

**CASH FLOWS AND LIQUIDITY**

Our consolidated cash provided by operating activities for the nine months ended September 30, 2025 was $288.9 million compared to $322.8 million for the nine months ended September 30, 2024. The decrease in cash provided by operating activities was primarily due to the timing of fuel cost and rider recoveries from our utility customers and a decrease in earnings.

Investing activities for the nine months ended September 30, 2025 included capital expenditures of $213.3 million. Capital expenditures during the period were largely within our Electric segment and included investments in our wind repowering and other projects.

------

Financing activities for the nine months ended September 30, 2025 included the issuance of $100.0 million of long-term debt at 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 nine months ended September 30, 2025 also included net repayments of short-term borrowings totaling $69.6 million and dividend payments of $66.0 million.

As of September 30, 2025, we had $170.0 million and $209.5 million of available liquidity under our Otter Tail Corporation and Otter Tail Power credit facilities, respectively, along with $325.8 million of available cash and cash equivalents, for total available liquidity of $705.3 million.

**SEGMENT PERFORMANCE**

***Electric Segment***

---

| | | | | |
|:---|:---|:---|:---|:---|
| | ***Three Months Ended September 30,*** | ***Three Months Ended September 30,*** | | |
| ***($ in thousands)*** | ***2025*** | ***2024*** | ***Change*** | ***% Change*** |
| Operating Revenues | $**138597** | $130380 | $8217 | 6.3% |
| Net Income | **27308** | 28530 | (1222) | (4.3) |
| Retail MWh Sales | **1373054** | 1304446 | 68608 | 5.3% |
| Heating Degree Days | **25** | 2 | 23 | n/m |
| Cooling Degree Days | **326** | 378 | (52) | (13.8) |

---

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

---

| | | |
|:---|:---|:---|
| | ***Three Months Ended September 30,*** | ***Three Months Ended September 30,*** |
|  | ***2025*** | ***2024*** |
| Heating Degree Days | **61.0%** | 4.7% |
| Cooling Degree Days | **93.1%** | 111.5% |

---

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, 2025 and 2024.

---

| | | | |
|:---|:---|:---|:---|
| | ***2025 vs Normal*** | ***2025 vs<br> 2024*** | ***2024 vs Normal*** |
| Effect on Diluted Earnings Per Share | $(0.01) | $(0.02) | $0.01 |

---

**Operating Revenues** increased $8.2 million primarily due to increased fuel recovery revenue, increased sales volumes excluding the impact of weather, and increased rider revenue, primarily driven by the recovery of our investments in our wind repowering projects. These increases were partially offset by the impact of seasonal rate differences between interim and final rates in North Dakota, which went into effect in March 2025. The impact of unfavorable weather compared to the same period last year also negatively impacted operating revenues.

**Net Income** decreased $1.2 million primarily due to the impacts of lower pension-related income and unfavorable weather, as well as increased depreciation expense associated with our rate base investments. The impact of these changes was partially offset by a decrease in operating and maintenance expenses.

***Manufacturing Segment***

---

| | | | | |
|:---|:---|:---|:---|:---|
| | ***Three Months Ended September 30,*** | ***Three Months Ended September 30,*** | | |
| ***(in thousands)*** | ***2025*** | ***2024*** | ***$ Change*** | ***% Change*** |
| Operating Revenues | $**76951** | $79896 | $(2945) | (3.7)% |
| Net Income | **3916** | 2174 | 1742 | 80.1 |

---

**Operating Revenues** decreased $2.9 million primarily due to an 8% decrease in sales volumes, with declines experienced across several end markets, including lawn and garden, agriculture, and horticulture. Sales volumes were down due to continued soft demand and inventory management efforts by manufacturers and dealers amid continued challenging market conditions. The impact of lower sales volumes was partially offset by a 3% increase in steel costs, which are passed through to customers.

**Net Income** increased $1.7 million primarily due to improved production efficiencies, as our cost structure is aligned with the current demand environment. The timing of pass-through steel cost fluctuations and increased labor productivity resulted in increased margins compared to the same period last year. Lower sales volumes, as described above, and an increase in general and administrative and income tax expenses, partially offset the impact of increased profit margins.

------

***Plastics Segment***

---

| | | | | |
|:---|:---|:---|:---|:---|
| | ***Three Months Ended September 30,*** | ***Three Months Ended September 30,*** | | |
| ***(in thousands)*** | ***2025*** | ***2024*** | ***$ Change*** | ***% Change*** |
| Operating Revenues | $**110015** | $127757 | $(17742) | (13.9)% |
| Net Income | **43495** | 54479 | (10984) | (20.2) |

---

**Operating Revenues** decreased $17.7 million primarily due to a 17% decrease in sales prices compared to the same period last year, continuing the decline in product pricing from peak levels in late 2022. The impact of decreased sales prices was partially offset by a 4% increase in sales volumes, primarily driven by increased production capacity following the completion of our expansion project at Vinyltech in late 2024.

**Net Income** decreased $11.0 million primarily due to decreased sales prices, as described above, partially offset by a 16% decrease in PVC resin and other input material costs and the 4% increase in sales volumes.

***Corporate***

---

| | | | | |
|:---|:---|:---|:---|:---|
| | ***Three Months Ended September 30,*** | ***Three Months Ended September 30,*** | | |
| ***(in thousands)*** | ***2025*** | ***2024*** | ***$ Change*** | ***% Change*** |
| Net Income | $**3573** | $296 | $3277 | n/m |

---

**Net Income** increased $3.3 million primarily due to decreases in costs associated with workers' compensation and employee health insurance claims, as well as an increase in income tax benefits compared to the same period last year.

**2025 OUTLOOK**

We are increasing our 2025 diluted earnings per share guidance to a range of $6.32 to $6.62. We expect our earnings mix in 2025 to be approximately 36% from our Electric segment and 64% from our Manufacturing and Plastics segments, net of corporate costs. Our anticipated earnings mix in 2025 deviates from our long-term expected earnings mix of 70% Electric / 30% Non-Electric as we expect Plastics segment earnings to remain elevated in 2025 compared to our long-term view of normal earnings for this segment.

The segment components of our 2025 diluted earnings per share guidance compared with actual earnings for 2024 are as follows:

---

| | | | | | |
|:---|:---|:---|:---|:---|:---|
| | ***2024 EPS*** <br>***by Segment*** | ***2025 EPS Guidance*** | ***2025 EPS Guidance*** | ***2025 EPS Guidance*** | ***2025 EPS Guidance*** |
| | ***2024 EPS*** <br>***by Segment*** | ***August 4, 2025*** | ***August 4, 2025*** | ***November 3, 2025*** | ***November 3, 2025*** |
| | ***2024 EPS*** <br>***by Segment*** | ***Low*** | ***High*** | ***Low*** | ***High*** |
| Electric | $2.16 | $2.29 | $2.35 | $2.31 | $2.35 |
| Manufacturing | 0.33 | 0.21 | 0.27 | 0.22 | 0.26 |
| Plastics | 4.77 | 3.64 | 3.88 | 3.86 | 4.05 |
| Corporate | (0.09) | (0.08) | (0.04) | (0.07) | (0.04) |
| &nbsp;&nbsp;**Total** | $7.17 | $6.06 | $6.46 | $6.32 | $6.62 |
| &nbsp;&nbsp;**Return on Equity** | 19.3% | 14.5% | 15.3% | 15.1% | 15.7% |

---

The following items contribute to our revised 2025 earnings guidance:

**Electric Segment** - We are increasing the midpoint of our earnings expectation and narrowed our guidance range. Our updated guidance is primarily based on better than expected financial results in the third quarter of 2025, largely driven by higher than anticipated sales volumes.

**Manufacturing Segment** - We are maintaining the midpoint of our earnings expectation but narrowing the range of our guidance.

**Plastics Segment** - We are increasing our earnings expectation and narrowing the range of our guidance based on:

&nbsp;&nbsp;&nbsp;&nbsp;• Better than expected financial results in the third quarter of 2025, and

&nbsp;&nbsp;&nbsp;&nbsp;• Lower material costs anticipated for the remainder of the year, as the forecasted price of PVC resin has declined.

**Corporate Costs** - We are narrowing our guidance range based on year-to-date results and expectations for the remainder of the year.

------

**CAPITAL EXPENDITURES**

The following provides a summary of actual capital expenditures for the year ended December 31, 2024, as well as anticipated annual capital expenditures for the current year ending December 31, 2025, and the subsequent five years, along with electric utility average rate base and annual rate base growth:

---

| | | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|:---|
| ***(in millions)*** | ***2024*** | ***2025*** | ***2026*** | ***2027*** | ***2028*** | ***2029*** | ***2030*** | ***2026 - 2030 Total*** |
| **Electric Segment:** |  |  |  |  |  |  |  |  |
| &nbsp;&nbsp;Renewable Generation | $134 | $108 | $169 | $177 | $154 | $4 | $6 | $510 |
| &nbsp;&nbsp;Transmission | 60 | 60 | 88 | 183 | 208 | 206 | 309 | 994 |
| &nbsp;&nbsp;Distribution | 46 | 83 | 50 | 49 | 53 | 54 | 57 | 263 |
| &nbsp;&nbsp;&nbsp;Other | 61 | 49 | 47 | 37 | 24 | 23 | 20 | 151 |
| **Total Electric Segment** | $**301** | $**300** | $**354** | $**446** | $**439** | $**287** | $**392** | $**1918** |
| **Manufacturing and Plastics Segments** | 58 | 21 | 31 | 27 | 29 | 23 | 19 | 129 |
| **Total Capital Expenditures** | $**359** | $**321** | $**385** | $**473** | $**468** | $**310** | $**411** | $**2047** |
| Total Electric Utility Average Rate Base | $1892 | $2115 | $2360 | $2647 | $2998 | $3210 | $3413 |  |
| &nbsp;&nbsp;&nbsp;Annual Rate Base Growth | 8.6% | 11.8% | 11.6% | 12.2% | 13.3% | 7.1% | 6.3% |  |

---

Our capital expenditure plan for the 2026 to 2030 time period includes Electric segment investments in transmission assets and solar generation resources. This plan produces a compounded annual growth rate in rate base of 10.0% from the end of 2025 to the end of 2030, and will serve as a key driver in Electric segment earnings growth over this timeframe. Our capital expenditure plan in our Manufacturing and Plastics segments includes investments to bring additional capacity to our operations, providing an opportunity for organic growth within these segments.

**CONFERENCE CALL AND WEBCAST**

The corporation will host a live webcast on Tuesday, November 4, 2025, 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 <u>www.ottertail.com/presentations</u> 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," "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 2025 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 and 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:&nbsp;&nbsp;&nbsp;&nbsp;**Beth Eiken, Manager of Investor Relations, (701) 451-3571

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

\# \# \#

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***OTTER TAIL CORPORATION***

**CONSOLIDATED STATEMENTS OF INCOME (unaudited)**

---

| | | | | |
|:---|:---|:---|:---|:---|
| | ***Three Months Ended September 30,*** | ***Three Months Ended September 30,*** | ***Nine Months Ended September 30,*** | ***Nine Months Ended September 30,*** |
|<br>***(in thousands, except per-share amounts)*** | ***2025*** | ***2024*** | ***2025*** | ***2024*** |
| **Operating Revenues** |  |  |  |  |
| &nbsp;&nbsp;&nbsp;Electric | $**138597** | $130380 | $**417048** | $384696 |
| &nbsp;&nbsp;&nbsp;Product Sales | **186966** | 207653 | **578911** | 642741 |
| &nbsp;&nbsp;&nbsp;&nbsp;Total Operating Revenues | **325563** | 338033 | **995959** | 1027437 |
| **Operating Expenses** |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Electric Production Fuel | **25442** | 14991 | **56055** | 45009 |
| &nbsp;&nbsp;&nbsp;&nbsp;Electric Purchased Power | **9495** | 10735 | **55862** | 42507 |
| &nbsp;&nbsp;&nbsp;&nbsp;Electric Operating and Maintenance Expense | **41144** | 43737 | **136830** | 136367 |
| &nbsp;&nbsp;&nbsp;&nbsp;Cost of Products Sold (excluding depreciation) | **101198** | 111444 | **311551** | 342962 |
| &nbsp;&nbsp;&nbsp;&nbsp;Nonelectric Selling, General, and Administrative Expenses | **17792** | 18829 | **56434** | 55896 |
| &nbsp;&nbsp;&nbsp;&nbsp;Depreciation and Amortization | **29554** | 27051 | **88376** | 79579 |
| &nbsp;&nbsp;&nbsp;&nbsp;Electric Property Taxes | **4333** | 3705 | **12788** | 11691 |
| &nbsp;&nbsp;&nbsp;&nbsp;Total Operating Expenses | **228958** | 230492 | **717896** | 714011 |
| **Operating Income** | **96605** | 107541 | **278063** | 313426 |
| **Other Income and (Expense)** |  |  |  |  |
| &nbsp;&nbsp;&nbsp;Interest Expense | **(11790)** | (11173) | **(35063)** | (31225) |
| &nbsp;&nbsp;&nbsp;Nonservice Components of Postretirement Benefits | **304** | 2367 | **2441** | 7197 |
| &nbsp;&nbsp;&nbsp;Other Income (Expense), net | **5990** | 5421 | **15231** | 14491 |
| **Income Before Income Taxes** | **91109** | 104156 | **260672** | 303889 |
| &nbsp;&nbsp;&nbsp;Income Tax Expense | **12817** | 18677 | **36553** | 57077 |
| **Net Income** | $**78292** | $85479 | $**224119** | $246812 |
| **Weighted-Average Common Shares Outstanding:** |  |  |  |  |
| &nbsp;&nbsp;&nbsp;Basic | **41877** | 41800 | **41859** | 41770 |
| &nbsp;&nbsp;&nbsp;Diluted | **42138** | 42081 | **42106** | 42068 |
| **Earnings Per Share:** |  |  |  |  |
| &nbsp;&nbsp;&nbsp;Basic | $**1.87** | $2.04 | $**5.35** | $5.91 |
| &nbsp;&nbsp;&nbsp;Diluted | $**1.86** | $2.03 | $**5.32** | $5.87 |

---

------

***OTTER TAIL CORPORATION***

**CONSOLIDATED BALANCE SHEETS (unaudited)**

---

| | | |
|:---|:---|:---|
| | ***September 30,*** | ***December 31,*** |
|<br>***(in thousands)*** | ***2025*** | ***2024*** |
| **Assets** |  |  |
| Current Assets |  |  |
| &nbsp;&nbsp;&nbsp;Cash and Cash Equivalents | $**325786** | $294651 |
| &nbsp;&nbsp;&nbsp;Receivables, net of allowance for credit losses | **166694** | 145964 |
| &nbsp;&nbsp;&nbsp;Inventories | **155765** | 148885 |
| &nbsp;&nbsp;&nbsp;Investments | **53877** | 753 |
| &nbsp;&nbsp;&nbsp;Regulatory Assets | **9433** | 9962 |
| &nbsp;&nbsp;&nbsp;Other Current Assets | **25688** | 29826 |
| &nbsp;&nbsp;&nbsp;&nbsp;Total Current Assets | **737243** | 630041 |
| Noncurrent Assets |  |  |
| &nbsp;&nbsp;&nbsp;Investments | **77662** | 121177 |
| &nbsp;&nbsp;&nbsp;Property, Plant and Equipment, net of accumulated depreciation | **2820689** | 2692460 |
| &nbsp;&nbsp;&nbsp;Regulatory Assets | **97936** | 98673 |
| &nbsp;&nbsp;&nbsp;Intangible Assets, net of accumulated amortization | **4917** | 5743 |
| &nbsp;&nbsp;&nbsp;Goodwill | **37572** | 37572 |
| &nbsp;&nbsp;&nbsp;Other Noncurrent Assets | **67804** | 66416 |
| &nbsp;&nbsp;&nbsp;&nbsp;Total Noncurrent Assets | **3106580** | 3022041 |
| **Total Assets** | $**3843823** | $3652082 |
| **Liabilities and Shareholders' Equity** |  |  |
| Current Liabilities |  |  |
| &nbsp;&nbsp;&nbsp;Short-Term Debt | $**—** | $69615 |
| &nbsp;&nbsp;&nbsp;Accounts Payable | **95441** | 113574 |
| &nbsp;&nbsp;&nbsp;Accrued Salaries and Wages | **32197** | 34398 |
| &nbsp;&nbsp;&nbsp;Accrued Taxes | **21267** | 17314 |
| &nbsp;&nbsp;&nbsp;Regulatory Liabilities | **21753** | 29307 |
| &nbsp;&nbsp;&nbsp;Other Current Liabilities | **35702** | 45582 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total Current Liabilities | **206360** | 309790 |
| Noncurrent Liabilities and Deferred Credits |  |  |
| &nbsp;&nbsp;&nbsp;Pension Benefit Liability | **32001** | 32614 |
| &nbsp;&nbsp;&nbsp;Other Postretirement Benefits Liability | **26502** | 27385 |
| &nbsp;&nbsp;&nbsp;Regulatory Liabilities | **296216** | 288928 |
| &nbsp;&nbsp;&nbsp;Deferred Income Taxes | **288013** | 267745 |
| &nbsp;&nbsp;&nbsp;Deferred Tax Credits | **14513** | 14990 |
| &nbsp;&nbsp;&nbsp;Other Noncurrent Liabilities | **105330** | 98397 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total Noncurrent Liabilities and Deferred Credits | **762575** | 730059 |
| Commitments and Contingencies |  |  |
| Capitalization |  |  |
| &nbsp;&nbsp;&nbsp;Long-Term Debt | **1043437** | 943734 |
| &nbsp;&nbsp;&nbsp;Shareholders' Equity |  |  |
| &nbsp;&nbsp;&nbsp; Common Shares | **209528** | 209140 |
| &nbsp;&nbsp;&nbsp; Additional Paid-In Capital | **433368** | 429089 |
| &nbsp;&nbsp;&nbsp; Retained Earnings | **1187813** | 1029738 |
| &nbsp;&nbsp;&nbsp; Accumulated Other Comprehensive Income | **742** | 532 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total Shareholders' Equity | **1831451** | 1668499 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total Capitalization | **2874888** | 2612233 |
| **Total Liabilities and Shareholders' Equity** | $**3843823** | $3652082 |

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***OTTER TAIL CORPORATION***

**CONSOLIDATED STATEMENTS OF CASH FLOWS (unaudited)**

---

| | | |
|:---|:---|:---|
| | ***Nine Months Ended September 30,*** | ***Nine Months Ended September 30,*** |
|<br>***(in thousands)*** | ***2025*** | ***2024*** |
| **Operating Activities** |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Net Income | $**224119** | $246812 |
| &nbsp;&nbsp;&nbsp;&nbsp;Adjustments to Reconcile Net Income to Net Cash Provided by Operating Activities: |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Depreciation and Amortization | **88376** | 79579 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Deferred Tax Credits | **(477)** | (559) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Deferred Income Taxes | **14527** | 8840 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Investment Gains | **(5519)** | (5259) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Stock Compensation Expense | **8106** | 8082 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Other, net | **(3636)** | (2167) |
| &nbsp;&nbsp;&nbsp;&nbsp;Change in Operating Assets and Liabilities: |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Receivables | **(20730)** | (29130) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Inventories | **(2837)** | (2198) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Regulatory Assets | **(1429)** | 7209 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Other Assets | **4985** | (2785) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Accounts Payable | **(8702)** | 3180 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Accrued and Other Liabilities | **(3530)** | (5745) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Regulatory Liabilities | **(363)** | 24083 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Pension and Other Postretirement Benefits | **(3941)** | (7167) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**Net Cash Provided by Operating Activities** | **288949** | 322775 |
| **Investing Activities** |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Capital Expenditures | **(213329)** | (259750) |
| &nbsp;&nbsp;&nbsp;&nbsp;Proceeds from Disposal of Noncurrent Assets | **4957** | 6684 |
| &nbsp;&nbsp;&nbsp;&nbsp;Purchases of Investments and Other Assets | **(7642)** | (59100) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**Net Cash Used in Investing Activities** | **(216014)** | (312166) |
| **Financing Activities** |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Net Repayments of Short-Term Debt | **(69615)** | (14021) |
| &nbsp;&nbsp;&nbsp;&nbsp;Proceeds from Issuance of Long-Term Debt | **100000** | 120000 |
| &nbsp;&nbsp;&nbsp;&nbsp;Dividends Paid | **(66044)** | (58693) |
| &nbsp;&nbsp;&nbsp;&nbsp;Payments for Shares Withheld for Employee Tax Obligations | **(3134)** | (6457) |
| &nbsp;&nbsp;&nbsp;&nbsp;Other, net | **(3007)** | (1791) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**Net Cash (Used in) Provided by Financing Activities** | **(41800)** | 39038 |
| **Net Change in Cash and Cash Equivalents** | **31135** | 49647 |
| **Cash and Cash Equivalents at Beginning of Period** | **294651** | 230373 |
| **Cash and Cash Equivalents at End of Period** | $**325786** | $280020 |

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------

***OTTER TAIL CORPORATION***

**SEGMENT RESULTS (unaudited)**

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| | | | | |
|:---|:---|:---|:---|:---|
| | ***Three Months Ended September 30,*** | ***Three Months Ended September 30,*** | ***Nine Months Ended September 30,*** | ***Nine Months Ended September 30,*** |
|<br>***(in thousands)*** | ***2025*** | ***2024*** | ***2025*** | ***2024*** |
| **Operating Revenues** |  |  |  |  |
| &nbsp;&nbsp;&nbsp;Electric | $**138597** | $130380 | $**417048** | $384696 |
| &nbsp;&nbsp;&nbsp;Manufacturing | **76951** | 79896 | **237363** | 275961 |
| &nbsp;&nbsp;&nbsp;Plastics | **110015** | 127757 | **341548** | 366780 |
| &nbsp;&nbsp;&nbsp;&nbsp;**Total Operating Revenues** | $**325563** | $338033 | $**995959** | $1027437 |
| **Operating Income (Loss)** |  |  |  |  |
| &nbsp;&nbsp;&nbsp;Electric | $**35750** | $36471 | $**88426** | $88108 |
| &nbsp;&nbsp;&nbsp;Manufacturing | **5690** | 2683 | **13184** | 19699 |
| &nbsp;&nbsp;&nbsp;Plastics | **58957** | 73746 | **189867** | 219136 |
| &nbsp;&nbsp;&nbsp;Corporate | **(3792)** | (5358) | **(13414)** | (13517) |
| &nbsp;&nbsp;&nbsp;&nbsp;**Total Operating Income** | $**96605** | $107542 | $**278063** | $313426 |
| **Net Income** |  |  |  |  |
| &nbsp;&nbsp;&nbsp;Electric | $**27308** | $28530 | $**71211** | $69486 |
| &nbsp;&nbsp;&nbsp;Manufacturing | **3916** | 2174 | **8930** | 14271 |
| &nbsp;&nbsp;&nbsp;Plastics | **43495** | 54479 | **140038** | 161829 |
| &nbsp;&nbsp;&nbsp;Corporate | **3573** | 296 | **3940** | 1226 |
| &nbsp;&nbsp;&nbsp;&nbsp;**Total Net Income** | $**78292** | $85479 | $**224119** | $246812 |

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