Artesian Resources Corporation Reports First Quarter 2025 Results
- Net income increased 23.2% to $5.4 million in Q1 2025
- Diluted EPS grew 23.0% to $0.53
- Total revenues increased 5.5% to $25.9 million
- Water sales revenue rose 4.3% due to higher consumption and customer growth
- Wastewater revenue grew 11.4% from customer base expansion
- $10.4 million invested in infrastructure improvements
- Filed request for 10.75% rate increase due to rising costs
- Electric supply costs increasing by 25% under new contract
- Operating expenses increased 3.1%
- Higher costs for water treatment chemicals and electricity
Insights
Strong Q1 results with 23.2% profit growth, despite looming cost pressures from electricity and PFAS treatment driving 10.75% rate request.
Artesian Resources delivered impressive Q1 2025 results, with
The revenue growth was well-distributed across business segments:
- Water sales increased
4.3% due to higher consumption, customer growth, and a1.66% Distribution System Improvement Charge - Wastewater revenue grew
11.4% from customer base expansion - Non-utility revenue rose
8.0% , primarily from Service Line Protection Plans
Operating expenses (excluding depreciation and income taxes) increased only
The company faces mounting cost challenges that prompted its April 4th regulatory filing requesting a
- A new electric supply contract with a
25% rate increase adding approximately$0.5 million in annual expenses - Increasing expenses for PFAS treatment compliance
- Ongoing capital investment requirements
Artesian invested
The regulatory process bears watching, with Artesian seeking an interim
NEWARK, Del., May 05, 2025 (GLOBE NEWSWIRE) -- Artesian Resources Corporation (Nasdaq: ARTNA), a leading provider on the Delmarva Peninsula of water and wastewater services, and a number of other related business services, today announced earnings results for the first quarter of 2025.
First Quarter Results
Net income for the three months ended March 31, 2025 was
“Our strong financial results for the quarter are the result of our commitment to superior service to all customers and continued focus on managing increasing cost pressures associated with meeting more stringent water quality standards,” said Nicki Taylor, President and CEO.
Revenues totaled
Water sales revenue increased
Other utility operating revenue increased approximately
Non-utility operating revenue increased approximately
Operating expenses, excluding depreciation and income taxes, increased
Other income increased
Application for Increase in Customer Rates
On April 4, 2025, our wholly-owned Delaware water utility subsidiary, Artesian Water Company, Inc. (Artesian Water), filed a request with the Delaware Public Service Commission, or the DEPSC, to implement new rates to meet a requested incremental increase in revenue of
“Although we are reporting strong first quarter results, the significant increase in electric supply costs upon the expiration of the previous 3-year contract term and increased costs to treat for PFAS, as well as continued investments in utility plant to maintain reliable and safe service to customers compel the request for rate relief,” said Taylor.
Capital Expenditures
As part of Artesian’s ongoing effort to ensure high-quality reliable service to customers,
About Artesian Resources
Artesian Resources Corporation operates as a holding company of wholly-owned subsidiaries offering water and wastewater services, and a number of other related core business services, on the Delmarva Peninsula. Artesian Water Company, the principal subsidiary, is the oldest and largest regulated water utility on the Delmarva Peninsula and has been providing water service since 1905. Artesian Water Company supplies 9.4 billion gallons of water per year through 1,491 miles of main to over a third of Delawareans.
Forward Looking Statements
This release contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995 regarding, among other things, recovery of investments in water utility plant and increased operating costs in rates charged to customers as presented in our current filing before the Delaware Public Service Commission, the costs related to electric supply increases, the impact of weather on our operations, our growth strategy, our expectations regarding infrastructure investments, our enhanced operational efficiencies, and continued growth in our business and the number of customers served. These statements involve risks and uncertainties that could cause actual results to differ materially from those expressed or implied by such forward-looking statements including: changes in weather, changes in our contractual obligations, changes in government policies, the timing and results of our rate requests, failure to receive regulatory approval, changes in economic and market conditions generally and other matters discussed in our filings with the Securities and Exchange Commission. While the Company may elect to update forward-looking statements, we specifically disclaim any obligation to do so and you should not rely on any forward-looking statement as representation of the Company’s views as of any date subsequent to the date of this release.
Contact:
Virginia Eisenbrey
(302) 453-6900
VEisenbrey@artesianwater.com
| Artesian Resources Corporation Condensed Consolidated Statement of Operations (In thousands, except per share amounts) (Unaudited) | ||||||
| Three months ended March 31, | ||||||
| 2025 | 2024 | |||||
| Operating Revenues | ||||||
| Water sales | $ | 20,687 | $ | 19,825 | ||
| Other utility operating revenue | 3,358 | 3,015 | ||||
| Non-utility revenue | 1,841 | 1,704 | ||||
| 25,886 | 24,544 | |||||
| Operating Expenses | ||||||
| Utility operating expenses | 12,324 | 11,957 | ||||
| Non-utility operating expenses | 1,122 | 1,116 | ||||
| Depreciation and amortization | 3,357 | 3,465 | ||||
| State and federal income taxes | 1,851 | 1,681 | ||||
| Property and other taxes | 1,686 | 1,606 | ||||
| 20,340 | 19,825 | |||||
| Operating Income | 5,546 | 4,719 | ||||
| Allowance for funds used during construction | 566 | 285 | ||||
| Miscellaneous | 1,489 | 1,574 | ||||
| Income Before Interest Charges | 7,601 | 6,578 | ||||
| Interest Charges | 2,166 | 2,167 | ||||
| Net Income | $ | 5,435 | $ | 4,411 | ||
| Weighted Average Common Shares Outstanding - Basic | 10,302 | 10,287 | ||||
| Net Income per Common Share - Basic | $ | 0.53 | $ | 0.43 | ||
| Weighted Average Common Shares Outstanding - Diluted | 10,306 | 10,291 | ||||
| Net Income per Common Share - Diluted | $ | 0.53 | $ | 0.43 | ||
| Artesian Resources Corporation Condensed Consolidated Balance Sheet (In thousands) (Unaudited) | ||||||
| March 31, 2025 | December 31, 2024 | |||||
| Assets | ||||||
| Utility Plant, at original cost less accumulated depreciation | $ | 756,688 | $ | 747,186 | ||
| Current Assets | 25,172 | 24,528 | ||||
| Regulatory and Other Assets | 26,992 | 26,909 | ||||
| $ | 808,852 | $ | 798,623 | |||
| Capitalization and Liabilities | ||||||
| Stockholders' Equity | $ | 241,650 | $ | 239,189 | ||
| Long Term Debt, Net of Current Portion | 175,933 | 176,509 | ||||
| Current Liabilities | 25,627 | 25,593 | ||||
| Advances for Construction | 1,554 | 1,582 | ||||
| Net Contributions in Aid of Construction | 281,185 | 272,405 | ||||
| Other Liabilities | 82,903 | 83,345 | ||||
| $ | 808,852 | $ | 798,623 | |||
FAQ
What was Artesian Resources (ARTNA) earnings per share in Q1 2025?
How much rate increase did Artesian Resources request from Delaware regulators in 2025?
What was ARTNA's revenue growth in Q1 2025?
How much did Artesian Resources invest in infrastructure during Q1 2025?
How much will Artesian Resources' electric costs increase under the new contract?
