Otter Tail Corporation (OTTR): Business Model Canvas [Jan-2025 Mise à jour]

Plongez dans le monde complexe d'Otter Tail Corporation (OTTR), une entreprise dynamique qui tisse magistralement les services publics électriques, les prouesses manufacturières et l'innovation d'énergie renouvelable. Cette entreprise à multiples facettes se démarque dans le paysage énergétique en créant un modèle commercial robuste qui couvre diverses industries, offrant des solutions d'énergie fiables, des équipements de pointe et des stratégies énergétiques durables qui stimulent la croissance économique régionale. Des maisons de propulsion au soutien des clients industriels, l'approche unique de Otter Tail montre comment la diversification stratégique et l'adaptation technologique peuvent transformer une entreprise de services publics traditionnelle en un écosystème commercial complet et avant-gardiste.

Otter Tail Corporation (OTTR) - Modèle d'entreprise: partenariats clés

Partenariats électriques avec les fournisseurs d'électricité régionaux

Otter Tail Power Company gère des partenariats avec plusieurs fournisseurs d'électricité régionaux à travers le Midwest des États-Unis.

Partenaire	Région	Détails du partenariat
Basin Electric Power Cooperative	Dakota du Nord	Contrat de production et de transmission d'électricité conjointe
Grande énergie de la rivière	Minnesota	Contrat d'interconnexion et d'échange d'électricité

Collaboration des infrastructures énergétiques avec les développeurs d'énergie renouvelable

Otter Tail Corporation maintient des partenariats stratégiques d'énergie renouvelable.

• Collaboration d'énergie éolienne avec Nextera Energy Resources
• Développement d'infrastructures solaires avec des systèmes d'énergie innovants

Fabrication des partenariats de la chaîne d'approvisionnement

La division manufacturière d'Otter Tail Corporation s'appuie sur des partenariats spécifiques de la chaîne d'approvisionnement.

Fournisseur	Composant	Valeur du contrat annuel
Precision Components Inc.	Pièces d'équipement électrique	4,2 millions de dollars
Solutions de fabrication avancées	Services de fabrication	3,7 millions de dollars

Alliances stratégiques avec les fournisseurs de technologie et d'équipement

Otter Tail maintient des partenariats technologiques critiques pour le développement des infrastructures.

• Schneider Electric: Smart Grid Technology Intégration
• Siemens: alimentation en équipement de transmission de puissance
• Groupe ABB: Solutions d'infrastructure électrique

Investissement total de partenariat en 2023: 12,9 millions de dollars

Otter Tail Corporation (OTTR) - Modèle d'entreprise: activités clés

Génération et distribution d'énergie électrique

Otter Tail Power Company exploite 12 installations de production électrique avec une capacité de production totale de 689 mégawatts. La société dessert environ 135 000 clients électriques à travers le Dakota du Nord, le Minnesota et le Dakota du Sud.

Source de génération	Capacité (MW)	Pourcentage
Charbon	476	69%
Gaz naturel	123	18%
Énergie renouvelable	90	13%

Fabrication d'équipements spécialisés

Le segment manufacturier de Otter Tail Corporation, par le biais de ses filiales, génère un chiffre d'affaires annuel d'environ 383 millions de dollars en production d'équipements spécialisés.

• Installations de fabrication situées dans plusieurs États
• Les gammes de produits incluent l'équipement électrique
• La production de fabrication annuelle dépasse 10 000 unités

Développement et maintenance des infrastructures

La société maintient plus de 3 200 miles de lignes de transmission et 9 800 miles de lignes de distribution sur ses territoires de service.

Composant d'infrastructure	Kilomètres totaux	Investissement (annuel)
Lignes de transmission	3,200	42 millions de dollars
Lignes de distribution	9,800	67 millions de dollars

Mise en œuvre du projet d'énergie renouvelable

Otter Tail Corporation s'est engagée à augmenter le portefeuille d'énergies renouvelables à 30% d'ici 2030, avec une génération renouvelable actuelle à 13%.

• Projets d'énergie éolienne: 90 MW
• Investissements en énergie solaire: 56 millions de dollars
• Extension planifiée de capacité renouvelable: 150 MW d'ici 2025

Gestion du portefeuille commercial diversifié

La société gère plusieurs segments d'entreprises avec un chiffre d'affaires annuel total de 2,1 milliards de dollars entre les secteurs électriques, de fabrication et d'infrastructure.

Segment d'entreprise	Revenu	Pourcentage du total
Puissance électrique	786 millions de dollars	37%
Fabrication	383 millions de dollars	18%
Infrastructure	931 millions de dollars	45%

Otter Tail Corporation (OTTR) - Modèle d'entreprise: Ressources clés

Infrastructure étendue de transmission électrique

En 2023, Otter Tail Power Company exploite 1 380 miles de lignes de transmission dans plusieurs états. Le système de transmission comprend:

Niveau de tension	Miles de lignes de transmission
345 kV	380 miles
230 kV	680 miles
115 kv	320 miles

Installations de fabrication avancées

Otter Tail Corporation possède Installations de fabrication multiples Grâce à son segment de produits d'ingénierie:

• Usine de fabrication à Wahpeton, Dakota du Nord
• Installation à Milbank, Dakota du Sud
• Valeur totale des actifs de fabrication: 127,3 millions de dollars (rapport annuel 2022)

Main-d'œuvre technique qualifiée

Au 31 décembre 2022, Otter Tail Corporation a employé 2 188 employés au total, avec une panne comme suit:

Segment	Nombre d'employés
Utilitaire électrique	643
Produits d'ingénierie	712
Entreprise / autre	833

Actifs de production terrestre et énergétique

Les actifs de production d'énergie comprennent:

• Capacité de production totale: 519 MW
• Génération de vent: 204 MW
• Génération thermique: 315 MW

Capital financier et capacité d'investissement

Ressources financières à partir de 2022 Rapport annuel:

Métrique financière	Montant
Actif total	2,17 milliards de dollars
Total des capitaux propres	896,4 millions de dollars
Dette à long terme	577,3 millions de dollars

Otter Tail Corporation (OTTR) - Modèle d'entreprise: propositions de valeur

Services d'énergie électrique fiables et cohérents

Otter Tail Power Company dessert environ 133 000 clients électriques dans le Dakota du Nord, le Dakota du Sud et le Minnesota. Le segment des services publics électriques a généré 283,3 millions de dollars de revenus en 2022.

Aire de service	Nombre de clients	Couverture géographique
Utilitaire électrique	133,000	Dakota du Nord, Dakota du Sud, Minnesota

Diversifiez les sources de revenus dans plusieurs industries

Otter Tail Corporation opère par le biais de quatre segments d'entreprise avec un chiffre d'affaires total de 935,1 millions de dollars en 2022:

Segment	Revenus (2022)
Utilitaire électrique	283,3 millions de dollars
Fabrication	456,2 millions de dollars
Plastiques	132,6 millions de dollars
Investissements	63,0 millions de dollars

Solutions énergétiques durables

En 2022, Otter Tail Corporation a investi dans des sources d'énergie renouvelables, avec environ 35% de sa production électrique provenant de ressources sans carbone.

• Capacité de production d'énergie éolienne: 214 MW
• Investissements de l'énergie solaire: développement continu
• Cible de réduction du carbone: 80% d'ici 2030

Capacités de fabrication innovantes

Le segment de fabrication d'Otter Tail a généré 456,2 millions de dollars en 2022, avec des gammes de produits clés, notamment:

• Composants usinés de précision
• Solutions de fabrication personnalisées
• Fabrication d'équipements industriels

Soutien au développement économique régional

Otter Tail Corporation dessert des communautés sur un territoire de service de 10 000 milles carrés, avec un impact économique direct, notamment:

Métrique économique	Valeur
Total des employés	4,300
Salaire annuelle	276 millions de dollars
Investissements en capital	172 millions de dollars (2022)

Otter Tail Corporation (OTTR) - Modèle d'entreprise: relations avec les clients

Contrats de services de services publics à long terme

Otter Tail Power Company maintient environ 222 000 clients électriques à travers le Dakota du Nord, le Dakota du Sud et le Minnesota en 2022. La durée moyenne du contrat pour les services de services publics varie entre 5 et 10 ans.

Segment de clientèle	Nombre de clients	Durée moyenne du contrat
Résidentiel	137,000	7 ans
Commercial	65,000	8 ans
Industriel	20,000	10 ans

Support client personnalisé pour les consommateurs d'énergie

Les canaux de support client comprennent:

• Prise en charge du téléphone 24/7
• Portail client en ligne
• Services d'applications mobiles
• Assistance par e-mail

Engagement direct avec les clients industriels et commerciaux

Otter Tail Corporation dessert environ 85 000 clients industriels et commerciaux avec des solutions énergétiques personnalisées.

Type de client	Consommation d'énergie annuelle moyenne	Pourcentage de contrat personnalisé
Grand industriel	500 000 MWh	85%
Commercial moyen	50 000 MWh	65%

Plates-formes de service à la clientèle compatibles avec la technologie

Mesures d'interaction numérique à partir de 2022:

• Utilisateurs d'applications mobiles: 42 000
• Portail en ligne utilisateurs actifs: 98 000
• Temps d'interaction numérique moyen: 12 minutes

Gestion des relations axée sur la communauté

Investissements d'engagement communautaire en 2022: 1,2 million de dollars dans tous les territoires de service.

Programme communautaire	Montant d'investissement	Compte de bénéficiaire
Éducation énergétique	$350,000	25 000 étudiants
Support d'infrastructure local	$450,000	12 municipalités
Initiatives d'énergie renouvelable	$400,000	8 projets communautaires

Otter Tail Corporation (OTTR) - Modèle d'entreprise: canaux

Équipes de vente directes

Otter Tail Corporation conserve 340 représentants des ventes directes dans ses segments électriques, de fabrication et d'infrastructure en 2023.

Canal de vente	Nombre de représentants	Revenu annuel moyen par représentant
Ventes de services publics électriques	120	2,3 millions de dollars
Ventes de fabrication	140	1,8 million de dollars
Ventes d'infrastructure	80	2,5 millions de dollars

Plateformes de service client en ligne

La société exploite une plate-forme de service client numérique gantant environ 78 000 interactions client chaque mois.

• Portail de gestion des comptes en ligne
• Système de facturation numérique
• Chat de support client 24/7
• Application mobile pour les demandes de service

Bureaux de services publics régionaux

Otter Tail Corporation maintient 22 bureaux régionaux de services publics dans plusieurs États, principalement dans le Midwest des États-Unis.

État	Nombre de bureaux	Couverture de zone de service
Minnesota	8	Couverture de 45%
Dakota du Nord	6	Couverture de 30%
Autres États	8	Couverture de 25%

Réseaux de communication numérique

L'infrastructure de communication numérique prend en charge 215 000 clients de services publics avec des capacités de surveillance et de communication en temps réel.

• Intégration de la technologie de la grille intelligente
• Infrastructure de mesure avancée
• Systèmes de rapports de panneaux automatisés
• Protocoles de communication compatibles à la cybersécurité

Conférences et expositions commerciales de l'industrie

Otter Tail Corporation participe à 18 conférences industrielles majeures par an, représentant un investissement de 1,2 million de dollars dans les efforts de marketing et de réseautage.

Type de conférence	Nombre de conférences	Dépenses de marketing annuelles
Conférences de l'industrie des services publics	8	$550,000
Expositions de fabrication	6	$380,000
Forums sur la technologie des infrastructures	4	$270,000

Otter Tail Corporation (OTTR) - Modèle d'entreprise: segments de clientèle

Consommateurs d'électricité résidentielle

Otter Tail Power Company dessert environ 135 000 clients électriques à travers le Dakota du Nord, le Dakota du Sud et le Minnesota.

État	Clients résidentiels	Consommation mensuelle moyenne
Dakota du Nord	44,500	950 kWh
Dakota du Sud	35,200	900 kWh
Minnesota	55,300	1 000 kWh

Entreprises commerciales et industrielles

Otter Tail dessert 14 200 clients commerciaux et industriels dans ses territoires de service.

• Secteur de la fabrication: 4 800 clients
• Commerces de détail: 3 600 clients
• Installations de soins de santé: 1 200 clients
• Institutions éducatives: 900 clients
• Autres entités commerciales: 3 700 clients

Secteur agricole

Les clients agricoles représentent un segment important de la clientèle d'Otter Tail.

Type de client agricole	Nombre de clients	Consommation d'énergie annuelle
Fermes	2,300	180 millions de kWh
Traitement agricole	450	95 millions de kWh

Entités municipales et gouvernementales

Otter Tail fournit de l'électricité à 87 clients municipaux et gouvernementaux dans sa zone de service.

• Gouvernements de la ville: 42 clients
• Gouvernements du comté: 23 clients
• Installations d'État: 12 clients
• Installations fédérales: 10 clients

Développeurs de projets d'énergie renouvelable

Otter Tail prend en charge l'intégration des énergies renouvelables via les connexions du réseau et les accords d'achat d'énergie.

Type d'énergie renouvelable	Nombre de projets	Capacité installée
Énergie éolienne	18	325 MW
Énergie solaire	7	45 MW

Otter Tail Corporation (OTTR) - Modèle d'entreprise: Structure des coûts

Frais de maintenance des infrastructures

Pour l'exercice 2022, Otter Tail Corporation a déclaré des frais de maintenance des infrastructures de 53,4 millions de dollars dans ses segments électriques, de fabrication et d'infrastructure.

Catégorie d'infrastructure	Coûts de maintenance (2022)
Infrastructure électrique	31,2 millions de dollars
Infrastructure de fabrication	12,6 millions de dollars
Infrastructure de transmission	9,6 millions de dollars

Coûts de production d'énergie et de transmission

Les coûts de production d'énergie et de transmission de l'entreprise pour 2022 ont totalisé 87,3 millions de dollars.

• Coûts de production de combustibles fossiles: 42,5 millions de dollars
• Coûts de production d'énergies renouvelables: 22,8 millions de dollars
• Coûts de transmission et de distribution: 22 millions de dollars

Fabrication des coûts opérationnels

Le segment manufacturier de Otter Tail Corporation a engagé des coûts d'exploitation de 156,7 millions de dollars en 2022.

Catégorie de coûts de fabrication	Montant (2022)
Frais de matières premières	84,3 millions de dollars
Coûts de main-d'œuvre directes	39,4 millions de dollars
Fabrication des frais généraux	33 millions de dollars

Investissements de recherche et développement

En 2022, Otter Tail Corporation a investi 7,2 millions de dollars dans la recherche et le développement dans ses segments d'entreprise.

• R&D de l'utilitaire électrique: 3,1 millions de dollars
• Fabrication R&D: 2,5 millions de dollars
• Technologie des infrastructures R&D: 1,6 million de dollars

Rémunération et formation de la main-d'œuvre

Les dépenses totales liées à la main-d'œuvre pour Otter Tail Corporation en 2022 étaient de 142,6 millions de dollars.

Catégorie de compensation	Montant (2022)
Salaires de base	98,3 millions de dollars
Avantages et contributions à la retraite	32,5 millions de dollars
Formation et développement des employés	11,8 millions de dollars

Otter Tail Corporation (OTTR) - Modèle d'entreprise: Strots de revenus

Frais de service électrique

Pour l'exercice 2022, Otter Tail Power Company a enregistré des revenus électriques de 345,8 millions de dollars. La société dessert environ 135 000 clients électriques dans le Minnesota, le Dakota du Nord et le Dakota du Sud.

Catégorie de service	Revenus (2022)	Segments de clientèle
Service électrique résidentiel	142,3 millions de dollars	Environ 110 000 clients
Service électrique commercial	156,5 millions de dollars	Environ 22 000 clients commerciaux
Service électrique industriel	47 millions de dollars	Grandes installations industrielles

Ventes de fabrication d'équipements

Le segment de fabrication d'Otter Tail Corporation a généré 279,5 millions de dollars de revenus pour 2022.

• Revenus de fabrication de tuyaux en plastique: 187,2 millions de dollars
• Tours de refroidissement fabriqués: 52,3 millions de dollars
• Autres ventes d'équipements de fabrication: 40 millions de dollars

Revenus du projet d'énergie renouvelable

En 2022, les projets d'énergie renouvelable ont contribué 23,6 millions de dollars aux revenus totaux de la société.

Type d'énergie renouvelable	Capacité installée	Contribution des revenus
Projets d'énergie éolienne	62 MW	15,4 millions de dollars
Projets d'énergie solaire	18 MW	8,2 millions de dollars

Services de transmission de puissance

Les services de transmission d'électricité ont généré 41,2 millions de dollars de revenus pour 2022.

Conseil des infrastructures énergétiques

Le conseil à l'infrastructure énergétique et les services connexes ont produit 12,7 millions de dollars de revenus pour l'exercice 2022.

Type de service de conseil	Revenu
Conseil de modernisation de la grille	6,3 millions de dollars
Services d'intégration renouvelable	4,2 millions de dollars
Conseil d'efficacité énergétique	2,2 millions de dollars

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.