MDU Resources to pursue separation of Construction Services business

The company stated: “Upon completing MDU Resources Group’s previously announced strategic review of its wholly owned construction services business, MDU Construction Services Group Inc., the MDU Resources board of directors has determined that it will pursue a potential tax-advantaged separation of the construction services business from MDU Resources. The board said a tax-advantaged separation of the construction services business supports MDU Resources’ goal of enhancing value for stockholders by becoming a pure-play regulated energy delivery company, an objective MDU Resources first announced in late 2022. MDU Construction Services Group has experienced record-breaking performance in recent years, with record revenue of $2.7B in 2022 and a record backlog of $2.13B of work at Dec. 31. For 2023, MDU Resources most recently reported it expects revenue from its construction services business of $2.8B to $3.0B, with margins slightly higher compared to 2022, and earnings before interest, taxes, depreciation and amortization in the range of $200 million to $225 million. MDU Resources also said it expects additional project opportunities to result from the federal Infrastructure Investment and Jobs Act and the energy transition underway in the U.S.”