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    How Mixed 2025 Results And Big Wind Investment At MDU Resources Group (MDU) Has Changed Its Investment Story

    Simply Wall St·02/09/2026 13:20:39
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    • MDU Resources Group recently reported its fourth-quarter and full-year 2025 results, showing relatively steady sales alongside higher quarterly net income, while full-year earnings per share declined even as continuing operations earnings per share edged higher.
    • The company also issued 2026 earnings guidance of US$0.93 to US$1.00 per share and highlighted large capital investments, including a 49% stake in the Badger Wind Farm, which helped drive a 16% increase in its utility rate base and record earnings in its pipeline business despite ongoing cost pressures.
    • Next, we’ll examine how this mix of cautious 2026 earnings guidance and heavy investment in projects like Badger Wind influences MDU Resources’ investment narrative.

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    What Is MDU Resources Group's Investment Narrative?

    To own MDU Resources today, you need to be comfortable with a regulated utility that is spending heavily to grow while still working through earnings pressure and a relatively full valuation. The latest results reinforce that picture: 2025 EPS from continuing operations ticked up, but overall EPS fell, and 2026 guidance of US$0.93 to US$1.00 per share points to only modest progress in the near term. At the same time, management is pushing ahead with sizeable capital projects like the Badger Wind Farm stake and pipeline expansions that have already lifted the utility rate base and supported record pipeline earnings. That mix keeps the main short term catalysts centered on regulatory outcomes, data center load additions and execution on new assets, while the key risks remain cost control, interest coverage and whether these investments ultimately justify MDU’s premium earnings multiple.

    However, one risk in particular could matter more than it first appears for shareholders. MDU Resources Group's share price has been on the slide but might be up to 11% below fair value. Find out if it's a bargain.

    Exploring Other Perspectives

    MDU 1-Year Stock Price Chart
    MDU 1-Year Stock Price Chart
    Three Simply Wall St Community fair value estimates span roughly US$18.39 to US$23 per share, underscoring how far apart individual views can be. Set that against MDU’s cautious 2026 earnings guidance and ongoing cost pressures, and you can see why many readers may want to weigh several perspectives before deciding how comfortable they are with the company’s current risk reward trade off.Explore 3 other fair value estimates on MDU Resources Group - why the stock might be worth as much as 13% more than the current price!

    Build Your Own MDU Resources Group Narrative

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    This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.