Overview

• US utility and pipeline operator's Q1 revenue declined and missed analyst expectations

• Q1 adjusted EPS was $0.39, slightly below prior year, impacted by milder weather

• Company affirmed 2026 EPS guidance and reported progress on Bakken East Pipeline Project

Outlook

• MDU Resources affirms 2026 EPS guidance in the range of $0.93 to $1.00

• Company expects utility customer growth at 1%-2% annually

• MDU maintains long-term EPS growth rate guidance of 6%-8%

Result Drivers

• MILDER WEATHER - Lower electric and natural gas volumes due to warmer temperatures reduced earnings, partially offset by normalization mechanisms

• RATE RELIEF AND INVESTMENTS - Rate relief and recent investments, including Badger Wind Farm and pipeline expansions, contributed positively to results

• PIPELINE SEGMENT PRESSURES - Lower interruptible storage withdrawals and higher operation and maintenance expense weighed on pipeline earnings, partly offset by new projects and strong demand for short-term contracts

Company press release: ID:nPn9tg4Xa

Key Details

Metric	Beat/Miss	Actual	Consensus Estimate
Q1 Revenue	Miss	$606 mln	$688.26 mln (4 Analysts)
Q1 EPS		$0.39
Q1 Net Income		$80.8 mln
Q1 Operating Expenses		$490.3 mln
Q1 Operating Income		$115.7 mln
Q1 Pretax Profit		$85.6 mln

Analyst Coverage

• The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 4 "strong buy" or "buy", 4 "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 is $22.50, about 0.9% above its May 6 closing price of $22.31

• The stock recently traded at 22 times the next 12-month earnings vs. a P/E of 21 three months ago

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