MDU Resources Group Inc. announced that earnings increased 16% in 2020 to $390.2 million, or $1.95 per share, compared to 2019 earnings of $335.5 million, or $1.69 per share. In the fourth quarter, the company’s earnings were $112.3 million, or 56 cents per share, compared to $95.1 million, or 47 cents per share, in 2019.
“This is the second-best earnings result in our 97-year history, and we are incredibly proud of our employees’ dedication to ‘Building a Strong America’ despite the challenges 2020 presented,” said David L. Goodin, president and CEO of MDU Resources. “Our construction companies shattered earnings records, and our regulated energy businesses also had strong results. Our success during this tumultuous year further underscores the essential nature of our businesses. Our employees provide products and services that are critical to our customers and our country, and they strive to do so safely and regardless of the circumstances they may face.
“Starting 2021 off with a record combined backlog of work at our construction companies, many opportunities for electric and natural gas utility investments, and construction expected to begin soon on our largest-ever natural gas pipeline expansion project, we are well-positioned to continue growing. We anticipate earnings in the range of $1.95 to $2.15 per share in 2021,” Goodin said.
The construction materials business earned a record $147.3 million in 2020, a 22% increase compared to $120.4 million in 2019. Revenues, at $2.2 billion, were comparable to the prior year. Mild weather both early and late in the year allowed the company a longer-than-average construction season.
The company also benefited from higher margins on most product lines, particularly asphalt and asphalt-related products and ready-mixed concrete. While a majority of the increase was driven by existing operations, acquisitions contributed to the earnings growth.
MDU Resources continues to explore opportunities to acquire additional construction companies. The construction materials backlog of work at Dec. 31 was $673 million, compared to $693 million at Dec. 31, 2019.
The construction services business had record results for the third consecutive year. Earnings increased 18% in 2020 to $109.7 million on revenues of $2.10 billion, compared to $93.0 million and $1.85 billion, respectively, in 2019.
This business saw growth in its inside electrical contracting work, particularly for high-tech, industrial and hospitality customers. It also experienced an increase in outside electrical construction workloads as demand grew for utility-related work, particularly power line recovery work following natural disasters.
The company continued to see strong sales and rentals of the utility construction equipment it manufactures. Organic growth was the primary driver behind the increase, with acquisitions also contributing to results. The construction services backlog of work at Dec. 31 was a record $1.27 billion, compared to $1.14 billion at Dec. 31, 2019.
For 2021, MDU expects construction materials revenues in the range of $2.1 billion to $2.3 billion and construction services revenues in the range of $2.1 billion to $2.3 billion, with margins comparable to or slightly higher than 2020.