# Otter Tail Corp (OTTR)

Informational only - not investment advice.

CIK: 0001466593
SIC: 4911 Electric Services
SIC breadcrumb: [Transportation, Communications, Electric, Gas, And Sanitary Services](/division/E/) > [Electric, Gas, And Sanitary Services](/major-group/49/) > [SIC 4911 Electric Services](/industry/4911/)
Latest 10-K filed: 2026-02-18
SEC page: https://www.sec.gov/edgar/browse/?CIK=1466593
Filing source: https://www.sec.gov/Archives/edgar/data/1466593/000146659326000008/ottr-20251231.htm

## At a glance

FY2025 · period end 2025-12-31 · filed 2026-02-23 · accession 0001466593-26-000015 · source: https://data.sec.gov/api/xbrl/companyfacts/CIK0001466593.json

| Metric | Value | FY | Provenance |
| --- | ---: | ---: | --- |
| Revenue | 1,299,640,000 USD | 2025 | verified |
| Net income | 275,893,000 USD | 2025 | verified |
| Assets | 3,964,279,000 USD | 2025 | verified |
| Free cash flow | 97,917,000 USD | 2025 | computed |
| Net margin | 21.23% | 2025 | computed |
| Operating margin | 26.60% | 2025 | computed |
| Revenue YoY | -2.28% | 2025 | computed |
| ROE | 14.82% | 2025 | computed |

Computed values are grepcent-computed from the verified facts above and may differ from ratios the company itself reports. Free cash flow = operating cash flow − capital expenditures. Net margin = net income ÷ revenue. Operating margin = operating income ÷ revenue. Revenue YoY = FY2025 revenue ÷ FY2024 revenue − 1 (consecutive fiscal years only). ROE = net income ÷ period-end stockholders' equity.

No market price, no rating, no forecast on this site. Not investment advice.

### Peer percentile fingerprint

| Ratio | OTTR | Peer median | Percentile | N |
| --- | ---: | ---: | ---: | ---: |
| Net margin | 21.2% | 12.2% | 92 | 26 |
| Operating margin | 26.6% | 20.2% | 88 | 26 |
| Revenue growth | -2.3% | 9.2% | 4 | 26 |
| FCF margin | 7.5% | -2.0% | 86 | 23 |
| ROE | 14.8% | 9.4% | 81 | 28 |
| ROA | 7.0% | 2.6% | 96 | 28 |
| Liabilities / equity | 1.13 | 2.76 | 7 | 28 |
| Current ratio | 2.28 | 0.81 | 93 | 28 |

Percentile = share of the N covered peers reporting that ratio whose value is lower (ties counted half); computed among grepcent-covered companies in SIC industry 4911 Electric Services, not the whole market. A higher percentile means a higher value of the ratio, not a better company. Ratios with fewer than 8 reporting peers are omitted. Latest reported values per company; fiscal periods may differ. Descriptive arithmetic - not a score, rating, or ranking.

## Selected Fundamentals
| Metric | Value | Unit | FY | Filed |
| --- | ---: | --- | ---: | --- |
| Revenue | 1299640000 | USD | 2025 | 2026-02-23 |
| Net income | 275893000 | USD | 2025 | 2026-02-23 |
| Assets | 3964279000 | USD | 2025 | 2026-02-23 |

## Financials

Annual standardized facts from SEC companyfacts as of latest extracted filing date 2026-02-23. Source: https://data.sec.gov/api/xbrl/companyfacts/CIK0001466593.json. Derived margins, ratios, and free cash flow are computed from the extracted annual SEC facts.

| Metric | 2016 | 2017 | 2018 | 2019 | 2020 | 2021 | 2022 | 2023 | 2024 | 2025 |
| --- | ---: | ---: | ---: | ---: | ---: | ---: | ---: | ---: | ---: | ---: |
| Revenue | 803,539,000 | 849,350,000 | 916,447,000 | 919,503,000 | 883,171,000 | 1,197,635,000 | 1,469,475,000 | 1,353,476,000 | 1,329,973,000 | 1,299,640,000 |
| Net income | 62,321,000 | 72,439,000 | 82,345,000 | 86,847,000 | 95,851,000 | 176,769,000 | 284,184,000 | 294,191,000 | 301,662,000 | 275,893,000 |
| Operating income | 116,631,000 | 132,287,000 | 129,389,000 | 134,880,000 | 147,886,000 | 249,708,000 | 390,439,000 | 377,919,000 | 380,250,000 | 345,682,000 |
| Diluted EPS | 1.61 | 1.82 | 2.06 | 2.17 | 2.34 | 4.23 | 6.78 | 7.00 | 7.17 | 6.55 |
| Operating cash flow | 163,386,000 | 173,577,000 | 143,448,000 | 185,037,000 | 211,921,000 | 231,243,000 | 389,309,000 | 404,499,000 | 452,731,000 | 385,985,000 |
| Capital expenditures | 161,259,000 | 132,913,000 | 105,425,000 | 207,365,000 | 371,553,000 | 171,829,000 | 171,134,000 | 287,134,000 | 358,650,000 | 288,068,000 |
| Dividends paid |  | 50,632,000 | 53,198,000 | 55,723,000 | 60,314,000 | 64,864,000 | 68,755,000 | 73,061,000 | 78,266,000 | 88,064,000 |
| Assets | 1,912,385,000 | 2,004,278,000 | 2,052,517,000 | 2,273,595,000 | 2,578,354,000 | 2,754,830,000 | 2,901,661,000 | 3,242,568,000 | 3,652,082,000 | 3,964,279,000 |
| Stockholders' equity | 670,104,000 | 696,892,000 | 728,863,000 | 781,482,000 | 870,966,000 | 990,777,000 | 1,217,317,000 | 1,443,006,000 | 1,668,499,000 | 1,861,760,000 |
| Cash and cash equivalents | 0.00 | 16,216,000 | 861,000 | 21,199,000 | 1,163,000 | 1,537,000 | 118,996,000 | 230,373,000 | 294,651,000 | 386,193,000 |
| Free cash flow | 2,127,000 | 40,664,000 | 38,023,000 | -22,328,000 | -159,632,000 | 59,414,000 | 218,175,000 | 117,365,000 | 94,081,000 | 97,917,000 |

### Ratios

ROE and ROA use period-end equity/assets. Liabilities / equity uses total liabilities divided by stockholders' equity. Current ratio uses current assets divided by current liabilities when both are reported.

| Metric | 2016 | 2017 | 2018 | 2019 | 2020 | 2021 | 2022 | 2023 | 2024 | 2025 |
| --- | ---: | ---: | ---: | ---: | ---: | ---: | ---: | ---: | ---: | ---: |
| Net margin | 7.76% | 8.53% | 8.99% | 9.44% | 10.85% | 14.76% | 19.34% | 21.74% | 22.68% | 21.23% |
| Operating margin | 14.51% | 15.58% | 14.12% | 14.67% | 16.74% | 20.85% | 26.57% | 27.92% | 28.59% | 26.60% |
| Return on equity | 9.30% | 10.39% | 11.30% | 11.11% | 11.01% | 17.84% | 23.35% | 20.39% | 18.08% | 14.82% |
| Return on assets | 3.26% | 3.61% | 4.01% | 3.82% | 3.72% | 6.42% | 9.79% | 9.07% | 8.26% | 6.96% |
| Liabilities / equity | 1.85 | 1.88 | 1.82 | 1.91 | 1.96 | 1.78 | 1.38 | 1.25 | 1.19 | 1.13 |
| Current ratio | 0.96 | 0.93 | 1.42 | 1.34 | 0.54 | 0.95 | 1.91 | 1.84 | 2.03 | 2.28 |

## As-reported value updates

2 tracked differences above grepcent's stated thresholds were found between the earliest XBRL-filed value and the value currently on file for the same fiscal period.

Ledger: /company/OTTR/revisions/


## Quarterly

Quarterly standardized facts from SEC companyfacts as of latest extracted filing date 2026-08-05. Source: https://data.sec.gov/api/xbrl/companyfacts/CIK0001466593.json.

Flow metrics use discrete quarter-length periods from 10-Q/10-Q/A filings. Q4 revenue and net income are derived only when annual FY and nine-month YTD facts exist for the same fiscal year; derived Q4 values are labeled. EPS Q4 is not derived.

| Quarter | End date | Revenue | Net income | Diluted EPS | Method |
| --- | --- | ---: | ---: | ---: | --- |
| 2022-Q3 | 2022-09-30 |  |  | 2.01 | reported discrete quarter |
| 2023-Q1 | 2023-03-31 |  |  | 1.49 | reported discrete quarter |
| 2023-Q2 | 2023-06-30 |  |  | 1.95 | reported discrete quarter |
| 2023-Q3 | 2023-09-30 | 358,056,000 | 91,974,000 | 2.19 | reported discrete quarter |
| 2023-Q4 | 2023-12-31 | 318,623,000 | 57,767,000 |  | derived Q4 = FY annual - nine-month YTD |
| 2024-Q1 | 2024-03-31 | 347,241,000 | 74,338,000 | 1.77 | reported discrete quarter |
| 2024-Q2 | 2024-06-30 | 342,398,000 | 86,995,000 | 2.07 | reported discrete quarter |
| 2024-Q3 | 2024-09-30 | 337,386,000 | 85,479,000 | 2.03 | reported discrete quarter |
| 2024-Q4 | 2024-12-31 | 302,949,000 | 54,850,000 |  | derived Q4 = FY annual - nine-month YTD |
| 2025-Q1 | 2025-03-31 | 337,335,000 | 68,099,000 | 1.62 | reported discrete quarter |
| 2025-Q2 | 2025-06-30 | 332,433,000 | 77,728,000 | 1.85 | reported discrete quarter |
| 2025-Q3 | 2025-09-30 | 325,886,000 | 78,292,000 | 1.86 | reported discrete quarter |
| 2025-Q4 | 2025-12-31 | 303,986,000 | 51,774,000 |  | derived Q4 = FY annual - nine-month YTD |
| 2026-Q1 | 2026-03-31 | 342,859,000 | 72,610,000 | 1.73 | reported discrete quarter |
| 2026-Q2 | 2026-06-30 | 334,737,000 | -7,607,000 | -0.18 | reported discrete quarter |

## Filed narrative (10-K & 10-Q)

## Business

Verbatim Item 1 Business section from OTTR's latest 10-K: [/company/OTTR/business/](/company/OTTR/business/).

## Risk Factors

Verbatim Item 1A Risk Factors from OTTR's latest 10-K: [/company/OTTR/risk-factors/](/company/OTTR/risk-factors/).

## Latest quarter (10-Q)

Latest 10-Q source: https://www.sec.gov/Archives/edgar/data/1466593/000146659326000071/ottr-20260630.htm

Extracted structurally from real Item 2 body heading to real Item 3/4 boundary.
Confidence: high
Filing date: 2026-08-05
Report date: 2026-06-30

ITEM 2. MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS

You should read the following discussion and analysis of our financial condition and results of operations together with our interim financial statements and the related notes appearing under Item 1 of this Quarterly Report on Form 10-Q, and our annual financial statements and the related notes along with the discussion and analysis of our financial condition and results of operations contained in our Annual Report on Form 10-K for the year ended December 31, 2025.

Otter Tail Corporation and its subsidiaries form a diverse group of businesses with operations classified into three segments: Electric, Manufacturing and Plastics. Our Electric segment business is a vertically integrated, regulated utility with generation, transmission and distribution facilities to serve our customers in western Minnesota, eastern North Dakota and northeastern South Dakota. Our Manufacturing segment provides metal fabrication for custom machine parts and metal components and manufactures extruded and thermoformed plastic products. Our Plastics segment manufactures PVC pipe for use in, among other applications, municipal and rural water, wastewater and water reclamation projects.

RESULTS OF OPERATIONS - QUARTER TO DATE

Provided below are a summary and discussion of our operating results on a consolidated basis followed by a discussion of the operating results of each of our segments: Electric, Manufacturing and Plastics. In addition to the segment results, we provide an overview of our Corporate costs. Our Corporate costs do not constitute a reportable segment, but rather consist of unallocated general corporate expenses, such as corporate staff and overhead costs, the results of our captive insurance company and other items excluded from the measurement of segment performance. Corporate costs are added to operating segment totals to reconcile to totals on our consolidated statements of operations.

CONSOLIDATED RESULTS    

The following table summarizes consolidated operating results for the three months ended June 30, 2026 and 2025:

[[GREPCENT_TABLE]]
[["(in thousands)","2026","","2025","","$ change","","% change"],["Operating Revenues","$","334,383","","","$","333,043","","","$","1,340","","","0.4","%"],["Operating Expenses","255,085","","","235,585","","","19,500","","","8.3"],["Legal Settlement Expenses","103,500","","","\u2014","","","103,500","","","n/m"],["Operating Income (Loss)","(24,202)","","","97,458","","","(121,660)","","","(124.8)"],["Interest Expense","(12,890)","","","(11,720)","","","(1,170)","","","10.0"],["Nonservice Components of Postretirement Benefits","1,050","","","854","","","196","","","23.0"],["Other Income (Expense), net","7,278","","","4,788","","","2,490","","","52.0"],["Income (Loss) Before Income Taxes","(28,764)","","","91,380","","","(120,144)","","","(131.5)"],["Income Tax (Benefit) Expense","(21,157)","","","13,652","","","(34,809)","","","n/m"],["Net Income (Loss)","$","(7,607)","","","$","77,728","","","$","(85,335)","","","(109.8)","%"]]
[[/GREPCENT_TABLE]]

Operating Revenues increased $1.3 million primarily due to higher sales volumes in our Plastics and Manufacturing segments, higher steel costs passed through to customers in our Manufacturing segment and increased electric rates in our Electric segment. These increases were largely offset by lower sales prices in the Plastics segment, and higher PTCs, the benefit of which is passed on to customers, and lower fuel recovery revenues in the Electric segment. See the segment discussions below for additional information regarding period-over-period changes in operating revenues.

Operating Expenses increased $19.5 million primarily due to increased operating and maintenance expenses in the Electric segment and additional expenses driven by higher sales volumes in the Plastics and Manufacturing segments. These factors were partially offset by lower fuel and purchased power costs in the Electric segment. See our segment disclosures below for additional discussion of items impacting operating expenses.

Legal Settlement Expenses reflect a $103.5 million estimated loss contingency recognized in the Plastics segment related to the ongoing U.S. PVC pipe antitrust class action lawsuit and settlement agreements entered into during the period. See Note 10 to the consolidated financial statements for additional information regarding the lawsuit and related settlements.

Other Income (Expense), net increased $2.5 million primarily due to an increase in allowance for funds used during construction (AFUDC) in our Electric segment, driven by our continued investments in our Abercrombie and Solway solar projects.

Income Tax (Benefit) Expense was a benefit of $23.3 million for the three months ended June 30, 2026, compared to income tax expense of $13.7 million for the same period in 2025. The change was primarily attributable to a $26.3 million tax benefit recognized as a result of the litigation settlements executed during the period, as referenced above. The Company's effective tax rate for the

27

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period also benefited from increased PTCs generated by our wind facilities following the completion of repowering projects in late 2025 and early 2026.

ELECTRIC SEGMENT RESULTS

The following table summarizes Electric segment operating results for the three months ended June 30, 2026 and 2025:

[[GREPCENT_TABLE]]
[["(in thousands)","2026","","2025","","$ change","","% change"],["Operating Revenues","$","121,320","","","$","128,731","","","$","(7,411)","","","(5.8)","%"],["Production Fuel","10,613","","","16,292","","","(5,679)","","","(34.9)"],["Purchased Power","13,270","","","15,497","","","(2,227)","","","(14.4)"],["Operating and Maintenance Expenses","54,692","","","46,804","","","7,888","","","16.9"],["Depreciation and Amortization","24,223","","","22,278","","","1,945","","","8.7"],["Property Taxes","5,121","","","4,227","","","894","","","21.1"],["Operating Income","13,401","","","23,633","","","(10,232)","","","(43.3)"],["Interest Expense","(11,990)","","","(10,822)","","","(1,168)","","","10.8"],["Nonservice Components of Postretirement Benefits","1,332","","","1,127","","","205","","","18.2"],["Other Income (Expense), net","2,851","","","788","","","2,063","","","n/m"],["Income Before Income Taxes","5,594","","","14,726","","","(9,132)","","","(62.0)"],["Income Tax Benefit","(13,104)","","","(4,469)","","","(8,635)","","","193.2"],["Net Income","$","18,698","","","$","19,195","","","$","(497)","","","(2.6)","%"],["","2026","","2025","","change","","% change"],["Electric kilowatt-hour (kwh) Sales (in thousands)"],["Retail kwh Sales","1,400,638","","","1,337,696","","","62,942","","","4.7","%"],["Wholesale kwh Sales \u2013 Company Generation","1,275","","","71,477","","","(70,202)","","","(98.2)"],["Heating Degree Days","602","","","460","","","142","","","30.9"],["Cooling Degree Days","164","","","145","","","19","","","13.1","%"]]
[[/GREPCENT_TABLE]]

The operating results of our Electric segment are impacted by fluctuations in weather conditions and the resulting demand for electricity for heating and cooling. The following table shows heating degree days and cooling degree days as a percent of normal for the three months ended June 30, 2026 and 2025.

[[GREPCENT_TABLE]]
[["","2026","","2025"],["Heating Degree Days","112.7","%","","86.5","%"],["Cooling Degree Days","127.1","%","","114.2","%"]]
[[/GREPCENT_TABLE]]

The following table summarizes the estimated effect on diluted earnings per share of the difference in retail 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, and between those periods.

[[GREPCENT_TABLE]]
[["","2026 vsNormal","","2026 vs 2025","","2025 vsNormal"],["Effect on Diluted Earnings Per Share","$","0.01","","","$","0.01","","","$","\u2014"]]
[[/GREPCENT_TABLE]]

Operating Revenues decreased $7.4 million primarily due to:

•A $6.5 million decrease in fuel recovery revenues, driven by a planned outage at one of our coal-fired facilities, which resulted in lower coal consumption. In addition, lower market energy prices, as described below, also contributed to reduced fuel recovery revenues.

•A $6.2 million increase in PTCs, the benefit of which is passed on to customers, as described below.

•A decrease in wholesale revenue due to lower excess generation available to sell into the wholesale market driven by a planned outage at one of our coal-fired facilities, and a decrease in rider revenue due to certain non-recurring benefits recognized in the same period last year and changes in jurisdictional allocation factors.

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These decreases were partially offset by:

•A $6.4 million increase from higher rates, reflecting interim and final base rate increases in Minnesota and South Dakota. Interim rates in Minnesota and South Dakota became effective in January 2026 and December 2025, respectively, and final base rates in South Dakota went into effect in April 2026.

•The recovery of additional rate base investments, higher commercial and industrial sales volumes, and the impact of favorable weather.

Production Fuel costs decreased $5.7 million primarily driven by lower generation from our coal-fired facilities, as a planned outage at one of our facilities during the period resulted in lower fuel consumption.

Purchased Power costs decreased $2.2 million primarily due to a 36% decrease in the price of purchased power, driven by lower market energy costs, partially offset by a 33% increase in purchased power volumes primarily driven by the planned outage at one of our facilities.

Operating and Maintenance expenses increased $7.9 million primarily due to higher labor costs, increased vegetative management expenses, plant outage-related expenses and an increase in insurance costs.

Depreciation and Amortization expense increased $1.9 million as additional assets, including certain wind generation, distribution and transmission assets, were placed in service.

Interest Expense increased $1.2 million primarily due to the issuance of additional long-term debt in the current year totaling $170.0 million, the proceeds of which were primarily used to fund our capital investments.

Other Income (Expense), net increased $2.1 million primarily due to an increase in AFUDC driven by our continued investments in our Abercrombie and Solway solar projects.

Income Tax Benefit increased $8.6 million primarily due to an increase in PTCs driven by increased wind generation that qualified for PTCs compared to the same period last year. Our wind repowering projects were completed in the first quarter of 2026. The completion of these facility repowering projects resulted in the commencement of PTCs earned from the generation from these facilities as they were placed back into service. PTCs are credited to customers, resulting in a reduction of both operating revenue and income taxes.

MANUFACTURING SEGMENT RESULTS

The following table summarizes Manufacturing segment operating results for the three months ended June 30, 2026 and 2025:

[Excerpt truncated for page length; source filing is linked above.]

## Latest 10-K MD&A (excerpt)

Latest 10-K Item 7 source: https://www.sec.gov/Archives/edgar/data/1466593/000146659326000008/ottr-20251231.htm
Complete FY 2025 MD&A: /company/OTTR/mda/fy2025/

Extracted structurally from real Item 7 body heading to real Item 7A/8 boundary.
Confidence: high
Filing date: 2026-02-18
Report date: 2025-12-31

ITEM 7. MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS

You should read the following discussion and analysis of our financial condition and results of operations together with our financial statements and the related notes appearing under Item 8 of this Form 10-K.

OVERVIEW

Otter Tail Corporation and its subsidiaries form a diverse group of businesses with operations classified into three segments: Electric, Manufacturing and Plastics. Our Electric business is a vertically integrated, regulated utility with generation, transmission and distribution facilities to serve our customers in western Minnesota, eastern North Dakota and northeastern South Dakota. Our Manufacturing segment provides metal fabrication for custom machine parts and metal components, and manufactures extruded

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Table of Contents

and thermoformed plastic products. Our Plastics segment manufactures PVC pipe for use in, among other applications, municipal and rural water, wastewater and water reclamation projects.

2025 FINANCIAL RESULTS

In 2025, our diversified business model generated strong financial results, producing net income of $275.9 million, or $6.55 per diluted share. As expected, our earnings declined from the record level achieved in 2024 when we generated earnings of $301.7 million, or $7.17 per diluted share. As we anticipated, product prices within our Plastics segment continued to decline in 2025 leading to the reduction in earnings compared to the prior year. We anticipate earnings from our Plastics segment will continue to decline through 2027 until such time that product pricing is expected to stabilize.

We generated $386.0 million of cash from operations in 2025 and ended the year with total available liquidity of $705.5 million. Our year-end equity ratio to total capital was 62.8%. We paid dividends totaling $2.10 per share, or $88.1 million, marking our 87th consecutive year of dividend payments to our shareholders.

Our Electric segment generated 7% earnings growth in 2025, producing earnings of $97.6 million. Our earnings growth was driven by the recovery of our rate base investments, which include investments in new generation and enhancements to our transmission and distribution system to promote reliable electric service. We also benefited from increased sales volumes in 2025, partially the result of favorable weather conditions compared to last year which impacted our customers' demand for energy, and lower operating and maintenance costs.

Earnings in our Manufacturing segment decreased 16% in 2025 to $11.5 million. Our sales volumes in the year were negatively impacted by soft end-market demand and customer inventory management efforts within many of the end markets we serve. Weak farm economics, persistently elevated interest rates, a cautious consumer and tariff uncertainty led to demand headwinds. We were able to partially mitigate the financial effects of lower sales volumes through cost-management efforts aligning our cost structure with the current demand environment, and enhanced production efficiencies.

Our Plastics segment earnings decreased 15% in 2025 to $170.4 million. As anticipated, sales prices for our PVC pipe products, after peaking in 2022, have gradually declined, including in 2025 when average prices declined 15% compared to the prior year. This pricing decline was the primary driver of our lower earnings in 2025. Partially offsetting the decline in product pricing was reduced material input costs and higher sales volumes. Our sales volumes in 2025 benefited from the additional production capacity and large diameter pipe capability installed at our Phoenix location in late 2024.

In 2025, our earnings mix was 35% from our Electric segment and 65% from the combination of our Manufacturing and Plastics segments including unallocated corporate costs. Since 2021, this mix has diverged from our long‑term target of 70% Electric and 30% Manufacturing Platform, largely due to market conditions in the PVC pipe industry. These conditions have resulted in elevated revenue, earnings, and cash flow in our Plastics segment.

We currently expect industry conditions within the PVC pipe market to gradually normalize through 2027. As this normalization occurs, we anticipate that earnings and cash flow from our Plastics segment will moderate from current levels and that our earnings mix will shift back toward our long‑term target.

FINANCIAL AND OTHER METRICS

Heating Degree Days (HDDs) is a measure of how much (in degrees), and for how long (in days), the outside air temperature was below a certain normalized level. Normal weather conditions are defined as the 20-year average of actual historical weather conditions. This measure is commonly used in calculations relating to the energy consumption required to heat buildings.

Cooling Degree Days (CDDs) is a measure of how much (in degrees), and for how long (in days), the outside air temperature was above a certain normalized level. This measure is commonly used in calculations relating to the energy consumption required to cool buildings.

OTP generally bases its forecasted kwh sales and rates on expected consumption under a normal level of HDDs and CDDs over a given period of time in its service territory. We present HDDs and CDDs to provide an indication of the impact of weather on kwh sales, revenues and earnings relative to forecast, and on period-to-period results.

RESULTS OF OPERATIONS

For a comparison of fiscal year 2024 to 2023, see Part II, Item 7 “Management’s Discussion and Analysis of Financial Condition and Results of Operations” in our report on Form 10-K for the fiscal year ended December 31, 2024, filed with the SEC on February 19, 2025.

Provided below is a summary and discussion of our operating results on a consolidated basis followed by a discussion of the operating results of each of our segments, Electric, Manufacturing and Plastics. In addition to the segment results, we provide an

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Table of Contents

overview of our Corporate costs. Our Corporate costs do not constitute a reportable segment, but rather consist of unallocated general corporate expenses, such as corporate staff and overhead costs, the results of our captive insurance company and other items excluded from the measurement of segment performance. Corporate costs are added to operating segment totals to reconcile to totals on our consolidated statements of income.

CONSOLIDATED RESULTS

The following table summarizes our consolidated results of operations for the years ended December 31, 2025 and 2024:

[[GREPCENT_TABLE]]
[["(in thousands)","2025","","2024","","$ change","","% change"],["Operating Revenues","$","1,304,058","","","$","1,330,548","","","$","(26,490)","","","(2.0)","%"],["Operating Expenses","958,376","","","950,298","","","8,078","","","0.9"],["Operating Income","345,682","","","380,250","","","(34,568)","","","(9.1)"],["Interest Expense","(47,226)","","","(41,815)","","","(5,411)","","","12.9"],["Nonservice Components of Postretirement Benefits","3,334","","","9,609","","","(6,275)","","","(65.3)"],["Other Income","20,487","","","18,848","","","1,639","","","8.7"],["Income Before Income Taxes","322,277","","","366,892","","","(44,615)","","","(12.2)"],["Income Tax Expense","46,384","","","65,230","","","(18,846)","","","(28.9)"],["Net Income","$","275,893","","","$","301,662","","","$","(25,769)","","","(8.5)","%"]]
[[/GREPCENT_TABLE]]

Operating Revenues decreased $26.5 million in 2025 primarily due to decreased sales prices in our Plastics segment and decreased sales volumes in our Manufacturing segment, partially offset by increased sales volumes in our Plastics segment as well as increased fuel recovery revenues and sales volumes in our Electric segment. See our segment disclosures below for additional discussion of items impacting operating revenues.

Operating Expenses increased $8.1 million in 2025 primarily due to an increase in purchased power costs, production fuel costs, and depreciation expense in our Electric segment, partially offset by lower cost of goods sold driven by decreased sales volumes in our Manufacturing segment and the impact of lower material costs in our Plastics segment, as well as lower operating and maintenance expenses in our Electric segment. See our segment disclosures below for additional discussion of items impacting operating expenses.

Interest Expense increased $5.4 million in 2025 primarily due to the issuance of $100.0 million of long-term debt at OTP during the year, the proceeds of which were used to repay short-term borrowings, fund capital expenditures and support operating activities.

Nonservice Components of Postretirement Benefits decreased by $6.3 million in 2025, having a negative impact on net income, primarily due to a decrease in the amortization of postretirement plan amendment-related gains and an increase in the amortization of actuarial losses.

Income Tax Expense decreased $18.8 million in 2025 primarily due to a decrease in income before income taxes, as well as an increase in PTCs at OTP. The increase in PTCs was the result of increased wind generation that qualified for tax credits. We completed the first of our wind facility upgrades in late 2024 and completed additional upgrades throughout 2025. The completion of these upgrades resulted in the commencement of PTCs earned from the generation at these facilities. Our effective tax rate was 14.4% in 2025 and 17.8% in 2024, with the decrease primarily driven by the increase in PTCs.

33

Table of Contents

ELECTRIC SEGMENT RESULTS

The following table summarizes the operating results of our Electric segment for the years ended December 31, 2025 and 2024:

[[GREPCENT_TABLE]]
[["(in thousands)","2025","","2024","","$ change","","% change"],["Retail Revenue","$","484,016","","","$","453,214","","","$","30,802","","","6.8","%"],["Transmission Services Revenue","54,656","","","53,517","","","1,139","","","2.1"],["Wholesale Revenue","21,121","","","11,077","","","10,044","","","90.7"],["Other Electric Revenues","6,963","","","6,707","","","256","","","3.8"],["Total Operating Revenue","566,756","","","524,515","","","42,241","","","8.1"],["Production Fuel","75,048","","","60,945","","","14,103","","","23.1"],["Purchased Power","78,658","","","61,561","","","17,097","","","27.8"],["Operating and Maintenance Expenses","184,310","","","190,422","","","(6,112)","","","(3.2)"],["Depreciation and Amortization","90,168","","","82,136","","","8,032","","","9.8"],["Property Taxes","17,023","","","15,662","","","1,361","","","8.7"],["Operating Income","121,549","","","113,789","","","7,760","","","6.8"],["Interest Expense","(43,633)","","","(38,216)","","","(5,417)","","","14.2"],["Nonservice Cost Components of Postretirement Benefits","4,425","","","10,578","","","(6,153)","","","(58.2)"],["Other Income","3,446","","","3,268","","","178","","","5.4"],["Income Before Income Taxes","85,787","","","89,419","","","(3,632)","","","(4.1)"],["Income Tax Benefit","(11,799)","","","(1,544)","","","(10,255)","","","664.2"],["Net Income","$","97,586","","","$","90,963","","","$","6,623","","","7.3","%"],["Electric kwh Sales (in thousands)","2025","","2024","","kwh change","","% change"],["Retail kwh Sales","5,917,736","","","5,681,268","","","236,468","","","4.2","%"],["Wholesale kwh Sales","404,750","","","273,365","","","131,385","","","48.1"],["Heating Degree Days","6,117","","","5,313","","","804","","","15.1"],["Cooling Degree Days","492","","","440","","","52","","","11.8","%"]]
[[/GREPCENT_TABLE]]

Our Electric segment operating results are impacted by fluctuations in weather conditions and the resulting demand for electricity for heating and cooling. The following table presents heating and cooling degree days as a percent of normal for the years ended December 31, 2025 and 2024:

[Excerpt truncated for page length; the complete text is on the linked full-MD&A page.]

Read the full FY 2025 MD&A: /company/OTTR/mda/fy2025/
All MD&A years: /company/OTTR/mda/


## MD&A history

Prior-year 10-K MD&A spans are extracted from SEC filings with the same bounded parser used for the latest filing. Each year's full verbatim text is on its own sub-page.

- [FY 2024 MD&A](/company/OTTR/mda/fy2024/): filed 2025-02-19; accession 0001466593-25-000034 (https://www.sec.gov/Archives/edgar/data/1466593/000146659325000034/ottr-20241231.htm)
- [FY 2023 MD&A](/company/OTTR/mda/fy2023/): filed 2024-02-14; accession 0001466593-24-000039 (https://www.sec.gov/Archives/edgar/data/1466593/000146659324000039/ottr-20231231.htm)
- [FY 2022 MD&A](/company/OTTR/mda/fy2022/): filed 2023-02-15; accession 0001466593-23-000053 (https://www.sec.gov/Archives/edgar/data/1466593/000146659323000053/ottr-20221231.htm)
- [FY 2021 MD&A](/company/OTTR/mda/fy2021/): filed 2022-02-16; accession 0001466593-22-000010 (https://www.sec.gov/Archives/edgar/data/1466593/000146659322000010/ottr-20211231.htm)




## Macro cross-references

Indicators mapped to this company's SIC classification (industry 4911 Electric Services) by grepcent's deterministic macro-sector crosswalk. A navigational mapping, not a statistical or causal claim.

- [INDPRO](/indicator/INDPRO/): Industrial Production: Total Index
- [TCU](/indicator/TCU/): Capacity Utilization: Total Index
- [DGS10](/indicator/DGS10/): Market Yield on U.S. Treasury Securities at 10-Year Constant Maturity
- [FEDFUNDS](/indicator/FEDFUNDS/): Federal Funds Effective Rate

Macro-to-micro threads including this sector: [Money & trade](/thread/money-trade/), [Trade & external](/thread/trade-external/).

All macro indicators: /indicators/


## For LLMs & downloads

Markdown twin: /company/OTTR.md · JSON record: /company/OTTR.json · verified financials: /company/OTTR/financials.json / /company/OTTR/financials.csv · machine TOC for the whole site: /llms.txt