MDU Resources Group (MDU) Q2 2025 earnings summary

Executive summary

• Q2 2025 net income was $13.7 million or $0.07 per diluted share, down from $60.4 million in Q2 2024, mainly due to the Everus spinoff and higher operating costs; customer base grew 1.4% year-over-year, with data center demand boosting electric sales.

• Electric segment earnings were $10.4 million, supported by 12% growth in retail sales volumes from data center demand, but offset by higher O&M and outage costs.

• Natural gas utility posted a Q2 loss of $7.4 million, larger than the prior year, due to warmer weather and higher payroll costs, partially offset by rate relief.

• Pipeline segment earned $15.4 million, down from $17.3 million, with strong demand and higher transportation revenue offset by higher O&M and absence of a prior year settlement.

• Everus spinoff completed in October 2024; prior results restated as discontinued operations.

Financial highlights

• Q2 2025 net income was $13.7 million or $0.07 per share, down from $60.4 million or $0.30 per share in Q2 2024.

• Operating revenues for Q2 2025 were $351.2 million, up 2% year-over-year.

• Six-month net income was $95.7 million, down from $161.3 million in 2024.

• Cash flow from operations for the first half of 2025 was $334.9 million, up from $301.6 million in 2024.

• Capital expenditures for the first half of 2025 were $179.4 million, with full-year 2025 capex estimated at $539 million.

Outlook and guidance

• 2025 EPS guidance narrowed to $0.88–$0.95 per share, reflecting weather and expense impacts, with no planned equity issuances.

• Long-term EPS growth rate expected at 6%–8% annually.

• Utility rate base growth projected at 7%–8% CAGR, with 1%–2% annual customer growth.

• $3.1 billion in capital investment planned over five years, focused on electric transmission, substations, and natural gas infrastructure.

• Annual dividend payout ratio targeted at 60%–70%.