MDU Resources Reports 2025 Year-End Results; Initiates 2026 Guidance

Core Insights - MDU Resources Group, Inc. reported financial results for 2025, highlighting significant infrastructure investments and customer growth in its regulated energy delivery business despite challenges from higher operating costs and weather variability [1][2]. Financial Performance - The company achieved a net income of $190.4 million for 2025, down from $281.1 million in 2024, with diluted earnings per share of $0.93 compared to $1.37 in the previous year [2][6]. - Income from continuing operations increased to $191.4 million, up $10.3 million year-over-year, with earnings per share from continuing operations also rising to $0.93 from $0.88 [2][6]. Capital Investments - MDU Resources deployed $792 million in capital for key projects, including a 49% ownership acquisition of Badger Wind Farm, which was placed in service on December 31, 2025 [2][6]. - The company plans a disciplined capital investment of approximately $560 million for 2026, focusing on regulatory activities and major pipeline projects [3][16]. Electric Utility Segment - The electric utility segment reported a decline in earnings due to higher operation and maintenance expenses, primarily from payroll-related costs and planned outage-related costs at Coyote generating station [4][7]. - Despite these challenges, the segment benefited from increased retail sales revenue, partly driven by a data center near Ellendale, North Dakota [5][32]. Natural Gas Distribution Segment - The natural gas distribution segment saw an increase in earnings, totaling $56.1 million, primarily due to rate relief across multiple jurisdictions [9][37]. - The segment's total retail customers grew by 1.6% year-over-year, although higher operation and maintenance expenses partially offset the earnings increase [9][12]. Pipeline Segment - The pipeline segment delivered strong performance with record earnings of $68.2 million, driven by increased transportation revenue from expansion projects and strong demand for short-term firm capacity contracts [11][12]. - The Minot Expansion Project, which adds approximately seven million cubic feet per day of natural gas transportation capacity, was placed in service in November 2025 [21]. Regulatory Updates - MDU Resources filed several general rate cases across various states, including a request for a $14.1 million annual revenue increase in Montana and a $7.5 million increase in Wyoming [12][13]. - The company continues to progress on regulatory initiatives, particularly within its natural gas distribution segment [2][3]. Corporate Strategy - MDU Resources is committed to its CORE strategy, focusing on customer and community priorities, operational excellence, and employee-driven culture, with an anticipated capital investment of approximately $3.1 billion for 2026-2030 [19][22]. - The company expects long-term earnings per share growth of 6%–8% and a dividend payout ratio of 60%–70% [19][16].