What a $75 Million Exit From MDU Might Signal Amid a 24% One-Year Rally
Key Points
Corvex sold 4,183,151 shares of MDU Resources Group in the fourth quarter.
The quarter-end position value declined by $74.50 million as a result.
The position was previously 2.5% of the fund's AUM as of the prior quarter.
On February 17, 2026, Corvex Management disclosed in a Securities and Exchange Commission (SEC) filing that it sold out its entire position in MDU Resources Group (NYSE:MDU), offloading 4,183,151 shares in the fourth quarter.
What happened
According to a Securities and Exchange Commission (SEC) filing dated February 17, 2026, Corvex Management sold all 4,183,151 shares of MDU Resources Group during the fourth quarter. The quarter-end value of the position fell by $74.50 million as a result.
What else to know
- Top holdings after this filing:
- NASDAQ:ILMN: $502.29 million (16.7% of AUM)
- NYSE:SWX: $402.55 million (13.4% of AUM)
- NASDAQ:WGS: $397.81 million (13.2% of AUM)
- NASDAQ:AMZN: $226.83 million (7.5% of AUM)
- NYSE:DIS: $221.06 million (7.4% of AUM)
- As of February 17, 2026, shares of MDU Resources Group were priced at $20.27, up 23.82% over the past year and outperforming the S&P 500’s roughly 16% gain in the same period.
Company overview
| Metric | Value |
|---|---|
| Price (as of market close 2/17/26) | $20.27 |
| Market Capitalization | $4.14 billion |
| Revenue (TTM) | $1.88 billion |
| Net Income (TTM) | $190.44 million |
Company snapshot
- MDU Resources Group provides regulated electric and natural gas distribution, pipeline transportation, and construction materials and services, including aggregates, asphalt, ready-mixed concrete, and infrastructure contracting.
- The company generates revenue through utility operations, construction materials sales, and contracting services, leveraging a mix of regulated and market-driven business segments.
- Primary customers include residential, commercial, industrial, municipal, and government entities across the energy, construction, and utility sectors in the United States.
MDU Resources Group, Inc. operates as a diversified infrastructure and energy company with a focus on regulated utilities and construction services.
What this transaction means for investors
Utilities rarely inspire drama, but capital allocation decisions around them often do. MDU just closed 2025 with $190.4 million in net income and $0.93 in diluted EPS, while income from continuing operations rose to $191.4 million. The company is guiding to $0.93 to $1.00 in EPS for 2026 and reaffirmed a 6% to 8% long-term earnings growth target.
This is now a pure-play regulated energy delivery business after the Everus spinoff (which completed in 2024), with a $560 million capital plan for 2026 and roughly $3.1 billion earmarked through 2030. In a statement alongside earnings, CEO Nicole Kivisto called 2025 a “transformative year” and said the firm is working on “advancing key regulatory activity” and “progressing major pipeline projects.” Plus, rate base growth was 16% year over year, helped by the 49% stake in Badger Wind Farm.
Against this backdrop, reallocating capital away from a steady regulated name and toward higher growth holdings like Illumina or Amazon reflects a clear preference for asymmetry over predictability. Ultimately, the exit does not change the fundamentals; it might just clarify the mandate.
Jonathan Ponciano has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Amazon and Walt Disney. The Motley Fool recommends Illumina. The Motley Fool has a disclosure policy.