MDU Resources Group 2025 Q3 Earnings Sharp EPS Decline Despite Revenue Growth

MDU Resources Group (MDU) reported fiscal 2025 Q3 earnings on Nov 11, 2025, with total revenue rising 8.7% year-over-year to $315.04 million. While revenue exceeded expectations, earnings per share (EPS) fell sharply, and the company maintained full-year guidance above current Q3 results.

Revenue

Regulated operations drove MDU’s performance, generating $319.50 million in revenue, with the Electric segment contributing $117.80 million and Natural Gas Distribution adding $144.30 million. The Pipeline segment, a key growth driver, reported $57.40 million in revenue, reflecting an 11.3% increase in earnings. Non-regulated operations and other segments combined for $600,000, though these represented a minor portion of total revenue.

Earnings/Net Income

MDU’s EPS plummeted 71.9% to $0.09 in Q3 2025, down from $0.32 in Q3 2024. Net income similarly declined to $18.31 million, a 71.7% drop from $64.61 million a year earlier. The sharp contraction was attributed to the absence of income from discontinued operations, which had bolstered prior-year results.

Price Action

The stock gained 1.04% in the latest trading day, 9.89% over the past week, and 13.76% month-to-date. Analysts noted that a strategy of buying MDU after a revenue beat and holding for 30 days historically aligns with positive momentum, though risks like regulatory shifts and energy market volatility remain.

Post-Earnings Price Action Review

The strategy of purchasing MDU after a revenue beat and holding for 30 days has shown favorable potential, supported by the pipeline segment’s 11.3% earnings growth. While historical data for this exact strategy is limited, MDU’s regulated operations and stable infrastructure investments suggest resilience. Market sentiment, reflected in a $21.00 median 12-month price target, indicates upside potential. However, investors must remain cautious about external risks, including regulatory changes and commodity price fluctuations, which could impact short- and long-term performance.

CEO Commentary

CEO Mark W. Koudys emphasized disciplined capital allocation and operational efficiency, noting challenges like weather delays and inflationary pressures. Strategic priorities include accelerating investments in renewable energy and carbon capture partnerships, with a cautiously optimistic outlook for 2026.

Guidance

MDU projected full-year 2025 adjusted EPS of $0.12, exceeding Q3’s $0.09, with revenue expected to reach $320–$330 million. CAPEX is targeted at $150 million, focusing on energy transition projects.

Additional News

MDU signed a non-binding MOU with North Plains Connector LLC, securing 150 MW of capacity on the 420-mile HVDC transmission project. This aligns with other utilities’ participation levels, covering ~15% of MDU’s 2024 peak load. Separately, the company’s 10-Q report highlighted a $315.036 million revenue increase, driven by natural gas and pipeline segments, though net income dipped due to discontinued operations. MDU also joined the North Plains Connector utility consortium, becoming the seventh participant in the interconnection project.