#USA #Q2 2025 #MDU Resources #Energy Delivery #Bismarck, ND

MDU Resources Group Reveals Second Quarter 2025 Results

On August 7, 2025, MDU Resources Group, Inc. (NYSE: MDU) released its financial results for the second quarter of 2025, demonstrating resilience in the pipeline segment despite operational challenges and regulatory complexities. According to Nicole A. Kivisto, President and CEO of MDU Resources, the company has achieved consistent momentum, reflecting a robust energy delivery business evolution.

Financial Performance Highlights

In the three months ending June 30, 2025, MDU Resources reported a net income of $13.7 million, down from $60.4 million in the same period the previous year. The diluted earnings per share were recorded at $0.07 compared to $0.30 in the corresponding quarter of 2024. When looking at the first half of 2025, the earnings per share from continuing operations remained stable at $0.47, unchanged from the previous year.

The company is in the midst of a focused transformation, recently completing the spinoff of its construction services division, Everus, into a standalone publicly-traded entity on October 31, 2024. This strategic move, while temporarily affecting overall results, paves the way for clearer financial tracking and stronger future growth prospects.

Segmented Performance: Insights and Challenges

Electric Utility Segment

The electric utility arm reported an income of $10.4 million for the second quarter, reduced from $15.5 million year-over-year. Despite increased retail sales volumes of 12% driven by the rising demand from data centers, the segment faced increased operation and maintenance expenses tied to payroll and planned outages. Regulatory advancements were also noted as a step forward for ongoing and future projects in this sector.

Natural Gas Distribution Sector

In contrast, the natural gas distribution sector experienced a challenge with a recorded loss of $7.4 million, exacerbated by high operation and maintenance costs and unfavorable weather conditions. The increase in payroll-related expenses was a significant contributing factor. On a positive note, the company achieved a 1.5% increase in its retail customer base compared to the previous year, indicating growth potential even in challenging times.

Pipeline Segment

The pipeline business showcased promising results, generating $15.4 million in the second quarter, achieving stable year-over-year performance. This segment continues to benefit from strategic expansion projects like the Wahpeton Expansion, enhancing short-term firm transportation capacity to satisfy rising customer demand.

Regulatory Developments

MDU Resources has proactively engaged in rate filings across various jurisdictions. Recent developments include an upcoming rate case in Wyoming requesting an increase of $7.5 million anticipated to take effect on May 1, 2026, and an ongoing regulatory process concerning the acquisition of a stake in the Badger Wind Project in North Dakota.

Guidance Update for 2025

MDU Resources has narrowed its earnings per share guidance for the full year 2025 to a range of $0.88 to $0.95. This evaluation reflects current operational conditions, anticipated customer growth, and the necessity of strategic investments. Kivisto reassured stakeholders of the company’s 'CORE' strategy focused on delivering reliable energy, customer value, and sustainable stockholder returns.

Future Outlook and Conference Call

The management is set to conduct a webcast to further discuss these results at 2 p.m. ET today, which will be available on the company's website under the Investors section. MDU Resources continues to navigate through the evolving energy landscape, with a strong focus on infrastructure investments and regulatory compliance designed to enhance customer and shareholder value.

In summary, MDU Resources is at a critical juncture of operational adjustment, regulatory compliance, and market adaptation as it aims to sustain its legacy of providing energy solutions to over 1.2 million customers across America. With strategic investments and a clear path for future growth, the company remains committed to energizing lives sustainably.