SoFi stock falls after announcing $1.5B public offering of common stock
MDU Resources Group Inc. (NYSE:MDU) presented its third quarter 2025 earnings results on November 6, revealing a mixed performance with lower year-over-year earnings but stronger-than-expected revenue. Despite missing EPS forecasts, the company's stock gained 3.76% in pre-market trading, reaching $19.69, as investors responded positively to the company's strategic initiatives and narrowed guidance.
Quarterly Performance Highlights
MDU Resources reported third quarter net income of $18.4 million, a significant decrease from $64.6 million in the same period of 2024. Earnings per share fell from $0.32 to $0.09 year-over-year. Income from continuing operations decreased more modestly, from $18.4 million to $15.6 million, with EPS declining from $0.09 to $0.08.
As shown in the following chart of quarterly earnings results:
The company's revenue of $315.1 million exceeded analyst expectations by 37.87%, despite the EPS miss of 14.29% compared to the forecasted $0.105. This revenue outperformance likely contributed to the positive market reaction.
The electric utility segment reported earnings of $21.5 million, down from $24.3 million in the third quarter of 2024, primarily due to increased operation and maintenance expenses related to higher payroll costs and electric generation station outages.
Meanwhile, the natural gas utility segment posted a seasonal loss of $18.2 million, slightly worse than the $17.5 million loss in the same period last year. The company noted that rate relief in Washington, Montana, and Wyoming partially offset these seasonal losses, and natural gas customer count increased by 1.6% year-over-year.
While not prominently featured in the presentation slides, the earnings report revealed that MDU's pipeline segment achieved record third-quarter earnings of $16.8 million, up from $15.1 million in 2024, highlighting a bright spot in the company's performance.
Strategic Initiatives
MDU Resources is positioning itself as a "pure-play regulated energy delivery business," focusing on what it calls its "CORE" values: Customers & Communities, Operational Excellence, Returns Focused, and Employee Driven. The company emphasized these strategic priorities as part of its investment thesis:
A significant growth driver for MDU is its approach to data centers, which the company described as involving minimal capital investment while being ROE accretive. The company has secured 580 MW of data center load under signed electric service agreements, with 180 MW already online, 100 MW expected to begin coming online late this year, and the remaining 300 MW planned for 2026 and 2027.
MDU is also expanding its renewable energy portfolio through the Badger Wind Project, in which it holds a 49% ownership interest. With an estimated cost of $294 million, the project represents 122.5 MW of the total 250 MW capacity and is expected to be completed by early 2026.
Forward-Looking Statements
MDU Resources narrowed its 2025 earnings guidance to $0.90-$0.95 per share, a slight adjustment from its previous range of $0.88-$0.95. This guidance assumes normal weather and operating conditions, continued customer growth of 1-2% annually, and successful execution of approved capital investment and rate recovery plans.
The company's regulatory strategy remains focused on timely recovery of investments, with several rate cases in progress. The regulatory update shows pending rate increase requests in Idaho, Wyoming, and Montana, along with recently implemented rate increases in Washington, Wyoming, and Montana.
In the pipeline business, MDU highlighted several expansion projects, including the recently completed Minot Expansion Project, the Line Section 32 Expansion Project expected to file with FERC in Q1 2026, and the potential Bakken East Pipeline Project, which received firm capacity commitments of up to $50 million annually for 10 years from the North Dakota Industrial Commission.
Competitive Industry Position
MDU Resources is emphasizing its extensive operational diversification and supportive regulatory environment as competitive advantages. The company projects long-term EPS growth of 6-8% and targets an annual dividend payout ratio of 60-70%.
Nicole Kivisto, President and CEO, expressed confidence in the company's strategy during the earnings call, particularly highlighting the "capital-light business model for serving large customer opportunities" like data centers.
The company's vision of "Energizing Lives for a Better Tomorrow" and mission to "deliver value as a leading energy provider and employer of choice" underpin its strategic direction as it navigates the challenges of increased operating expenses while pursuing growth opportunities in renewable energy and data center power provision.
Despite the earnings miss, MDU Resources' stock performance suggests investors remain optimistic about the company's long-term prospects, with shares trading at $19.69, approaching the 52-week high of $20.48 and well above the 52-week low of $15.04.
Full presentation:
This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.