MDU Resources Group, Inc. reported third‑quarter 2025 results that included a net income of $18.4 million and earnings per diluted share of $0.09, a decline from the $0.32 EPS recorded in the same quarter last year. Revenue reached $315.1 million, surpassing the consensus estimate of $305 million by $10.1 million, driven by growth in the electric utility and pipeline segments.
The electric utility division generated $21.5 million in net income, up from $24.3 million a year earlier, while the pipeline segment produced $16.8 million, an increase from $15.1 million. The natural‑gas distribution business recorded a seasonal loss of $18.2 million, slightly worse than the $17.5 million loss reported in the prior year, reflecting higher operating costs in that segment.
Operating margin improved to 12.6% from 8.7% YoY, a result of higher mix and operational efficiency. However, the company’s operating‑and‑maintenance expenses rose, driven by increased payroll, outage‑related costs, and depreciation, which contributed to the EPS miss of $0.02 against the consensus estimate of $0.11.
MDU narrowed its full‑year 2025 EPS guidance to $0.90–$0.95, up from the previous $0.88–$0.95 range, signaling confidence in maintaining profitability while acknowledging cost pressures. The company reiterated its long‑term EPS growth target of 6%–8% and emphasized disciplined capital allocation, data‑center electrification, and pipeline expansion projects such as Line Section 32.
Regulatory approval from the North Dakota Public Service Commission in September 2025 cleared MDU’s 49% stake in the Badger Wind Farm, supporting the company’s renewable‑energy strategy. Management highlighted ongoing rate‑case activity and the strategic importance of the wind farm and pipeline projects in sustaining long‑term value creation.
Overall, MDU’s Q3 results illustrate a company balancing revenue growth with rising operating costs, maintaining a solid operating margin, and pursuing strategic investments that align with its long‑term growth objectives.
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