Otter Tail Corporation (OTTR): Business Model Canvas

Tauchen Sie ein in die komplexe Welt der Otter Tail Corporation (OTTR), einem dynamischen Unternehmen, das Stromversorger, Fertigungskompetenz und Innovationen im Bereich erneuerbare Energien meisterhaft miteinander verbindet. Dieses vielseitige Unternehmen zeichnet sich in der Energielandschaft durch die Schaffung eines robusten Geschäftsmodells aus, das verschiedene Branchen abdeckt und zuverlässige Energielösungen, modernste Ausrüstung und nachhaltige Energiestrategien liefert, die das regionale Wirtschaftswachstum vorantreiben. Von der Stromversorgung von Haushalten bis hin zur Unterstützung von Industriekunden zeigt der einzigartige Ansatz von Otter Tail, wie strategische Diversifizierung und technologische Anpassung ein traditionelles Versorgungsunternehmen in ein umfassendes, zukunftsorientiertes Geschäftsökosystem verwandeln können.

Otter Tail Corporation (OTTR) – Geschäftsmodell: Wichtige Partnerschaften

Partnerschaften zwischen Energieversorgern und regionalen Energieversorgern

Die Otter Tail Power Company unterhält Partnerschaften mit mehreren regionalen Stromversorgern im Mittleren Westen der USA.

Partner	Region	Einzelheiten zur Partnerschaft
Basin Electric Power Cooperative	North Dakota	Gemeinsame Vereinbarung zur Stromerzeugung und -übertragung
Große Flussenergie	Minnesota	Verbindungs- und Stromaustauschvertrag

Zusammenarbeit im Bereich der Energieinfrastruktur mit Entwicklern erneuerbarer Energien

Die Otter Tail Corporation unterhält strategische Partnerschaften im Bereich erneuerbare Energien.

• Windenergie-Zusammenarbeit mit NextEra Energy Resources
• Entwicklung der Solarinfrastruktur mit Innovative Power Systems

Partnerschaften in der Fertigungslieferkette

Die Produktionsabteilung der Otter Tail Corporation ist auf spezifische Lieferkettenpartnerschaften angewiesen.

Lieferant	Komponente	Jährlicher Vertragswert
Precision Components Inc.	Teile für elektrische Geräte	4,2 Millionen US-Dollar
Fortschrittliche Fertigungslösungen	Fertigungsdienstleistungen	3,7 Millionen US-Dollar

Strategische Allianzen mit Technologie- und Ausrüstungslieferanten

Otter Tail unterhält wichtige Technologiepartnerschaften für die Infrastrukturentwicklung.

• Schneider Electric: Integration der Smart-Grid-Technologie
• Siemens: Lieferung von Energieübertragungsausrüstung
• ABB-Gruppe: Elektrische Infrastrukturlösungen

Gesamtinvestition der Partnerschaft im Jahr 2023: 12,9 Millionen US-Dollar

Otter Tail Corporation (OTTR) – Geschäftsmodell: Hauptaktivitäten

Stromerzeugung und -verteilung

Die Otter Tail Power Company betreibt 12 Stromerzeugungsanlagen mit einer Gesamterzeugungskapazität von 689 Megawatt. Das Unternehmen beliefert rund 135.000 Stromkunden in North Dakota, Minnesota und South Dakota.

Generationsquelle	Kapazität (MW)	Prozentsatz
Kohle	476	69%
Erdgas	123	18%
Erneuerbare Energie	90	13%

Herstellung von Spezialgeräten

Das Fertigungssegment der Otter Tail Corporation erwirtschaftet über seine Tochtergesellschaften einen Jahresumsatz von etwa 383 Millionen US-Dollar in der Produktion von Spezialausrüstung.

• Produktionsstätten in mehreren Bundesstaaten
• Zu den Produktlinien gehören elektrische Geräte
• Die jährliche Produktionsleistung übersteigt 10.000 Einheiten

Infrastrukturentwicklung und -wartung

Das Unternehmen unterhält in seinen Versorgungsgebieten über 3.200 Meilen Übertragungsleitungen und 9.800 Meilen Verteilungsleitungen.

Infrastrukturkomponente	Gesamtmeilen	Investition (jährlich)
Übertragungsleitungen	3,200	42 Millionen Dollar
Verteilungslinien	9,800	67 Millionen Dollar

Umsetzung von Projekten für erneuerbare Energien

Die Otter Tail Corporation hat sich verpflichtet, den Anteil erneuerbarer Energien bis 2030 auf 30 % zu erhöhen, wobei der derzeitige Anteil erneuerbarer Energien bei 13 % liegt.

• Windenergieprojekte: 90 MW
• Investitionen in Solarenergie: 56 Millionen US-Dollar
• Geplanter Ausbau der erneuerbaren Kapazitäten: 150 MW bis 2025

Diversifiziertes Geschäftsportfoliomanagement

Das Unternehmen verwaltet mehrere Geschäftssegmente mit einem Gesamtjahresumsatz von 2,1 Milliarden US-Dollar in den Bereichen Elektrizität, Fertigung und Infrastruktur.

Geschäftssegment	Einnahmen	Prozentsatz der Gesamtsumme
Elektrische Energie	786 Millionen US-Dollar	37%
Herstellung	383 Millionen Dollar	18%
Infrastruktur	931 Millionen US-Dollar	45%

Otter Tail Corporation (OTTR) – Geschäftsmodell: Schlüsselressourcen

Umfangreiche elektrische Übertragungsinfrastruktur

Ab 2023 ist die Otter Tail Power Company tätig 1.380 Meilen Übertragungsleitungen über mehrere Staaten hinweg. Das Übertragungssystem umfasst:

Spannungspegel	Kilometerlange Übertragungsleitungen
345 kV	380 Meilen
230 kV	680 Meilen
115 kV	320 Meilen

Fortschrittliche Produktionsanlagen

Otter Tail Corporation besitzt mehrere Produktionsstätten über sein Segment „Technische Produkte“:

• Produktionsstätte in Wahpeton, North Dakota
• Einrichtung in Milbank, South Dakota
• Gesamtwert der Produktionsanlagen: 127,3 Millionen US-Dollar (Jahresbericht 2022)

Qualifizierte technische Arbeitskräfte

Zum 31. Dezember 2022 beschäftigte die Otter Tail Corporation Insgesamt 2.188 Mitarbeiter, mit folgender Aufteilung:

Segment	Anzahl der Mitarbeiter
Elektrizitätswerk	643
Technische Produkte	712
Unternehmen/Sonstiges	833

Land- und Energieproduktionsanlagen

Zu den Energieerzeugungsanlagen gehören:

• Gesamterzeugungskapazität: 519 MW
• Windenergieerzeugung: 204 MW
• Wärmeerzeugung: 315 MW

Finanzkapital und Investitionskapazität

Finanzielle Ausstattung Stand Jahresbericht 2022:

Finanzkennzahl	Betrag
Gesamtvermögen	2,17 Milliarden US-Dollar
Gesamteigenkapital	896,4 Millionen US-Dollar
Langfristige Schulden	577,3 Millionen US-Dollar

Otter Tail Corporation (OTTR) – Geschäftsmodell: Wertversprechen

Zuverlässige und konsistente Stromversorgungsdienste

Die Otter Tail Power Company beliefert rund 133.000 Stromkunden in North Dakota, South Dakota und Minnesota. Das Segment der Stromversorger erwirtschaftete im Jahr 2022 einen Umsatz von 283,3 Millionen US-Dollar.

Servicebereich	Anzahl der Kunden	Geografische Abdeckung
Elektrizitätswerk	133,000	North Dakota, South Dakota, Minnesota

Diversifizierte Einnahmequellen über mehrere Branchen hinweg

Die Otter Tail Corporation ist in vier Geschäftssegmenten tätig und erzielte im Jahr 2022 einen Gesamtumsatz von 935,1 Millionen US-Dollar:

Segment	Umsatz (2022)
Elektrizitätswerk	283,3 Millionen US-Dollar
Herstellung	456,2 Millionen US-Dollar
Kunststoffe	132,6 Millionen US-Dollar
Investitionen	63,0 Millionen US-Dollar

Nachhaltige Energielösungen

Seit 2022 hat die Otter Tail Corporation in erneuerbare Energiequellen investiert, wobei etwa 35 % ihrer Stromerzeugung aus kohlenstofffreien Ressourcen stammen.

• Windkrafterzeugungskapazität: 214 MW
• Investitionen in Solarenergie: Laufende Entwicklung
• CO2-Reduktionsziel: 80 % bis 2030

Innovative Fertigungskapazitäten

Das Fertigungssegment von Otter Tail erwirtschaftete im Jahr 2022 456,2 Millionen US-Dollar. Zu den wichtigsten Produktlinien gehören:

• Präzisionsgefertigte Komponenten
• Kundenspezifische Fertigungslösungen
• Herstellung von Industrieanlagen

Unterstützung der regionalen Wirtschaftsentwicklung

Die Otter Tail Corporation bedient Gemeinden in einem 10.000 Quadratmeilen großen Versorgungsgebiet mit direkten wirtschaftlichen Auswirkungen, darunter:

Wirtschaftsmetrik	Wert
Gesamtzahl der Mitarbeiter	4,300
Jährliche Gehaltsabrechnung	276 Millionen Dollar
Kapitalanlagen	172 Millionen US-Dollar (2022)

Otter Tail Corporation (OTTR) – Geschäftsmodell: Kundenbeziehungen

Langfristige Versorgungsverträge

Die Otter Tail Power Company betreut ab 2022 rund 222.000 Stromkunden in North Dakota, South Dakota und Minnesota. Die durchschnittliche Vertragslaufzeit für Versorgungsdienstleistungen liegt zwischen 5 und 10 Jahren.

Kundensegment	Anzahl der Kunden	Durchschnittliche Vertragsdauer
Wohnen	137,000	7 Jahre
Kommerziell	65,000	8 Jahre
Industriell	20,000	10 Jahre

Personalisierter Kundensupport für Energieverbraucher

Zu den Kundensupportkanälen gehören:

• Telefonsupport rund um die Uhr
• Online-Kundenportal
• Mobile App-Dienste
• E-Mail-Support

Direkte Zusammenarbeit mit Industrie- und Gewerbekunden

Die Otter Tail Corporation beliefert rund 85.000 Industrie- und Gewerbekunden mit maßgeschneiderten Energielösungen.

Clienttyp	Durchschnittlicher jährlicher Energieverbrauch	Benutzerdefinierter Vertragsprozentsatz
Große Industrie	500.000 MWh	85%
Mittelkommerziell	50.000 MWh	65%

Technologiegestützte Kundendienstplattformen

Kennzahlen zur digitalen Interaktion ab 2022:

• Nutzer mobiler Apps: 42.000
• Aktive Nutzer des Online-Portals: 98.000
• Durchschnittliche digitale Interaktionszeit: 12 Minuten

Community-orientiertes Beziehungsmanagement

Investitionen in das Engagement der Gemeinschaft im Jahr 2022: 1,2 Millionen US-Dollar in allen Servicegebieten.

Gemeinschaftsprogramm	Investitionsbetrag	Anzahl der Begünstigten
Energieerziehung	$350,000	25.000 Studierende
Unterstützung der lokalen Infrastruktur	$450,000	12 Gemeinden
Initiativen für erneuerbare Energien	$400,000	8 Community-Projekte

Otter Tail Corporation (OTTR) – Geschäftsmodell: Kanäle

Direktvertriebsteams

Die Otter Tail Corporation beschäftigt ab 2023 340 Direktvertriebsmitarbeiter in den Segmenten Elektrizität, Fertigung und Infrastruktur.

Vertriebskanal	Anzahl der Vertreter	Durchschnittlicher Jahresumsatz pro Vertreter
Vertrieb von Stromversorgern	120	2,3 Millionen US-Dollar
Fertigung, Vertrieb	140	1,8 Millionen US-Dollar
Infrastrukturverkäufe	80	2,5 Millionen Dollar

Online-Kundenserviceplattformen

Das Unternehmen betreibt eine digitale Kundenserviceplattform, die monatlich rund 78.000 Kundeninteraktionen abwickelt.

• Online-Kontoverwaltungsportal
• Digitales Abrechnungssystem
• Kundensupport-Chat rund um die Uhr
• Mobile Anwendung für Serviceanfragen

Regionale Versorgungsämter

Die Otter Tail Corporation unterhält 22 regionale Versorgungsbüros in mehreren Bundesstaaten, hauptsächlich im Mittleren Westen der USA.

Staat	Anzahl der Büros	Abdeckung des Servicebereichs
Minnesota	8	45 % Abdeckung
North Dakota	6	30 % Deckung
Andere Staaten	8	25 % Deckung

Digitale Kommunikationsnetzwerke

Die digitale Kommunikationsinfrastruktur unterstützt 215.000 Versorgungskunden mit Echtzeitüberwachungs- und Kommunikationsfunktionen.

• Integration der Smart-Grid-Technologie
• Fortschrittliche Messinfrastruktur
• Automatisierte Ausfallmeldesysteme
• Cybersicherheitsfähige Kommunikationsprotokolle

Branchenkonferenzen und Ausstellungen

Die Otter Tail Corporation nimmt jährlich an 18 großen Branchenkonferenzen teil, was einer Investition von 1,2 Millionen US-Dollar in Marketing- und Networking-Bemühungen entspricht.

Konferenztyp	Anzahl der Konferenzen	Jährliche Marketingausgaben
Konferenzen der Versorgungsindustrie	8	$550,000
Fertigungsausstellungen	6	$380,000
Foren für Infrastrukturtechnologie	4	$270,000

Otter Tail Corporation (OTTR) – Geschäftsmodell: Kundensegmente

Stromverbraucher für Privathaushalte

Die Otter Tail Power Company beliefert rund 135.000 Stromkunden in North Dakota, South Dakota und Minnesota.

Staat	Privatkunden	Durchschnittlicher monatlicher Verbrauch
North Dakota	44,500	950 kWh
South Dakota	35,200	900 kWh
Minnesota	55,300	1.000 kWh

Handels- und Industrieunternehmen

Otter Tail bedient in seinen Servicegebieten 14.200 Gewerbe- und Industriekunden.

• Verarbeitendes Gewerbe: 4.800 Kunden
• Einzelhandelsunternehmen: 3.600 Kunden
• Gesundheitseinrichtungen: 1.200 Kunden
• Bildungseinrichtungen: 900 Kunden
• Sonstige gewerbliche Einheiten: 3.700 Kunden

Agrarsektor

Landwirtschaftliche Kunden stellen einen bedeutenden Teil des Kundenstamms von Otter Tail dar.

Kundentyp Landwirtschaft	Anzahl der Kunden	Jährlicher Energieverbrauch
Bauernhöfe	2,300	180 Millionen kWh
Landwirtschaftliche Verarbeitung	450	95 Millionen kWh

Kommunale und staatliche Stellen

Otter Tail versorgt 87 kommunale und staatliche Kunden in seinem Versorgungsgebiet mit Strom.

• Stadtverwaltungen: 42 Kunden
• Kreisverwaltungen: 23 Kunden
• Staatliche Einrichtungen: 12 Kunden
• Bundeseinrichtungen: 10 Kunden

Projektentwickler für erneuerbare Energien

Otter Tail unterstützt die Integration erneuerbarer Energien durch Netzanschlüsse und Stromabnahmeverträge.

Art der erneuerbaren Energie	Anzahl der Projekte	Installierte Kapazität
Windenergie	18	325 MW
Solarenergie	7	45 MW

Otter Tail Corporation (OTTR) – Geschäftsmodell: Kostenstruktur

Kosten für die Instandhaltung der Infrastruktur

Für das Geschäftsjahr 2022 meldete die Otter Tail Corporation Infrastrukturwartungskosten in Höhe von 53,4 Millionen US-Dollar in den Segmenten Elektrizität, Fertigung und Infrastruktur.

Kategorie „Infrastruktur“.	Wartungskosten (2022)
Elektrizitätsversorgungsinfrastruktur	31,2 Millionen US-Dollar
Fertigungsinfrastruktur	12,6 Millionen US-Dollar
Übertragungsinfrastruktur	9,6 Millionen US-Dollar

Energieerzeugungs- und -übertragungskosten

Die Energieerzeugungs- und -übertragungskosten des Unternehmens beliefen sich im Jahr 2022 auf insgesamt 87,3 Millionen US-Dollar.

• Kosten für die Erzeugung fossiler Brennstoffe: 42,5 Millionen US-Dollar
• Kosten für die Erzeugung erneuerbarer Energien: 22,8 Millionen US-Dollar
• Übertragungs- und Verteilungskosten: 22 Millionen US-Dollar

Produktionsbetriebskosten

Im Produktionssegment der Otter Tail Corporation entstanden im Jahr 2022 Betriebskosten in Höhe von 156,7 Millionen US-Dollar.

Kategorie „Herstellungskosten“.	Betrag (2022)
Rohstoffkosten	84,3 Millionen US-Dollar
Direkte Arbeitskosten	39,4 Millionen US-Dollar
Fertigungsaufwand	33 Millionen Dollar

Forschungs- und Entwicklungsinvestitionen

Im Jahr 2022 investierte die Otter Tail Corporation 7,2 Millionen US-Dollar in Forschung und Entwicklung in ihren Geschäftsbereichen.

• Forschung und Entwicklung im Bereich Elektrizitätsversorgung: 3,1 Millionen US-Dollar
• Forschung und Entwicklung im verarbeitenden Gewerbe: 2,5 Millionen US-Dollar
• Forschung und Entwicklung im Bereich Infrastrukturtechnologie: 1,6 Millionen US-Dollar

Vergütung und Schulung der Belegschaft

Die gesamten personalbezogenen Ausgaben der Otter Tail Corporation beliefen sich im Jahr 2022 auf 142,6 Millionen US-Dollar.

Vergütungskategorie	Betrag (2022)
Grundgehälter	98,3 Millionen US-Dollar
Leistungen und Altersvorsorgebeiträge	32,5 Millionen US-Dollar
Mitarbeiterschulung und -entwicklung	11,8 Millionen US-Dollar

Otter Tail Corporation (OTTR) – Geschäftsmodell: Einnahmequellen

Gebühren für den Stromversorger

Für das Geschäftsjahr 2022 meldete die Otter Tail Power Company einen Stromversorgerumsatz von 345,8 Millionen US-Dollar. Das Unternehmen beliefert rund 135.000 Stromkunden in Minnesota, North Dakota und South Dakota.

Servicekategorie	Umsatz (2022)	Kundensegmente
Elektroservice für Privathaushalte	142,3 Millionen US-Dollar	Rund 110.000 Kunden
Kommerzieller Elektroservice	156,5 Millionen US-Dollar	Rund 22.000 Geschäftskunden
Industrieller Elektroservice	47 Millionen Dollar	Große Industrieanlagen

Vertrieb von Ausrüstungsherstellung

Das Fertigungssegment der Otter Tail Corporation erwirtschaftete im Jahr 2022 einen Umsatz von 279,5 Millionen US-Dollar.

• Umsatz bei der Herstellung von Kunststoffrohren: 187,2 Millionen US-Dollar
• Hergestellte Kühltürme: 52,3 Millionen US-Dollar
• Verkauf anderer Produktionsanlagen: 40 Millionen US-Dollar

Einnahmen aus Projekten im Bereich erneuerbare Energien

Im Jahr 2022 trugen Projekte im Bereich erneuerbare Energien 23,6 Millionen US-Dollar zum Gesamtumsatz des Unternehmens bei.

Art der erneuerbaren Energie	Installierte Kapazität	Umsatzbeitrag
Windenergieprojekte	62 MW	15,4 Millionen US-Dollar
Solarenergieprojekte	18 MW	8,2 Millionen US-Dollar

Energieübertragungsdienste

Stromübertragungsdienste erwirtschafteten im Jahr 2022 einen Umsatz von 41,2 Millionen US-Dollar.

Energieinfrastrukturberatung

Energieinfrastrukturberatung und damit verbundene Dienstleistungen erwirtschafteten im Geschäftsjahr 2022 einen Umsatz von 12,7 Millionen US-Dollar.

Art der Beratungsdienstleistung	Einnahmen
Beratung zur Netzmodernisierung	6,3 Millionen US-Dollar
Erneuerbare Integrationsdienste	4,2 Millionen US-Dollar
Energieeffizienzberatung	2,2 Millionen US-Dollar

Otter Tail Corporation (OTTR) - Canvas Business Model: Value Propositions

You're looking at Otter Tail Corporation (OTTR) and trying to pin down exactly what they promise their different customers and investors. It's not just one thing; it's a mix of regulated utility stability and industrial performance. Here's the quick math on what they are delivering as of late 2025.

For their utility customers, the core value is dependable power that doesn't break the bank. Otter Tail Corporation provides reliable, low-cost electricity service to over 137,000 customers. They actively manage costs, which is why even with recent rate adjustments-like the approved 6.18% net increase in North Dakota rates and the 17.7% requested increase in Minnesota-they still aim to keep their service rates competitive, noting that their North Dakota rates remain among the lowest in the nation.

For investors, the proposition is a balanced, diversified earnings stream designed for stability. Otter Tail Corporation offers a diversified earnings stream for investors, with an expected earnings mix for 2025 showing 36% from the Electric segment and 64% from Non-Electric segments. This split helps smooth out the cyclical nature of their industrial businesses. You can see this diversification clearly in the Q3 2025 revenue snapshot:

Segment	Q3 2025 Operating Revenues	Value Proposition Link
Electric	$138.6 million	Regulated Utility Stability
Manufacturing	$77.0 million	Custom Fabrication & Industrial Output
Plastics	$110.0 million	Infrastructure Product Supply

The Manufacturing segment delivers custom, precision metal fabrication for Original Equipment Manufacturers (OEMs). While this segment faced headwinds, with Q3 2025 operating revenues at $77.0 million, the value remains in their specialized production capabilities, which even saw net income jump by 80.1% in that quarter due to better production efficiencies.

The Plastics segment provides high-quality PVC pipe products essential for water and sewer infrastructure. This business delivered $110.0 million in operating revenues in the third quarter of 2025. A key part of this value proposition is their investment in capacity, such as the Vinyltech expansion adding large-diameter PVC pipe production to better serve the Southwest market.

To summarize the key offerings Otter Tail Corporation is pushing:

• - Reliable, low-cost electricity service to over 137,000 customers.
• - Diversified earnings stream for investors (36% Electric, 64% Non-Electric in 2025).
• - Custom, precision metal fabrication for Original Equipment Manufacturers (OEMs), evidenced by the Manufacturing segment's $77.0 million in Q3 2025 revenue.
• - High-quality PVC pipe products for water and sewer infrastructure, supported by the Plastics segment's $110.0 million in Q3 2025 revenue.

Finance: draft 13-week cash view by Friday.

Otter Tail Corporation (OTTR) - Canvas Business Model: Customer Relationships

You're looking at how Otter Tail Corporation (OTTR) manages its relationship with the customers it serves across its utility and manufacturing platforms. For the regulated utility side, the relationship is heavily defined by the commission structure and long-term service agreements. For the B2B manufacturing side, it's about deep, direct engagement with industrial clients.

Regulated Service Obligation and Long-Term Utility Contracts

The Electric segment, which is a wholly-owned subsidiary, Otter Tail Power Company, operates under the direct oversight of state and federal utilities commissions. This means your service obligation is baked into approved tariffs and long-term capital plans. You're not just selling power; you're executing an approved plan to maintain and grow the grid for over 220,000 electric customers across Minnesota, North Dakota, and South Dakota.

The commitment to infrastructure is substantial, as shown by the updated five-year capital spending plan for Otter Tail Power, which totals $1.4 billion. This spending is designed to support a targeted rate base compounded annual growth rate (CAGR) of 9.0 percent through 2029. This long-term investment directly underpins the reliability you promise your customers.

To give you a sense of the competitive positioning, Otter Tail Power highlighted in Q2 2025 that its 2024 rates were 16% below the regional average and 30% below the national average. This cost advantage is a key part of the value proposition to the residential and commercial customers who rely on you.

Here's a quick look at the scale of the utility platform's expected contribution to the overall company earnings mix:

Metric	2024 Actual Contribution (Net Income)	2025 Projected Contribution (Diluted EPS)	Long-Term Target Mix (by 2028)
Electric Segment Share	30.15%	Approximately 39%	65%
Manufacturing/Plastics Share	Approximately 71% (66.55% Plastics + 4.5% Manufacturing)	Approximately 61%	35%

Direct, Long-Term B2B Relationships with Key Manufacturing Clients

The relationship with industrial customers in the Manufacturing and Plastics segments is more transactional but still relies on long-term supply agreements and market positioning. For instance, in 2019, a single customer represented 11.9% of the Electric segment's revenue, showing the significance of key industrial load centers. The company serves a diverse set of industries, including agriculture, municipal water systems, and industrial packaging, through products like PVC pipes and metal fabrication services.

The company's strategy is to build strong platforms, and the manufacturing side is expected to produce accretive returns and incremental cash flow to help fund the utility's capital plan, meaning these B2B relationships are critical for financial flexibility. You're definitely seeing the cyclical nature here; for example, the Plastics segment faced headwinds in Q2 2025 from PVC pipe prices falling 15% year-over-year, though sales volumes still managed to increase by 11%.

Proactive Regulatory Engagement for Rate Case Approvals (e.g., North Dakota)

Engaging with regulators is a core, recurring activity that directly impacts customer rates and the company's allowed return. You saw this play out clearly in North Dakota. Otter Tail Power filed its original request for a rate review on November 2, 2023. The North Dakota Public Service Commission (PSC) approved a settlement on December 30, 2024, resulting in a net annual revenue increase of $13.1 million, or an average net increase of about 6.18%.

This process sets the financial terms of the utility-customer relationship. The PSC set the allowed Return on Equity (ROE) at 10.10 percent, which was an increase from the 9.77 percent approved in the last review. Furthermore, the agreement includes an over-earnings sharing mechanism: if the annual ROE goes above 10.20 percent, the company must return 70 percent of those additional earnings back to the customers. The new rates were set to be implemented around March 15, 2025.

Dedicated Customer Service for Power Restoration and Billing Inquiries

For the utility customers, the relationship hinges on reliability and responsiveness when things go wrong. While specific power restoration metrics aren't publically detailed here, the company's stated mission is to provide electricity as reliably as possible and to offer 'timely, courteous customer service'. The financial health supports this; the company maintains a strong Current Ratio of 3.57, which points to solid liquidity for operational needs, including service restoration efforts.

In the broader customer experience landscape for 2025, you know that 45% of consumers expect issues to be resolved in the first interaction, and 80% consider experience as essential as the product itself. For Otter Tail Corporation, meeting these expectations across billing and restoration is key to retaining the approximately 134,000 customers it served at the end of 2024.

Finance: draft 13-week cash view by Friday.

Otter Tail Corporation (OTTR) - Canvas Business Model: Channels

The channels Otter Tail Corporation uses to reach and serve its diverse customer base involve physical infrastructure, direct sales efforts, regulatory interaction, and digital platforms.

For the regulated utility business, Otter Tail Power Company (OTP), the primary channel is its extensive physical grid infrastructure.

Channel Metric	Detail/Value
Electric Service Territory Coverage	70,000 square miles
Communities Served	Over 400 communities
Customer Count (Approximate, 2024)	Approximately 133,900 residential, commercial, and industrial customers
5-Year Capital Spending Plan (Electric)	Totaling $1.4 billion (through 2029)
Projected Rate Base CAGR (2025-2029)	9.0%

The Manufactured Goods and Plastics segments rely on direct commercial channels to move products like PVC pipe.

• The Plastics segment completed the first phase of the Vinyltech expansion project, adding large diameter PVC pipe production capability to better serve customers in the southwest market.
• The company focuses on increasing sales volumes through its distributor and end-market network despite PVC pipe prices being down 11% Year-over-Year (YoY) in a recent period.
• The North America PVC pipes market, where Otter Tail Corporation is a player, was valued at $6.42 billion in 2025.

Interacting with regulatory bodies is a critical channel for ensuring revenue realization and service viability for the utility segment.

• Otter Tail Power Company obtained approval for its fully settled North Dakota general rate case in the fourth quarter of 2024.
• This North Dakota rate case provided for a net annual revenue requirement increase of $13.1 million.
• The approved North Dakota rate increase represented an average net increase of 6.18%.
• The North Dakota rate case was premised on a return on equity of 10.1 percent and an equity layer of 53.5 percent.
• The company records a regulatory asset for certain costs expected to be recovered in future rates, per accounting guidance for regulated operations.

Digital channels support customer interaction for the utility business, aiming for efficiency and better information delivery.

• Otter Tail Power Company implemented a new bill design to make important information easier for customers to find.
• The company has deployed Advanced Metering Infrastructure to lay the groundwork for better meeting customer needs.

Otter Tail Corporation (OTTR) - Canvas Business Model: Customer Segments

The customer base for Otter Tail Corporation is segmented across its regulated utility and its non-regulated manufacturing and plastics businesses, reflecting a strategy of balancing stable utility returns with cyclical industrial performance.

For the Electric segment, the customer base consists of Residential, Commercial, and Industrial electric customers primarily located within Minnesota, North Dakota, and South Dakota. As of the end of 2024, Otter Tail Power Company served approximately 134,000 customers in its utility service area. This utility segment is actively positioning itself to attract significant new load by emphasizing its competitive pricing structure, with 2024 rates reported as 16% below the regional average and 30% below the national average. The company is executing a strategy to convert rate base growth into earnings growth at approximately a 1:1 ratio.

Electric Segment Customer Metric	Value/Detail	Source Year/Period
Total Utility Customers (Approximate)	134,000	Year-End 2024
Electric Segment Revenue Contribution (Expected)	36%	2025 Guidance
Electric Segment Rate Advantage (vs. National Avg)	30% below	2024 Data
North Dakota Rate Case Net Annual Revenue Requirement Increase	$13.1 million	Q4 2024 Approval

The Manufacturing segment serves customers in cyclical markets, including original equipment manufacturers (OEMs) in the recreational vehicle and agriculture sectors. This segment has experienced volatility, with operating revenues dropping 17.8% in Q1 2025 due to decreased sales volumes in these end markets. Despite this, the segment is working to mitigate volume impacts through improved production efficiencies and better margins, as seen by a net income increase of 80.1% in Q3 2025 despite a 3.7% revenue decline.

For the Plastics segment, customers include municipalities and construction firms requiring PVC pipe. This business has seen significant shifts in pricing dynamics. While sales prices decreased by 17% year-over-year in Q3 2025, sales volumes in Q4 2024 had previously increased by 23% compared to the prior year, driven by customer sales volume growth. The segment completed the first phase of the Vinyltech expansion to better serve customers needing large diameter PVC pipe.

Regarding new, large industrial customer acquisition for the Electric segment, Otter Tail Corporation is actively pursuing significant load additions. The company has a pipeline of over 1,000 MW of potential new large loads it is targeting. These prospects include high-demand industrial clients such as data centers and electric vehicle manufacturers.

Key customer dynamics across the non-regulated segments include:

• - Manufacturing sales volumes declined 8% in Q3 2025.
• - Plastics segment sales prices decreased by 17% in Q3 2025.
• - The Plastics segment's net income fell 20.2% in Q3 2025.
• - The company expects its long-term earnings mix to shift toward 65% from the Electric segment by 2028.

Otter Tail Corporation (OTTR) - Canvas Business Model: Cost Structure

You're looking at the core expenditures that keep Otter Tail Corporation running, which are heavily weighted toward the regulated utility side. Honestly, the utility infrastructure dictates a high fixed cost base, which is what you'd expect from a vertically integrated utility.

The capital intensity is clear when you look at the investment pace. For the first half of 2025, Otter Tail Corporation reported significant capital expenditures, including $124.2 million specifically directed toward renewables and grid modernization projects. This spending is part of a larger, aggressive capital plan. The updated five-year capital spending plan totals $1.9 billion, aiming for a 10% compounded annual growth rate (CAGR) in the rate base through 2029.

These large investments directly translate into ongoing non-operating costs. We see this reflected in the guidance; for instance, the Electric segment's 2025 earnings expectations factored in increased depreciation and interest expense from capital expenditures and associated financing. This is a recurring cost tied directly to asset deployment.

Fuel and purchased power costs for the Electric segment remain a variable, though often recoverable, cost. While Q1 2025 saw a reduction in electric production fuel expenses by 19.1% year-over-year, Q3 2025 saw wholesale revenues increase due to a 48% increase in wholesale prices driven by increased fuel costs, which are generally passed through to customers via fuel recovery revenues. The Electric segment's Q3 2025 operating revenues were $138.6 million.

On the non-utility side, raw material costs are a key factor, especially for the Plastics segment. You'll note that the segment benefited from lower input material costs, which management cited as a reason for improved margins despite lower sales prices. Specifically, favorable PVC resin costs helped the Plastics segment's net income reach $43.5 million in Q3 2025, even as operating revenues declined to $110.0 million due to a 17% drop in sales prices.

Here's a quick look at how some of these cost-related items and their resulting expenses factored into the latest reported quarter:

Cost/Expense Driver	Segment/Metric	Latest Reported Amount (Q3 2025 unless noted)
Capital Expenditures (H1 2025)	Total Company (Renewables focus)	$124.2 million
Interest Expense Change (Q1 2025 vs Q1 2024)	Total Company	Up 17.3%
Operating Expenses Impact (Q3 2025)	Electric Segment (Fuel/Maint)	Decreased (partially)
Input Material Cost Impact	Plastics Segment	Favorable/Lower
Long-Term Debt Issued (Q3 2025)	Total Company	$100.0 million

The Manufacturing segment also deals with cost deleveraging when volumes drop. For example, in Q1 2025, they expected compressed operating margins from the deleveraging of manufacturing costs due to lower production and sales volumes. Their Q3 2025 operating revenues were $77.0 million, with net income at $3.9 million.

Financing costs are a constant. The need to fund the capital plan means ongoing interest expense. In Q1 2025, Otter Tail Power issued $50.0 million of long-term debt, and in Q3 2025, the corporation issued another $100.0 million of long-term debt, primarily to fund capital investments and repay short-term borrowings. This debt load directly feeds the depreciation and interest expense line item.

The overall cost structure is managed by balancing the stable, regulated utility costs against the more volatile manufacturing and plastics input costs. The company's 2025 diluted EPS guidance midpoint is $5.88 (based on the initial range of $5.68 to $6.08), but this was later increased to a midpoint of $6.47 based on better-than-expected segment results, suggesting cost management or favorable pricing in the non-utility side is helping offset fixed cost pressures. Finance: draft 13-week cash view by Friday.

Otter Tail Corporation (OTTR) - Canvas Business Model: Revenue Streams

You're looking at the core ways Otter Tail Corporation (OTTR) brings in money as of late 2025. This company runs on a diversified model, anchored by a regulated utility but supplemented by manufacturing and plastics operations, which is key to understanding its revenue profile right now.

The most stable revenue comes from the Regulated electric sales revenue from tariffs and rates generated by the Electric segment, Otter Tail Power. This platform provides predictable earnings through consistent rate base growth. For instance, Otter Tail Corporation filed a request with the Minnesota Public Utilities Commission in October 2025 to increase rates by approximately $44.8 million. Also, they secured approval to recover capital investment for two solar development projects.

The Sales of PVC pipe, which fall under the Plastics segment, are currently noted as being elevated in 2025 compared to the long-term view. This segment's strong performance in the third quarter of 2025 drove an increase in overall guidance. However, this revenue stream is complex; operating revenues saw a 17% decrease in sales prices compared to the same period last year, though this was partially offset by a 4% increase in sales volumes.

Revenue from Contract revenue from metal fabrication and custom manufacturing services comes from the Manufacturing segment. This part of the business is currently navigating headwinds, with sales volumes remaining below historic levels. The company is maintaining the midpoint of its 2025 earnings guidance for this segment.

The overall financial expectation for the year is captured by the updated guidance. The 2025 diluted EPS guidance midpoint is $6.47 per share. This reflects the current revenue performance across the different business lines.

Here's a quick look at the expected earnings contribution mix for 2025, which shows how the elevated Plastics segment is temporarily shifting the revenue profile away from the long-term target:

Segment	Expected 2025 Earnings Mix (Approximate)
Electric Segment	36% to 37%
Manufacturing and Plastics Segments (Combined)	63% to 64%

You can see the utility base is still a major component, but the non-utility side is contributing more this year than the long-term target of 35% suggests.

The company is focused on using the incremental cash generated by the current Plastics segment performance to reinvest into the utility's capital investment plan.

• Regulated electric sales revenue from tariffs and rates.
• Sales of PVC pipe, currently elevated in 2025.
• Contract revenue from metal fabrication services.
• 2025 diluted EPS guidance midpoint is $6.47 per share.

Finance: draft 13-week cash view by Friday.