MDU RESOURCES GROUP INCMDU

MDU RESOURCES GROUP INC Revenue Disclosure

10-KFiled Feb 20, 20263 min read
Revenue from Contracts with Customers
Revenue is recognized when a performance obligation is satisfied by transferring control over a product or service to a customer. Revenue is measured based on consideration specified in a contract with a customer and excludes any sales incentives and amounts collected on behalf of third parties. The Company is considered an agent for certain taxes collected from customers. As such, the Company presents revenues net of these taxes at the time of sale to be remitted to governmental authorities, including sales and use taxes.
As part of the adoption of ASC 606 - Revenue from Contracts with Customers, the Company elected the practical expedient to recognize the incremental costs of obtaining a contract as an expense when incurred if the amortization period of the asset that the Company otherwise would have recognized is 12 months or less.
Disaggregation
In the following table, revenue is disaggregated by the type of customer or service provided. The Company believes this level of disaggregation best depicts how the nature, amount, timing and uncertainty of revenue and cash flows are affected by economic factors. The table also includes a reconciliation of the disaggregated revenue by reportable segments. For more information on the Company's business segments, see Note 14.
Year ended December 31, 2025ElectricNatural gas distributionPipelineOtherTotal
(In thousands)
Residential utility sales
$137,673 $654,793 $— $— $792,466 
Commercial utility sales187,097 436,431 — — 623,528 
Industrial utility sales38,066 44,183 — — 82,249 
Other utility sales7,537 — — — 7,537 
Natural gas transportation— 66,978 191,542 — 258,520 
Natural gas storage— — 23,270 — 23,270 
Other74,159 62,894 14,185 722 151,960 
Intersegment eliminations(553)(345)(74,992)(722)(76,612)
Revenues from contracts with customers443,979 1,264,934 154,005 — 1,862,918 
Other revenues(6,202)18,196 154 — 12,148 
Total external operating revenues$437,777 $1,283,130 $154,159 $— $1,875,066 

Year ended December 31, 2024ElectricNatural gas distributionPipelineOtherTotal
(In thousands)
Residential utility sales$140,054 $646,049 $— $— $786,103 
Commercial utility sales171,760 399,087 — — 570,847 
Industrial utility sales42,883 42,588 — — 85,471 
Other utility sales7,910 — — — 7,910 
Natural gas transportation— 60,645 174,623 — 235,268 
Natural gas storage— — 23,690 — 23,690 
Other59,288 40,703 13,139 195 113,325 
Intersegment eliminations(72)(130)(69,222)(195)(69,619)
Revenues from contracts with customers421,823 1,188,942 142,230 — 1,752,995 
Other revenues(7,417)12,033 367 — 4,983 
Total external operating revenues$414,406 $1,200,975 $142,597 $— $1,757,978 
Year ended December 31, 2023ElectricNatural gas distributionPipelineOtherTotal
(In thousands)
Residential utility sales$136,274 $724,600 $— $— $860,874 
Commercial utility sales170,321 442,507 — — 612,828 
Industrial utility sales43,063 45,205 — — 88,268 
Other utility sales7,270 — — — 7,270 
Natural gas transportation— 52,465 145,297 — 197,762 
Natural gas storage— — 18,254 — 18,254 
Other54,508 15,141 13,874 119 83,642 
Intersegment eliminations(138)(301)(62,533)(119)(63,091)
Revenues from contracts with customers411,298 1,279,617 114,892 — 1,805,807 
Other revenues(10,261)7,619 187 — (2,455)
Total external operating revenues$401,037 $1,287,236 $115,079 $— $1,803,352 
Remaining performance obligations
The remaining performance obligations at the pipeline segment include firm transportation and storage contracts with fixed pricing and fixed volumes. The Company has applied the practical expedient that does not require additional disclosures for contracts with an original duration of less than 12 months to certain firm transportation and non-regulated contracts. The Company's firm transportation and storage contracts included in the remaining performance obligations have weighted average remaining durations of less than four years and one year, respectively.
At December 31, 2025, the Company expects to recognize revenue in future periods from remaining performance obligations, as follows:
12 months or less
Next 13-24 months
25 months or moreTotal
(In Millions)
$86.8 $79.1 $365.6 $531.5 
Free Sentinel

Want the next MDU RESOURCES GROUP INC revenue disclosure the moment it drops?

Set a Sentinel and we'll alert you the moment MDU RESOURCES GROUP INC's next filing hits EDGAR. No credit card, your email never gets sold.

Track for free

Historical Timeline

Fiscal YearFiled
2025Feb 20, 2026Showing above
2024Feb 20, 2025
2023Feb 22, 2024
2022Feb 24, 2023
2021Feb 23, 2022
2020Feb 19, 2021
2019Feb 21, 2020
2018Feb 22, 2019

About Revenue Disclosures

Revenue disclosures under ASC 606 explain how a company identifies performance obligations, allocates transaction prices, and determines when revenue is recognized. This section is essential for understanding whether reported revenue reflects genuine economic activity or aggressive accounting choices. Analysts examine the mix of point-in-time versus over-time recognition, which directly affects revenue timing and comparability.

Key signals: rising contract liabilities (deferred revenue) suggest strong future revenue visibility, while declining contract assets may indicate slowing project milestones. Watch for variable consideration estimates — rebates, returns, and performance bonuses that require management judgment. Significant changes in disaggregated revenue by geography or product line can reveal shifting business mix before it appears in headline numbers. Compare revenue growth against contract liability growth to assess sustainability, and scrutinize any changes in the timing of recognition that coincide with earnings pressure.

Other Available Disclosures

Income TaxesFair ValuePP&EGoodwill & IntangiblesLeasesSegmentsDebtCommitmentsStock CompensationNew StandardsPay vs Performance