# EDGAR Filing Document

**Accession Number:** 0001466593
**File Stem:** 0001466593-25-000102
**Filing Date:** 2025-8
**Character Count:** 32066
**Document Hash:** 5d0174b1e0af1b39a80326245f4b1975
**Contains OCR:** False
**Source Format:** 

## Filing Content

## Filing Summary
**0001466593-25-000102.hdr.sgml**: 20250805

**ACCESSION NUMBER**: 0001466593-25-000102

**CONFORMED SUBMISSION TYPE**: 8-K

**PUBLIC DOCUMENT COUNT**: 14

**CONFORMED PERIOD OF REPORT**: 20250804

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

**ITEM INFORMATION**: Financial Statements and Exhibits

**FILED AS OF DATE**: 20250805

**DATE AS OF CHANGE**: 20250805

**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:** 251183194

**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-20250804

**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): August 4, 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 August 4, 2025 Otter Tail Corporation issued a press release announcing its consolidated financial results for the second 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](q22025earningsreleaseex991.htm)</u> | <u>[Press Release](q22025earningsreleaseex991.htm)</u> issued August 4, 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: August 5, 2025 | By: | /s/ Todd R. Wahlund |
|  |  | Todd R. Wahlund |
|  |  | Chief Financial Officer |

---

## Exhibit 99.1

---

| | |
|:---|:---|
| **Press Release** | &nbsp;&nbsp;![image4a.jpg](image4a.jpg) |

---

**August 4, 2025**<br>

**Otter Tail Corporation Announces Second Quarter Earnings and Increases Annual Earnings Guidance**

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

**SUMMARY**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Produced diluted earnings per share of $1.85 in the second quarter of 2025.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Increased midpoint of 2025 earnings per share guidance by $0.38 to $6.26 per share.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Return on equity of 17% over the trailing twelve months.

**CEO OVERVIEW**

"We are pleased with our second quarter financial results," said President and CEO Chuck MacFarlane. "Across our businesses, our team members remain committed to our mission - delivering value through building strong electric and manufacturing platforms - amidst dynamic market conditions.

"During the second quarter, severe weather moved through Otter Tail Power's service territory, resulting in significant property and infrastructure damage, as well as tree loss. Approximately 30 percent of our customers experienced an interruption in electric service due to the storms. Our employees worked tirelessly to restore power to our customers as quickly and safely as possible.

"Beyond our storm response, Otter Tail Power continues to perform well, executing on our significant capital investment plan and regulatory priorities. We secured approval to directly assign and recover the capital investment for our two solar development projects from the Minnesota and South Dakota Commissions. We look forward to adding 345 MW of cost-effective solar generation to our portfolio to better serve our customers. Additionally, for the first time since 2018, we filed a request with the South Dakota Public Utilities Commission for permission to increase our electric rates by approximately $5.7 million.

"Our Manufacturing segment continues to navigate soft end market demand but remains well positioned to respond when market conditions improve. Our recently completed BTD Georgia facility is ramping up to full production capability and we look forward to being able to better serve our growing customers in the southeast.

"Plastics segment results outpaced our expectations for the second quarter. We continue to benefit from strong product demand and higher sales volumes as the sales prices of PVC pipe continue to recede.

"We are uplifting our 2025 diluted earnings per share guidance for the Plastics segment, increasing our consolidated guidance to a range of $6.06 to $6.46 from our previous range of $5.68 to $6.08.

"Our strategic diversification continues to serve us and our stakeholders well even as we return to more normalized levels of Plastics segment earnings, generating incremental cash for us to reinvest into our significant utility rate base growth plan. We remain confident in our ability to deliver on our investment targets, producing an earnings per share growth of 6 to 8 percent."

**QUARTERLY DIVIDEND**

On August 4, 2025, the corporation's Board of Directors declared a quarterly common stock dividend of $0.525 per share. This dividend is payable September 10, 2025 to shareholders of record on August 15, 2025.

**CASH FLOWS AND LIQUIDITY**

Our consolidated cash provided by operating activities for the six months ended June 30, 2025 was $159.4 million compared to $223.5 million for the six months ended June 30, 2024, with the decrease primarily due to the timing of fuel cost and rider recoveries from our utility customers and the timing of payments for operating costs, as well as a decrease in earnings.

Investing activities for the six months ended June 30, 2025 included capital expenditures of $124.2 million. Capital expenditures during the period were largely within our Electric segment, including investments in wind repowering, advanced metering infrastructure, and transmission line projects.

Financing activities for the six months ended June 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 six months ended June 30, 2025 also included net repayments of short-term borrowings totaling $69.6 million and dividend payments of $44.0 million.

------

As of June 30, 2025, we had $170.0 million and $211.0 million of available liquidity under our Otter Tail Corporation and Otter Tail Power credit facilities, respectively, along with $307.2 million of available cash and cash equivalents, for total available liquidity of $688.2 million.

**SEGMENT PERFORMANCE**

***Electric Segment***

---

| | | | | |
|:---|:---|:---|:---|:---|
| | ***Three Months Ended June 30,*** | ***Three Months Ended June 30,*** | | |
| ***($ in thousands)*** | ***2025*** | ***2024*** | ***Change*** | ***% Change*** |
| Operating Revenues | $**128731** | $112828 | $15903 | 14.1% |
| Net Income | **19195** | 18485 | 710 | 3.8 |
| Retail MWh Sales | **1337696** | 1315504 | 22192 | 1.7% |
| Heating Degree Days | **460** | 372 | 88 | 23.7 |
| Cooling Degree Days | **145** | 61 | 84 | 137.7 |

---

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

---

| | | |
|:---|:---|:---|
| | ***Three Months Ended June 30,*** | ***Three Months Ended June 30,*** |
|  | ***2025*** | ***2024*** |
| Heating Degree Days | **86.5%** | 68.8% |
| Cooling Degree Days | **114.2%** | 48.8% |

---

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 for the three months ended June 30, 2025 and 2024.

---

| | | | |
|:---|:---|:---|:---|
| | ***2025 vs Normal*** | ***2025 vs<br> 2024*** | ***2024 vs Normal*** |
| Effect on Diluted Earnings Per Share | $— | $0.03 | $(0.03) |

---

**Operating Revenues** increased $15.9 million primarily due to increases in fuel recovery and rider revenues, and the impact of favorable weather compared to the same period last year. Increased fuel recovery revenue was primarily driven by an increase in the price of natural gas and the cost of market energy. Increased rider revenue was largely from the recovery of our investments in our wind repowering projects.

**Net Income** increased $0.7 million primarily due to the increase in revenues, as described above, partially offset by increased operating and maintenance expenses, including planned outage costs at Coyote Station, and increased depreciation and interest expense associated with our rate base investments.

***Manufacturing Segment***

---

| | | | | |
|:---|:---|:---|:---|:---|
| | ***Three Months Ended June 30,*** | ***Three Months Ended June 30,*** | | |
| ***(in thousands)*** | ***2025*** | ***2024*** | ***$ Change*** | ***% Change*** |
| Operating Revenues | $**78726** | $96684 | $(17958) | (18.6)% |
| Net Income | **3481** | 6835 | (3354) | (49.1) |

---

**Operating Revenues** decreased $18.0 million primarily due to a 9% decrease in sales volumes, with declines experienced across several end markets, including agriculture, recreational vehicles, lawn and garden, and construction. Sales volumes were down at our metal fabrication business due to soft end market demand and inventory management efforts by manufacturers and dealers. A 7% decrease in steel costs, which are passed through to customers, also contributed to the decrease in operating revenues.

**Net Income** decreased $3.4 million primarily due to lower sales volumes and enhanced profit margins in the second quarter of 2024, which benefited from the positive impact of the timing of pass-through steel cost fluctuations and the selling of lower cost inventory. The impacts of decreased operating revenues and profit margins were partially offset by a decrease in general and administrative costs.

------

***Plastics Segment***

---

| | | | | |
|:---|:---|:---|:---|:---|
| | ***Three Months Ended June 30,*** | ***Three Months Ended June 30,*** | | |
| ***(in thousands)*** | ***2025*** | ***2024*** | ***$ Change*** | ***% Change*** |
| Operating Revenues | $**125586** | $132824 | $(7238) | (5.4)% |
| Net Income | **53104** | 60612 | (7508) | (12.4) |

---

**Operating Revenues** decreased $7.2 million primarily due to a 15% decrease in sales prices compared to the same period last year, continuing the steady decline in product pricing from peak market conditions in late 2022. The impact of decreased sales prices was partially offset by an 11% increase in sales volumes, driven by strong distributor and end-market demand for our products, coupled with increased production capacity following the completion of our expansion project at Vinyltech in late 2024. Active infrastructure investment and construction activity across our sales territories continue to contribute to strong demand for our products.

**Net Income** decreased $7.5 million primarily due to decreased sales prices, as described above, partially offset by the 11% increase in sales volumes and a 15% decrease in PVC resin cost driven by global supply and demand dynamics which continues to result in elevated supply.

***Corporate***

---

| | | | | |
|:---|:---|:---|:---|:---|
| | ***Three Months Ended June 30,*** | ***Three Months Ended June 30,*** | | |
| ***(in thousands)*** | ***2025*** | ***2024*** | ***$ Change*** | ***% Change*** |
| Net Income | $**1948** | $1063 | $885 | 83.3% |

---

**Net Income** increased $0.9 million primarily due to increased market-based gains on our corporate-owned life insurance policy investments.

**2025 OUTLOOK**

We are increasing our 2025 diluted earnings per share guidance to a range of $6.06 to $6.46. We expect our earnings mix in 2025 to be approximately 37% from our Electric segment and 63% 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 65% Electric / 35% 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*** | ***February 17, 2025*** | ***February 17, 2025*** | ***August 4, 2025*** | ***August 4, 2025*** |
| | ***2024 EPS*** <br>***by Segment*** | ***Low*** | ***High*** | ***Low*** | ***High*** |
| Electric | $2.16 | $2.29 | $2.35 | $2.29 | $2.35 |
| Manufacturing | 0.33 | 0.21 | 0.27 | 0.21 | 0.27 |
| Plastics | 4.77 | 3.26 | 3.50 | 3.64 | 3.88 |
| Corporate | (0.09) | (0.08) | (0.04) | (0.08) | (0.04) |
| &nbsp;&nbsp;**Total** | $7.17 | $5.68 | $6.08 | $6.06 | $6.46 |
| &nbsp;&nbsp;**Return on Equity** | 19.3% | 13.8% | 14.6% | 14.5% | 15.3% |

---

We are maintaining our earnings guidance for our Electric and Manufacturing segments and maintaining our Corporate cost outlook. We are increasing our Plastics segment earnings guidance based on:

&nbsp;&nbsp;&nbsp;&nbsp;**•** Better than expected financial results in the second quarter of 2025,

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

&nbsp;&nbsp;&nbsp;&nbsp;• Revised expectations for PVC pipe pricing for the second half of the year.

**CONFERENCE CALL AND WEBCAST**

The corporation will host a live webcast on Tuesday, August 5, 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," "could," "estimate," "expect," "future," "goal," "intend," "likely," "may," "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 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 June 30,*** | ***Three Months Ended June 30,*** | ***Six Months Ended June 30,*** | ***Six Months Ended June 30,*** |
|<br>***(in thousands, except per-share amounts)*** | ***2025*** | ***2024*** | ***2025*** | ***2024*** |
| **Operating Revenues** |  |  |  |  |
| &nbsp;&nbsp;&nbsp;Electric | $**128731** | $112828 | $**278451** | $254317 |
| &nbsp;&nbsp;&nbsp;Product Sales | **204312** | 229508 | **391945** | 435087 |
| &nbsp;&nbsp;&nbsp;&nbsp;Total Operating Revenues | **333043** | 342336 | **670396** | 689404 |
| **Operating Expenses** |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Electric Production Fuel | **16292** | 12324 | **30613** | 30018 |
| &nbsp;&nbsp;&nbsp;&nbsp;Electric Purchased Power | **15497** | 9249 | **46367** | 31771 |
| &nbsp;&nbsp;&nbsp;&nbsp;Electric Operating and Maintenance Expense | **46804** | 44652 | **95685** | 92630 |
| &nbsp;&nbsp;&nbsp;&nbsp;Cost of Products Sold (excluding depreciation) | **105966** | 116795 | **210353** | 231518 |
| &nbsp;&nbsp;&nbsp;&nbsp;Nonelectric Selling, General, and Administrative Expenses | **17352** | 18154 | **38644** | 37067 |
| &nbsp;&nbsp;&nbsp;&nbsp;Depreciation and Amortization | **29447** | 26632 | **58822** | 52528 |
| &nbsp;&nbsp;&nbsp;&nbsp;Electric Property Taxes | **4227** | 3619 | **8455** | 7986 |
| &nbsp;&nbsp;&nbsp;&nbsp;Total Operating Expenses | **235585** | 231425 | **488939** | 483518 |
| **Operating Income** | **97458** | 110911 | **181457** | 205886 |
| **Other Income and (Expense)** |  |  |  |  |
| &nbsp;&nbsp;&nbsp;Interest Expense | **(11720)** | (10202) | **(23273)** | (20052) |
| &nbsp;&nbsp;&nbsp;Nonservice Components of Postretirement Benefits | **854** | 2388 | **2136** | 4830 |
| &nbsp;&nbsp;&nbsp;Other Income (Expense), net | **4788** | 4490 | **9244** | 9069 |
| **Income Before Income Taxes** | **91380** | 107587 | **169564** | 199733 |
| &nbsp;&nbsp;&nbsp;Income Tax Expense | **13652** | 20592 | **23737** | 38400 |
| **Net Income** | $**77728** | $86995 | $**145827** | $161333 |
| **Weighted-Average Common Shares Outstanding:** |  |  |  |  |
| &nbsp;&nbsp;&nbsp;Basic | **41874** | 41784 | **41850** | 41754 |
| &nbsp;&nbsp;&nbsp;Diluted | **42118** | 42068 | **42090** | 42051 |
| **Earnings Per Share:** |  |  |  |  |
| &nbsp;&nbsp;&nbsp;Basic | $**1.86** | $2.08 | $**3.48** | $3.86 |
| &nbsp;&nbsp;&nbsp;Diluted | $**1.85** | $2.07 | $**3.46** | $3.84 |

---

------

***OTTER TAIL CORPORATION***

**CONSOLIDATED BALANCE SHEETS (unaudited)**

---

| | | |
|:---|:---|:---|
| | ***June 30,*** | ***December 31,*** |
|<br>***(in thousands)*** | ***2025*** | ***2024*** |
| **Assets** |  |  |
| Current Assets |  |  |
| &nbsp;&nbsp;&nbsp;Cash and Cash Equivalents | $**307241** | $294651 |
| &nbsp;&nbsp;&nbsp;Receivables, net of allowance for credit losses | **180823** | 145964 |
| &nbsp;&nbsp;&nbsp;Inventories | **151558** | 148885 |
| &nbsp;&nbsp;&nbsp;Regulatory Assets | **8946** | 9962 |
| &nbsp;&nbsp;&nbsp;Other Current Assets | **25842** | 30579 |
| &nbsp;&nbsp;&nbsp;&nbsp;Total Current Assets | **674410** | 630041 |
| Noncurrent Assets |  |  |
| &nbsp;&nbsp;&nbsp;Investments | **128289** | 121177 |
| &nbsp;&nbsp;&nbsp;Property, Plant and Equipment, net of accumulated depreciation | **2754068** | 2692460 |
| &nbsp;&nbsp;&nbsp;Regulatory Assets | **99010** | 98673 |
| &nbsp;&nbsp;&nbsp;Intangible Assets, net of accumulated amortization | **5192** | 5743 |
| &nbsp;&nbsp;&nbsp;Goodwill | **37572** | 37572 |
| &nbsp;&nbsp;&nbsp;Other Noncurrent Assets | **66747** | 66416 |
| &nbsp;&nbsp;&nbsp;&nbsp;Total Noncurrent Assets | **3090878** | 3022041 |
| **Total Assets** | $**3765288** | $3652082 |
| **Liabilities and Shareholders' Equity** |  |  |
| Current Liabilities |  |  |
| &nbsp;&nbsp;&nbsp;Short-Term Debt | $**—** | $69615 |
| &nbsp;&nbsp;&nbsp;Accounts Payable | **98234** | 113574 |
| &nbsp;&nbsp;&nbsp;Accrued Salaries and Wages | **25039** | 34398 |
| &nbsp;&nbsp;&nbsp;Accrued Taxes | **16465** | 17314 |
| &nbsp;&nbsp;&nbsp;Regulatory Liabilities | **24580** | 29307 |
| &nbsp;&nbsp;&nbsp;Other Current Liabilities | **39162** | 45582 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total Current Liabilities | **203480** | 309790 |
| Noncurrent Liabilities and Deferred Credits |  |  |
| &nbsp;&nbsp;&nbsp;Pension Benefit Liability | **32204** | 32614 |
| &nbsp;&nbsp;&nbsp;Other Postretirement Benefits Liability | **26494** | 27385 |
| &nbsp;&nbsp;&nbsp;Regulatory Liabilities | **289546** | 288928 |
| &nbsp;&nbsp;&nbsp;Deferred Income Taxes | **278091** | 267745 |
| &nbsp;&nbsp;&nbsp;Deferred Tax Credits | **14705** | 14990 |
| &nbsp;&nbsp;&nbsp;Other Noncurrent Liabilities | **102932** | 98397 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total Noncurrent Liabilities and Deferred Credits | **743972** | 730059 |
| Commitments and Contingencies |  |  |
| Capitalization |  |  |
| &nbsp;&nbsp;&nbsp;Long-Term Debt | **1043374** | 943734 |
| &nbsp;&nbsp;&nbsp;Shareholders' Equity |  |  |
| &nbsp;&nbsp;&nbsp; Common Shares | **209522** | 209140 |
| &nbsp;&nbsp;&nbsp; Additional Paid-In Capital | **432664** | 429089 |
| &nbsp;&nbsp;&nbsp; Retained Earnings | **1131542** | 1029738 |
| &nbsp;&nbsp;&nbsp; Accumulated Other Comprehensive Income | **734** | 532 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total Shareholders' Equity | **1774462** | 1668499 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total Capitalization | **2817836** | 2612233 |
| **Total Liabilities and Shareholders' Equity** | $**3765288** | $3652082 |

---

------

***OTTER TAIL CORPORATION***

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

---

| | | |
|:---|:---|:---|
| | ***Six Months Ended June 30,*** | ***Six Months Ended June 30,*** |
|<br>***(in thousands)*** | ***2025*** | ***2024*** |
| **Operating Activities** |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Net Income | $**145827** | $161333 |
| &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 | **58822** | 52528 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Deferred Tax Credits | **(285)** | (372) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Deferred Income Taxes | **6149** | 9492 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Investment Gains | **(2741)** | (3111) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Stock Compensation Expense | **7396** | 6824 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Other, net | **(1745)** | (1251) |
| &nbsp;&nbsp;&nbsp;&nbsp;Change in Operating Assets and Liabilities: |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Receivables | **(34859)** | (34803) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Inventories | **(131)** | (11551) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Regulatory Assets | **(643)** | 7361 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Other Assets | **4756** | (3951) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Accounts Payable | **(6477)** | 41239 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Accrued and Other Liabilities | **(13447)** | (19312) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Regulatory Liabilities | **198** | 23863 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Pension and Other Postretirement Benefits | **(3441)** | (4828) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**Net Cash Provided by Operating Activities** | **159379** | 223461 |
| **Investing Activities** |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Capital Expenditures | **(124239)** | (175528) |
| &nbsp;&nbsp;&nbsp;&nbsp;Proceeds from Disposal of Noncurrent Assets | **2792** | 5124 |
| &nbsp;&nbsp;&nbsp;&nbsp;Purchases of Investments and Other Assets | **(5579)** | (57661) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**Net Cash Used in Investing Activities** | **(127026)** | (228065) |
| **Financing Activities** |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Net Repayments of Short-Term Debt | **(69615)** | (68612) |
| &nbsp;&nbsp;&nbsp;&nbsp;Proceeds from Issuance of Long-Term Debt | **100000** | 120000 |
| &nbsp;&nbsp;&nbsp;&nbsp;Dividends Paid | **(44023)** | (39122) |
| &nbsp;&nbsp;&nbsp;&nbsp;Payments for Shares Withheld for Employee Tax Obligations | **(3134)** | (5753) |
| &nbsp;&nbsp;&nbsp;&nbsp;Other, net | **(2991)** | (1610) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**Net Cash (Used in) Provided by Financing Activities** | **(19763)** | 4903 |
| **Net Change in Cash and Cash Equivalents** | **12590** | 299 |
| **Cash and Cash Equivalents at Beginning of Period** | **294651** | 230373 |
| **Cash and Cash Equivalents at End of Period** | $**307241** | $230672 |

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***OTTER TAIL CORPORATION***

**SEGMENT RESULTS (unaudited)**

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| | | | | |
|:---|:---|:---|:---|:---|
| | ***Three Months Ended June 30,*** | ***Three Months Ended June 30,*** | ***Six Months Ended June 30,*** | ***Six Months Ended June 30,*** |
|<br>***(in thousands)*** | ***2025*** | ***2024*** | ***2025*** | ***2024*** |
| **Operating Revenues** |  |  |  |  |
| &nbsp;&nbsp;&nbsp;Electric | $**128731** | $112828 | $**278451** | $254317 |
| &nbsp;&nbsp;&nbsp;Manufacturing | **78726** | 96684 | **160412** | 196065 |
| &nbsp;&nbsp;&nbsp;Plastics | **125586** | 132824 | **231533** | 239022 |
| &nbsp;&nbsp;&nbsp;&nbsp;**Total Operating Revenues** | $**333043** | $342336 | $**670396** | $689404 |
| **Operating Income (Loss)** |  |  |  |  |
| &nbsp;&nbsp;&nbsp;Electric | $**23633** | $22597 | $**52676** | $51639 |
| &nbsp;&nbsp;&nbsp;Manufacturing | **5065** | 9600 | **7492** | 17014 |
| &nbsp;&nbsp;&nbsp;Plastics | **72034** | 82089 | **130909** | 145392 |
| &nbsp;&nbsp;&nbsp;Corporate | **(3274)** | (3375) | **(9620)** | (8159) |
| &nbsp;&nbsp;&nbsp;&nbsp;**Total Operating Income** | $**97458** | $110911 | $**181457** | $205886 |
| **Net Income** |  |  |  |  |
| &nbsp;&nbsp;&nbsp;Electric | $**19195** | $18485 | $**43903** | $40956 |
| &nbsp;&nbsp;&nbsp;Manufacturing | **3481** | 6835 | **5013** | 12096 |
| &nbsp;&nbsp;&nbsp;Plastics | **53104** | 60612 | **96543** | 107350 |
| &nbsp;&nbsp;&nbsp;Corporate | **1948** | 1063 | **368** | 931 |
| &nbsp;&nbsp;&nbsp;&nbsp;**Total Net Income** | $**77728** | $86995 | $**145827** | $161333 |

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