Here are 1-3 brief analogies for Otter Tail (OTTR):

• A regional electric utility company, similar to a smaller Xcel Energy.
• An electric utility serving parts of the Upper Midwest, comparable to a localized Southern Company.

• Electric Utility: Provides electric generation, transmission, and distribution services to customers in the upper Midwest.
• Manufacturing: Produces a variety of fabricated metal products and material handling technologies for diverse industries.
• Plastics: Manufactures and sells PVC pipe primarily for water, wastewater, irrigation, and industrial applications.

The company, Otter Tail (symbol: OTTR), operates a diversified business that includes an Electric Utility segment, Manufacturing segment, and Plastic Pipe segment. The Electric Utility segment is consistently the largest contributor to the company's overall revenue and earnings.

Due to the nature of its primary business as an electric utility, Otter Tail sells primarily to a broad base of end-users and various types of businesses rather than a few major customer companies. Therefore, its "major customers" are best described by categories of services provided.

The three primary categories of customers served by Otter Tail's Electric Utility segment are:

• Residential Customers: Individual households and dwellings that use electricity for personal consumption. This category includes a large number of individual customers across the company's service territory in Minnesota, North Dakota, and South Dakota.
• Commercial Customers: Various businesses, including retail stores, offices, schools, healthcare facilities, and other non-industrial enterprises. These customers utilize electricity for commercial operations.
• Industrial Customers: Large manufacturing facilities, processing plants, mining operations, and other heavy industry operations that require significant amounts of electricity for their large-scale processes.

While Otter Tail's Manufacturing and Plastic Pipe segments do sell products to other companies, no single customer or small group of customers constitutes a "major customer" in those segments that is publicly disclosed. The utility's broad customer base categorized by usage type represents the core of the company's customer relationships.

• NACCO Industries, Inc. (NYSE: NC)

Charles S. MacFarlane, President and Chief Executive Officer

Appointed President and Chief Executive Officer of Otter Tail Corporation on April 13, 2015. Prior to this, he served as President and Chief Operating Officer from 2014 to 2015. He was President and Chief Executive Officer of Otter Tail Power Company, the corporation's electric utility subsidiary, from 2003 and 2007 respectively. Mr. MacFarlane joined Otter Tail Power Company in 2001 as Director of Financial Analysis and Planning, and previously worked for Xcel Energy.

Todd R. Wahlund, Chief Financial Officer and Vice President

Assumed the role of Chief Financial Officer and Vice President of Otter Tail Corporation on January 1, 2024. He previously served for five years as Chief Financial Officer and Vice President of Finance at Otter Tail Power Company. His career at Otter Tail Power Company began in 1992 as a General Accountant, and he subsequently held various leadership roles including Vice President of Financial Planning and Treasurer at Otter Tail Corporation and Vice President of Finance and Planning for the Varistar Manufacturing Platform. He is a Certified Management Accountant and holds an inactive CPA license.

Timothy J. Rogelstad, Senior Vice President, Electric Platform; President, Otter Tail Power Company

Leads the electric platform and is accountable for Otter Tail Power Company's operations. He joined Otter Tail Power Company in 1989 as an Engineer and has extensive utility experience.

John S. Abbott, Senior Vice President, Manufacturing Platform; President, Varistar

Prior to joining Otter Tail Corporation, Mr. Abbott was an officer and president of a group of restaurant equipment companies with Standex International. He possesses over 30 years of sales, marketing, and operating experience, with more than 15 years in president or group president roles within manufacturing-based companies, including experience in acquisitions and integration.

Paul L. Knutson, Vice President, Human Resources

Oversees the human resource functions at Otter Tail Corporation, having joined the company in September 2012. He has over twenty years of experience as a human resources professional, with an extensive background in building human resources teams and strategies.

1. Operational Risks and Regulatory Challenges for Capital Investments

Otter Tail Corporation's strategy involves significant capital investments, particularly within its Electric segment for renewable generation, transmission, and infrastructure projects. These large-scale capital projects, which are planned years in advance, face numerous operational risks. These include difficulties in obtaining necessary permits, licenses, and timely approvals, adverse changes in regulatory treatment or public policy, fluctuations in commodity pricing, equipment and construction costs, and potential delays caused by construction accidents, adverse weather conditions, or delivery issues for critical materials. The timely recovery of these substantial capital investments also depends on regulatory approval.

2. Cyclicality and Market Volatility in Manufacturing and Plastics Segments

The company's non-utility operations, specifically its Manufacturing and Plastics segments, are subject to higher business risks due to their cyclical nature and susceptibility to changes in broader business and economic cycles, which can lead to volatile profits. The manufacturing segment has experienced headwinds such as lower sales volumes and challenging end-market demand. Similarly, the plastics segment has faced decreased sales prices influenced by changing market conditions. While diversification is a strategic element, the performance of these segments can significantly impact consolidated earnings.

3. Financial Risks Associated with Debt and Access to Capital

Otter Tail Corporation utilizes debt in its capital structure, and an increase in debt can pose a risk if the company faces challenges in repayment or requires dilution of shareholders to manage it. While the company generally manages its debt effectively, factors such as reductions in credit ratings or an inability to access capital markets on favorable terms could adversely affect its financial condition and ability to fund future investments.

• Increasing adoption of decentralized energy generation (Distributed Energy Resources) such as customer-sited solar and battery storage. This trend erodes the traditional utility revenue model based on centralized generation and volumetric sales, as customers reduce their reliance on grid-supplied electricity.
• Growing regulatory and consumer pressure against plastics. Environmental concerns are leading to stricter regulations (e.g., bans on single-use plastics, extended producer responsibility schemes) and shifting consumer preferences toward sustainable alternatives, directly impacting demand and profitability for the company's plastics manufacturing segment.

Otter Tail Corporation (OTTR) operates in three main segments: Electric, Manufacturing, and Plastics. The addressable markets for their main products and services are as follows:

Electric Segment

Otter Tail Power Company, a subsidiary of Otter Tail Corporation, provides electric energy to approximately 137,000 customers across 422 communities in a 70,000 square-mile service area. This region spans western Minnesota, eastern North Dakota, and northeastern South Dakota.

Manufacturing Segment

This segment encompasses businesses involved in contract machining, metal parts stamping, fabrication, painting, and the production of plastic thermoformed horticultural containers, life science and industrial packaging, material handling components, and extruded raw material stock.

• Metal Fabrication Services: The market size for metal fabrication services in the United States is null, as specific data for this niche within the manufacturing segment was not readily available through the search.
• Industrial Packaging & Plastic Thermoformed Products: The global injection molded plastics market, which includes industrial packaging and thermoformed products, was valued at approximately USD 387.51 billion in 2023 and is projected to reach USD 561.58 billion by 2032. The U.S. injection molded plastics market alone is expected to reach an estimated value of USD 65.32 billion by 2032. Another source indicates the U.S. injection molded plastics market is expected to grow from US$54.77 billion in 2023 to US$77.59 billion by 2031. The North American injection molded plastics market is valued at USD 120.0 billion in 2024 and is projected to grow to USD 180.0 billion in 2035.
• Material Handling Components: The United States material handling market is estimated to reach US$46.811 billion in 2025 and is projected to grow to US$60.187 billion by 2030. The U.S. automated material handling market size reached USD 41.81 billion in 2025 and is forecast to climb to USD 70.11 billion by 2030.

Plastics Segment

This segment focuses on producing polyvinyl chloride (PVC) pipes. These products are primarily sold in the western half of the United States and Canada.

• PVC Pipe Market: Specific market size data for PVC pipes exclusively in the Western U.S. and Canada was not found. However, the broader plastics market, which includes PVC products, was estimated at USD 647.36 billion globally in 2024 and is expected to reach USD 962.56 billion by 2033. The global plastics market size was valued at USD 524.48 billion in 2024 and is projected to grow to USD 754.23 billion by 2032. The U.S. plastics market is projected to reach USD 93.43 billion by 2032.

Here are 3-5 expected drivers of future revenue growth for Otter Tail Corporation (OTTR) over the next 2-3 years:

1. Electric Utility Rate Base Growth and Rate Cases: Otter Tail's Electric segment is expected to see significant revenue growth driven by an increasing rate base and successful outcomes from rate cases. The company has updated its electric utility's five-year rate base compounded annual growth rate to 10% from the end of 2025 to the end of 2030. This growth is anticipated to be a key driver in increasing Electric segment earnings. For instance, the company recently obtained approval for its fully settled North Dakota general rate case, which provides for a net annual revenue requirement increase of $13.1 million. Additionally, Otter Tail has filed rate increase requests in Minnesota and South Dakota, seeking net revenue increases of $44.8 million (17.7%) and $5.7 million (12.5%) respectively.
2. Plastics Segment Sales Volume Growth and Capacity Expansion: The Plastics segment is projected to contribute to future revenue growth through increased sales volumes and expanded production capacity. The company anticipates higher sales volumes in its PVC pipe business, driven by strong end-market and distributor demand. The Vinyltech expansion project, with Phase 1 completed in Q4 2024 and Phase 2 expected to be completed in early 2026, will increase the Plastics segment's production capacity by approximately 15%, enhancing its ability to serve customers in the southern markets and improve overall margins.
3. Investment in Renewable Energy and Transmission Projects: Otter Tail's capital expenditure plans include substantial investments in generation and transmission projects within its Electric segment. These investments are key drivers of future earnings growth. Planned major generation projects include wind repowering ($230 million), Solway Solar ($80 million), and Abercrombie Solar ($450 million). Furthermore, transmission projects like MISO LRTP Tranche 1 ($475 million) and Tranche 2.1 ($700 million) are in the pipeline, with expected completion dates extending into the early 2030s, indicating a sustained investment strategy that will drive revenue.
4. New Large Electric Loads: The company is actively pursuing opportunities related to new large electric loads, such as data centers, crypto mining, and clean fuels. While no electric service agreements have been signed yet, Otter Tail expects progress on these potential projects within the next two quarters, which could represent a significant driver of future electricity sales and revenue.

Share Issuance

• In 2020, Otter Tail raised net proceeds of $49.7 million from issuances of common shares through various equity programs.
• Otter Tail Corporation expects to finance its growth without any equity issuances under its updated utility capital spending plan.

Outbound Investments

• Otter Tail Power Company completed the acquisition of Ashtabula Wind III, LLC from NextEra Energy Partners, LP for $49.7 million on January 3, 2023.

Capital Expenditures

• Otter Tail Power's updated five-year capital spending plan, as of November 2025, totals $1.9 billion, an increase from a previously announced $1.4 billion plan earlier in 2025.
• Capital expenditures were $358.7 million in 2024, with Electric segment capital expenditures at $301.454 million.
• The primary focus of capital expenditures includes investments in wind and solar resources, transmission and distribution assets, and system reliability and technology, such as the $260 million Merricourt Wind Energy Center and the $152.5 million Astoria Station.