MDU Resources Q1 revenue falls and misses estimates, hurt by weather impact

Mdu Resources

07/05/2026 13:37

Overview

US utility and pipeline operator's Q1 revenue declined and missed analyst expectations

Q1 adjusted EPS was $0.39, slightly below prior year, impacted by milder weather

Company affirmed 2026 EPS guidance and reported progress on Bakken East Pipeline Project

Outlook

MDU Resources affirms 2026 EPS guidance in the range of $0.93 to $1.00

Company expects utility customer growth at 1%-2% annually

MDU maintains long-term EPS growth rate guidance of 6%-8%

Result Drivers

MILDER WEATHER - Lower electric and natural gas volumes due to warmer temperatures reduced earnings, partially offset by normalization mechanisms

RATE RELIEF AND INVESTMENTS - Rate relief and recent investments, including Badger Wind Farm and pipeline expansions, contributed positively to results

PIPELINE SEGMENT PRESSURES - Lower interruptible storage withdrawals and higher operation and maintenance expense weighed on pipeline earnings, partly offset by new projects and strong demand for short-term contracts

Company press release: ID:nPn9tg4Xa

Key Details

Metric
Beat/Miss
Actual
Consensus Estimate
Q1 Revenue
Miss
$606 mln
$688.26 mln (4 Analysts)
Q1 EPS
$0.39
Q1 Net Income
$80.8 mln
Q1 Operating Expenses
$490.3 mln
Q1 Operating Income
$115.7 mln
Q1 Pretax Profit
$85.6 mln


Analyst Coverage

The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 4 "strong buy" or "buy", 4 "hold" and no "sell" or "strong sell"

The average consensus recommendation for the multiline utilities peer group is "buy"

Wall Street's median 12-month price target for MDU Resources Group Inc is $22.50, about 0.9% above its May 6 closing price of $22.31

The stock recently traded at 22 times the next 12-month earnings vs. a P/E of 21 three months ago

For questions concerning the data in this report, contact Estimates.Support@lseg.com. For any other questions or feedback, contact reuters.support@thomsonreuters.com.

(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)