MDU Resources Group (MDU) investor relations material

Executive summary

• Q2 2026 net income rose to $21.3 million ($0.10 per share), up from $13.7 million ($0.07 per share) in Q2 2025, driven by growth in regulated utility and pipeline businesses, new rates, customer growth, and infrastructure investments.

• Strategic progress included executed precedent agreements for the Bakken East Pipeline Project, now designed for 1.4 Bcf/day, with a FERC 7(c) filing expected in Q4 2026 and unchanged in-service dates for both phases.

• Data center load growth continues, with over 1 GW under signed electric service agreements and 240 MW currently online; a major new ESA with Applied Digital for 430 MW is pending regulatory approval.

• Regulatory filings and approvals across multiple states are supporting revenue growth and infrastructure expansion.

• Customer growth and new rates, especially in electric and natural gas segments, drove improved results.

Financial highlights

• Q2 2026 net income was $21.3 million ($0.10/share), up from $13.7 million ($0.07/share) in Q2 2025; six-month net income reached $102.1 million ($0.49/share), compared to $95.7 million ($0.47/share) for the first six months of 2025.

• Operating revenues for Q2 2026 were $375.3 million, up from $351.2 million in Q2 2025.

• Electric utility earnings rose to $14.7 million from $10.4 million year-over-year, aided by higher retail sales and renewable investments.

• Natural gas distribution segment reduced its seasonal Q2 loss to $3.9 million from $7.4 million, with 6.7% higher retail sales volumes and 1.6% customer growth.

• Pipeline segment earned $14.4 million, down from $15.4 million, due to higher depreciation and lower other income, partially offset by strong demand for short-term contracts and storage services.

Outlook and guidance

• 2026 EPS guidance reaffirmed at $0.93–$1.00, based on normal weather, continued customer growth, and successful capital program execution.

• Long-term EPS growth objective remains 6%–8%.

• Capital program for 2026–2030 totals $3.1 billion, with $1.1 billion for electric, $1.4 billion for natural gas, and $643 million for pipeline investments.

• Guidance assumes normal weather, continued customer growth, and constructive regulatory outcomes.

• The company expects continued customer growth of 1–2% per year and ongoing investments in system upgrades, replacements, and expansion projects.