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• Adjusted Earnings Per Share (EPS) from Continuing Operations: Increased 22% year over year to $0.90 per share.

• Pipeline Segment Earnings: Achieved record earnings with a 45% increase year over year.

• Electric Segment Earnings: Reported earnings of $74.8 million, up from $71.6 million in 2023.

• Natural Gas Business Earnings: Reported earnings of $46.9 million, down from $48.5 million in 2023.

• Full-Year Earnings: $281.1 million or $1.37 per share on a GAAP basis.

• Income from Continuing Operations: $181.1 million or $0.88 per share, compared to $330.1 million or $1.62 per share in 2023.

• Retail Customer Base Growth: Increased by 1.4%.

• Rate-Based Growth: 6.8% in 2024.

• 2025 EPS Guidance: Range of $0.88 to $0.98 per share.

• Anticipated Capital Investment: $3.1 billion over the next five years.

• Warning! GuruFocus has detected 8 Warning Signs with MDU.

Release Date: February 06, 2025

For the complete transcript of the earnings call, please refer to the full earnings call transcript.

Positive Points

• MDU Resources Group Inc (NYSE:MDU) achieved a 22% year-over-year increase in adjusted earnings per share from continuing operations, reaching $0.90 per share.

• The Pipeline segment reported record earnings for the third consecutive year, with a 45% increase driven by record transportation volumes and increased storage revenue.

• The Electric segment experienced earnings growth in 2024, largely due to rate relief.

• MDU Resources Group Inc (NYSE:MDU) completed the spinoff of Everus Construction Group, positioning itself as a pure-play regulated energy delivery business.

• The company anticipates long-term EPS growth of 6% to 8%, with a capital investment of $3.1 billion over the next five years and a 7% to 8% utility rate-based growth.

Negative Points

• MDU Resources Group Inc (NYSE:MDU) reported a decrease in GAAP earnings from $2.03 per share in 2023 to $1.37 per share in 2024, partly due to costs associated with spinoffs.

• The Natural Gas business saw a decrease in earnings from $48.5 million in 2023 to $46.9 million in 2024, primarily due to higher operation and maintenance expenses.

• The company faces dis-synergies from the Everus spinoff, impacting the 2025 earnings guidance by approximately $0.04 per share.

• MDU Resources Group Inc (NYSE:MDU) anticipates potential equity issuance in 2026 to support growth projects, altering previous guidance of no planned equity until 2027.

• The company experienced lower volumes from the majority of electric utility customers due to cooler weather in the second quarter of 2024, partially offsetting earnings growth.

Q & A Highlights

Q: How should we interpret the change in guidance around equity issuance from no-planned equity until 2027 to the current language of no near-term equity issuance? Is there a change there? A: Jason Vollmer, CFO: No real change from what we talked about in November. We updated our capital forecast and increased capital, especially in 2026. We don't expect any equity issuance in 2025, but we would look to see some to facilitate growth projects in 2026.