Income from continuing operations of $191.4 million, up $10.3 million year-over-year
Utility rate base grew 16.0% year-over-year including the 49% ownership stake in Badger Wind Farm
2026 guidance: earnings per share in the range of $0.93 to $1.00
BISMARCK, N.D., Feb. 5, 2026 /PRNewswire/ -- MDU Resources Group, Inc. (NYSE:MDU) today announced its financial results for 2025, reflecting continued execution of the company's strategy as a pure-play regulated energy delivery business. During 2025, the company advanced significant infrastructure investments, achieved customer growth across its electric and natural gas utilities, and benefited from key pipeline expansion projects recently placed into service, despite higher operating costs and weather-related variability.
"2025 was a transformative year for our company," said Nicole A. Kivisto, president and CEO of MDU Resources. "In our first full year operating as a pure-play business, I am extremely proud of the team's performance. We deployed $792 million of capital that advanced key projects, including the 49% ownership acquisition of Badger Wind Farm, we made meaningful progress on regulatory initiatives, particularly within our natural gas distribution segment, and we delivered strong results in our pipeline segment, driven by new projects and strong short-term firm capacity demand."
The following summarizes the company's year-end results for the twelve months ended Dec. 31:
2025
2024
(In millions, except per share amounts)
Net income
$ 190.4
$ 281.1
Earnings per share, diluted
$ 0.93
$ 1.37
Income from continuing operations
$ 191.4
$ 181.1
Earnings per share from continuing operations, diluted
$ 0.93
$ 0.88
On Oct. 31, 2024, MDU Resources successfully completed the spinoff of Everus, which became an independent, publicly-traded company. Prior period results have been restated to reflect the spinoff. Everus' historical results of operations and certain costs associated with the spinoff are reported as discontinued operations.
"As we continue in 2026, we are focused on executing a disciplined capital plan of approximately $560 million, advancing key regulatory activity across our jurisdictions and progressing major pipeline projects," Kivisto added. "With earnings guidance of $0.93 to $1.00 per share and continued customer growth, along with our employees' commitment to operational excellence, we are well positioned to meet rising demand while delivering long-term value for stockholders, customers and the communities we serve."
Electric Utility SegmentElectric earnings declined due mainly to higher operation and maintenance expense
Electric utility earnings down $9.9 million year-over-year, totaling $64.9 million
Higher operation and maintenance expense
Benefited from retail sales revenue and volumes, including contributions from data centers
The electric utility segment's 2025 results were influenced by higher operation and maintenance expense, primarily due to increased payroll-related costs. Additional cost pressures included planned outage-related costs at Coyote generating station, increased software expenses and higher insurance expense.
These impacts were partially offset by higher retail sales revenue and volumes, driven in part by a data center near Ellendale, North Dakota. The electric segment continued to invest in system reliability and generation resources, including the 49% ownership interest in Badger Wind Farm, which was acquired and placed in service on Dec. 31, 2025.
Electric Utility Segment Regulatory Updates:
Montana: Filed a general rate case on Sept. 30, 2025, requesting an annual revenue increase of $14.1 million. The Montana Public Service Commission (MTPSC) has nine months to rule on the case. The company requested interim rates be effective Jan. 1, 2026. The MTPSC denied the interim rate relief, and a request for reconsideration was filed Dec. 26, 2025. On Feb. 3, 2026, the request for reconsideration went before the MTPSC and no action was taken.
Wyoming: Filed a general rate case on June 30, 2025, requesting an annual revenue increase of $7.5 million. On Jan. 23, 2026, a settlement agreement was filed with an annual increase of $5.8 million and a stipulation to withdraw the Reliability and Safety Rider. Rates are anticipated to be effective April 1, 2026.
North Dakota: Filed an updated Renewable Resource Cost Adjustment (RRCA) on Oct. 31, 2025, including recovery of Badger Wind Farm, and the North Dakota Public Service Commission approved the RRCA on Jan. 26, 2026.
South Dakota: Filed an out-of-period update to the Infrastructure Rider on Oct. 31, 2025, reflecting inclusion of recovery for Badger Wind Farm.
Natural Gas Distribution SegmentNatural gas distribution earnings increased due primarily to rate relief
Natural gas distribution earnings up $9.2 million year-over-year, totaling $56.1 million
Rate relief in Washington, Montana, South Dakota and Wyoming
Total retail customers grew 1.6% year-over-year
Increased earnings partially offset by higher operation and maintenance expense
The natural gas distribution segment's 2025 results improved year-over-year, driven primarily by rate relief across multiple jurisdictions, including Washington, Montana, South Dakota and Wyoming. These favorable impacts were partially offset by higher operation and maintenance expense, mainly due to increased insurance expense, higher payroll-related costs and increased software expenses.
Natural Gas Distribution Segment Regulatory Updates:
Washington: Implemented the multi-year rate plan approved on Feb. 24, 2025, with a year one annual increase of $29.8 million, effective March 5, 2025. On June 1, 2025, a revision to rates was effective, reducing year one revenue by $3.7 million related to forecasted capital projects that were not placed in service. On March 1, 2026, year two rates reflecting a $10.8 million annual increase will go into effect, subject to completion of a provisional plant review.
Oregon: Filed a general rate case on Nov. 25, 2025, requesting $16.4 million annually. Rates are anticipated to be effective Oct. 31, 2026.
Idaho: A general rate case settlement agreement was approved Dec. 30, 2025, for an annual increase of $13.0 million, with rates effective Jan. 1, 2026.
Montana: On Jan. 14, 2025, interim natural gas rates were approved at $7.7 million annually, effective Feb. 1, 2025. A general rate case settlement was approved Oct. 7, 2025, finalizing a $7.3 million annual increase, with rates effective Nov. 1, 2025.
Wyoming: General rate case settlement agreement approved June 24, 2025, for an annual increase of $2.1 million, with rates effective Aug. 1, 2025.
Pipeline SegmentExpansion projects continue to drive earnings, largely offset by higher operation and maintenance expense as well as the absence of one-time benefits in 2024
Pipeline segment record earnings of $68.2 million, up slightly year-over-year
Higher transportation revenue, mainly from expansion projects and increased demand for short-term firm capacity contracts
Higher operation and maintenance expense
The pipeline segment delivered strong performance in 2025. Earnings benefited from increased transportation revenue associated with expansion projects completed throughout 2024 and the Minot Expansion Project placed in service in November 2025. The company also benefited from increased customer demand for short-term firm capacity contracts.
These favorable factors were largely offset by higher operation and maintenance expense, primarily due to increased payroll-related expenses, higher depreciation related to increased capital investments, and higher property taxes, particularly in Montana, as well as the absence of 2024 benefits, including the proceeds from a customer settlement and an adjustment related to effective state income tax rate change.
Pipeline Segment Strategic Projects Updates:
Minot Expansion Project: The expansion was placed in service Nov. 1, 2025, and adds approximately seven million cubic feet per day of natural gas transportation capacity.
Line Section 32 Expansion Project: This project will provide natural gas transportation service to a new electric generation facility in northwest North Dakota. The company continues to make progress on required surveys and anticipates filing its FERC application in March of 2026. Construction is targeted to be complete in late 2028.
Minot Industrial Project: This proposed project could consist of an approximately 90-mile pipeline from Tioga, North Dakota to Minot, North Dakota and ancillary facilities to support anticipated industrial demand in the area. The company has signed an agreement to support the early-stage development of the project through the second quarter of 2026.
Bakken East Project: The FERC pre-filing request was submitted Dec. 23, 2025 for the proposed pipeline project from the Bakken region in western North Dakota to eastern North Dakota. A binding open season launched Feb. 2, 2026, and will close March 13, 2026. The company continues contract negotiations with several interested parties.
GuidanceFor 2026, MDU Resources expects earnings per share to be in the range of $0.93 to $1.00. In addition, the company has $560 million in capital investment planned for 2026.
The expected 2026 results are based on these assumptions:
Normal weather, economic and operating conditions
Continued growth in utility customers at 1%–2% annually
Successful execution of approved capital investment and rate recovery plans
The company's long-term EPS guidance remains unchanged with an expected growth rate of 6%–8%.
Equity and Funding PlanOn Dec. 5, 2025, the company completed a follow-on public offering of 10,152,284 shares of its common stock at a public offering price of $19.70 per share. In addition, on Dec. 23, 2025, the underwriters exercised their option to purchase 1,522,842 additional shares of common stock. Pursuant to forward sale agreements entered into in connection with the offering, the company has discretion to settle the forward sale agreements on one or more settlement dates prior to Dec. 6, 2027, subject to certain price adjustments as set forth in the forward sale agreements as well as transaction and other associated fees.
The company had previously stated that it expects to issue between $150 million to $175 million of equity in 2026, and between $100 million to $125 million in 2027, to support near-term capital expenditures for growth. The 11,675,126 shares of common stock in the forward sale agreements is expected to meet a substantial portion of these stated equity issuance needs. The company will assess equity issuance needs beyond 2027 in future periods as its long-term investment plans are updated.
Corporate StrategyMDU Resources is committed to its CORE strategy, which prioritizes customers and communities, operational excellence, returns focused initiatives and an employee-driven culture. The company anticipates a capital investment of approximately $3.1 billion for 2026-2030 and customer growth of 1%–2% annually. Additionally, the company anticipates 6%–8% long-term compound annual growth on earnings per share while targeting a 60%–70% annual dividend payout ratio.
Conference CallMDU Resources' management will discuss on a webcast at 2 p.m. ET today the company's 2025 results. The webcast can be accessed at www.mdu.com under the "Investors" heading. Select "Events & Presentations," and click on "Year-End 2025 Earnings Conference Call." A replay of the webcast will be available at the same location.
About MDU Resources Group, Inc.MDU Resources Group, Inc., a member of the S&P SmallCap 600 index, strives to deliver safe, reliable, cost-effective and environmentally responsible electric utility and natural gas distribution services to more than 1.2 million customers across the Pacific Northwest and Midwest. In addition to its utility operations, the company's pipeline business operates a more than 3,800-mile natural gas pipeline network and storage system, ensuring reliable energy delivery across the Northern Plains. With a legacy spanning over a century, MDU Resources remains focused on energizing lives for a better tomorrow. For more information about MDU Resources, visit www.mdu.com or contact the investor relations department at [email protected].
Investor Contact: Brent Miller, treasurer, 701-530-1730Media Contact: Byron Pfordte, director of integrated communications, 208-377-6050
Cautionary Note Regarding Forward-Looking Statements
This news release contains forward-looking statements within the meaning of the federal securities laws. Other than statements of historical facts, all statements which address activities, events, or developments that the company anticipates will or may occur in the future are based on underlying assumptions (many of which are based, in turn, upon further assumptions), including but not limited to, statements identified by the words "anticipates," "estimates," "expects," "intends," "plans," and "predicts," in each case related to such things as growth estimates, stockholder value creation, the company's "CORE" strategy, capital expenditures, financial guidance, trends, objectives, goals, strategies, earnings per share growth targets, dividend payout ratio targets, customer rates, regulatory approvals, sustainability, and other such matters, each of which is a forward-looking statement. These forward-looking statements are based on many assumptions and factors, which are detailed in the company's filings with the U.S. Securities and Exchange Commission.
While made in good faith, these forward-looking statements are based largely on the company's expectations and judgments and are subject to a number of risks and uncertainties, many of which are unforeseeable and beyond the company's control. For additional discussion regarding risks and uncertainties that may affect forward-looking statements, see "Risk Factors" disclosed in the company's most recent Annual Report on Form 10-K, and subsequent filings. Any changes in such assumptions or factors could produce significantly different results. Undue reliance should not be placed on forward-looking statements, which speak only as of the date they are made. Except as required by applicable law, the company undertakes no obligation to update the forward-looking statements, whether as a result of new information, future events, or otherwise.
Consolidated Statements of Income
Three Months Ended
Twelve Months Ended
December 31,
December 31,
2025
2024
2025
2024
(In millions, except per share amounts)
(Unaudited)
Operating revenues
$ 534.0
$ 535.5
$ 1,875.1
$ 1,758.0
Operating expenses:
Operation and maintenance
107.3
105.7
433.0
414.5
Purchased natural gas sold
199.8
223.8
671.5
630.4
Electric fuel and purchased power
39.2
32.2
159.0
141.2
Depreciation and amortization
51.5
50.8
206.7
200.1
Taxes, other than income
28.8
28.5
114.5
106.2
Total operating expenses
426.6
441.0
1,584.7
1,492.4
Operating income
107.4
94.5
290.4
265.6
Other income
6.1
10.1
28.3
41.4
Interest expense
29.1
28.0
107.7
108.3
Income before income taxes
84.4
76.6
211.0
198.7
Income tax expense
8.0
6.1
19.6
17.6
Income from continuing operations
76.4
70.5
191.4
181.1
Discontinued operations, net of tax
(.1)
(15.3)
(1.0)
100.0
Net income
$ 76.3
$ 55.2
$ 190.4
$ 281.1
Earnings per share, basic:
Income from continuing operations
$ .37
$ .35
$ .94
$ .89
Discontinued operations, net of tax
—
(.08)
(.01)
.49
Earnings per share, basic
$ .37
$ .27
$ .93
$ 1.38
Earnings per share, diluted:
Income from continuing operations
$ .37
$ .34
$ .93
$ .88
Discontinued operations, net of tax
—
(.07)
—
.49
Earnings per share, diluted
$ .37
$ .27
$ .93
$ 1.37
Weighted average common shares outstanding, basic
