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MDU Resources Group's Third Quarter 2025 Results

On November 6, 2025, MDU Resources Group, Inc. (NYSE: MDU) announced its financial outcomes for the third quarter of 2025, showcasing strong performance across various segments, particularly in pipelines and regulated utility operations. Despite facing increased costs, the company has managed to navigate these challenges effectively while continuing to implement its long-term strategic initiatives.

Key Financial Highlights

• - Net Income: The net income for the third quarter was $18.4 million, a considerable increase from $15.6 million in the previous year.
• - Earnings per Share: Diluted earnings per share from continuing operations rose to $0.09, compared to $0.08 in Q3 2024.
• - Pipeline Segment Performance: Earnings in the pipeline segment surged by 11.3%, boosting revenue by 11.5% due to strong demand for short-term transportation contracts and successful expansion projects.

MDU’s President and CEO, Nicole A. Kivisto, emphasized the company's commitment to executing its plans efficiently, stating, "Our performance underscores the resilience of our diversified utility and pipeline portfolio. Growth in customer projects and rate recoveries has helped us to counterbalance increased operational and maintenance expenses."

Segment Performance Breakdown

The results reflect a nuanced landscape across MDU’s business segments:

Electric Utility Segment

The electric utility segment saw a dip in earnings, reporting a net income of $21.5 million for Q3 2025, down from $24.3 million in the prior year. This decline can be attributed to higher operational costs, particularly payroll and outage-related expenses, which surged due to summer weather impacts on retail sales volumes. Notably, the North Dakota Public Service Commission approved key regulatory measures for the Badger Wind Farm investment, indicating continued commitment to renewable energy projects.

Natural Gas Distribution

This segment reported a seasonal loss of $18.2 million, a slight increase from a $17.5 million loss in the same period last year. The increased seasonal losses were due to a rise in operational expenses amidst escalating payroll costs, although these were somewhat mitigated by rate relief in multiple states including Washington, Montana, and Wyoming. Retail customer counts, however, grew by 1.6% year-over-year, showing a positive trend in customer retention.

Pipeline Sector Outcomes

The pipeline segment was a shining star this quarter. Net income here rose to $16.8 million, showing an increase from $15.1 million in Q3 2024. This is driven by continued strong demand and successful completions of growth projects like the Wahpeton Expansion Project. MDU has also actively pursued expansion opportunities to enhance natural gas transportation capacities, reflecting a strategic focus on meeting market needs.

Regulatory Updates

In terms of regulations, MDU is pursuing adjustments to rates across various states. In Montana, a general rate case has been filed seeking an annual increase of $14.1 million, paralleling efforts in Wyoming and other regions for similar adjustments.

Project Innovations and Future Guidance

MDU Resources is actively working on several critical projects including the Line Section 32 Expansion, which is set to serve a new electric generation facility in North Dakota and anticipates filing FERC applications in early 2026. For the upcoming quarter, the company has narrowed its earnings per share guidance to $0.90 to $0.95.

Kivisto concluded with optimism, noting, "MDU Resources remains committed to investing in our infrastructure, aiming for long-term, sustainable growth. We will continue navigating our operational challenges while focusing on customer satisfaction and stakeholder value creation."

In a world increasingly focused on sustainable energy solutions, MDU Resources' strategic direction aligns with market innovations and solidifies its position as a key player in energy delivery. The company is set to webcast its detailed third quarter earnings on the same day, underscoring transparency and commitment to investor relations.

For further information about MDU Resources Group, please visit MDU Resources.