MDU Resources experiencing record revenues, backlogs

The construction materials business at MDU Resources had a record quarterly revenue ($975 million) in the third quarter and earned $102.8 million.

The company’s third-quarter revenue was up 17 percent from the prior year’s third quarter.

Inflationary impacts, particularly higher fuel, material and labor costs, were largely recovered in the quarter through price increases, MDU Resources says. Also, the company says its construction materials business performed a significant portion of work that was delayed by unfavorable weather earlier in the year. 

Demand remains strong for construction materials and contracting work, MDU Resources adds, with a record third-quarter backlog of $895 million as of Sept. 30. The backlog is up 37 percent from the mark at the end of September 2021.

Additionally, MDU Resources says its construction services business had record quarterly revenues – up 43 percent from last year’s third quarter.

“Our quarter-over-quarter results have improved, with very strong demand for construction materials and construction services as evidenced by record revenues and record backlogs at both our construction businesses,” says David Goodin, president and CEO of MDU Resources. 

“While we continue to experience and adapt to inflationary pressures across our businesses, we are gaining momentum on recovering from these impacts,” he adds.

Separately, MDU Resources continues to work toward completing the separation of Knife River Corp., which is expected sometime in 2023. Knife River, which produces aggregates, remains an MDU Resources company at the moment.

“We believe these steps will unlock significant value for MDU shareholders,” Goodin says. “Having two pure-play companies would provide each company the opportunity to execute its individual business plans and achieve industry-leading performance.”