MDU Resources (US:MDU)2025-11-06 13:35Financial Performance - Net income for Q3 2025 was $18.4 million, a decrease of 71.5% from $64.6 million in Q3 2024[2] - Earnings per share (EPS) from continuing operations for Q3 2025 was $0.09, compared to $0.08 in Q3 2024, reflecting a 12.5% increase[2] - Income from continuing operations increased by $2.8 million year-over-year, totaling $18.4 million in Q3 2025[3] - The electric utility segment reported a net income of $21.5 million in Q3 2025, down from $24.3 million in Q3 2024, primarily due to higher operation and maintenance expenses[4] - For Q3 2025, the company reported a net loss of $1.7 million, a significant decrease from a net income of $42.7 million in Q3 2024, primarily due to the absence of income from discontinued operations[28] - The loss from continuing operations for Q3 2025 was $1.7 million, a 73.0% improvement from a loss of $6.3 million in Q3 2024[27] Revenue and Expenses - Operating revenues for Q3 2025 were $315.1 million, an increase of 8.5% from $289.6 million in Q3 2024[17] - The electric business reported operating revenues of $117.8 million for Q3 2025, an increase of 8.6% compared to $108.5 million in Q3 2024[21] - Natural gas distribution operating revenues increased to $144.3 million in Q3 2025, an 8.0% rise from $133.6 million in Q3 2024[23] - Pipeline operating revenues reached $57.4 million in Q3 2025, an increase of 11.5% from $51.5 million in Q3 2024[25] - Total operating expenses for the electric segment increased by 17.0% to $89.4 million in Q3 2025, compared to $76.4 million in Q3 2024[21] - The natural gas distribution segment's total operating expenses increased by 7.4% to $159.3 million in Q3 2025, compared to $148.3 million in Q3 2024[23] - The pipeline segment's total operating expenses rose by 11.6% to $32.8 million in Q3 2025, compared to $29.4 million in Q3 2024[25] Capital Expenditures and Guidance - Total capital expenditures for 2025 are estimated at $531 million, with $294 million allocated to natural gas distribution[19] - The company narrowed its earnings guidance for 2025 to a range of $0.90 to $0.95 per share, reflecting performance through Q3[9] Customer Growth - Natural gas retail customer count increased by 1.6% year-over-year, indicating growth in the customer base[7] Business Segments Performance - The pipeline segment reported a net income of $16.8 million in Q3 2025, up 11.3% from $15.1 million in Q3 2024[8] - The natural gas distribution segment reported a seasonal loss of $18.2 million in Q3 2025, compared to a loss of $17.5 million in Q3 2024, driven by higher operation and maintenance expenses[24] - Net income for the electric segment decreased to $21.5 million in Q3 2025, down 11.5% from $24.3 million in Q3 2024, primarily due to higher operation and maintenance expenses[22] Operational Improvements - The operating income for Q3 2025 was $1.8 million, a turnaround from an operating loss of $4.7 million in Q3 2024, reflecting a 138.3% improvement[27] - The company experienced a 61.0% reduction in interest expense, which decreased to $1.6 million from $4.1 million year-over-year[27] Tax and Valuation - The income tax expense for Q3 2025 was $3.9 million, reflecting a 129.4% increase compared to $1.7 million in Q3 2024[27] - The book value per common share as of September 30, 2025, was $13.33, while the market price per common share was $17.81, resulting in a market value of 133.6% of book value[30] - Total assets as of September 30, 2025, amounted to $7,186 million, with total equity at $2,723 million and total debt at $2,353 million[30] - The company's capitalization ratios indicated that total equity comprised 53.6% of the capital structure, while total debt accounted for 46.4%[30] Corporate Developments - The company completed the separation of its former construction services business, Everus, into a new independent publicly-traded company on October 31, 2024[27] - The company is actively pursuing expansion projects, including the Line Section 32 Expansion Project and the Minot Industrial Pipeline Project, to enhance service capacity[10]