BISMARCK, N.D. - MDU Resources Group, Inc. (NYSE: MDU) announced the executive team for Everus Construction Group, which will take effect following the completion of Everus's spinoff into an independent entity later this year. The leadership appointments are part of MDU Resources' strategy to become a pure-play regulated energy delivery business.
Jeffrey S. Thiede will continue as president and CEO of Everus, a role he has held since 2013. Thomas D. Nosbusch is set to become the chief operating officer, while Maximillian J. Marcy will join as vice president, chief financial officer, and treasurer on August 12. Paul R. Sanderson will take on the role of vice president, chief legal officer, and secretary. Jon B. Hunke is appointed as vice president and chief accounting officer. Ray T. Kelly will maintain his position as senior vice president of market development, with Britney A. Hendricks stepping in as vice president of human resources, and Jason A. Behring as vice president of technology.
Dennis W. Johnson, chair of the board at MDU Resources, expressed confidence in the selected team's ability to lead Everus and MDU Resources into their future as separate entities. Nicole A. Kivisto, president and CEO of MDU Resources, highlighted the timing of the spinoff, citing the construction services business's strong performance and industry tailwinds.
The spinoff of Everus Construction Group is expected to be a tax-free transaction for MDU Resources shareholders. The move is anticipated to optimize shareholder value and allow MDU Resources to focus on its regulated energy delivery business.
While the company has expressed positive projections for the spinoff, they also acknowledge that actual results may differ from expectations. The information provided is based on a press release statement from MDU Resources Group, Inc.
In other recent news, MDU Resources Group has reported a strong start to 2024 with significant earnings and revenue results. The company's first-quarter earnings amounted to $100.9 million, or $0.49 per share, driven by an 8% increase in electric retail sales volumes, record earnings in its pipeline business, and the anticipated tax-free spin-off of its Construction Services business, Everus.
In addition to these financial highlights, MDU Resources has made strategic moves in its board of directors. The company recently announced the addition of Douglas W. Jaeger to its board. Jaeger, with over 27 years of experience in the electric utility and construction services industries, is expected to contribute significantly to the board's collective expertise.
These are among the recent developments for MDU Resources. The company has also implemented interim rates in South Dakota and North Dakota and filed a multiyear natural gas rate case in Washington. MDU Resources continues to focus on strategic growth, particularly in the areas of efficient energy delivery and data center projects.
InvestingPro Insights
As MDU Resources Group, Inc. (NYSE: MDU) prepares for the strategic spinoff of Everus Construction Group, the company's financial health and shareholder value are of paramount interest. MDU Resources is trading at a low P/E ratio of 11.21, which, when compared to its near-term earnings growth, suggests the stock may be undervalued—an InvestingPro Tip that might catch the eye of value-oriented investors. Furthermore, MDU Resources has been a consistent performer in terms of dividend payments, having maintained them for 54 consecutive years, a testament to the company's financial stability and commitment to returning value to shareholders.
Looking at the recent performance, MDU Resources has experienced a significant price uptick over the last six months, with a 38.0% total return, reflecting strong momentum that could interest potential investors. Additionally, the company's revenue for the last twelve months as of Q1 2024 stood at 4441.07 million USD, with a solid gross profit margin of 19.1%, indicating efficient operations and management's ability to convert revenues into profit.
Investors should note that MDU Resources is currently trading near its 52-week high, at 98.76% of the peak price, which might indicate market optimism about the company's future prospects, especially in light of the upcoming structural changes. For those looking to delve deeper into MDU Resources' financials and future outlook, there are additional InvestingPro Tips available, providing a comprehensive analysis of the stock's potential. Interested readers can use the coupon code PRONEWS24 to get up to 10% off a yearly Pro and a yearly or biyearly Pro+ subscription.
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