MDU Resources Q2 Earnings Beat Estimates, Revenues Increase Y/Y

MDU Resources Group Inc. MDU reported second-quarter 2026 earnings of 9 cents per share, beating the Zacks Consensus Estimate of 8 cents by 12.5%. The bottom line increased 28.6% from 7 cents in the year-ago quarter.

Total Revenues of MDU

Operating revenues of $375.2 million missed the Zacks Consensus Estimate of $398 million by 5.73%. The top line increased 6.8% from $351.2 million recorded in the year-ago quarter.

MDU’s Expense and Operating Income Trends

Total operating expenses were nearly $327.3 million, up 2% from the year-ago quarter’s $320.8 million. The increase was primarily due to higher electric fuel and purchased power costs, increased operation and maintenance expenses, and higher depreciation and amortization.

Operating income totaled $47.9 million, up 57.6% from $30.4 million in the prior-year quarter.

Interest expense was $31.5 million, up 24% year over year from $25.4 million.

The Badger Wind Farm contributed $3.3 million to quarterly earnings. Results also benefited from Montana interim rates, new electric rates in Wyoming and higher retail sales volumes across all major customer classes. These gains were partly offset by increased interest expense, depreciation and amortization, and operation and maintenance costs.

The natural gas distribution business benefited from new rates in Idaho, Washington, Montana and Wyoming. Retail sales volumes increased 6.7%, while the customer base grew 1.6% year over year. However, higher interest expense associated with increased long-term debt balances partly offset the improvement.

MDU Advances Key Infrastructure Projects

MDU Resources has signed precedent agreements covering nearly 1.2 billion cubic feet per day for the proposed Bakken East Pipeline Project. A negotiated option could raise contracted volumes to nearly all the interest received during the binding open season.

The project is being designed for 1.4 billion cubic feet per day and carries an estimated investment of $2.7-$3.2 billion. A final investment decision is expected before the planned fourth-quarter 2026 FERC filing. The proposed first and second phases remain targeted for late 2029 and late 2030, respectively.

The company also has more than 1 gigawatt of data center load under signed electric service agreements. This includes 530 megawatts at Ellendale, ND, 430 megawatts at Center, ND and 50 megawatts at Leola, SD, with the latter two projects subject to regulatory approval.

MDU Resources’ Cash Flow and Leverage Update

Net cash provided by operating activities totaled $265.3 million during the first six months of 2026, down 20.8% from $334.9 million a year earlier. 

As of June 30, total debt stood at $2.58 billion, while total equity was $2.93 billion. Debt represented 46.8% of total capitalization compared with 44.4% a year earlier, reflecting continued funding of the company’s utility and pipeline investment programs.

MDU Resources Reaffirms 2026 Guidance

For 2026, MDU Resources expects its earnings to be between 93 cents and $1 per share. The Zacks Consensus Estimate for the metric is pegged at 98 cents, which lies at the higher end of the company’s projected range.

The company continues to expect a long-term EPS growth rate of 6-8%.

MDU anticipates its utility customers’ growth to continue at an annual rate of 1-2%.

Capital expenditures for 2026 are projected at $529 million. MDU also plans to invest approximately $3.1 billion from 2026 through 2030, including $1.08 billion in electric operations, $1.35 billion in natural gas distribution and $643 million in the pipeline business. Investments related to the proposed Bakken East Pipeline would be in addition to this program.

MDU’s Zacks Rank

MDU Resources currently carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

Upcoming Utilities Releases

Algonquin Power & Utilities Corp. AQN is scheduled to report second-quarter results on Aug. 7. The Zacks Consensus Estimate for second-quarter EPS is pinned at 5 cents, which implies a year-over-year increase of 25%.

The Zacks Consensus Estimate for second-quarter sales is pinned at $552.5 million, which suggests year-over-year growth of 4.68%.

PPL Corporation PPL is scheduled to report second-quarter results on Aug. 7. The Zacks Consensus Estimate for earnings is pegged at 35 cents per share, which implies year-over-year growth of 9.38%.

The Zacks Consensus Estimate for second-quarter sales is pinned at $2.18 billion, which suggests year-over-year growth of 7.50%.

Vistra VST is scheduled to report second-quarter 2026 results on Aug. 7. The Zacks Consensus Estimate for earnings is pegged at $1.54 per share, which implies year-over-year growth of 52.48%.

The Zacks Consensus Estimate for second-quarter sales is pinned at $6.29 billion, which suggests year-over-year growth of 48.07%.

 

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