Financial Performance - In 2025, Montana-Dakota served 120,678 residential customers generating revenues of $136.676 million, while commercial customers numbered 23,997 with revenues of $178.991 million[47]. - Other electric revenues, primarily transmission-related, were $77.4 million in 2025, up from $58.7 million in 2024 and $53.6 million in 2023[47]. - The natural gas distribution operations serve 1,082,329 customers, generating revenues of $1,149,136,000 in 2025, with residential customers contributing $680,035,000[76]. - Transportation and other revenues for the natural gas distribution operations were $134.4 million in 2025, up from $105.8 million in 2024[76]. - Montana-Dakota's natural gas distribution operations have a net plant investment of $2.8 billion and a rate base of $2.2 billion as of December 31, 2025[74]. Investments and Assets - As of December 31, 2025, Montana-Dakota's net electric plant investment was $2.1 billion and its rate base was $1.8 billion[44]. - The company's electric generating stations have a total nameplate rating of 863,012 kW and a projected net generation of 1,839,634,000 kWh for 2025[54]. - Montana-Dakota has secured coal supply agreements for its generating stations, estimating approximately 1.5 million tons per contract year for both Coyote and Big Stone Stations, and 585,000 tons for Wygen III through 2060[55][56][57]. - The net plant investment for WBI Energy Transmission was $1.0 billion as of December 31, 2025[94]. - WBI Energy Transmission's underground natural gas storage facilities have a certificated storage capacity of approximately 350 Bcf, including 193 Bcf of working gas capacity[98]. Operational Developments - Heskett Unit 4, an 88-MW natural gas-fired combustion turbine, became operational in July 2024, following the decommissioning of older units[52]. - The maximum peak demand for Montana-Dakota's retail customers was approximately 69,991 kW in July 2024[50]. - The Company completed the separation of Knife River on May 31, 2023, and Everus on October 31, 2024, enhancing stockholder value[18]. - The Company aims to enhance stockholder value through its "CORE" strategy, focusing on operational excellence and organic growth opportunities[17]. Environmental Commitment - Approximately 40% of the electricity delivered to customers in 2025 was from renewable resources, contributing to a 44% reduction in carbon dioxide emission intensity since 2005[51]. - Environmental-related capital expenditures are estimated at $1.5 million, $1.8 million, and $1.0 million for 2026, 2027, and 2028, respectively[71]. - The Company is investigating possible soil and groundwater impacts from historic manufactured gas plants, which may lead to additional costs for investigation and remediation[90]. - The Company may face significant future costs associated with compliance with legislative actions aimed at reducing greenhouse gas emissions, which could impact its results of operations[161]. Regulatory and Compliance Risks - The Company faces significant liabilities from wildfires, which could negatively impact operations and financial performance despite mitigation efforts[118]. - Changes in tax laws could adversely affect the Company's earnings and customer costs, impacting production tax credits[139]. - The Company is subject to environmental laws that may increase operational costs and expose it to liabilities, potentially affecting its financial performance[157]. - The Company may face challenges in obtaining adequate insurance coverage due to increased wildfire losses and related claims[120]. Cybersecurity and Operational Risks - The Company is subject to cybersecurity threats that could disrupt operations and lead to significant remediation costs[181][182]. - The Company has implemented a cyber risk management program to protect its information systems from various threats[193]. - The Company has ongoing cybersecurity training programs for employees to mitigate risks associated with data access and system vulnerabilities[195]. - The audit committee of the board of directors oversees risks from cybersecurity threats, receiving regular updates from the CIO[202]. Human Resources and Labor - The Company had 2,096 employees as of December 31, 2025, with 745 represented by collective-bargaining agreements[24][27]. - The Company must attract and retain skilled personnel to manage and grow its operations, facing challenges due to labor market dynamics[179]. Market and Competitive Environment - The Company is experiencing high competition in its electric utility and natural gas businesses, which could negatively affect its financial performance[176]. - The Company is exposed to capital market risks and may struggle to obtain financing required for operations and growth plans[123]. - Nonpayment or nonperformance by customers could negatively impact the Company's results of operations and cash flows[138]. Shareholder and Stock Performance - The Company has established a long-term dividend payout ratio target of 60% to 70% of regulated energy delivery earnings, maintaining an 88-year history of uninterrupted dividend payments[215]. - As of February 13, 2026, the Company's common stock was held by approximately 8,200 stockholders of record[214]. - The Company's stock price may be volatile due to various factors, including fluctuations in financial performance and market conditions, which could lead to litigation risks[167][168].

Core Viewpoint - MDU Resources reported Q4 2025 earnings per share of $0.37, slightly exceeding expectations of $0.36, while revenue of $534 million fell short of projections by approximately $27.5 million [1] Financial Performance - Q4 2025 earnings per share: $0.37, beating expectations of $0.36 [1] - Q4 2025 revenue: $534 million, missing projections by about $27.5 million [1] - Full year performance details were not provided in the excerpt [1]

分组1 - MDU Resources reported Q4 2025 earnings per share of $0.37, slightly exceeding expectations of $0.36 [1] - The company's revenue for Q4 2025 was $534 million, which was approximately $27.5 million below projections [1] - For the full year, the results were driven by continuing operations, although specific figures for the full year were not detailed in the report [1]

Financial Data and Key Metrics Changes - In 2025, the company reported earnings of $190.4 million, or $0.93 per share, which was in the middle of the earnings per share guidance range [3] - Compared to 2024, earnings decreased from $281.1 million, or $1.37 per share [15] - Income from continuing operations was $191.4 million, or $0.93 per diluted share, compared to $181.1 million, or $0.88 per diluted share in 2024 [15] Business Line Data and Key Metrics Changes - The electric utility segment reported earnings of $64.9 million, down from $74.8 million in 2024, primarily due to higher operation and maintenance expenses [15][16] - The natural gas utility reported earnings of $56.1 million, a 19.6% increase from $46.9 million in 2024, driven by higher retail sales revenue [15][16] - The pipeline business achieved record earnings of $68.2 million, slightly up from $68 million in the previous year, supported by expansion projects and customer demand [15][17] Market Data and Key Metrics Changes - The utility experienced combined retail customer growth of 1.5% compared to 2024, aligning with the targeted annual growth rate of 1%-2% [3] - The company has 580 MW of data center load under signed electric service agreements, with various phases of load coming online through 2027 [9] Company Strategy and Development Direction - The company is focused on executing its capital investment plans, with a revised 2026 through 2030 capital investment plan totaling $3.1 billion [4] - The acquisition of Badger Wind Farm is a key strategic move, enhancing the company's diversified generation portfolio [4] - The company anticipates a long-term EPS growth rate of 6%-8% and targets a 60%-70% annual dividend payout ratio [13] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the ability to execute long-term growth strategies and emphasized operational focus and financial discipline [13] - The company is initiating earnings per share guidance for 2026 in the range of $0.93-$1.00 per share, reflecting strong performance across segments [12] Other Important Information - The company completed a follow-on public offering of over 10.15 million shares at a price of $19.70 per share, which is expected to meet equity issuance needs for 2026 and a significant portion of 2027 [19] - The consolidated debt-to-capitalization ratio increased slightly to 49.1% due to the Badger Wind Farm acquisition [19] Q&A Session Summary Question: Can you elaborate on the 2026 guidance and year-over-year headwinds? - Management indicated that while 2025 showed strong growth, 2026 guidance reflects a range of 6%-8% EPS growth, with some headwinds expected from rate case activities and equity issuance [25][26] Question: What are the next steps for the Bakken East Pipeline project? - Management outlined that the binding open season is ongoing until mid-March, and discussions with customers are progressing, with plans to finalize project design and customer agreements before making a final investment decision [27][28]

Financial Data and Key Metrics Changes - In 2025, the company reported earnings of $190.4 million, or $0.93 per share, compared to $281.1 million, or $1.37 per share in 2024, reflecting a decrease in overall earnings [3][15] - Income from continuing operations was $191.4 million, or $0.93 per diluted share, compared to $181.1 million, or $0.88 per diluted share in 2024, indicating an increase in continuing operations [15] - The consolidated debt-to-capitalization ratio increased slightly to 49.1% due to the acquisition of Badger Wind Farm [19] Business Line Data and Key Metrics Changes - The electric utility segment reported earnings of $64.9 million in 2025, down from $74.8 million in 2024, primarily due to higher operation and maintenance expenses [15][16] - The natural gas utility segment saw earnings rise to $56.1 million, a 19.6% increase from $46.9 million in 2024, driven by higher retail sales revenue [15][16] - The pipeline business achieved record earnings of $68.2 million in 2025, slightly up from $68 million in 2024, supported by expansion projects and customer demand [15][17] Market Data and Key Metrics Changes - The utility experienced a combined retail customer growth of 1.5% compared to 2024, aligning with the targeted annual growth rate of 1%-2% [3] - The company has 580 MW of data center load under signed electric service agreements, with various phases of load ramping online through 2027 [9] Company Strategy and Development Direction - The company is focused on executing its capital investment plans, with a revised capital investment plan of $3.1 billion for 2026 through 2030 [4] - The acquisition of Badger Wind Farm is a strategic move to enhance the company's diversified generation portfolio [4] - The company anticipates a long-term EPS growth rate of 6%-8% and targets a 60%-70% annual dividend payout ratio [13] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the ability to execute long-term growth strategies and emphasized the importance of operational focus and financial discipline [13] - The company initiated earnings per share guidance for 2026 in the range of $0.93-$1.00, reflecting strong performance across segments while accounting for equity financing [12] Other Important Information - The company completed a follow-on public offering of over 10.15 million shares at a price of $19.70 per share, which is expected to meet equity issuance needs for 2026 and a significant portion of 2027 [19] - The company filed for recovery of the Badger Wind Farm investment in North Dakota, which was approved by the North Dakota Public Service Commission [5] Q&A Session Summary Question: Can you elaborate on the 2026 guidance and year-over-year headwinds? - Management indicated that while 2025 showed strong growth, 2026 guidance reflects various rate case activities and the impact of equity issuance, with expectations for growth despite potential headwinds [25][26] Question: What are the next steps for the Bakken East Pipeline project? - Management outlined that the binding open season is currently ongoing, with discussions with customers and a timeline for final investment decision following customer agreements [27][28]

Financial Data and Key Metrics Changes - In 2025, the company reported earnings of $190.4 million, or $0.93 per share, compared to $281.1 million, or $1.37 per share in 2024, reflecting a decrease in overall earnings [15] - Income from continuing operations was $191.4 million, or $0.93 per share diluted, compared to $181.1 million, or $0.88 per diluted share in 2024, indicating an increase in continuing operations [16] - The consolidated debt-to-capitalization ratio increased slightly to 49.1% due to the acquisition of Badger Wind Farm [20] Business Line Data and Key Metrics Changes - The electric utility segment reported earnings of $64.9 million in 2025, down from $74.8 million in 2024, primarily due to higher operation and maintenance expenses [16] - The natural gas utility reported earnings of $56.1 million, a 19.6% increase from $46.9 million in 2024, driven by higher retail sales revenue and rate relief across multiple jurisdictions [17] - The pipeline business achieved record earnings of $68.2 million in 2025, slightly up from $68 million in 2024, supported by expansion projects and customer demand [18] Market Data and Key Metrics Changes - The utility experienced a combined retail customer growth of 1.5% compared to 2024, aligning with the targeted annual growth rate of 1%-2% [3] - The company has 580 MW of data center load under signed electric service agreements, with various phases of load coming online through 2027 [9] Company Strategy and Development Direction - The company is focused on executing its capital investment plans, with a revised capital investment plan of $3.1 billion for 2026 through 2030 [4] - The company is pursuing additional discussions with potential data center customers and evaluating other capital projects to meet existing customer demand and enhance grid resiliency [9] - The company anticipates a long-term EPS growth rate of 6%-8% and targets a 60%-70% annual dividend payout ratio [13] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the ability to execute long-term growth strategies and emphasized the importance of operational focus and financial discipline [13] - The company initiated earnings per share guidance for 2026 in the range of $0.93-$1.00 per share, reflecting strong performance across segments while accounting for equity financing [12] Other Important Information - The company completed a follow-on public offering of over 10.15 million shares at a price of $19.70 per share, which is expected to meet a significant portion of the company's 2026 equity issuance needs [20] - The company filed for recovery of the Badger Wind Farm investment in North Dakota, which was approved by the North Dakota Public Service Commission [5] Q&A Session Summary Question: Can you elaborate on the 2026 guidance and year-over-year headwinds? - Management indicated that while they expect growth, the midpoint of the EPS range for 2026 may not meet the long-term growth rate of 6%-8% due to various factors including rate case activity and equity issuance [25][26] Question: What are the next steps for the Bakken East Pipeline project? - Management explained that they are currently in a binding open season until mid-March and are pleased with customer interest, with plans to finalize project design and execute customer agreements before making a final investment decision [27][28]

February 5, 2026 Year-End Earnings Call Legal Disclaimer Cautionary Note Regarding Forward-Looking Statements This presentation contains forward-looking statements within the meaning of the federal securities laws. Other than statements of historical facts, all statements which address activities, events, or developments that the company anticipates will or may occur in the future are based on underlying assumptions (many of which are based, in turn, upon further assumptions), including but not limited to, ...

Core Insights - MDU Resources Group Inc. reported fourth-quarter 2025 operating earnings per share (EPS) of 37 cents, matching the Zacks Consensus Estimate, with a year-over-year increase of 37% [1] - Total revenues for 2025 reached $1.88 billion, reflecting a 6.7% increase from $1.76 billion in 2024, although fourth-quarter revenues declined by 0.3% year over year [2] Financial Performance - Total operating expenses in Q4 were approximately $426.6 million, down 3.3% from $441 million in the same quarter of the previous year [3] - Operating income for Q4 was $107.4 million, up 13.7% from $94.5 million in the prior year [3] - As of December 31, 2025, cash and cash equivalents stood at $28.2 million, a decrease from $66.9 million as of December 31, 2024 [4] - Net cash provided by operating activities in 2025 was $473.4 million, compared to $502.3 million in the previous year [4] Future Outlook - For 2026, MDU Resources expects earnings to be between 93 cents and $1 per share, with the Zacks Consensus Estimate at $1.02 [5] - The company anticipates utility customer growth of 1-2% annually and a long-term EPS growth rate of 6-8% [5] - Projected capital expenditure for 2026 is $560 million [5] Market Position - MDU Resources currently holds a Zacks Rank 2 (Buy) [6]

Core Viewpoint - MDU Resources reported quarterly earnings of $0.37 per share, matching the Zacks Consensus Estimate, and showing an increase from $0.34 per share a year ago, with an earnings surprise of +1.37% [1] Financial Performance - The company posted revenues of $534 million for the quarter ended December 2025, missing the Zacks Consensus Estimate by 3.61%, and a slight decrease from year-ago revenues of $535.5 million [2] - Over the last four quarters, MDU Resources has surpassed consensus EPS estimates three times, but has not beaten consensus revenue estimates during the same period [2] Stock Performance - MDU Resources shares have increased approximately 7.7% since the beginning of the year, outperforming the S&P 500, which gained 0.5% [3] Future Outlook - The company's earnings outlook is crucial for investors, with current consensus EPS estimates at $0.41 on $680 million in revenues for the upcoming quarter, and $1.02 on $1.99 billion in revenues for the current fiscal year [7] - The estimate revisions trend for MDU Resources was favorable ahead of the earnings release, resulting in a Zacks Rank 2 (Buy) for the stock, indicating expected outperformance in the near future [6] Industry Context - The Utility - Gas Distribution industry, to which MDU Resources belongs, is currently ranked in the bottom 38% of over 250 Zacks industries, suggesting that the industry's outlook can significantly impact stock performance [8]

Financial Performance - Net income for 2025 was $190.4 million, with earnings per share of $0.93, down from $281.1 million and $1.37 in 2024 respectively [3]. - Income from continuing operations increased by $10.3 million year-over-year to $191.4 million [5]. - Net income for Q4 2025 was $76.3 million, up 38.2% from $55.2 million in Q4 2024, and for the full year, net income decreased to $190.4 million from $281.1 million in 2024, a decline of 32.3% [30]. - The electric business reported Q4 2025 net income of $18.0 million, a 5.3% increase from $17.1 million in Q4 2024, while full-year net income decreased to $64.9 million from $74.8 million, a decline of 13.2% [34][35]. - The natural gas distribution business reported a net income of $37.0 million in Q4 2025, up from $29.4 million in Q4 2024, primarily due to higher retail sales revenue and lower operation and maintenance expenses [38]. - For the full year 2025, the natural gas distribution business net income increased to $56.1 million from $46.9 million in 2024, driven by rate relief in multiple states, despite higher operation and maintenance expenses [39]. - The pipeline business reported a net income of $18.8 million in Q4 2025, down from $20.5 million in Q4 2024, mainly due to lower demand for customer storage services and higher depreciation expenses [41]. - For the full year 2025, the pipeline business net income slightly increased to $68.2 million from $68.0 million in 2024, supported by growth projects and higher demand for transportation contracts [42]. - Other reported a net income of $2.5 million in Q4 2025, compared to a net loss of $11.8 million in Q4 2024, primarily due to improved results from discontinued operations [45]. - For the full year 2025, Other reported a net income of $1.2 million, a significant decrease from $91.4 million in 2024, mainly due to the absence of income from discontinued operations [46]. Revenue and Expenses - Operating revenues for Q4 2025 were $534.0 million, a slight decrease of 0.3% from $535.5 million in Q4 2024, while total operating revenues for the year increased to $1,875.1 million from $1,758.0 million, representing a growth of 6.7% [30]. - Natural gas distribution operating revenues for Q4 2025 were $393.0 million, down 3.3% from $406.5 million in Q4 2024, but increased for the year to $1,283.5 million from $1,201.1 million, a growth of 6.9% [37]. - Operating income for the electric segment in Q4 2025 was $21.9 million, a 5.8% increase from $20.7 million in Q4 2024, while full-year operating income decreased to $79.6 million from $94.2 million, a decline of 15.5% [33][34]. - The total operating expenses for the pipeline business increased by 3.7% to $30.8 million in Q4 2025, and by 9.2% to $128.1 million for the full year 2025 [41]. Capital Investment and Future Outlook - For 2026, the company expects earnings per share to be in the range of $0.93 to $1.00, with a capital investment plan of approximately $560 million [4][18]. - The company plans a capital investment of approximately $3.1 billion for 2026-2030, targeting a 60%-70% annual dividend payout ratio [22]. - The Minot Expansion Project, placed in service on November 1, 2025, adds approximately seven million cubic feet per day of natural gas transportation capacity [17]. - MDU Resources anticipates customer growth of 1%-2% annually, with a long-term EPS growth rate of 6%-8% [22]. Asset and Equity Information - The company's total assets as of December 31, 2025, were $7,622 million, with total equity of $2,773 million and total debt of $2,677 million [49]. - The book value per common share was $13.57, with a market price per common share of $19.52, resulting in a market value as a percent of book value of 143.8% [49]. Operational Metrics - The utility rate base grew by 16.0% year-over-year, including the 49% ownership stake in Badger Wind Farm [5]. - Electric utility earnings decreased by $9.9 million year-over-year, totaling $64.9 million, primarily due to higher operation and maintenance expenses [10]. - Natural gas distribution earnings increased by $9.2 million year-over-year to $56.1 million, driven by rate relief across multiple jurisdictions [11]. - The pipeline segment achieved record earnings of $68.2 million, benefiting from increased transportation revenue and customer demand for short-term firm capacity contracts [16]. - Interest expense for the year was $107.7 million, slightly down from $108.3 million in 2024, indicating stable financing costs despite operational changes [30]. - The average cost of electric fuel and purchased power per kWh increased to $0.025 in Q4 2025 from $0.021 in Q4 2024, while the average cost of natural gas per dk decreased to $5.86 from $6.04 in the same period [33][37]. - The company completed a $264.6 million payment for a 49% ownership interest in Badger Wind Farm, which was placed in service on December 31, 2025 [32].