<span item_type="fundamental" item_id="29505632c6050e4eb62ad6e3f9f0d0d5" counter_id="ST/US/OTTR" env="prod"></span><span item_type="announcement" item_id="645009256873924353" env="prod"></span><p>Revenue: As of FY2026 Q1, the actual value is USD 347.03 M, beating the estimate of USD 339.1 M.</p><p>EPS: As of FY2026 Q1, the actual value is USD 1.73, beating the estimate of USD 1.42.</p><p>EBIT: As of FY2026 Q1, the actual value is USD 97.87 M.</p><p></p><h3>Overall Financial Performance</h3><p>Otter Tail Corporation reported diluted earnings per share of $1.73 in the first quarter of 2026, with a return on equity of 15% over the trailing twelve months.<span class="superscript" item_id="0" item_type="announcement_file" value="1" url="https://www.sec.gov/Archives/edgar/data/1466593/000146659326000049/q12026earningsreleaseex991.htm"></span></p><h3>Cash Flow and Liquidity</h3><h4>Operating Activities</h4><p>Consolidated cash provided by operating activities for the three months ended March 31, 2026, was $70.6 million, an increase from $39.5 million for the same period in 2025.<span class="superscript" item_id="0" item_type="announcement_file" value="1" url="https://www.sec.gov/Archives/edgar/data/1466593/000146659326000049/q12026earningsreleaseex991.htm"></span></p><h4>Investing Activities</h4><p>Investing activities for the three months ended March 31, 2026, included capital expenditures of $185.3 million, primarily within the Electric segment.<span class="superscript" item_id="0" item_type="announcement_file" value="1" url="https://www.sec.gov/Archives/edgar/data/1466593/000146659326000049/q12026earningsreleaseex991.htm"></span></p><h4>Financing Activities</h4><p>Financing activities during the first quarter of 2026 included the issuance of $100.0 million of long-term debt by Otter Tail Power, net short-term borrowings totaling $7.7 million, and dividend payments of $24.3 million.<span class="superscript" item_id="0" item_type="announcement_file" value="1" url="https://www.sec.gov/Archives/edgar/data/1466593/000146659326000049/q12026earningsreleaseex991.htm"></span></p><h4>Liquidity</h4><p>As of March 31, 2026, Otter Tail Corporation had $170.0 million and $140.5 million of available liquidity under its Otter Tail Corporation and Otter Tail Power credit facilities, respectively, along with $348.4 million in available cash and cash equivalents, resulting in total available liquidity of $658.9 million.<span class="superscript" item_id="0" item_type="announcement_file" value="1" url="https://www.sec.gov/Archives/edgar/data/1466593/000146659326000049/q12026earningsreleaseex991.htm"></span></p><h3>Quarterly Dividend</h3><p>On May 4, 2026, the Board of Directors declared a quarterly common stock dividend of $0.5775 per share, payable on June 10, 2026, to shareholders of record on May 15, 2026.<span class="superscript" item_id="0" item_type="announcement_file" value="1" url="https://www.sec.gov/Archives/edgar/data/1466593/000146659326000049/q12026earningsreleaseex991.htm"></span></p><h3>Segment Performance (Three Months Ended March 31)</h3><h4>Electric Segment</h4><ul><li><strong>Operating Revenues</strong>: $165,870 thousand in 2026, up from $149,720 thousand in 2025, representing a 10.8% increase.<span class="superscript" item_id="0" item_type="announcement_file" value="1" url="https://www.sec.gov/Archives/edgar/data/1466593/000146659326000049/q12026earningsreleaseex991.htm"></span></li><li><strong>Net Income</strong>: $35,250 thousand in 2026, compared to $24,708 thousand in 2025, a 42.7% increase.<span class="superscript" item_id="0" item_type="announcement_file" value="1" url="https://www.sec.gov/Archives/edgar/data/1466593/000146659326000049/q12026earningsreleaseex991.htm"></span></li><li><strong>Operating Income</strong>: $39,922 thousand in 2026, up from $29,043 thousand in 2025.<span class="superscript" item_id="0" item_type="announcement_file" value="1" url="https://www.sec.gov/Archives/edgar/data/1466593/000146659326000049/q12026earningsreleaseex991.htm"></span></li><li><strong>Retail MWh Sales</strong>: 1,715,724 in 2026, an increase of 2.6% from 1,673,004 in 2025.<span class="superscript" item_id="0" item_type="announcement_file" value="1" url="https://www.sec.gov/Archives/edgar/data/1466593/000146659326000049/q12026earningsreleaseex991.htm"></span></li><li><strong>Heating Degree Days</strong>: 3,155 in 2026, a decrease of 8.6% from 3,451 in 2025.<span class="superscript" item_id="0" item_type="announcement_file" value="1" url="https://www.sec.gov/Archives/edgar/data/1466593/000146659326000049/q12026earningsreleaseex991.htm"></span></li><li><strong>Effect on Diluted Earnings Per Share</strong>: The difference in retail kilowatt-hour sales under actual weather conditions resulted in a -$0.05 impact on diluted EPS for 2026 compared to normal, and -$0.05 compared to 2025.<span class="superscript" item_id="0" item_type="announcement_file" value="1" url="https://www.sec.gov/Archives/edgar/data/1466593/000146659326000049/q12026earningsreleaseex991.htm"></span></li></ul><h4>Manufacturing Segment</h4><ul><li><strong>Operating Revenues</strong>: $89,559 thousand in 2026, up from $81,685 thousand in 2025, a 9.6% increase.<span class="superscript" item_id="0" item_type="announcement_file" value="1" url="https://www.sec.gov/Archives/edgar/data/1466593/000146659326000049/q12026earningsreleaseex991.htm"></span></li><li><strong>Net Income</strong>: $4,283 thousand in 2026, significantly up from $1,532 thousand in 2025, a 179.6% increase.<span class="superscript" item_id="0" item_type="announcement_file" value="1" url="https://www.sec.gov/Archives/edgar/data/1466593/000146659326000049/q12026earningsreleaseex991.htm"></span></li><li><strong>Operating Income</strong>: $6,129 thousand in 2026, up from $2,426 thousand in 2025.<span class="superscript" item_id="0" item_type="announcement_file" value="1" url="https://www.sec.gov/Archives/edgar/data/1466593/000146659326000049/q12026earningsreleaseex991.htm"></span></li></ul><h4>Plastics Segment</h4><ul><li><strong>Operating Revenues</strong>: $91,597 thousand in 2026, down from $105,948 thousand in 2025, a -13.5% decrease.<span class="superscript" item_id="0" item_type="announcement_file" value="1" url="https://www.sec.gov/Archives/edgar/data/1466593/000146659326000049/q12026earningsreleaseex991.htm"></span></li><li><strong>Net Income</strong>: $32,940 thousand in 2026, down from $43,439 thousand in 2025, a -24.2% decrease.<span class="superscript" item_id="0" item_type="announcement_file" value="1" url="https://www.sec.gov/Archives/edgar/data/1466593/000146659326000049/q12026earningsreleaseex991.htm"></span></li><li><strong>Operating Income</strong>: $44,703 thousand in 2026, down from $58,876 thousand in 2025.<span class="superscript" item_id="0" item_type="announcement_file" value="1" url="https://www.sec.gov/Archives/edgar/data/1466593/000146659326000049/q12026earningsreleaseex991.htm"></span></li><li><strong>Operational Metric</strong>: Completed the second phase of the Vinyltech expansion project, adding 15% additional production capacity and increasing manufacturing space and raw material storage capabilities.<span class="superscript" item_id="0" item_type="announcement_file" value="1" url="https://www.sec.gov/Archives/edgar/data/1466593/000146659326000049/q12026earningsreleaseex991.htm"></span></li></ul><h4>Corporate</h4><ul><li><strong>Net Income (Loss)</strong>: Reported net income of $137 thousand in 2026, an improvement from a net loss of -$1,580 thousand in 2025.<span class="superscript" item_id="0" item_type="announcement_file" value="1" url="https://www.sec.gov/Archives/edgar/data/1466593/000146659326000049/q12026earningsreleaseex991.htm"></span></li><li><strong>Operating Income (Loss)</strong>: Operating loss was -$5,517 thousand in 2026, an improvement from -$6,346 thousand in 2025.<span class="superscript" item_id="0" item_type="announcement_file" value="1" url="https://www.sec.gov/Archives/edgar/data/1466593/000146659326000049/q12026earningsreleaseex991.htm"></span></li></ul><h3>Outlook / Guidance</h3><p>Otter Tail Corporation affirmed its 2026 diluted earnings per share guidance range of $5.22 to $5.62.<span class="superscript" item_id="0" item_type="announcement_file" value="1" url="https://www.sec.gov/Archives/edgar/data/1466593/000146659326000049/q12026earningsreleaseex991.htm"></span> The company expects the 2026 earnings mix to be approximately 49% from the Electric segment and 51% from the Manufacturing and Plastics segments, net of corporate costs.<span class="superscript" item_id="0" item_type="announcement_file" value="1" url="https://www.sec.gov/Archives/edgar/data/1466593/000146659326000049/q12026earningsreleaseex991.htm"></span> This deviates from the long-term expected earnings mix of 70% Electric and 30% Non-Electric, as Plastics segment earnings are expected to remain elevated in 2026.<span class="superscript" item_id="0" item_type="announcement_file" value="1" url="https://www.sec.gov/Archives/edgar/data/1466593/000146659326000049/q12026earningsreleaseex991.htm"></span></p>

Otter Tail | 8-K: FY2026 Q1 Revenue Beats Estimate at USD 347.03 M