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Otter Tail (Nasdaq: OTTR) takes $103.5M charge, lifts adjusted EPS guidance

Filing Impact
(Moderate)
Filing Sentiment
(Neutral)
Form Type
8-K

Rhea-AI Filing Summary

Otter Tail Corporation reported Q2 2026 consolidated operating revenues of $334.4 million and a diluted loss per share of $0.18, driven by a $103.5 million legal settlement expense. Excluding this item, adjusted diluted earnings per share were $1.66. Cash from operating activities for the first six months rose to $182.7 million, and total available liquidity at June 30, 2026 was $601.4 million, including $278.4 million of cash and cash equivalents.

The Electric segment saw revenue decline 5.8% to $121.3 million and net income of $18.7 million, while Manufacturing revenue grew 12.4% to $88.5 million with net income of $4.6 million. The Plastics segment generated $124.6 million of revenue and adjusted net income of $47.1 million, but reported a net loss due to the settlement charge. For 2026, management reduced GAAP diluted EPS guidance to $3.84–$4.24 and introduced adjusted diluted EPS guidance of $5.68–$6.08, and the board declared a quarterly dividend of $0.5775 per share, payable September 10, 2026.

Positive

  • Adjusted diluted EPS guidance for 2026 increased to $5.68–$6.08, reflecting strong underlying performance, especially in the Manufacturing and Plastics segments, despite the one-time legal settlement charge.
  • Cash generation and liquidity remain solid, with six-month operating cash flow of $182.7 million and total available liquidity of $601.4 million at June 30, 2026.

Negative

  • A $103.5 million legal settlement expense drove a Q2 diluted loss and led to a cut in 2026 GAAP EPS guidance from $5.22–$5.62 to $3.84–$4.24.

Filing Explained

The 103.5 million dollar settlement is recorded, but final court approval is still required before the three class claims are resolved.

The company reports settlement agreements with the three putative classes in its PVC pipe antitrust litigation, conditioned on final court approval, with an agreed $103.5 million payment. The structural consequence is a recorded legal expense and a potential cash obligation, but the filing does not place the claims-resolution process at a completed stage.

Otter Tail recognized the $103.5 million as a pre-tax legal settlement expense in the second quarter. The disclosure therefore records the accounting impact and agreement while stating that the agreements will resolve the class claims only if the court grants final approval.

Separately, six-month financing included $170.0 million of newly issued long-term debt, used to repay short-term borrowings, fund capital investments, and support operations. Six-month capital expenditures were $324.8 million, adding to the company’s disclosed investment and financing commitments.

The named resolution milestone is final court approval of the three settlement agreements.

Item 2.02 Results of Operations and Financial Condition Financial
Disclosure of earnings results, typically an earnings press release or preliminary financials.
Item 9.01 Financial Statements and Exhibits Exhibits
Financial statements, pro forma financial information, and exhibit attachments filed with this report.
Q2 2026 diluted EPS $(0.18) per share Three months ended June 30, 2026, consolidated diluted earnings (loss) per share
Q2 2026 adjusted diluted EPS $1.66 per share Three months ended June 30, 2026, excluding legal settlement and related tax effect
Legal settlement expense $103.5 million Pre-tax legal settlement expense recognized in Q2 2026
Q2 2026 total operating revenues $334,383 (thousands) Consolidated operating revenues for the three months ended June 30, 2026
Operating cash flow, six months 2026 $182,711 (thousands) Net cash provided by operating activities for the six months ended June 30, 2026
Total available liquidity $601.4 million Cash, cash equivalents and available credit facilities at June 30, 2026
2026 GAAP EPS guidance range $3.84–$4.24 Updated diluted earnings per share guidance for full-year 2026
2026 adjusted EPS guidance range $5.68–$6.08 Full-year 2026 adjusted diluted EPS guidance excluding settlement impact
production tax credits financial
"increase in the amount of production tax credits (PTCs) generated during the period"
Production tax credits are financial incentives offered to support the development of certain energy projects, such as renewable power sources. They provide a dollar amount for each unit of energy produced, helping to reduce the project's overall costs. For investors, these credits can improve the project's profitability and attractiveness by making renewable energy investments more financially appealing.
integrated resource plan regulatory
"filed our 15-year integrated resource plan with the Minnesota commission"
An integrated resource plan is a utility’s long-term roadmap showing how it will meet future electricity needs using a mix of power sources, energy efficiency, demand reductions and storage while balancing cost, reliability and regulatory requirements. Like a household budget that plans income, bills and savings, the plan reveals expected investments, operating costs and risks, so investors use it to assess future capital spending, potential rate changes and long-term profitability.
Allowance for funds used during construction financial
"An increase in allowance for funds used during construction, driven by our continued investments"
Allowance for funds used during construction (AFUDC) is the accounting practice of adding the cost of borrowing money and using company funds while building long-term assets to the value of that asset instead of treating it as an immediate expense. For investors, AFUDC matters because it boosts reported profits and increases the company’s asset base today while deferring financing costs to future periods, similar to adding construction loan interest to the price of a house under renovation.
Adjusted Return on Equity financial
"Adjusted Return on Equity can be reconciled to anticipated return on equity calculated"
Adjusted return on equity is a profitability measure that shows how much profit a company generates for common shareholders after removing one-time items, accounting quirks, or other non-recurring effects from the usual return-on-equity calculation. It matters to investors because it gives a cleaner, more comparable view of how efficiently management turns shareholders’ capital into sustainable earnings—like judging a car’s normal fuel economy after excluding an unusual long trip.
non-GAAP financial measures financial
"This press release includes certain adjusted financial measures (non-GAAP financial measures)."
Non-GAAP financial measures are numbers companies use to show their financial performance that exclude certain expenses or income. They help investors see how the company might perform without one-time costs or other unusual items, giving a different perspective from official reports. However, since they can be adjusted, they don’t always tell the full story and should be looked at alongside standard financial figures.
Reported diluted EPS $(0.18) per share down from $1.85 diluted EPS in Q2 2025
Adjusted diluted EPS $1.66 per share slightly below $1.85 in Q2 2025
Total operating revenues $334,383 (thousands) compared with $333,043 (thousands) in Q2 2025
Guidance

For 2026, GAAP diluted EPS guidance is $3.84–$4.24 and adjusted diluted EPS guidance is $5.68–$6.08, excluding the after-tax impact of the legal settlement expense.

AI-generated analysis. How Rhea-AI works. Not financial advice.

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FAQ

What were Otter Tail (OTTR) earnings for Q2 2026?
Otter Tail reported a diluted loss per share of $0.18 for Q2 2026, mainly due to a large legal settlement expense. On an adjusted basis, adjusted diluted EPS was $1.66, excluding the settlement’s after-tax impact.

What is Otter Tail (OTTR) 2026 EPS and adjusted EPS guidance?
For 2026, Otter Tail now guides to GAAP diluted EPS of $3.84–$4.24 and has introduced adjusted diluted EPS guidance of $5.68–$6.08, which excludes the after-tax impact of the Q2 2026 legal settlement expense.

How did Otter Tail’s segments perform in Q2 2026?
In Q2 2026, Electric delivered $121.3 million in revenue and $18.7 million net income, Manufacturing generated $88.5 million revenue and $4.6 million net income, and Plastics produced $124.6 million revenue with $47.1 million adjusted net income.

What were Otter Tail (OTTR) cash flow and liquidity positions at June 30, 2026?
For the first six months of 2026, Otter Tail generated $182.7 million in operating cash flow. At June 30, 2026, the company reported total available liquidity of $601.4 million, including $278.4 million of cash and cash equivalents and unused credit facilities.

What dividend did Otter Tail (OTTR) declare in August 2026?
Otter Tail’s board declared a quarterly dividend of $0.5775 per share on August 3, 2026. The dividend is payable on September 10, 2026 to shareholders of record as of August 14, 2026.

How did Otter Tail’s Plastics segment perform in Q2 2026?
The Plastics segment posted $124.6 million in Q2 2026 revenue. It reported a net loss due to the legal settlement charge, but generated adjusted net income of $47.1 million, with higher sales volumes largely offsetting lower average sales prices.
0001466593falseMinnesota0-5371327-03839958/3/202600014665932026-08-032026-08-03

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 3, 2026
OTTER TAIL CORPORATION
(Exact name of registrant as specified in its charter)
Minnesota
(State or other jurisdiction of incorporation or organization)
0-53713
(Commission File Number)
27-0383995
(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 classTrading Symbol(s)Name of each exchange on which registered
Common Shares, par value $5.00 per shareOTTRThe 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    Results of Operations and Financial Condition
On August 3, 2026 Otter Tail Corporation issued a press release announcing its consolidated financial results for the second quarter of 2026. 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    Financial Statements and Exhibits
(d)
Exhibits
99.1
Press Release issued August 3, 2026.
104Cover 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
Date: August 4, 2026
By:/s/ Tyler J. Nelson
Tyler J. Nelson
Vice President and Chief Financial Officer


Press Release
image4a.jpg
August 3, 2026
Otter Tail Corporation Announces Second Quarter Results and Updates Annual Earnings Guidance
FERGUS FALLS, Minnesota - Otter Tail Corporation (Nasdaq: OTTR) today announced financial results for the quarter ended June 30, 2026.
SUMMARY
•Reported quarterly diluted loss per share of $0.18 and adjusted diluted earnings per share of $1.66.
•Updated our annual diluted earnings per share guidance range to $3.84 to $4.24.
•Initiated annual adjusted diluted earnings per share guidance range of $5.68 to $6.08.
CEO OVERVIEW
“Our team advanced our strategic initiatives during the quarter and delivered on our near-term priorities and growth plan for the benefit of our customers and shareholders,” said CEO Chuck MacFarlane. “I am grateful for their efforts in what was a very busy quarter and for the ways they continue to support our customers.
“Otter Tail Power’s team members continue to execute well on our regulatory and strategic priorities. During the second quarter, we secured route permits for two of our large regional transmission projects, filed our 15-year integrated resource plan with the Minnesota commission and continued to make progress on our ongoing Minnesota rate case.
“Our Manufacturing segment produced improved financial results, primarily driven by a favorable product mix as our team continues to focus on providing value-added service to customers, creating margin expansion. Sales volumes also increased as our businesses were well positioned to capitalize on improved demand, especially in the recreational vehicle, construction and horticulture end markets.
“Our Plastics segment outperformed our expectations, driven by strong sales volumes as our customers sought to secure PVC pipe in advance of announced resin price increases. Additionally, the rate of decline in the sales price of our PVC pipe moderated in a strong demand environment. Our team effectively leveraged the additional capacity recently added at our Phoenix facility to fulfill customer demand.
“During the second quarter, we entered into settlement agreements with the three putative classes in the PVC pipe U.S. antitrust litigation. If final approval is granted by the court, the settlement agreements will resolve all claims arising from these putative classes. While not admitting any wrongdoing, fault or liability, we agreed to pay $103.5 million to resolve the class action litigation. We concluded resolution through settlements was in our best interest as it meaningfully reduces the uncertainty, distraction and significant costs and exposure associated with complex antitrust litigation, and allows our team members to remain focused on what we do best - serving our customers.
“We are updating our 2026 diluted earnings per share guidance range to $3.84 to $4.24 from $5.22 to $5.62 primarily due to the impact of the settlement agreements and related expense. We are initiating an adjusted diluted earnings per share guidance range of $5.68 to $6.08 which excludes the after-tax impact of the litigation settlement expense and reflects an increase from our original guidance range.
“The fundamentals of our diversified business model remains strong, and we are well positioned to deliver on our investment targets 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 August 3, 2026, the corporation’s Board of Directors declared a quarterly common stock dividend of $0.5775 per share. This dividend is payable on September 10, 2026 to shareholders of record on August 14, 2026.
CASH FLOWS AND LIQUIDITY
Our consolidated cash provided by operating activities for the six months ended June 30, 2026 was $182.7 million compared to $159.4 million for the six months ended June 30, 2025. This increase was primarily due to a decrease in working capital requirements, largely driven by the timing of vendor payments and the recovery of fuel cost and rider revenues from our utility customers.
Investing activities for the six months ended June 30, 2026 included capital expenditures of $324.8 million. Our capital investments were largely within our Electric segment and included investments in our Abercrombie and Solway solar projects, as well as investments in our wind repowering and other projects.
Financing activities for the six months ended June 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 dividend payments of $48.5 million.
As of June 30, 2026 we had $170.0 million and $153.0 million of available liquidity under our Otter Tail Corporation and Otter Tail Power credit facilities, respectively, along with $278.4 million of available cash and cash equivalents, resulting in total available liquidity of $601.4 million.



SEGMENT PERFORMANCE
Electric Segment
Three Months Ended June 30,
($ in thousands)20262025Change% Change
Operating Revenues$121,320 $128,731 $(7,411)(5.8)%
Net Income18,698 19,195 (497)(2.6)
Retail MWh Sales1,400,638 1,337,696 62,942 4.7 %
Heating Degree Days602 460 142 30.9 
Cooling Degree Days164 145 19 13.1 
The following table shows heating degree days and cooling degree days as a percent of normal.
Three Months Ended June 30,
20262025
Heating Degree Days
112.7 %86.5 %
Cooling Degree Days
127.1 %114.2 %
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, 2026 and 2025.
2026 vs Normal2026 vs
 2025		2025 vs Normal
Effect on Diluted Earnings Per Share$0.01 $0.01 $— 
Operating Revenues decreased $7.4 million primarily due to an increase in the amount of production tax credits (PTCs) generated during the period, the benefit of which is passed through to customers, as well as lower fuel recovery revenues. The increase in PTCs was driven by additional wind generation and the completion of our wind repowering projects earlier this year, which allowed the facilities to begin generating PTCs as they were placed back into service. A planned outage at one of our coal-fired plants during the period drove the reduction in fuel recovery revenues and also resulted in less excess generation, which resulted in lower wholesale revenues. Lower market energy prices resulted in lower purchased power costs which also contributed to the decrease in fuel recovery revenues.
The decreases described above were partially offset by the impact of increased interim and final rates in Minnesota and South Dakota, respectively, the recovery of additional rate base investments, increased commercial sales volumes, and favorable weather impacts.
Net Income decreased $0.5 million primarily due to higher operating and maintenance expenses, including plant outage-related expenses, increased labor costs, and increased vegetative management expenses, as well as higher depreciation and interest expense associated with our rate base investments.
An increase in allowance for funds used during construction, driven by our continued investments in our large solar projects, partially offset the impact of lower revenues and higher operating and maintenance expenses.
Manufacturing Segment
Three Months Ended June 30,
(in thousands)20262025$ Change% Change
Operating Revenues$88,461 $78,726 $9,735 12.4 %
Net Income4,571 3,481 1,090 31.3 
Operating Revenues increased $9.7 million primarily due to steel cost increases, which drove a 9% revenue increase, as steel costs are passed on to customers, as well as a 3% increase in sales volumes. Demand improved in certain markets we serve, including the construction, recreational vehicle and horticulture markets, compared to softer demand and tighter inventory management efforts during the same period last year.
Net Income increased $1.1 million primarily due to higher margins resulting from the mix of products sold and higher sales volumes, which results in a greater leveraging of our fixed costs. These impacts were partially offset by higher general and administrative expenses.



Plastics Segment
Three Months Ended June 30,
(in thousands)20262025$ Change% Change
Operating Revenues$124,602 $125,586 $(984)(0.8)%
Net Income (Loss)(30,081)53,104 (83,185)n/m
Adjusted Net Income47,130 53,104 (5,974)(11.2)
Operating Revenues decreased $1.0 million compared to the same period last year, primarily due to a 14% decrease in average sales prices. The impact of lower pricing was largely offset by a 15% increase in sales volumes, primarily driven by customer purchasing activity ahead of announced PVC resin cost increases and additional production capacity recently added at our Phoenix facility.
Net Income decreased $83.2 million, resulting in a net loss for the quarter. The decrease was primarily due to estimated losses recognized during the period arising from the settlement agreements reached with each of the three putative classes in the ongoing U.S. antitrust class action lawsuits. In connection with these matters, we recognized an estimated pre-tax loss in the amount of $103.5 million during the period.
Adjusted Net Income reflects an adjustment to exclude the after-tax impact of the legal settlement expenses recognized in the second quarter of 2026. Adjusted net income decreased $6.0 million from the second quarter of 2025 primarily due to decreased sales prices, partially offset by increased sales volumes, as discussed above.
Corporate
Three Months Ended June 30,
(in thousands)20262025$ Change% Change
Net Income (Loss)$(795)$1,948 $(2,743)n/m
For the three months ended June 30, 2026, corporate results reflected a net loss of $0.8 million compared to net income of $1.9 million for the same period last year. The change from the prior year was primarily due to the internal allocation of interim tax expense and an increase in employee compensation costs.
2026 OUTLOOK
We are updating our 2026 diluted earnings per share guidance to a range of $3.84 to $4.24 and initiating our 2026 adjusted diluted earnings per share guidance in the range of $5.68 to $6.08.
The segment components of our 2026 guidance compared with actual earnings for 2025 are as follows:
2025 EPS
by Segment
2026 EPS Guidance
2026 EPS Guidance
2026 Adjusted EPS Guidance(1)
February 16, 2026August 3, 2026August 3, 2026
LowHighLowHighLowHigh
Electric$2.32 $2.61 $2.69 $2.61 $2.69 $2.61 $2.69 
Manufacturing0.27 0.26 0.32 0.32 0.38 0.32 0.38 
Plastics4.05 2.49 2.71 1.13 1.35 2.97 3.19 
Corporate(0.09)(0.14)(0.10)(0.22)(0.18)(0.22)(0.18)
Total$6.55 $5.22 $5.62 $3.84 $4.24 $5.68 $6.08 
Return on Equity15.6 %11.5 %12.3 %8.7 %9.5 %n/a
n/a
Adjusted Return on Equity(1)
n/a
n/a
n/a
n/a
n/a
12.5 %13.3 %
(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 anticipated GAAP diluted EPS by excluding an adjustment of $1.84 which reflects the impact of legal settlement expenses recorded in the second quarter of 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 in the second quarter of 2026 from anticipated net income and average shareholders’ equity for the annual period, which increases anticipated return on equity by 380 basis points.
The following items contribute to our 2026 earnings guidance:
Electric Segment - We are maintaining our segment earnings guidance.
Manufacturing Segment - We are increasing our segment earnings guidance based on:
•Higher sales volumes in the second half of the year due to improved end market demand.
•Increased margins driven by improved pricing realization and a greater leveraging of our fixed costs.
Plastics Segment - We are increasing our segment earnings guidance based on:
•Better than expected financial results in the second quarter of 2026.
•Revised expectations for PVC pipe pricing for the remainder of the year.
Corporate Costs - We expect our costs to increase due to less investment income and a lower tax benefit.



CONFERENCE CALL AND WEBCAST
The corporation will host a live webcast on Tuesday, August 4, 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 www.ottertail.com/presentations 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 OPERATIONS (unaudited)
Three Months Ended June 30,Six Months Ended June 30,
(in thousands, except per-share amounts)2026202520262025
Operating Revenues
Electric$121,320 $128,731 $287,188 $278,451 
Product Sales213,063 204,312 394,221 391,945 
Total Operating Revenues334,383 333,043 681,409 670,396 
Operating Expenses
Electric Production Fuel10,613 16,292 31,385 30,613 
Electric Purchased Power13,270 15,497 40,282 46,367 
Electric Operating and Maintenance Expense54,692 46,804 104,948 95,685 
Cost of Products Sold (excluding depreciation)118,409 105,966 225,947 210,353 
Nonelectric Selling, General, and Administrative Expenses
22,169 17,352 43,940 38,644 
Depreciation and Amortization30,811 29,447 60,789 58,822 
Electric Property Taxes5,121 4,227 9,583 8,455 
Legal Settlement Expenses103,500 — 103,500 — 
Total Operating Expenses358,585 235,585 620,374 488,939 
Operating Income (Loss)(24,202)97,458 61,035 181,457 
Other Income and (Expense)
Interest Expense(12,890)(11,720)(25,526)(23,273)
Nonservice Components of Postretirement Benefits1,050 854 1,494 2,136 
Other Income (Expense), net7,278 4,788 11,720 9,244 
Income (Loss) Before Taxes(28,764)91,380 48,723 169,564 
Income Tax (Benefit) Expense(21,157)13,652 (16,280)23,737 
Net Income (Loss)$(7,607)$77,728 $65,003 $145,827 
Weighted-Average Common Shares Outstanding:
Basic41,955 41,874 41,929 41,850 
Diluted41,955 42,118 42,100 42,090 
Earnings (Loss) Per Share:
Basic$(0.18)$1.86 $1.55 $3.48 
Diluted$(0.18)$1.85 $1.54 $3.46 



OTTER TAIL CORPORATION
CONSOLIDATED BALANCE SHEETS (unaudited)
June 30,December 31,
(in thousands)20262025
Assets
Current Assets
Cash and Cash Equivalents$278,383 $386,193 
Restricted Cash73,500 — 
Receivables, net of allowance for credit losses199,034 145,496 
Inventories169,980 158,598 
Investments
55,320 54,311 
Regulatory Assets19,917 20,437 
Other Current Assets41,219 34,690 
Total Current Assets837,353 799,725 
Noncurrent Assets
Investments82,666 78,823 
Property, Plant and Equipment, net of accumulated depreciation3,138,430 2,876,685 
Regulatory Assets91,843 86,062 
Intangible Assets, net of accumulated amortization4,108 4,642 
Goodwill37,572 37,572 
Other Noncurrent Assets101,633 80,770 
Total Noncurrent Assets3,456,252 3,164,554 
Total Assets$4,293,605 $3,964,279 
Liabilities and Shareholders' Equity
Current Liabilities
Short-Term Debt$53,847 $60,242 
Current Maturities of Long-Term Debt79,977 79,951 
Accounts Payable131,054 93,606 
Accrued Salaries and Wages32,197 35,666 
Accrued Taxes14,236 18,460 
Regulatory Liabilities28,830 16,600 
Other Current Liabilities150,427 46,433 
Total Current Liabilities490,568 350,958 
Noncurrent Liabilities and Deferred Credits
Pension Benefit Liability
32,001 32,376 
Other Postretirement Benefits Liability32,341 31,813 
Regulatory Liabilities300,720 297,398 
Deferred Income Taxes289,697 305,931 
Deferred Tax Credits14,155 14,321 
Other Noncurrent Liabilities124,363 106,156 
Total Noncurrent Liabilities and Deferred Credits793,277 787,995 
Commitments and Contingencies
Capitalization
Long-Term Debt1,132,889 963,566 
Shareholders’ Equity
  Common Shares209,928 209,528 
  Additional Paid-In Capital432,754 434,195 
  Retained Earnings1,234,046 1,217,567 
  Accumulated Other Comprehensive Income143 470 
Total Shareholders' Equity1,876,871 1,861,760 
Total Capitalization3,009,760 2,825,326 
Total Liabilities and Shareholders' Equity$4,293,605 $3,964,279 



OTTER TAIL CORPORATION
CONSOLIDATED STATEMENTS OF CASH FLOWS (unaudited)
Six Months Ended June 30,
(in thousands)20262025
Operating Activities
Net Income$65,003 $145,827 
Adjustments to Reconcile Net Income to Net Cash Provided by Operating Activities:
Depreciation and Amortization60,789 58,822 
Deferred Tax Credits(166)(285)
Deferred Income Taxes(18,519)6,149 
Investment Losses
(2,878)(2,741)
Stock Compensation Expense8,526 7,396 
Legal Settlement Expenses103,500 — 
Other, net(4,810)(1,745)
Change in Operating Assets and Liabilities:
Receivables(53,538)(34,859)
Inventories(10,590)(131)
Regulatory Assets(4,837)(643)
Other Assets(2,771)4,756 
Accounts Payable32,200 (6,477)
Accrued and Other Liabilities(8,402)(13,447)
Regulatory Liabilities20,749 198 
Pension and Other Postretirement Benefits(1,545)(3,441)
Net Cash Provided by Operating Activities182,711 159,379 
Investing Activities
Capital Expenditures(324,755)(124,239)
Proceeds from Disposal of Noncurrent Assets5,165 2,792 
Purchases of Investments and Other Assets(7,015)(5,579)
Net Cash Used in Investing Activities(326,605)(127,026)
Financing Activities
Net Repayments of Short-Term Debt(6,395)(69,615)
Proceeds from Issuance of Long-Term Debt170,000 100,000 
Dividends Paid(48,524)(44,023)
Payments for Shares Withheld for Employee Tax Obligations(3,974)(3,134)
Other, net(1,523)(2,991)
Net Cash Provided by (Used in) Financing Activities109,584 (19,763)
Net Change in Cash, Cash Equivalents and Restricted Cash(34,310)12,590 
Cash, Cash Equivalents and Restricted Cash at Beginning of Period386,193 294,651 
Cash, Cash Equivalents and Restricted Cash at End of Period$351,883 $307,241 



OTTER TAIL CORPORATION
SEGMENT RESULTS (unaudited)
Three Months Ended June 30,Six Months Ended June 30,
(in thousands)2026202520262025
Operating Revenues
Electric$121,320 $128,731 $287,188 $278,451 
Manufacturing88,461 78,726 178,021 160,412 
Plastics124,602 125,586 216,200 231,533 
Total Operating Revenues$334,383 $333,043 $681,409 $670,396 
Operating Income (Loss)
Electric$13,401 $23,633 $53,321 $52,676 
Manufacturing6,498 5,065 12,628 7,492 
Plastics(39,433)72,034 5,270 130,909 
Corporate(4,668)(3,274)(10,184)(9,620)
Total Operating Income (Loss)$(24,202)$97,458 $61,035 $181,457 
Net Income (Loss)
Electric$18,698 $19,195 $53,948 $43,903 
Manufacturing4,571 3,481 8,854 5,013 
Plastics(30,081)53,104 2,859 96,543 
Corporate(795)1,948 (658)368 
Total Net Income (Loss)$(7,607)$77,728 $65,003 $145,827 
Adjusted Net Income (Loss)
Electric(1)
$18,698 $19,195 $53,948 $43,903 
Manufacturing(1)
4,571 3,481 8,854 5,013 
Plastics47,130 53,104 80,070 96,543 
Corporate(1)
(795)1,948 (658)368 
Total Adjusted Net Income$69,604 $77,728 $142,214 $145,827 
(1) No adjustments were made to net income (loss) for Electric, Manufacturing, or Corporate.




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:
Three Months Ended June 30,Six Months Ended June 30,
(in thousands)2026202520262025
Plastics Segment
Net Income (Loss)$(30,081)$53,104 $2,859 $96,543 
Add: Legal Settlement Expense103,500 — 103,500 — 
Less: Tax Effect of Adjustment(1)
(26,289)— (26,289)— 
Adjusted Net Income$47,130 $53,104 $80,070 $96,543 
Consolidated
Net Income (Loss)$(7,607)$77,728 $65,003 $145,827 
Add: Legal Settlement Expense
103,500 — 103,500 — 
Less: Tax Effect of Adjustment(1)
(26,289)— (26,289)— 
Adjusted Net Income$69,604 $77,728 $142,214 $145,827 
Consolidated
Diluted Earnings (Loss) Per Share$(0.18)$1.85 $1.54 $3.46 
Add: Legal Settlement Expense
2.47 — 2.46 — 
Less: Tax Effect of Adjustment(1)
(0.63)— (0.62)— 
Adjusted Diluted Earnings Per Share$1.66 $1.85 $3.38 $3.46 
(1) The tax effect of the adjustment was calculated using a 25.4% tax rate, determined based on a 21.0% federal statutory rate and a 4.4% blended state income tax rate.



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