MDU Resources Q2 net income drops 77%

Overview

• MDU Resources Q2 net income drops to $13.7 mln from $60.4 mln yr ago

• EPS for Q2 falls to $0.07 from $0.30 yr ago, impacted by higher expenses

• Co narrows 2025 earnings guidance to $0.88-$0.95 per share

Outlook

• MDU Resources narrows 2025 EPS guidance to $0.88-$0.95

• Company maintains long-term EPS growth rate of 6%-8%

• MDU Resources assumes no equity issuances in 2025

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

Result Drivers

• PIPELINE SEGMENT - Higher transportation revenue and strong demand for short-term firm transportation capacity drove growth

• ELECTRIC UTILITY - Increased retail sales volumes driven by data center demand, offset by higher operation and maintenance expenses

• NATURAL GAS DISTRIBUTION - Warmer weather led to lower volumes, partially offset by rate relief in Washington and Montana

Key Details

Analyst Coverage

• The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 3 "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 $19.00, about 7.9% above its August 6 closing price of $17.49

• The stock recently traded at 18 times the next 12-month earnings vs. a P/E of 17 three months ago

Press Release: ID:nPnN7Sgva