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].

Core Insights - MDU Resources Group, Inc. reported third quarter financial results for 2025, highlighting strong performance in the pipeline segment and regulatory activities in utility segments, despite increased operational costs [1][2][4] Financial Performance - Net income for Q3 2025 was $18.4 million, down from $64.6 million in Q3 2024, with earnings per share (EPS) at $0.09 compared to $0.32 in the previous year [2][19] - Income from continuing operations increased to $18.4 million from $15.6 million year-over-year, with diluted EPS from continuing operations at $0.09, up from $0.08 [2][19] - For the nine months ended September 30, 2025, net income was $114.1 million, down from $225.9 million in 2024, with EPS decreasing from $1.11 to $0.56 [2][19] Segment Performance Electric Utility Segment - The electric utility segment reported a net income of $21.5 million in Q3 2025, down $2.8 million from the previous year, primarily due to higher operation and maintenance expenses [4][26] - Retail sales volumes declined by 1.6%, attributed to cooler summer temperatures, although industrial retail sales volumes increased [4][26] Natural Gas Distribution Segment - The natural gas distribution segment experienced a seasonal loss of $18.2 million in Q3 2025, compared to a loss of $17.5 million in Q3 2024, driven by higher operational costs [5][30] - Operating revenues increased by 8.0% year-over-year to $144.3 million, with total operating expenses rising by 7.4% [27] Pipeline Segment - The pipeline segment reported net income of $16.8 million in Q3 2025, up from $15.1 million in Q3 2024, driven by revenue from growth projects and increased customer demand [10][32] - Operating revenues for the pipeline segment increased by 11.5% year-over-year to $57.4 million [31] Regulatory Updates - MDU Resources is actively involved in regulatory proceedings across multiple states, including rate case filings in Montana and Wyoming, seeking annual increases of $14.1 million and $7.5 million, respectively [9][30] - The North Dakota Public Service Commission approved the acquisition of a 49% interest in Badger Wind Farm, which is expected to enhance the company's renewable energy portfolio [4][9] Guidance and Future Outlook - The company narrowed its earnings guidance for 2025 to a range of $0.90 to $0.95 per share, reflecting a slight adjustment based on performance through Q3 [3][11] - MDU Resources anticipates continued customer growth at a rate of 1% to 2% annually, with ongoing capital investment and rate recovery plans [17][30]

Company Strategy and Outlook - MDU Resources aims for a long-term EPS growth rate of 6%-8%[10] - The company targets an annual dividend payout ratio of 60%-70%[10] - MDU anticipates continued customer growth in the electric and natural gas sectors at a rate of 1%-2% annually[12][26] - The company narrows its 2025 earnings per share guidance to a range of $0.88 to $0.95[24] Regulatory Updates and Projects - Natural Gas Distribution in Montana: A settlement agreement is pending for an 8.6% or $7.3 million increase, with interim rates of 10.25% or $7.7 million already effective[13] - Natural Gas Distribution in Wyoming: A settlement agreement was approved for an 11.7% or $2.1 million increase, with rates effective August 1, 2025[13] - The company has signed electric service agreements for 580 MW of data center load[12][16] - MDU has a 49% ownership interest representing 122.5 MW in the Badger Wind Project, with a total capacity of 250 MW, and an estimated cost of $294 million[12][21] Financial Performance - MDU Resources Group's net income for the second quarter of 2025 was $14.1 million, or $0.07 per share, compared to $20.2 million, or $0.10 per share in 2024[31] - The Electric Utility reported earnings of $10.4 million, with retail sales volumes increasing 12.0%[34][35] - The Natural Gas Utility experienced a seasonal loss of $7.4 million, with customer count increasing 1.5% year-over-year[37][38] - The Pipeline segment reported earnings of $15.4 million[40]

Core Viewpoint - MDU Resources Group, Inc. reported second quarter financial results for 2025, highlighting sustained momentum in the pipeline segment and regulatory progress that supports the company's long-term value as a regulated energy delivery business [1][2]. Financial Performance - For the second quarter of 2025, net income was $13.7 million, a decrease from $60.4 million in the same period of 2024. Earnings per share (EPS) diluted were $0.07 compared to $0.30 in 2024 [2][21]. - Income from continuing operations was $14.1 million, down from $20.2 million year-over-year, with diluted EPS from continuing operations at $0.10, up from $0.07 [2][21]. - Operating revenues for the second quarter of 2025 were $351.2 million, compared to $344.5 million in 2024, while operating expenses increased to $320.8 million from $305.0 million [13][21]. Segment Performance Electric Utility Segment - The electric utility segment earned $10.4 million in Q2 2025, down from $15.5 million in Q2 2024, primarily due to increased operation and maintenance expenses [4][21]. - Higher payroll-related costs and expenses from a planned outage contributed to the increased costs, although these were partially offset by higher commercial sales volumes and rate relief in South Dakota [4][21]. Natural Gas Distribution Segment - The natural gas distribution segment reported a seasonal loss of $7.4 million in Q2 2025, compared to a loss of $5.0 million in 2024, driven by higher operation and maintenance expenses and unfavorable weather conditions [5][25]. - Operating revenues increased to $206.9 million in Q2 2025 from $201.5 million in 2024, with a notable increase in purchased natural gas sold [22][25]. Pipeline Segment - The pipeline segment reported earnings of $15.4 million in Q2 2025, down from $17.3 million in 2024, impacted by higher operation and maintenance expenses and the absence of a customer settlement from the previous year [8][26]. - Operating revenues for the pipeline segment increased to $56.3 million in Q2 2025 from $52.9 million in 2024, supported by higher transportation revenue from recent expansion projects [26]. Guidance and Strategic Outlook - The company narrowed its full-year earnings guidance to a range of $0.88 to $0.95 per share, reflecting midyear performance and weather impacts [6][9]. - Long-term EPS guidance remains unchanged, with an expected growth rate of 6%-8% [6][9]. Regulatory Updates - The company is actively pursuing regulatory approvals for various projects, including a General Rate Case in Wyoming requesting a $7.5 million annual increase, and applications for new projects in North Dakota and Idaho [7][22]. - Rate relief in Washington and Montana has partially offset seasonal losses in the natural gas distribution segment [5][25]. Capital Expenditures - Total capital expenditures for 2025 are estimated at $539 million, with significant investments planned in electric and natural gas distribution segments [18][22]. Other Financial Data - As of June 30, 2025, the company reported total assets of $6.946 billion and total equity of $2.732 billion, with a book value per common share of $13.37 [31]. - The market price per common share was $16.67, representing 124.7% of the book value [31].

Financial Performance - MDU Resources Group's net income decreased from $82.5 million in 2024 to $74.7 million in 2025 [31] - Earnings per share decreased from $0.40 in 2024 to $0.37 in 2025 [31] - Income from continuing operations decreased from $100.9 million in 2024 to $82.0 million in 2025 [31] - Electric Utility earnings decreased from $17.9 million in 2024 to $15.0 million in 2025 [36] - Natural Gas Utility earnings increased from $40.1 million in 2024 to $44.7 million in 2025 [39] - Pipeline earnings increased from $15.1 million in 2024 to a record $17.2 million in 2025 [42] Regulatory and Operational Updates - Natural Gas Distribution in Washington saw a rate increase of 7.9%, resulting in $29.8 million in additional annual revenue [13] - Natural gas customer count increased 1.5% year-over-year [40] - The company has 580 MW of data center load under signed electric service agreements [12, 16] - The company is considering purchasing a 49% ownership interest in Badger Wind Farm, representing 122.5 MW of the total 250 MW capacity [21]

Pipeline segment reports record first quarter earnings, up 13.9% Natural gas distribution earnings up 11.5% 2025 guidance affirmed; earnings per share in the range of $0.88 to $0.98 Strong start to the year supports company's transition to a pure-play regulated energy delivery businessBISMARCK, N.D., May 8, 2025 /PRNewswire/ -- MDU Resources Group, Inc. (NYSE: MDU) today announced its financial results for the first quarter of 2025, reporting solid performance across its regulated energy delivery segments ...