MDU Resources Q3 Earnings Top, Revenues Up Y/Y, '25 EPS View Narrowed

Core Insights - MDU Resources Group Inc. reported third-quarter 2025 operating earnings per share (EPS) of 9 cents, exceeding the Zacks Consensus Estimate of 7 cents by 28.6%, but reflecting a significant decrease of 71.9% year over year [1][8]. Revenue Performance - Total operating revenues for the third quarter increased by 8.8% to $315.1 million, compared to $289.6 million in the same period of 2024 [2][8]. Expense and Income Analysis - Total operating expenses rose to nearly $275.3 million, marking an 8% increase from $254.8 million in the prior year [3]. - Operating income was reported at $39.8 million, which is a 14.4% increase from $34.8 million in the year-ago quarter [3]. Financial Position - As of September 30, 2025, cash and cash equivalents stood at $75.9 million, up from $66.9 million as of December 31, 2024 [4]. - For the first nine months of 2025, net cash provided by operating activities was $392.8 million, down from $441.8 million in the same period last year [4]. Guidance and Projections - MDU Resources has narrowed its earnings guidance for 2025 to a range of 90-95 cents per share, with the Zacks Consensus Estimate at 92 cents, slightly below the midpoint of the guidance [5]. - The company expects utility customer growth to continue at an annual rate of 1-2% and anticipates a long-term EPS growth rate of 6-8% [5]. - Capital expenditure for 2025 is projected to be $531 million [5]. Market Position - MDU Resources currently holds a Zacks Rank of 4 (Sell) [6].