MDU Resources Group Reports 9% Revenue Increase in Q3 2025, Net Income Declines

MDU Resources Group, Inc. reported its financial results for the third quarter and nine months ended September 30, 2025, revealing a consolidated operating revenue of $315.0 million for the quarter, a 9% increase from $289.7 million in the same period last year. For the nine months, total operating revenue reached $1.34 billion, up from $1.22 billion in 2024. The company’s net income for the third quarter was $18.3 million, a decrease from $64.6 million in the prior year, primarily due to the absence of income from discontinued operations following the separation of its construction services business, Everus, in October 2024.

The company’s operating expenses also increased, totaling $275.2 million for the third quarter compared to $254.8 million in 2024. This rise was attributed to higher costs in purchased natural gas, electric fuel, and operation and maintenance expenses, which were driven by increased payroll-related costs and contract services. The operating income for the quarter was $39.8 million, up from $34.8 million a year earlier, reflecting improved performance in the electric and pipeline segments, which saw increased revenues from growth projects and customer demand.

Strategically, MDU Resources completed the separation of Everus, which has since become an independent publicly-traded company. This separation was executed as a tax-free spinoff, with shareholders receiving shares of Everus stock. The company has since focused on its core regulated energy delivery business, which includes electric and natural gas distribution, as well as pipeline operations. The company is also pursuing growth opportunities, including a significant investment in a wind project in North Dakota, expected to enhance its renewable energy portfolio.

Operationally, MDU Resources reported a customer base growth of approximately 1.4% in its electric and natural gas distribution segments, with expectations for continued growth of 1% to 2% annually. The company is also actively managing inflationary pressures and supply chain challenges, which have impacted costs and project timelines. As of September 30, 2025, MDU Resources had cash and cash equivalents of $75.9 million and available borrowing capacity of $430.7 million, positioning the company to meet its operational and capital requirements.

Looking ahead, MDU Resources anticipates continued growth in its utility segments, driven by infrastructure investments and customer demand. The company expects to maintain a long-term dividend payout ratio target of 60% to 70% of regulated energy delivery earnings, reflecting its commitment to returning value to shareholders while investing in future growth. The company remains vigilant regarding regulatory changes and market conditions that could impact its operations and financial performance.