MDU Resources Group (MDU) Q1 2026 earnings summary

Executive summary

• Q1 2026 net income was $80.8 million ($0.39/share), down from $82 million ($0.40/share) in Q1 2025, mainly due to milder weather reducing earnings by $0.03 per share.

• Revenue for Q1 2026 was $606.0 million, a decrease from $674.8 million in Q1 2025, primarily due to lower natural gas distribution sales from warmer weather.

• Strong open season interest for the Bakken East Pipeline Project, with 1.4 Bcf/day of capacity and 40% under signed precedent agreements; projected capital investment is $2.7–$3.2 billion.

• Continued ramp-up in data center load, with 580 MW under signed electric service agreements and staged online ramp-up through 2028.

• Focus on operational excellence, customer value, and organic growth as a regulated energy delivery company.

Financial highlights

• Operating income for Q1 2026 was $115.7 million, up from $112.9 million in Q1 2025.

• Cash flow from operating activities was $149.2 million, down from $217.5 million, mainly due to lower collections of purchased gas and carbon compliance costs.

• Electric utility earnings were $14.5 million (down from $15 million), natural gas utility $44.2 million (down from $44.7 million), pipeline segment $15.3 million (down from $17.2 million), and other segment $6.8 million (up from $5.1 million).

• Issued 4.3 million new shares in March 2026, raising $81.3 million.

• Dividend payout ratio target remains at 60–70% of regulated energy delivery earnings, with $28.6 million in dividends paid in Q1 2026.

Outlook and guidance

• 2026 EPS guidance affirmed at $0.93–$1.00, assuming normal weather and continued customer growth of 1%–2% annually.

• Long-term EPS growth rate target remains 6%–8%, with a 60%–70% annual dividend payout ratio.

• Five-year capital investment plan totals $3.1 billion, with $2.5 billion allocated to electric and natural gas through 2030, excluding Bakken East Pipeline.

• Anticipates continued strong customer demand and regulatory progress to support long-term growth.

• Ongoing investments in utility infrastructure, including the JETX transmission project and Badger Wind Farm, are expected to drive future growth.