MDU Resources Group MDU 2025Q2 Earnings Preview Downside Expected on Reduced Revenue Forecasts

Forward-Looking Analysis
MDU Resources Group is set to announce its Q2 2025 earnings results on August 7th, with analysts predicting earnings of $0.10 per share and revenues of $315.67 million. This represents a significant decrease from Q1 2025, where the company achieved an EPS of $0.40 and revenues of $674.8 million. The company has forecasted earnings per share for 2025 in the range of $0.88 to $0.98, based on assumptions of normal weather, economic and operating conditions, and continued customer growth. MDU Resources Group aims to capitalize on its transition to a pure-play regulated energy delivery business through its pipeline and natural gas distribution segments. However, increased operating and maintenance expenses and lower interest income remain challenges. The company continues to execute its long-term growth strategy and remains focused on meeting customer demand and regulatory progress across its service territories.

Historical Performance Review
MDU Resources Group reported robust financial results for Q1 2025, with operating revenues of $674.83 million and net income of $81.97 million, resulting in an EPS of $0.40. The company achieved a gross profit of $313.93 million. These results reflect a strong start to the year across its regulated energy delivery segments, with notable earnings growth in its pipeline and natural gas distribution businesses.

Additional News
MDU Resources Group has reaffirmed its 2025 earnings per share guidance, expecting it to range from $0.88 to $0.98. The company’s pipeline business reported record earnings for the first quarter, driven by growth projects and strong customer demand for transportation capacity and storage services. MDU also completed the spinoff of Everus, its construction services business, on October 31, 2024, now operating as an independent entity. This strategic move is part of MDU's focus on becoming a fully regulated energy delivery company. The company continues to advance regulatory activities across multiple jurisdictions and anticipates general rate case filings in Montana and Wyoming later this year.

Summary & Outlook
MDU Resources Group demonstrates solid financial health with strong Q1 results, although facing challenges in Q2 with expected revenue declines. The company’s transition to a fully regulated energy delivery business is a key growth catalyst, while increased operating expenses pose risks. Given these dynamics, the outlook remains neutral. MDU's continued focus on pipeline expansion and regulatory advancements supports its long-term growth strategy. However, achieving the full-year EPS guidance will require addressing ongoing operational challenges and maintaining customer growth momentum.