Artesian Resources Corporation Reports Third Quarter and Year-To-Date 2025 Results

Rhea-AI Summary

Artesian Resources (Nasdaq: ARTNA) reported third quarter and nine-month results for 2025. Q3 diluted EPS rose to $0.68 and Q3 net income was $7.0M. For the nine months, net income was $18.7M and diluted EPS was $1.81 (up 12.4% YTD). Revenues totaled $30.5M in Q3 and $84.9M YTD. The company invested $40.5M year-to-date in water and wastewater infrastructure, including mains, a new wastewater plant, tank upgrades and PFAS treatment work. Management cited customer growth, a temporary rate increase effective June 3, 2025, and higher SLP Plan revenue after a December 1, 2024 rate increase as drivers of revenue gains.

Operating costs rose, driven by payroll, supply/treatment and transmission/distribution expenses; AFUDC and other income increased with higher construction activity.

Positive

• YTD net income +12.9% to $18.7M
• YTD diluted EPS +12.4% to $1.81
• $40.5M invested in water and wastewater infrastructure YTD
• Other income +23.5% YTD due to higher AFUDC

Negative

• Q3 utility operating expenses +10.8% (higher payroll and supply costs)
• Operating expenses excluding depreciation up $1.7M YTD (3.9%)
• Revenue partly dependent on a temporary rate increase effective June 3, 2025 pending DEPSC permanent rates

Insights

Utilities financial analyst

Artesian shows modest earnings growth and substantial infrastructure investment through Sept 30, 2025.

Net income rose to 7.0 million in the quarter and 18.7 million year-to-date, with diluted EPS up to 0.68 for the quarter and 1.81 year-to-date, reflecting sequentially higher revenues driven by rate actions and customer growth. Revenue increased by 4.6% in the quarter and 4.7% year-to-date, led by water sales and wastewater service expansion; operating expenses rose but remained proportionate to growth, with utility operating expenses and depreciation increasing due to higher activity and plant investments.

Management invested 40.5 million in nine months on water and wastewater projects, including mains, a new wastewater plant, storage tank upgrades and PFAS treatment work. This capital spend explains the higher depreciation and greater AFUDC recognized as other income. Watch regulatory outcomes for the temporary rate placed into effect on June 3, 2025 and the timing of permanent DEPSC rate decisions, which directly affect reported revenue and margins within the next regulatory cycle.

NEWARK, Del., Oct. 30, 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 third quarter and year-to-date results for 2025.  

• Diluted net income per share increased to $0.68 in the third quarter and $1.81 year-to-date
• Net income increased $0.1 million (2.2%) in the third quarter and $2.1 million (12.9%) year-to-date
• Invested $40.5 million year-to-date in water and wastewater infrastructure
  
  

Third Quarter Results

Net income for the three months ended September 30, 2025 was $7.0 million, a $0.1 million, or 2.2%, increase compared to net income for the three months ended September 30, 2024. Diluted net income per share increased 3.0% to $0.68, compared to $0.66 for the same period in 2024.

Revenues totaled $30.5 million for the three months ended September 30, 2025, $1.3 million, or 4.6%, more than revenues for the three months ended September 30, 2024.

Water sales revenue increased $0.7 million, or 3.1%, primarily the result of a temporary rate increase placed into effect on June 3, 2025, as permitted under Delaware law, until permanent rates are determined by the Delaware Public Service Commission, or DEPSC, as well as an increase in the number of customers served, partially offset by a slight decrease in consumption.

Other utility operating revenue increased approximately $0.4 million, or 12.6%, primarily due to an increase in wastewater revenue associated with additional customers served.

Non-utility operating revenue increased approximately $0.2 million, or 10.8%, primarily due to an increase in Service Line Protection Plan, or SLP Plan, revenue, resulting from an increase in rates placed into effect on December 1, 2024.

Operating expenses, excluding depreciation and income taxes, increased $1.0 million, or 6.7%, for the three months ended September 30, 2025, compared to the same period in 2024. Utility operating expenses increased $1.3 million, or 10.8%. The increase in utility operating expenses consists of a $0.7 million increase in payroll and employee benefit costs, a $0.4 million increase in supply and treatment costs, a $0.2 million increase in administrative costs, and a $0.1 million increase in transmission, distribution and collection system costs. The increase in utility operating expenses is partially offset by a $0.1 million decrease in purchased water costs.

Depreciation and amortization expense increased $0.2 million, or 6.4%, primarily due to additional depreciation from continued investment in utility plant related to providing supply, treatment, storage and distribution of water to customers and service to our wastewater customers.

Federal and state income tax expense increased $0.1 million, or 5.0%, primarily due to higher pre-tax book income.

Property and other taxes decreased $0.4 million, primarily due to a decrease in tax rates on utility plant partially offset by an increase in utility plant subject to taxation.

Other income increased $0.1 million, primarily due to an increase in allowance for funds used during construction, or AFUDC, as a result of higher long-term construction activity subject to AFUDC.

“Artesian continues to execute our strategic growth plan for water and wastewater services, expanding our customer base in a manner that strengthens operational efficiency and supports sustainable growth,” said Nicki Taylor, Chair, President and CEO. “Looking ahead, we remain focused on operational excellence, regulatory compliance and strong financial management. This approach supports the long-term interests of our customers and reinforces the continued strength and stability of our company for our shareholders.”

Year-to-Date Results

Net income for the nine months ended September 30, 2025 was $18.7 million, a $2.1 million, or 12.9%, increase compared to net income for the nine months ended September 30, 2024. Diluted net income per share increased 12.4% to $1.81, compared to $1.61 for the same period in 2024.

Revenues totaled $84.9 million for the nine months ended September 30, 2025, $3.8 million, or 4.7%, more than revenues for the nine months ended September 30, 2024.

Water sales revenue increased $2.2 million, or 3.3%, primarily the result of a temporary rate increase placed into effect on June 3, 2025, as well as an increase in the number of customers served, DSIC revenue and overall water consumption.

Other utility operating revenue increased approximately $1.1 million, or 11.6%, primarily due to an increase in wastewater revenue associated with customer growth.

Non-utility operating revenue increased approximately $0.5 million, or 10.3%, primarily due to an increase in SLP Plan revenue, resulting from an increase in rates that were placed into effect on December 1, 2024.

Operating expenses, excluding depreciation and income taxes, increased $1.7 million, or 3.9%. Utility operating expenses increased $2.0 million, or 5.5%. The increase in utility operating expenses consists of a $0.7 million increase in administrative costs, a $0.5 million increase in payroll and employee benefit costs, a $0.4 million increase in transmission, distribution and collection system costs, a $0.3 million increase in purchased power costs and a $0.2 million increase in supply and treatment costs. The increase in utility operating expenses is partially offset by a $0.1 million decrease in purchased water costs.

Non-utility operating expenses decreased $0.1 million, or 2.2%, primarily due to a decrease in payroll and employee benefit costs.

Depreciation and amortization expense increased $0.1 million, or 0.9%, primarily due to additional depreciation from continued investment in utility plant related to providing supply, treatment, storage and distribution of water to customers and service to our wastewater customers.

Federal and state income tax expense increased $0.5 million, or 8.5%, primarily due to higher pre-tax book income, partially offset by higher regulatory deferred income tax amortization in 2025 compared to 2024.

Property and other taxes decreased $0.2 million, or 4.4%, primarily due to a decrease in tax rates on utility plant partially offset by an increase in utility plant subject to taxation.

Other income increased $0.6 million, or 23.5%, primarily as a result of higher long-term construction activity subject to AFUDC.

Capital Expenditures

As part of Artesian’s ongoing effort to ensure high-quality, reliable service to customers, $40.5 million was invested in the first nine months of 2025 in water and wastewater infrastructure projects. These investments include renewals associated with the rehabilitation of aging infrastructure, installation of new mains, construction of a new wastewater treatment plant, upgrading elevated storage tanks, upgrading and replacing our meter reading equipment, and upgrading existing pumping and treatment stations, including PFAS treatment upgrades, to better serve our customers.

“Artesian continues to make significant investments in infrastructure to address aging assets and ensure continued reliability across our water and wastewater systems. These investments not only maintain compliance with more stringent state regulatory standards but also position us well ahead of anticipated federal requirements,” said Nicki Taylor.

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, our growth strategy, our expectations regarding infrastructure investments, our ability to comply with future regulatory standards, continued growth in our business and the number of customers served, and our continued provision of high-quality, reliable service to customers. 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 approvals, 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								Nine months ended
		September 30,								September 30,
		2025				2024				2025			2024
Operating Revenues
Water sales	$	24,837			$	24,092			$	68,608		$	66,419
Other utility operating revenue		3,780				3,358				10,777			9,661
Non-utility operating revenue		1,874				1,692				5,541			5,022
		30,491				29,142				84,926			81,102
Operating Expenses
Utility operating expenses		13,431				12,125				38,261			36,261
Non-utility operating expenses		1,265				1,213				3,396			3,474
Depreciation and amortization		3,497				3,287				10,268			10,177
State and federal income taxes		2,473				2,355				6,488			5,982
Property and other taxes		1,206				1,572				4,494			4,700
		21,872				20,552				62,907			60,594
Operating Income		8,619				8,590				22,019			20,508
Allowance for funds used during construction		584				474				1,771			1,126
Miscellaneous		(48	)			(58	)			1,411			1,450
Income Before Interest Charges		9,155				9,006				25,201			23,084
Interest Charges		2,193				2,193				6,514			6,535
Net Income	$	6,962			$	6,813			$	18,687		$	16,549
Weighted Average Common Shares Outstanding - Basic		10,312				10,297				10,308			10,293
Net Income per Common Share - Basic	$	0.68			$	0.66			$	1.81		$	1.61
Weighted Average Common Shares Outstanding - Diluted		10,314				10,298				10,309			10,294
Net Income per Common Share - Diluted	$	0.68			$	0.66			$	1.81		$	1.61
Artesian Resources Corporation
Condensed Consolidated Balance Sheet
(In thousands)
(Unaudited)
	September 30,				December 31,
	2025				2024
Assets
Utility Plant, at original cost less
accumulated depreciation	$	788,318			$	747,186
Current Assets		19,577				24,528
Regulatory and Other Assets		26,013				26,909
	$	833,908			$	798,623
Capitalization and Liabilities
Stockholders' Equity	$	248,843			$	239,189
Long Term Debt, Net of Current Portion		174,660				176,509
Current Liabilities		28,972				25,593
Advances for Construction		1,369				1,582
Contributions in Aid of Construction		298,789				272,405
Other Liabilities		81,275				83,345
	$	833,908			$	798,623

FAQ

What were Artesian Resources (ARTNA) third-quarter 2025 EPS and net income?

Q3 2025 diluted EPS was $0.68 and net income was $7.0M.

How did Artesian Resources (ARTNA) perform year-to-date through Sept. 30, 2025?

Through Sept. 30, 2025 ARTNA reported $18.7M net income and diluted EPS of $1.81.

How much did Artesian Resources (ARTNA) invest in infrastructure in the first nine months of 2025?

Artesian invested $40.5M in water and wastewater infrastructure YTD 2025.

What drove revenue growth for Artesian Resources (ARTNA) in 2025?

Growth was driven by customer additions, a temporary rate increase effective June 3, 2025, higher wastewater customers and higher SLP Plan rates effective Dec. 1, 2024.

Did Artesian Resources (ARTNA) report any notable cost trends in Q3 2025?

Yes; Q3 utility operating expenses rose 10.8%, led by payroll, supply/treatment and system costs.

Is Artesian Resources (ARTNA) facing regulatory rate timing risk?

Yes; some revenue reflects a temporary rate in effect until the Delaware Public Service Commission sets permanent rates.