MDU Resources Q3 revenue beats estimates, pipeline earnings rise

Mdu Resources

06/11/2025 13:39

Overview

MDU Resources Q3 revenue beats analyst expectations, driven by pipeline segment growth

Income from continuing operations increased, offset by higher operation and maintenance expenses

Outlook

MDU Resources narrows 2025 EPS guidance to $0.90-$0.95

Company assumes normal weather and economic conditions for Q4

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

Result Drivers

PIPELINE GROWTH - Earnings in the pipeline segment increased by 11.3%, driven by expansion projects and strong demand for short-term contracts

UTILITY CUSTOMER GROWTH - Income from continuing operations increased due to customer growth projects and rate recovery across multiple jurisdictions

ELECTRIC SEGMENT CHALLENGES - Electric earnings declined due to higher operation and maintenance expenses, particularly from increased payroll and outage-related costs

Key Details

Metric
Beat/Miss
Actual
Consensus Estimate
Q3 Revenue
Beat
$315.10 mln
$305.01 mln (2 Analysts)
Q3 Net Income
$18.40 mln
Q3 Operating Expenses
$275.30 mln
Q3 Operating Income
$39.80 mln
Q3 Pretax Profit
$20.70 mln


Analyst Coverage

The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 4 "strong buy" or "buy", 2 "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 $21.00, about 6.2% above its November 5 closing price of $19.69

The stock recently traded at 20 times the next 12-month earnings vs. a P/E of 17 three months ago

Press Release: ID:nPn1Zd369a

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(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.)