MDU Resources Group 2025 Q3 Earnings Revenue Rises 8.8% as Net Income Dips 71.5%

MDU Resources Group reported mixed Q3 2025 results, . The company narrowed its full-year 2025 EPS guidance to $0.90–$0.95 from $0.88–$0.95, reflecting improved operational performance in its pipeline segment and utility customer growth, though higher operating costs pressured profitability.

Revenue

Total revenue for MDU Resources Group increased by 8.8% to $315.10 million in 2025 Q3, driven by robust performance across its regulated operations. The Pipeline segment led with record earnings of $16.8 million, fueled by transportation revenue from growth projects and short-term contracts. Regulated operations, including Electric and Natural Gas Distribution, , . , rounding out the total.

Earnings/Net Income

, , a 71.5% drop from $64.6 million. , . Elevated operating and maintenance expenses, particularly payroll and outage-related costs, significantly impacted profitability. The EPS decline underscores the challenge of balancing operational costs with revenue growth.

Post-Earnings Price Action Review

The strategy of buying MDU Resources Group shares on the date of its revenue raise announcement and holding for 30 days showed favorable performance over the past three years. The initial 30-day period is critical, , . This suggests that investors can benefit from the positive reaction of the market to MDU’s revenue raise announcements, especially if they hold the shares for at least 30 days. The backtest also indicates that the shares typically exhibit a steady performance over the short-term holding period, . Overall, this strategy can be considered effective for capturing short-term gains following an earnings release that raises revenue expectations.

CEO Commentary

CEO Insights on Performance and Strategy

, President and CEO, highlighted strong performance in the Pipeline segment and sustained customer growth in regulated utilities. She noted that "income from continuing operations increased due to customer growth projects and rate recovery across multiple jurisdictions," despite higher payroll and outage-related costs. Kivisto emphasized disciplined execution of capital projects, including the Badger Wind Farm acquisition and pipeline expansions, to support long-term value creation. The tone was cautiously optimistic, with a focus on balancing operational challenges with strategic growth initiatives.

Guidance

, reflecting improved performance in the Pipeline segment and utility customer growth. The company assumes normal weather and operating conditions in Q4, , and successful execution of capital investment and rate recovery plans. , .

Additional News

Within three weeks of the earnings release, MDU Resources Group announced the advancement of key projects, including the Badger Wind Farm acquisition and the Bakken East Pipeline expansion. The company also filed for rate increases in multiple states, including Montana, Wyoming, and Idaho, to recover costs from infrastructure investments. Additionally, , underscoring its focus on long-term growth and operational efficiency. These strategic moves aim to strengthen its energy delivery capabilities while addressing regulatory and market demands.