#USA #Bismarck #MDU Resources #Energy Delivery #Badger Wind Farm

MDU Resources Group Reports Strong Financial Results for 2025

MDU Resources Group, Inc. (NYSE: MDU) has recently announced its financial outcomes for the year ending 2025, showcasing a year filled with strategic advancements and notable infrastructure investments. Under the leadership of President and CEO Nicole A. Kivisto, the company continues to demonstrate resilience and growth within the energy delivery sector.

Key Financial Highlights

In 2025, MDU posted a net income of $190.4 million, translating to earnings of $0.93 per diluted share. Comparatively, the previous year's earnings were at $281.1 million, or $1.37 per diluted share. Despite the decline in overall earnings, the income from continuing operations increased by $10.3 million from the previous year, demonstrating effective management and operational performance in a challenging economic climate.

The utility sector underwent substantial developments, with a 16% increase in the utility rate base, significantly influenced by the acquisition of a 49% share in the Badger Wind Farm. Additionally, the company is projecting earnings per share for 2026 to be in the range of $0.93 to $1.00 based on strategic capital investments approximately totaling $560 million this year.

Operations and Investments

Throughout 2025, MDU Resources directed $792 million into capital projects aimed at sustainable growth and regulatory initiatives. The company emphasized investments in both electric and natural gas utilities, further enhanced by pipeline expansion projects. The completion of these projects is integral to accommodating the expanding customer base and ensuring reliable service - crucial factors in the highly competitive energy sector.

Kivisto remarked, "2025 was a transformative year for our company. I am extremely proud of the team's performance. We effectively deployed significant capital towards key projects, including acquiring the Badger Wind Farm, and made steady progress on regulatory activities."

Electric Utility Segment

The electric utility segment reported a decrease in earnings, down to $64.9 million from $74.8 million. The decline was primarily attributed to increased operation and maintenance expenses, influenced by rising payroll, costs associated with planned outages, and higher software and insurance costs. Nonetheless, growth in retail sales revenue, particularly from new data centers, contributed positively to the overall performance.

Natural Gas Distribution Segment

Conversely, the natural gas distribution sector experienced favorable growth, posting a $56.1 million income—up from $46.9 million the previous year. This improvement was largely due to enhanced rate relief across multiple jurisdictions (Washington, Montana, South Dakota, and Wyoming) and a 1.6% growth in retail customers. While operational and maintenance costs rose, these were mitigated by effective management strategies.

Pipeline Segment Performance

MDU’s pipeline segment achieved record earnings of $68.2 million, primarily driven by higher transportation revenues and an increase in customer demand, especially for short-term firm capacity contracts. The positive impact of expansion projects further strengthened this sector's performance, despite pressures from rising operational expenses and the absence of one-time financial benefits seen in 2024.

Looking Ahead

As the company enters 2026, there remains a clear focus on managing capital plans closely and advancing regulatory initiatives across operating regions. The projections for customer growth and revenue generation appear promising, especially with committed investments in infrastructure development and an ongoing dedication to operational excellence.

Kivisto stated, "With our employees committed to achieving operational excellence, we are well-positioned to meet rising demand while delivering long-term value for stockholders and communities alike."

MDU Resources Group strives to enhance not only its financial performance but also its commitment to delivering safe and environmentally responsible energy solutions, serving over 1.2 million customers primarily in the Midwest and Pacific Northwest. As the energy landscape changes, MDU aims to uphold its legacy of reliability and sustainability, reinforcing its position as a key player in the energy sector.

For more details on MDU Resources Group, please visit their official website or connect with the investor relations department.