Overview

* MDU Resources ( MDU ) 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 ( MDU ) narrows 2025 EPS guidance to $0.88-$0.95

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

* MDU Resources ( MDU ) 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

Metric Beat/Mis Actual Consensu

s s

Estimate

Q2 $351.20

Revenue mln

Q2 EPS $0.07

Q2 Net $13.70

Income mln

Q2 $320.80

Operatin mln

g

Expenses

Q2 $30.40

Operatin mln

g Income

Q2 $14.90

Pretax mln

Profit

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 ( MDU ) 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:

(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)