MDU Resources Group, Inc.

Worth knowing

• Profitable, but burning cash. Reports a profit, but free cash flow is negative.

  MDU Resources reports a profit but its free cash flow is negative: it spent more on investment and running the business than it brought in. That's common for companies building capacity, but it means the profit isn't yet turning into cash.

• Paying shareholders without free cash flow. Paid out $377M over the 3 fiscal years to 2025 with -$469M of free cash flow.

  MDU Resources returned $377M in buybacks and dividends over three fiscal years while its free cash flow totalled -$469M. The money came from its cash pile or from borrowing.

• Stock pay outran buybacks. Stock-based pay expense $20M vs $5M spent repurchasing shares over the 3 fiscal years to 2025.

  Over three fiscal years MDU Resources recorded $20M of stock-based pay expense and spent $5M repurchasing shares (repurchases can include shares withheld to cover employees' taxes). Repurchases were smaller than the stock pay, so they did little to offset new employee shares.Over three fiscal years MDU Resources recorded $20M of stock-based pay expense and spent $5M repurchasing shares. Repurchases were smaller than the stock pay, so they did little to offset new employee shares.

• Investment surge. Capital spending 41% of revenue, up from 25% in 2022.

  MDU Resources is spending 41% of revenue on facilities and equipment, up from 25% in 2022. That weighs on free cash flow today; whether it pays off depends on the returns those investments earn.