- Earnings call transcript Q3 2022

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Operator

Hello. My name is Lisa, and I will be your conference facilitator. At this time, I would like to welcome everyone to the MDU Resources Group 2022 Third Quarter Conference Call. [Operator Instructions] The webcast can be accessed at www.mdu.com under the Investor Relations heading. Select Events and Presentations and click Q3 2022 Earnings Conference Call. the location. replay of at be completion same the the webcast, will a available After now to Officer would Vice Group. I like President Jason over and Vollmer, to Chief Financial of Resources turn MDU the conference you, Thank Mr. Vollmer.

You begin may your now conference.

Jason Vollmer

our and Call. Earnings to Quarter XXXX Thank you, everyone, Third Lisa, welcome, Conference

and for Dave along under answer Executive will be You Resources. Vice of Relations the us Chief can materials President, tab. find Goodin, Group; Energy; Controller Trevor of with our Corporation; CEO Resources. on MDU Barth, River Dave Leading with Construction prepared release earnings call our CEO and of discussion and me questions remarks MDU Investor be Hastings, will Services website President Stephanie supplemental today’s President MDU our Knife along Utility of and Kivisto, and this Barney, of CEO at and of our Group; Officer WBI following www.mdu.com Chief Also to Thiede, and and CEO Jeff Officer President Nicole Accounting President President today

within this XXXX. call statements certain forward-looking Act XXE meaning Securities of will Section make our morning, of of we the During the Exchange

are company may its that the and on expectations results Although assumptions, reasonable actual differ beliefs believes materially. based

We risks also For forward-looking to filings. differ most refer cause statements, our information. more from to non-GAAP please information could may the that and SEC recent any about certain uncertainties actual results refer to

the any to reference non-GAAP appropriate of earnings reconciliation information metric, a GAAP release. For our please

third our morning, an additional provide expected construction and million operating effective remarks consolidated the a Resources overview MDU to of $XXX.X has his the This on over for and separate $XXX and MDU to previously information for are comments have we become Dave the into well look, announced share the GAAP a our transaction materials to MDU or reminder with expected morning. a to Directors we million strategy to of leading entities. later review our quarter share. per third delivery all of also per other that from we authorized regulated be Resources in energy company, plan to value during a pure-play its I separate will per Today, to Knife a on through is the River handing earnings related which strategic is X that announcing plan adjusted to business separation anticipated the second XXXX. remains Knife announced we compared Resources previously convince spin-off, announced performance basis this or transaction. being complete excludes Dave $X.XX management shareholders. committed for resources earnings of deliver provide underway intended will reporting quarter are costs forward $XXX.X a of financial to call, earnings managing quarter. share Due earnings $X.XX to best-in-class company. publicly-traded call to his tax-free This MDU to quarter Corporation, third results As or Prior Board million separate $X.XX earnings One to River, adjusted XXXX stakeholders. to

compared sales third quarter volumes. XXXX. earnings Big of during earnings offset Our North for associated This was same planned in third costs, rate quarter $XX.X the with and as materials reported XXXX. retail to largely partially result Stone compared period million to and the Heskett reported segment interim with million outage the quarter revenues a costs $X.X as XXXX. and utilities & were of combined Station for payroll-related million associated in lower maintenance $XX.X the to Lewis electric at relief $X.X coal-fired well of Station of closures Clark absence utility Dakota Station due expense business lower The plant by the Higher decreased the operation from of earnings million increase of

rates. million the Further as transportation reported loss volumes in in attributed $XX.X Our company decoupling costs increased placed with of revenues the expansion million the XXXX. expense. these growth quarter $XX.X expenditures in were The increased recovery experienced interest natural a higher third through depreciation third seasonal in income XXXX. construction, third lower North Bakken higher revenues segment higher to were higher to increase was operating in part is million higher service was compared increased during North quarter in balances transportation for average other compared and quarter higher gas The mechanisms. capital pipeline was a million by to interest the Results allowance and offsetting expense. was year. utilities contributing quarter expense the expense, increase during used impacted business costs this the to $XX.X project. reflected a was third of loss in offset quarter including Also expense earlier project debt subcontractor result the rate by of which higher associated record to fund $X.X primarily loss that the funds offsetting interest Bakken with and The of Partially and largely depreciation of

quarter. the driven progress revenues higher on services electrical delay to impacted hospitality based we from North large this Construction were benefit volumes, to inflation, includes margin attributed of record mostly all-time projects for in higher business started XXXX. and also a on The quarterly quarter. the earnings This a the by to million were related the estimates Earnings commitments. in adjustments a the compared revenue contracted expansion due of to expect lines for impact negatively workloads. of favorably million, a were earnings a mix portion million million in primarily including business tax XXXX to $XXX and and on past, Bakken after period from after during reported on projects increased $X.X for costs. see contracts in QX million tax, labor operating adjustments. mechanical Commercial $XX projects quarter, material workloads XX% record and revenue certain institutional the during volume committed same for lower As to noted construction made approximately $XX.X center negative of industrial to data the of of of impacted number and project we’ve of $XXX.X revenues on business compared the $X.X by and quarter costs and Record projects saw similar benefited million by XXXX of the XXXX percentage

to the prior compared revenue all-time workloads result earnings of share. $XXX.X XX% revenue product highlights reported third as quarterly returns This balance of company increases business sheet working million to that been debt experienced capital to now and of Resources’ compared a for to due was variance largely I’ll have of impacted inflation, to turn and million of negatively quarter recent basis on of saw balances higher general margin the and administrative a costs, finance revenue operations of selling, third transportation acquisitions. for interest higher his topline and the related on to fuel, well markets last MDU year XXXX, And Dave? costs rates the That impacting a non-qualified operating $XX.X the Also quarter. quarter million. was a expense impacts the approximately price change the and costs this strong materials summarizes from at their lower and in financial the costs. strong most unrealized in construction up expenses. the Higher investment have peak percentages demand lines $XXX.X The largely in in labor-related earnings of including and higher remarks. and ample million record labor, fluctuations access businesses Results per to all for higher quarter formal significant higher XXXX. result the average growth, diesel by quarter maintain the as call third been to investment non-cash $XXX.X to our benefit primarily earnings $X.XX in revenues materials during Our attributes higher The seasons. plans. million business Dave as as lower across through drove record $X.X Collectively, returns continues over slightly each quarter, due markets on the negative equipment company contracting or to year financial

Dave Goodin

about and companies. MDU Jason, thank announced Knife along Corporation, today, spending you, Resources. you, everyone, I’d Resources. for with of creating morning MDU In goals future time publicly-traded an Thank we the in begin to our with River us our the separate interest X plan this August, our for your announcement to continued update regarding structure like with

completing towards this Our has team working separation. continued diligently

a as of As River a in this be MDU to tax-free to shareholders separation to affected and Resources Knife completed expected spin-off is XXXX. be reminder,

this strategy presentations event with services process this Directors business. transaction. including pleased we significant are information progress strategic execute of to with River, company planning to believe the Board a look process, forward We analyst the the website these pleased a Further, delivery company to the plans as To commence would create has regulated alternatives be to complete We available opportunity completion MDU unanimously determined materials these the each separation will be company’s we value in pure-play leading Knife companies, We of energy their value pure-play the achieve performance. near details also during have and in company regarding to industry-leading discuss, hear construction as public the a announcement. with detail, outcome, steps and Days value the were Knife to to spin the and events respective way XXXX, for business company. for to and unlock the We More best feedback our achieve entity optimize when shareholders to events X intend transaction. positive River on review enhancing to provide our investor original will work step next we and each our will explore we scheduled. for long-term made strategic on shareholder and are a of further construction will in Analyst

to to Now turn the quarterly I’d of results. discussion our operating like

billion, construction up third XX% standing at from same reported record a revenues all-time year record quarterly businesses, over both Our which and backlog, quarter $X.X is combined time ago. the now

customer the and energy basis, compounded X.X% to off grown annually start utility business, here, X% regulated be we this have by been expect And perform over impacted all I’d business. gas natural by to experience utility inflationary summarize pressures of interest by also business to continued but have costs. segment, activity Our and base continue we on this At the with negatively like our continue years. to X% next To growth and -- we a and lines adapt delivery businesses to well, year-over-year higher across businesses. between pipeline X

intends August, a it expect Tail XX-mile construct announced rate to Otter demand. utility, The in and years, allows We Dakota late of next by Company, in affordable along with be as and part over this X transmission North compounded phase North growing line Dakota. Jamestown, while XXXX, and is XX, An line regulatory associated to for X.X% XXX transmission upgrades Public kV grid, the appending on increase to cost estimated electricity of multiyear seek meet customers. was of growing Dakota, recovery safe reliable million. to X. fourth rate its business approved we that and to a driven that of jointly our grow projects This This Montana effective XX our for X electric annually Transportation MISO Public Service infrastructure transmission an approved Commission This by Commission file base develop was both transmission primarily project plan the of X%, Idaho customer to to from the natural utilities in an quarter, with more safely In reliable, request to with utility approximately approximately increase, here a create its for Utilities now gas replacements planning requested investments the Service projected and resilient system mid-July with here current a to September $XXX investments provide own recently electric increase gas was Power transmission Commission. in the gas the companies service electric here is a rate Public initiative. first and electric service implemented And regional base. natural long-range on Ellendale, by to continuing in The request XX.X% and Utilities interim our X% before a continues a rate rate decision the customer increase request which with increase the a North natural providing July, state’s Washington our of the Commission. in to for

and XX-Q Unit service our is regulatory pipeline reported the Also, $X.X filings them million. in was in this segment expected May our Form here utility to of and this read of track construction other half morning. X, be first At in that began business, filed XXXX earnings which Heskett can during of You the about on we out XXXX. here, on

driven expanded As was project this transportation in that higher the gas earlier Bakken business This natural North service expected volumes, cubic and add record the are per Bakken projects be natural Jason system XXXX primarily production forecasted transportation on noted, gas expansion pending growth. future of work can to for approvals. incremental recorded and revenues more record are the placed XXX positioned feet project across of million is The well and be readily in number regulatory a by this company XXXX, year. continues and capacity throughout expansion day, expected to transportation they its to completed that than in

I’d switch mechanical-related during At Now center We demand up from projects. and an construction experienced this electrical increase in with revenues on our quarter, move work specifically XX%, to XX% overall renewable to of hospitality, and like our Services gears strong for year record all-time and ago. data revenue we businesses. had approximately a for Group, Construction

this transmission company within approximately quarter quarter. XX% year. work, which with ended contributed the $X up of backlog complete We consistent XX XX% the to of billion, record following the for backlog also months. the from distribution-related to and Construction all-time The demand prior expects saw also services

efficiently retain We are footprint. attract and to our and complete ability of with to well workforce positioned projects safely over X,XXX these skilled successfully across very a our employees

than billion X have of we $XXX margins first the successful our $X.X quarters year, with billion, revenue environment. expected million to current range increased of a the $X.X reflecting by also XXXX, now lower the to guidance XXXX inflationary Given range

Now moving on to construction materials.

lines. had quarter, earlier third the across of completed estimated XX in across delayed business $XXX our by benefited business also within unfavorable record, last all-time company backlog, from backlog year a record the lines. also the all Here, up material revenues work The average pricing on of for conditions, we This portion expects its complete time an XX% reported quarter million, was significant materials construction following product higher with the weather months. year, same record the to increases a to due product and XX% and that of

slightly Given the reflecting $X.XX the are and environment. quarter backlog record third $X.XX strong inflationary we to the with revenues, billion affirming of XXXX, than margins revenue guidance current billion, lower range

completes Looking construction Act, positioned which This XXXX Act, ahead, and begin here going well benefit really from discussion. Investment forward. services the to our impact Infrastructure in positively and material late both and business Jobs opportunities anticipate very are our the unit Reduction Inflation we particularly businesses and bidding will construction ‘XX to individual and

at our backlog record for encouraged set projects pipeline Looking well. of growth ability skilled business, and and across customer of a record ahead, our utility to have levels business, opportunities a strong base by and construction employee as pipeline very the are our we electric

our guidance affirming to a to share of guidance the are range $X.XX earnings range of EBITDA $X.XX We to million. per $XXX in with $XXX million XXXX

robust capital planned a million for have XXXX. plan $XXX We of

Unit of infrastructure the expenditures X at at at replacements capital ongoing include future utility, and as development expansion the projects line our and such Station the opportunities, construction completion of equipment Heskett sight businesses. Our other pipeline

customers place while on value, focus provide is to on creating and to As great essential appreciate strong our our I we in safe to interest as and a work. to services Resources to superior mission we MDU delivering building operating being a commitment a and and your Operator? now that always, committed integrity with shareholder with America, Resources questions. safety, ask to MDU and open line of continue while the

Operator

Your from first Instructions] [Operator Sidoti. Russo from comes question Brian

Brian Russo

maybe we be milestones the SEC XXXX private XXXX we progress look of letter ruling looking terms IRS, and Just that the the or calendar, completion? first quickly regulatory of are of needed? talking half can half XXXX are River. we any on should at as And we think, I if for What the approvals in kind then Knife from second into

Dave Goodin

Sure. say, detail to ask a more Brian. maybe focus would and that I can. are in start Jason short, give understand will strong that question, little I I we we internally.

time, that we depicting We laid some kind know that’s I are out high a while be of to Jason, you just certainly, but on work XXXX it of the is to some wide turn priority as probably provided milestones. there we’ve And color. window give our I’ll window here, not internally. -- over track project there. the again, dates, a but clearly, stream it’s will

Jason Vollmer

It’s great Brian. question. we’re Thanks, quickly a towards mentioned, this. And certainly, working as Dave Yes.

mentioned would here. would -- workflows of from to being work you get think work a next working public coming spin expect the that ahead that IRS be some XX, the what well which the will in IRS. with We’ll private X process be really think basis, I to what filing with the SEC, I I ruling that, document which we is items as filing the confidential through XXXX. on were coming them that into be see of you would months here we get a consider, in the a mean, the in process. the with here we are in to sometime would underway as months then I that the with letter SEC well addition, the And one here regulatory Form to

bit big the the timing real review as within milestones are get quickly with of control think various there, not how is the definitive are on we of certainly groups. those but of that dates and can our I control get as little filed here process, a our those working So those outside X far but

Brian Russo

are the update? Is Okay. then it think on similar and outright Knife sale the an services might review conclude and/or And when River? spin-off strategic what segment, to alternatives? you provide Great. And do you alternatives, those the construction a

Dave Goodin

might appreciate in that and shareholders didn’t we thought as always our it didn’t of we I why not best then, question, a Brian. but why why sure unlock on now, actually, company. didn’t value I separation. a this felt No, get this for to think to and I’ll shareholders. little continually really But -- were X really to announced make company we time, more Knife specific Yes. make I’ll would expand CSG a back make I just maybe River entity. to it say, as that really voiced or be businesses August just I bit, going And a industrial I that August question, evaluates at our feel we that really to really, question. sense, -- portfolio Board that logic, to positioned really value we’ve that kind the our the I’ll and for create of that better And as back one our probably to say the would stand-alone your positioned said that spin be able also, Knife And combined -- it we River announcement, clear is decisions,

announcement So in back August. hence, the

to companies, alternatives structure along with our as we being working most publicly-traded today. desirable our to really outcome really are we other utility analyze we announced and regulated One exploring company the towards this felt so our or by the our construction the continued energy, here being business, one. that, just have combined X with best And as pipeline other for keeping is CSG, we regulated with move materials CSG through CSG, pure-play that served felt how management Board been energy shareholders

confident so of And that structure.

strongly, the strategic though, and the very value all your it’s if announcement at so looking the to very in of you review far will, our feel and CSG will maximize ways we to business. question alternatives at start options I here. the which be valuable with is Going review, really looking a today, as various

net income metrics, If financial levels. it’s all at you look whether at year-to-date record the

if at a look on year-over-year XX% you If you it’s a business. up backlog X,XXX employment look at levels employees, really some high-performing basis, at

be And value really look as so to at very we’re of or to going the in maximize alternatives we our business. judicious CSG optimize our review

Brian Russo

expected like basically why One you calendar with I’m pending under to question is utility. cases. in XXXX, When Okay. you’re which filed. earning regulatory seems have be reaffirmation on of base manageable see rate realistic sensing last of we a you’re with active assuming base growth rate equity the rate filing It utility very these cases rate earnings Is consistent the at CAGR, the can term? the forward, your X%? rate look near the needs, we growing right, in X% a that and or

Dave Goodin

investments making and regulators then earnings subject through prudent, Brian. prudent we to for mean, that regulatory to reasonable and is utilities Certainly, were service, making but go translate to some growth. investments to should sure growth make make as I reliable process Yes, truly to and the that reasonable that to as base safe look rate well. clearly, everything correlation our that subject to rate lag,

the outspending, think are we’re at our will, lag we you compounded depreciation that X% base kind given rates regulatory our of rate outspending, because you so will, we’re there’s at in rate. an that growth, if annual growing I inherent process utilities, depreciation if

-- question. see, an So and But team number we that clearly that the think, the what but And think, choppy It have. it as answered a got Nicole, noted probably because I cases to as at an Nicole would looking cases And to closing you have all, come unless rate Brian. might -- if her I follow-up, focused I were gap. I every X a expectation filed. add you probably I on be anything from just of very I’m for regulatory there, think about be can are only we XX I clearly cycle months you expectation there. would regulatory

Operator

question next Your from comes Levine Ryan with Citibank.

Ryan Levine

what to not the potential capital service with? then would successful, -- remain or you envisioning you the would extent this And assets? strategic curious this of morning, with extent the review to terms strategic to entity is as of of the the you’re assets -- potential announcement that and construction In it’s portfolio attributes the go forward this with how travel financing or how transaction, structure package of initiated

Dave Goodin

Sure.

form could be to be all the questions that a you of in it’s going of it types transactions, here So review, merger, look at some we’re future kind optimize business a it’s strategic of a it’s number sale, look if the both different a a answered value the options or way, whether other Clearly, whether it’s to that whether structure. type to Ryan. to think the of spin, whether of combination of those of of

And will shareholder the the into deploy part X of then value be here question there and to our proceeds will your so outcome results ultimately we that no businesses. that of that whether of part lead Jason? how pure-play structure of will creation review. use capital for And be as or the second or doubt, best

Jason Vollmer

original here. I your lie think Ryan, part to, -- question, of just add would would was your I Yes, where services

just come back I want think, to I to the focus.

we’re separation working River on for time. we’ve the That’s So company. stand-alone what been working here really of Knife into quite towards some a diligently

We on with either. be kind of piece. through but alternatives the that business haven’t that at services for as been timeline well, a separate looking here will definitive And be point process will this that really here in we a strategic

up pure-play seeing energy future end delivery it’s are just that the really the and So Knife company. fact be River will on things be guess, stand-alone state company, little materials want I where after a fact, hypothesize, we but MDU early the Resources think as focused to to a would I a for regulated stand-alone pure-play maybe

Ryan Levine

companies there envision be take a the attracting outcome that more Or focused or buyers? to strategic an review? could there’s stand-alone around strategic possibility public Because it Okay. of -- -- X financial is third-party as

Dave Goodin

that, options all we the on think think about table as Ryan. are I

wouldn’t letting again, And so plans anything we our look Construction as performing optimize certainly, the at this the know it’s to, and valuable as point. is we’ll it. Group, And see announcement our of world Again, I future really Services preclude today. of structure a very value company, what today

Ryan Levine

there’s current key a or units? between how potential the given over XX in it, evolve the M&A the call business transactions works And terms looking of acquisitions you next, to months, Okay. in of number X strategy bolt-on transaction are

Dave Goodin

the today part our what is -- intend that’s -- Certainly, and to a I it’s what road, the Ryan, in we of a I materials Yes. valuable into And the company, mean, top-performing what stand-alone it that’s DNA grown really and services business. DNA, business, public our today. be, as down as materials business we look has also construction it into of noted

look the time, still continue of But we that’s what as I think preclude major would part well. organic at I successful wouldn’t streams we very we’ve undergoing to At growth as in at. Clearly, other have work been that. same businesses these well.

each of lines. So I have those think there’s in construction we optionality

Ryan Levine

historically, you’ve any benefits. of with issues And would there of ways that -- tax construction been front? and strategic business? certain that part dis-synergies asset you that then changed terms because separation are reluctant any What’s of to on the services, And in commercial basis with that envision Okay. and

Dave Goodin

this of earlier. we to as that our a likely the outlined But think considerations I when Certainly, think about announcement analysis business reaction transactions part now. it’s again, right and the today. starting again, various all and be will will that we types be will about be a Yes. we that. we’re today, process think there strong that performing Those And

Ryan Levine

utility. Okay. one the And on then

you there. where on funded from pension I that think certain sit and other comments, prepared highlighted you some standpoint Can that outlook? obligation your or you could elaborate how in impact your

Dave Goodin

because no-place-to-hide and our We’ve noted year in benefit that. throughout markets it’s want should this about noting background, non-qualified a large kind some I basis. I just plans. million We is on think investors given think the $X.XX that per the it’s Jason, thing, a But $XX a of what kind known number roughly as just of or you’re to be that. of maybe year-over-year share year, enough little know the

Jason Vollmer

bit little they’re balance -- here, certainly to Ryan, your than for non-qualified that. as a pension, the that these really Yes. have have. far is our And This our assets, programs on traditional different sheet as This we here. pension we liabilities as is question, kind of is this non-qualified,

We to assets on offset monthly And mark-to-market a assets have funded basis. some are those those liabilities. actually

benefit line. gains that anything plans, been that to I So getting losses ongoing not here. non-cash, benefit these defined impact significant plans as that defined losses a unrealized non-qualified those versus This just mode these are to our along years ago expect corporation this guess, or various they’re of or assets pension a on as well company. say have many in this have something traditional at year, that’s experienced on future time all of refresher, the And cost of the that kind this businesses. related as we’ve in at you expense Don’t all into plans point would really large kind we of have -- pension is frozen we the a have liability-reduction as benefit these and across really ongoing plans, our

Operator

with comes Your next question Dariusz from [Operator of America. Bank Lozny Instructions]

Dariusz Lozny

processes have rate maybe after are just with at RemainCo the ongoing about growth that concluded. I you start thinking Can the the X

are that the growth is Post of to envision long-term and, end at and would upside growth you RemainCo? you having your X% past, businesses. EPS transactions, sort the any the do the accelerate there on rate I the think X% the low by latitude correspondingly, in -- to base utilities CAGR framed towards X% as X you construction driven the these the

Dave Goodin

each the countless growth the as and I that. businesses as through to us X% Dariusz. of you other is that that I kind we meetings think our Yes. we Resources how walk about EPS question, we X% how know X% and MDU see today. to contribute Great of to Yes, X% investors mean had with long-term

X our As about you’re CAGR talked CAGR. were envision. describing over a coming this in really utility we as base about X X at prior certainly went if Today, more years. pure-play our prior the business. regulated XX% a business, the it years state That’s And off before growth, X% future back years like rate X% that, we a CAGR

market would we like, refresh let so, probably or say, in sense would Certainly, our on we be know board forward weeks, about X-year that and look week a a time. our it’s just at to give here there. discussion Thanksgiving our been I of with what to the it’s growing currently couple expecting as quite So nicely over of the looks think X%. CapEx a

high Trevor So think have projects, group that sorts. the that contributor. $XXX,XXX that my stronger would the Certainly, I that’s probably would not commitments of in between then have which the than think comments, elevate that about -- if if would up, think years, pipeline of tend CAGR XXXX, I his and the business the a that would over experienced EPS. projects, recent multiple you projects XXXX range, I line And more the customers that that’s on signed that you a noted expect from end sight. a very will, day lifting of be I of if to

but that’s it see -- as we So today.

the in also will business have pure-play, business about that. I be in, marketplace as about think in certain think capital that a is a and we’ll structure we management defined be then think as as other really team the think we’ll allocation regulated that’s very part this appeal And dialed also also well. focused we of capital as pure-play we the that

to the think Resources, we particularly to business. And thinking so be those of are energy regulated all state the attributes about I as future MDU described

the answer. Sorry long for

Dariusz Lozny

you backlog the side the was and the I a margin like a the the composition materials? little your while the talk to for year, had materials, about be you ticked robust. as but of there? language growth maybe No, maybe half maybe also what guidance. up, guidance. appreciate backlog? strong I of And the bit little that’s comprehensive. dynamics bit talk little about as the very a there, Can it. weaker really state this steady the drove services that down seems guidance specifically far think are you bit, a ‘XX increase and which services dynamics first ticked relates Can on the And can, the your to One great more, I It to if the in services looks very business relative and revenue your what specifically seeing then

Dave Goodin

where of both clearly, a lines And I mean, heads. as think business Dave served in look give a of to to then million more level activities you I’ll at couple you materials. on business, get to been in I Dariusz. $XXX but Absolutely, of by with those going each comments, have weigh those Jeff I’m our details high services of note, well then from revenue Barney and ask elevating just in start Thiede guidance.

has a about that of been Jeff it to margin leads which about I way. I’ll backlog bit kind we dynamics growth our if think the have year, question astounding, the just well. of business, Jeff? As also as there that your you talk think think little in

Jeff Thiede

teams projects. We’ve renewables. in more of of historical labor, issues, that that our to were on chain We’ve Thanks, QX the and write-downs industrial. given including noted strong work, work subcontractors. X our we’ve largest group, anticipate will remains a release, got higher record and a hospitality, XX% be and a XX% earnings among exemplifies We’ve our really business. affects component which of year-to-date and And group, impact, had project projects which our being quarter couple and of which And part includes our center should a in is that than majority the which business, XX%. The record segments strong data is performance, last of contributed from that earnings. work But our our materials, nature revenue and and pending about had backlog our overcome consistent by inflation, getting. on getting as performance overcome got the of supply got versus E&M of our selective. several renewable we’ve airport, that year commercial, year, are exceptional we be pressure T&D diverse on productivity. Included is our that That’s number Dave. about strengthens our offerings backlog our focused is work margin write-downs, our they In this

our vehicle stations. work doing our also charging We’re in electric service And and we’ve special got great projects. growth

Dave Goodin

Barney. I’ll Jeff? go Dariusz, for follow-up to any then Or on Dave

want make Jeff your Just sure, question. answered to

Dariusz Lozny

Yes. was Yes. helpful. very Yes. That

Dave Goodin

of Dave seeing your the you’re is doing get Okay. kind team ahead there dynamics can touch to out just that Barney, Very good. what of on and them? you

Dave Barney

the had know, we in have almost is pick regions. you And higher had revenue we all we’ll -- every line, in And up work. quarter due a as Demand product strong. Dariusz, can Sure. prices mainly record bid you, we strong. continue our looks our to I schedule record to tell almost backlog across

by accepted we prices just another aggregate. on in customers to and implemented increase continue has been price Our largely our raise increase price we October,

So going to forward, to we question? that margins Does expect improve. continue our answer your

Dave Goodin

else, you, Dariusz? Thank Dave. Anything

Dariusz Lozny

everything. that’s appreciate think I color. No, the I

Dave Goodin

for you calling the for Dariusz. Thank Excellent. questions, and in

Operator

remarks. [Operator of heading. Instructions] are replay www.mdu.com Presentations, under to Relations now location. the I accessed Conference a click webcast conference the questions. the at and further be Events management then no Earnings to can XXXX this QX available The the Call. same will there be Select webcast, Investor closing and time, back for at the After would At conclusion turn like

Dave Goodin

to Quarter join for time thank Earnings us Thank taking all you on and our you, Third Lisa, the Call. here

energy as to with prepare and your We that, you. appreciate out backlog regulated XXXX. our turn connecting look this and and in construction We delivery we And with about again ongoing you to growth future with We the I’ll of year close continued for the and operator. projects. Resources. are opportunities back record thank forward interest support Again, optimistic combined our MDU

Operator

Call. Group Resources participation. for MDU your today’s concludes you Conference Thank This

may now You disconnect.

MDU Resources (MDU) 4 Nov 222022 Q3 Earnings call transcript