Overview

* MDU Resources ( MDU ) Q3 revenue beats analyst expectations, driven by pipeline segment growth

* Income from continuing operations increased, offset by higher operation and maintenance expenses

Outlook

* MDU Resources ( MDU ) narrows 2025 EPS guidance to $0.90-$0.95

* Company assumes normal weather and economic conditions for Q4

* MDU Resources ( MDU ) maintains long-term EPS growth rate of 6%-8%

Result Drivers

* PIPELINE GROWTH - Earnings in the pipeline segment increased by 11.3%, driven by expansion projects and strong demand for short-term contracts

* UTILITY CUSTOMER GROWTH - Income from continuing operations increased due to customer growth projects and rate recovery across multiple jurisdictions

* ELECTRIC SEGMENT CHALLENGES - Electric earnings declined due to higher operation and maintenance expenses, particularly from increased payroll and outage-related costs

Key Details

Metric Beat/Mis Actual Consensu

s s

Estimate

Q3 Beat $315.10 $305.01

Revenue mln mln (2

Analysts

)

Q3 Net $18.40

Income mln

Q3 $275.30

Operatin mln

g

Expenses

Q3 $39.80

Operatin mln

g Income

Q3 $20.70

Pretax mln

Profit

Analyst Coverage

* The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 4 "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 $21.00, about 6.2% above its November 5 closing price of $19.69

* The stock recently traded at 20 times the next 12-month earnings vs. a P/E of 17 three months ago

Press Release:

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(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.)