Otter Tail Corporation (OTTR): Lienzo del Modelo de Negocio [Actualizado en Ene-2025]

Sumérgete en el intrincado mundo de Otter Tail Corporation (OTTR), una empresa dinámica que te une magistralmente los servicios eléctricos, la destreza de fabricación y la innovación de energía renovable. Esta empresa multifacética se destaca en el panorama energético al crear un modelo comercial robusto que abarca diversas industrias, ofreciendo soluciones de energía confiables, equipos de vanguardia y estrategias energéticas sostenibles que impulsan el crecimiento económico regional. Desde las casas hasta el apoyo a los clientes industriales, el enfoque único de Otter Tail demuestra cómo la diversificación estratégica y la adaptación tecnológica pueden transformar una empresa de servicios públicos tradicionales en un ecosistema comercial integral y con visión de futuro.

Otter Tail Corporation (OTTR) - Modelo de negocios: asociaciones clave

Asociaciones de servicios eléctricos con proveedores de energía regionales

Otter Tail Power Company opera asociaciones con múltiples proveedores de energía regionales en todo el medio oeste de los Estados Unidos.

Pareja	Región	Detalles de la asociación
Cooperativa de energía eléctrica de la cuenca	Dakota del Norte	Acuerdo de generación y transmisión de energía conjunta
Gran energía del río	Minnesota	Interconexión y contrato de intercambio de energía

Colaboración de infraestructura energética con desarrolladores de energía renovable

Otter Tail Corporation mantiene asociaciones estratégicas de energía renovable.

• Colaboración de energía eólica con Nextera Energy Resources
• Desarrollo de infraestructura solar con sistemas de energía innovadores

Manufactura de asociaciones de la cadena de suministro

La división de fabricación de Otter Tail Corporation se basa en asociaciones específicas de la cadena de suministro.

Proveedor	Componente	Valor anual del contrato
Precision Components Inc.	Piezas de equipos eléctricos	$ 4.2 millones
Soluciones de fabricación avanzadas	Servicios de fabricación	$ 3.7 millones

Alianzas estratégicas con proveedores de tecnología y equipos

Otter Tail mantiene asociaciones de tecnología crítica para el desarrollo de infraestructura.

• Schneider Electric: integración de tecnología de cuadrícula inteligente
• Siemens: suministro de equipos de transmisión de energía
• Grupo ABB: soluciones de infraestructura eléctrica

Inversión total de asociación en 2023: $ 12.9 millones

Otter Tail Corporation (OTTR) - Modelo de negocio: actividades clave

Generación y distribución de energía eléctrica

Otter Tail Power Company opera 12 instalaciones de generación eléctrica con una capacidad de generación total de 689 megavatios. La compañía atiende a aproximadamente 135,000 clientes eléctricos en Dakota del Norte, Minnesota y Dakota del Sur.

Fuente de generación	Capacidad (MW)	Porcentaje
Carbón	476	69%
Gas natural	123	18%
Energía renovable	90	13%

Fabricación de equipos especializados

El segmento de fabricación de Otter Tail Corporation, a través de sus subsidiarias, genera ingresos anuales de aproximadamente $ 383 millones en producción de equipos especializados.

• Instalaciones de fabricación ubicadas en múltiples estados
• Las líneas de productos incluyen equipos eléctricos
• La salida de fabricación anual supera las 10,000 unidades

Desarrollo y mantenimiento de la infraestructura

La compañía mantiene más de 3,200 millas de líneas de transmisión y 9,800 millas de líneas de distribución en sus territorios de servicio.

Componente de infraestructura	Total de millas	Inversión (anual)
Líneas de transmisión	3,200	$ 42 millones
Líneas de distribución	9,800	$ 67 millones

Implementación del proyecto de energía renovable

Otter Tail Corporation se ha comprometido a aumentar la cartera de energía renovable al 30% para 2030, con una generación actual de renovable al 13%.

• Proyectos de energía eólica: 90 MW
• Inversiones de energía solar: $ 56 millones
• Expansión de capacidad renovable planificada: 150 MW para 2025

Gestión de cartera de negocios diversificados

La corporación administra múltiples segmentos comerciales con ingresos anuales totales de $ 2.1 mil millones en sectores eléctrico, de fabricación e infraestructura.

Segmento de negocios	Ganancia	Porcentaje de total
Energía eléctrica	$ 786 millones	37%
Fabricación	$ 383 millones	18%
Infraestructura	$ 931 millones	45%

Otter Tail Corporation (OTTR) - Modelo de negocio: recursos clave

Infraestructura de transmisión eléctrica extensa

A partir de 2023, Otter Tail Power Company opera 1.380 millas de líneas de transmisión en múltiples estados. El sistema de transmisión incluye:

Nivel de voltaje	Millas de líneas de transmisión
345 kV	380 millas
230 kV	680 millas
115 kV	320 millas

Instalaciones de fabricación avanzadas

Otter Tail Corporation posee Múltiples instalaciones de fabricación A través de su segmento de productos de ingeniería:

• Planta de fabricación en Wahpeton, Dakota del Norte
• Instalación en Milbank, Dakota del Sur
• Valor de activos de fabricación total: $ 127.3 millones (informe anual de 2022)

Fuerza laboral técnica calificada

Al 31 de diciembre de 2022, Otter Tail Corporation empleada 2.188 empleados totales, con desglose de la siguiente manera:

Segmento	Número de empleados
Utilidad eléctrica	643
Productos de ingeniería	712
Corporativo/otro	833

Activos de producción de tierra y energía

Los activos de producción de energía incluyen:

• Capacidad de generación total: 519 MW
• Generación de viento: 204 MW
• Generación térmica: 315 MW

Capital financiero y capacidad de inversión

Recursos financieros a partir del informe anual de 2022:

Métrica financiera	Cantidad
Activos totales	$ 2.17 mil millones
Equidad total	$ 896.4 millones
Deuda a largo plazo	$ 577.3 millones

Otter Tail Corporation (OTTR) - Modelo de negocio: propuestas de valor

Servicios de energía eléctrica confiables y consistentes

Otter Tail Power Company atiende a aproximadamente 133,000 clientes eléctricos en Dakota del Norte, Dakota del Sur y Minnesota. El segmento de servicios eléctricos generó $ 283.3 millones en ingresos en 2022.

Vía de Servício	Número de clientes	Cobertura geográfica
Utilidad eléctrica	133,000	Dakota del Norte, Dakota del Sur, Minnesota

Fuentes de ingresos diversificadas en múltiples industrias

Otter Tail Corporation opera a través de cuatro segmentos comerciales con ingresos totales de $ 935.1 millones en 2022:

Segmento	Ingresos (2022)
Utilidad eléctrica	$ 283.3 millones
Fabricación	$ 456.2 millones
Plástica	$ 132.6 millones
Inversiones	$ 63.0 millones

Soluciones de energía sostenible

A partir de 2022, Otter Tail Corporation ha invertido en fuentes de energía renovable, con aproximadamente el 35% de su generación eléctrica proveniente de recursos libres de carbono.

• Capacidad de generación de energía eólica: 214 MW
• Inversiones de energía solar: desarrollo continuo
• Objetivo de reducción de carbono: 80% para 2030

Capacidades de fabricación innovadores

El segmento de fabricación de Otter Tail generó $ 456.2 millones en 2022, con líneas de productos clave que incluyen:

• Componentes mecanizados de precisión
• Soluciones de fabricación personalizadas
• Fabricación de equipos industriales

Apoyo económico regional

Otter Tail Corporation atiende a comunidades a través de un territorio de servicio de 10,000 millas cuadradas, con un impacto económico directo que incluye:

Métrica económica	Valor
Total de empleados	4,300
Nómina anual	$ 276 millones
Inversiones de capital	$ 172 millones (2022)

Otter Tail Corporation (OTTR) - Modelo de negocios: relaciones con los clientes

Contratos de servicio de servicios públicos a largo plazo

Otter Tail Power Company mantiene aproximadamente 222,000 clientes eléctricos en Dakota del Norte, Dakota del Sur y Minnesota a partir de 2022. La duración promedio del contrato para servicios de servicios públicos oscila entre 5 y 10 años.

Segmento de clientes	Número de clientes	Longitud promedio del contrato
Residencial	137,000	7 años
Comercial	65,000	8 años
Industrial	20,000	10 años

Atención al cliente personalizada para consumidores de energía

Los canales de atención al cliente incluyen:

• Soporte telefónico 24/7
• Portal de clientes en línea
• Servicios de aplicaciones móviles
• Soporte por correo electrónico

Compromiso directo con clientes industriales y comerciales

Otter Tail Corporation atiende a aproximadamente 85,000 clientes industriales y comerciales con soluciones de energía personalizadas.

Tipo de cliente	Consumo de energía anual promedio	Porcentaje de contrato personalizado
Gran industrial	500,000 MWh	85%
Comercial medio	50,000 MWh	65%

Plataformas de servicio al cliente habilitados para tecnología

Métricas de interacción digital a partir de 2022:

• Usuarios de aplicaciones móviles: 42,000
• Portal en línea Usuarios activos: 98,000
• Tiempo de interacción digital promedio: 12 minutos

Gestión de relaciones centrada en la comunidad

Inversiones de participación comunitaria en 2022: $ 1.2 millones en territorios de servicio.

Programa comunitario	Monto de la inversión	Recuento de beneficiarios
Educación energética	$350,000	25,000 estudiantes
Soporte de infraestructura local	$450,000	12 municipios
Iniciativas de energía renovable	$400,000	8 proyectos comunitarios

Otter Tail Corporation (OTTR) - Modelo de negocios: canales

Equipos de ventas directos

Otter Tail Corporation mantiene 340 representantes de ventas directas en sus segmentos eléctricos, de fabricación e infraestructura a partir de 2023.

Canal de ventas	Número de representantes	Ingresos anuales promedio por representante
Ventas de servicios eléctricos	120	$ 2.3 millones
Ventas de fabricación	140	$ 1.8 millones
Ventas de infraestructura	80	$ 2.5 millones

Plataformas de servicio al cliente en línea

La compañía opera una plataforma de servicio al cliente digital que maneja aproximadamente 78,000 interacciones de clientes mensualmente.

• Portal de gestión de cuentas en línea
• Sistema de facturación digital
• Chat de atención al cliente 24/7
• Aplicación móvil para solicitudes de servicio

Oficinas de servicios públicos regionales

Otter Tail Corporation mantiene 22 oficinas de servicios públicos regionales en múltiples estados, principalmente en el medio oeste de los Estados Unidos.

Estado	Número de oficinas	Cobertura del área de servicio
Minnesota	8	45% de cobertura
Dakota del Norte	6	30% de cobertura
Otros estados	8	Cobertura del 25%

Redes de comunicación digital

La infraestructura de comunicación digital admite 215,000 clientes de servicios públicos con capacidades de monitoreo y comunicación en tiempo real.

• Integración de tecnología de cuadrícula inteligente
• Infraestructura de medición avanzada
• Sistemas de informes de interrupción automatizados
• Protocolos de comunicación habilitados con ciberseguridad

Conferencias y exposiciones comerciales de la industria

Otter Tail Corporation participa en 18 principales conferencias de la industria, lo que representa una inversión de $ 1.2 millones en esfuerzos de marketing y redes.

Tipo de conferencia	Número de conferencias	Gastos anuales de marketing
Conferencias de la industria de servicios públicos	8	$550,000
Exposiciones de fabricación	6	$380,000
Foros de tecnología de infraestructura	4	$270,000

Otter Tail Corporation (OTTR) - Modelo de negocios: segmentos de clientes

Consumidores de electricidad residencial

Otter Tail Power Company atiende a aproximadamente 135,000 clientes eléctricos en Dakota del Norte, Dakota del Sur y Minnesota.

Estado	Clientes residenciales	Consumo mensual promedio
Dakota del Norte	44,500	950 kWh
Dakota del Sur	35,200	900 kWh
Minnesota	55,300	1,000 kWh

Negocios comerciales e industriales

Otter Tail atiende a 14.200 clientes comerciales e industriales en sus territorios de servicio.

• Sector de fabricación: 4.800 clientes
• Negocios minoristas: 3.600 clientes
• Instalaciones de atención médica: 1.200 clientes
• Instituciones educativas: 900 clientes
• Otras entidades comerciales: 3.700 clientes

Sector agrícola

Los clientes agrícolas representan un segmento significativo de la base de clientes de Otter Tail.

Tipo de cliente agrícola	Número de clientes	Consumo anual de energía
Granjas	2,300	180 millones de kWh
Procesamiento agrícola	450	95 millones de kWh

Entidades municipales y gubernamentales

Otter Tail proporciona electricidad a 87 clientes municipales y gubernamentales en su área de servicio.

• Gobierno de la ciudad: 42 clientes
• Gobierno del condado: 23 clientes
• Instalaciones estatales: 12 clientes
• Instalaciones federales: 10 clientes

Desarrolladores de proyectos de energía renovable

Otter Tail admite la integración de energía renovable a través de conexiones de red y acuerdos de compra de energía.

Tipo de energía renovable	Número de proyectos	Capacidad instalada
Energía eólica	18	325 MW
Energía solar	7	45 MW

Otter Tail Corporation (OTTR) - Modelo de negocio: Estructura de costos

Gastos de mantenimiento de infraestructura

Para el año fiscal 2022, Otter Tail Corporation reportó gastos de mantenimiento de infraestructura de $ 53.4 millones en sus segmentos eléctricos, de fabricación e infraestructura.

Categoría de infraestructura	Costos de mantenimiento (2022)
Infraestructura de servicios eléctricos	$ 31.2 millones
Infraestructura de fabricación	$ 12.6 millones
Infraestructura de transmisión	$ 9.6 millones

Costos de generación de energía y transmisión

Los costos de generación y transmisión de energía de la compañía para 2022 totalizaron $ 87.3 millones.

• Costos de generación de combustibles fósiles: $ 42.5 millones
• Costos de generación de energía renovable: $ 22.8 millones
• Costos de transmisión y distribución: $ 22 millones

Costos operativos de fabricación

El segmento de fabricación de Otter Tail Corporation incurrió en costos operativos de $ 156.7 millones en 2022.

Categoría de costos de fabricación	Cantidad (2022)
Gastos de materia prima	$ 84.3 millones
Costos de mano de obra directa	$ 39.4 millones
Sobrecarga de fabricación	$ 33 millones

Inversiones de investigación y desarrollo

En 2022, Otter Tail Corporation invirtió $ 7.2 millones en investigación y desarrollo en sus segmentos comerciales.

• R&D de servicios eléctricos: $ 3.1 millones
• R&D de fabricación: $ 2.5 millones
• I + D de tecnología de infraestructura: $ 1.6 millones

Compensación y capacitación de la fuerza laboral

Los gastos totales relacionados con la fuerza laboral para Otter Tail Corporation en 2022 fueron de $ 142.6 millones.

Categoría de compensación	Cantidad (2022)
Salarios base	$ 98.3 millones
Beneficios y contribuciones de jubilación	$ 32.5 millones
Capacitación y desarrollo de empleados	$ 11.8 millones

Otter Tail Corporation (OTTR) - Modelo de negocios: flujos de ingresos

Tarifas de servicio eléctrico

Para el año fiscal 2022, Otter Tail Power Company reportó ingresos de servicios eléctricos de $ 345.8 millones. La compañía atiende a aproximadamente 135,000 clientes eléctricos en Minnesota, Dakota del Norte y Dakota del Sur.

Categoría de servicio	Ingresos (2022)	Segmentos de clientes
Servicio eléctrico residencial	$ 142.3 millones	Aproximadamente 110,000 clientes
Servicio eléctrico comercial	$ 156.5 millones	Aproximadamente 22,000 clientes comerciales
Servicio eléctrico industrial	$ 47 millones	Grandes instalaciones industriales

Ventas de fabricación de equipos

El segmento de fabricación de Otter Tail Corporation generó $ 279.5 millones en ingresos para 2022.

• Ingresos de fabricación de tuberías de plástico: $ 187.2 millones
• Torres de enfriamiento fabricadas: $ 52.3 millones
• Otras ventas de equipos de fabricación: $ 40 millones

Ingresos del proyecto de energía renovable

En 2022, los proyectos de energía renovable contribuyeron con $ 23.6 millones a los ingresos totales de la compañía.

Tipo de energía renovable	Capacidad instalada	Contribución de ingresos
Proyectos de energía eólica	62 MW	$ 15.4 millones
Proyectos de energía solar	18 MW	$ 8.2 millones

Servicios de transmisión de energía

Los servicios de transmisión de energía generaron $ 41.2 millones en ingresos para 2022.

Consultoría de infraestructura energética

Energy Infrastructure Consulting and Services Relations produjeron $ 12.7 millones en ingresos para el año fiscal 2022.

Tipo de servicio de consultoría	Ganancia
Consultoría de modernización de la cuadrícula	$ 6.3 millones
Servicios de integración renovable	$ 4.2 millones
Consultoría de eficiencia energética	$ 2.2 millones

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.