MDU Resources' second quarter saw a positive market reaction, as the company delivered year-on-year sales growth and exceeded Wall Street’s profit expectations despite missing on revenue. Management highlighted the impact of new rates, ongoing customer growth, and increased retail sales volumes across its regulated utility and pipeline businesses. CEO Nicole Kivisto pointed to the Badger Wind Farm and the advancement of infrastructure projects, such as the Bakken East pipeline, as contributors to quarterly results. The company also benefited from improved performance in its natural gas distribution segment, driven by favorable regulatory outcomes and greater demand across all customer classes.
Is now the time to buy MDU? Find out in our full research report (it’s free for active Edge members).
MDU Resources (MDU) Q2 CY2026 Highlights:
- Revenue: $375.3 million vs analyst estimates of $396.6 million (6.9% year-on-year growth, 5.4% miss)
- EPS (GAAP): $0.10 vs analyst estimates of $0.08 (29.3% beat)
- EPS (GAAP) guidance for the full year is $0.97 at the midpoint, missing analyst estimates by 1.2%
- Operating Margin: 12.5%, up from 8.5% in the same quarter last year
- Market Capitalization: $4.32 billion
While we enjoy listening to the management’s commentary, our favorite part of earnings calls is the analyst questions. Those are unscripted and can often highlight topics that management teams would rather avoid or topics where the answer is complicated. Here is what has caught our attention.
Our Top 5 Analyst Questions From MDU Resources’s Q2 Earnings Call
- Andrew Kadavy (Wells Fargo) asked about financing options for Bakken East, to which CFO Jason Vollmer replied MDU is considering all available instruments and feels confident in market appetite for project financing.
- Tanner James (Jefferies) inquired about the negotiated option for additional Bakken East volumes and the strategic rationale; CEO Nicole Kivisto explained the option allows for potential incremental capacity if customer demand materializes, with project design still targeting 1.4 Bcf per day.
- Tanner James (Jefferies) also asked whether the state backstop is included in executed agreements; Kivisto confirmed the state is indeed party to the precedent agreements signed.
- Aidan Kelly (JPMorgan) pressed on whether Bakken East could be expanded beyond 1.4 Bcf per day and the timing of capital plan updates; Vollmer said future expansion is possible if demand increases and that capital plans would be updated post final investment decision.
- Ryan Levine (Citi) questioned the company’s approach to community engagement around data centers; Kivisto stated MDU is proactively engaging communities and ensuring the benefits of data center growth are well understood by stakeholders.
Catalysts in Upcoming Quarters
In the coming quarters, the StockStory team will monitor (1) the pace and regulatory outcomes of data center service agreements and associated load growth, (2) progress and key filings for the Bakken East pipeline project, including the final investment decision and FERC submission, and (3) the resolution of ongoing electric and natural gas rate cases in major states. Updates to the capital plan and continued customer growth will also be important milestones.
MDU Resources currently trades at $20.54, up from $20.02 just before the earnings. Is the company at an inflection point that warrants a buy or sell? See for yourself in our full research report (it’s free).
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