Freedom Capital Markets raised its price target on MDU Resources Group Inc. (MDU) to $21 from $20 while maintaining a Hold rating on the shares.
MDU reported fourth-quarter fiscal 2025 revenue of $534 million, essentially unchanged from the prior year. The company recorded net income of $76 million for the quarter, a 38% increase year over year, translating to earnings per share of $0.37. Income from continuing operations rose 8% year over year and topped the FactSet consensus of $71 million.
On valuation and returns, the company has a market capitalization of $4.1 billion, a price-to-earnings ratio of 21.49 and a dividend yield of 2.79%. According to InvestingPro Tips cited in the company summary, MDU has sustained dividend payments for 56 consecutive years.
Segment results were uneven in the period. The electric utility business delivered double-digit revenue gains, while natural gas distribution revenue declined, a drop management attributed to warmer-than-normal weather. The pipeline segment posted a record annual profit as capital expansions continued and demand for short-term firm contracts remained robust.
Fiscal 2025 represented the first full year in which MDU operated exclusively as a regulated utility and pipeline company. During the year, the company expanded its regulated rate base by 16% versus the prior year, a figure that reflects, among other items, the acquisition of a 49% stake in Badger Wind.
Management provided earnings guidance for 2026, projecting EPS in a range of $0.93 to $1.00. The company also reaffirmed its long-term earnings growth objective of 6% to 8% compound annual growth. Looking further ahead, MDU outlined a $3.1 billion capital plan covering 2026 through 2030.
Independent analysis flagged in the company notes indicates that the stock appears overvalued relative to its Fair Value estimate. Additional proprietary tips and extended analysis on MDU and more than 1,400 U.S. equities are available through InvestingPro for investors seeking deeper data and valuation models.
In a separate review of the fourth-quarter results, the company’s EPS of $0.37 matched analyst expectations, but revenue fell short of forecasted figures, coming in below the anticipated $560.72 million. The revenue shortfall and the mixed nature of segment performance are likely factors investors and analysts will continue to monitor as management implements its capital plan and navigates regulated operations.
Contextual note: The facts above summarize the company’s reported results, management guidance and the analyst action described. No additional forecasts or speculative conclusions are presented beyond the figures and statements provided by the company and the analyst change.