Artesian Resources Corporation Reports Third Quarter and Year-To-Date 2026 Results

Nine-month earnings increased despite a third-quarter decline, alongside $40.8 million invested in water and wastewater infrastructure.

Rhea-AI Summary

Artesian Resources (Nasdaq: ARTNA) reported third-quarter 2026 diluted earnings per share of $0.65, down from the same period last year. Revenue rose 4.8% to $31.9 million, while net income fell 3.0% to $6.8 million; diluted earnings per share were $0.68 a year earlier. Water sales benefited from consumption, customer growth and temporary rate increases. Higher utility operating expenses, property taxes and interest charges weighed on results.

For the nine months ended September 30, 2026, revenue increased 6.4% to $90.4 million, net income rose 3.1% to $19.3 million and diluted earnings per share increased 3.3% to $1.87. Artesian invested $40.8 million in water and wastewater infrastructure during the period. Long-term debt, excluding the current portion, reached $181.929 million, versus $174.276 million at December 31, 2025. Permanent Delaware water rates remain pending.

14 points · 0 major

MixediHow this balance works

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It reads the document as published, with the same rules for every company, and it does not look at what the market expected or at how the stock traded, so a point can be objectively good on a day the stock falls.

Rhea-AI Sentiment measures something else, the tone of the wording.

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0 major · 11 points

How the balance works

Positive

• Moderate pointNine-month revenue increased 6.4% to $90.4 million compared with the same period in 2025.
• Moderate pointNine-month net income rose 3.1% to $19.3 million; diluted earnings per share increased 3.3% to $1.87.
• Moderate pointOperating income rose to $8.830 million from $8.619 million quarterly, and $23.721 million from $22.019 million year-to-date.
• Minor pointThird-quarter revenue increased 4.8% to $31.9 million compared with the same period in 2025.
• Minor pointThird-quarter water sales revenue increased $0.8 million, or 3.4%, supported by consumption, customer growth and rates.

9 minor points

• Minor pointNine-month water sales revenue increased $3.7 million, or 5.4%, supported by temporary rates, consumption and customer growth.
• Minor pointThird-quarter other utility revenue increased approximately $0.5 million, or 12.6%, primarily from wastewater services.
• Minor pointNine-month other utility revenue increased approximately $1.3 million, or 11.8%, primarily from wastewater services.
• Minor pointThird-quarter non-utility revenue increased approximately $0.1 million, or 7.5%, primarily from service-line protection fees.
• Minor pointNine-month non-utility revenue increased approximately $0.5 million, or 9.1%, primarily from protection-plan fees and participation.
• Minor pointInfrastructure investment totaled $40.8 million in the first nine months, including water treatment and wastewater projects.
• Minor pointThird-quarter income tax expense decreased $0.2 million, or 9.0%, reflecting lower pre-tax income and an accrual reversal.
• Minor pointThird-quarter non-utility operating expenses declined to $1.228 million from $1.265 million a year earlier.
• Minor pointStockholders' equity increased to $259.839 million at September 30, 2026, from $249.922 million at December 31, 2025.

Negative

• Moderate pointThird-quarter net income fell 3.0% to $6.8 million; diluted earnings per share declined to $0.65 from $0.68.
• Moderate pointNine-month utility operating expenses increased $2.8 million, or 7.4%, led by payroll and employee benefits.
• Minor pointThird-quarter utility operating expenses increased $1.1 million, or 8.0%, reflecting treatment, personnel, power and administrative costs.
• Minor pointNine-month non-utility operating expenses increased $0.3 million, or 10.0%, primarily from protection-plan plumbing repairs.
• Minor pointProperty and other taxes increased $0.4 million quarterly and $0.2 million year-to-date, reflecting tax rates and taxable plant.

6 minor points

• Minor pointDepreciation and amortization increased to $3.575 million from $3.497 million quarterly; nine-month expense rose 2.7%.
• Minor pointInterest charges increased $0.2 million quarterly and $0.4 million year-to-date, including higher borrowing and customer-refund interest.
• Minor pointOther income decreased $0.2 million quarterly and $0.7 million year-to-date, primarily from lower construction-related allowances.
• Minor pointNine-month income tax expense increased to $6.572 million from $6.488 million a year earlier.
• Minor pointLong-term debt, excluding the current portion, increased to $181.929 million from $174.276 million at December 31, 2025.
• Minor pointTemporary Delaware water rate increases remain subject to permanent rates determined by the DEPSC.

Key Figures

Q3 diluted EPS: $0.65 (vs. $0.68) Q3 net income: $6.8 million (-3.0%) Q3 revenue: $31.9 million (+4.8%) +5 more

Q3 diluted EPS

$0.65 (vs. $0.68)

Third quarter 2026; decreased year over year

Q3 net income

$6.8 million (-3.0%)

Three months ended September 30, 2026

Q3 revenue

$31.9 million (+4.8%)

Three months ended September 30, 2026

Year-to-date diluted EPS

$1.87 (+3.3%)

Nine months ended September 30, 2026

Year-to-date net income

$19.3 million (+3.1%)

Nine months ended September 30, 2026

Year-to-date revenue

$90.4 million (+6.4%)

Nine months ended September 30, 2026

Operating expenses

Increased 8.7%

Q3, excluding depreciation and income taxes

Infrastructure investment

$40.8 million

Water and wastewater projects in the first nine months of 2026

Historical Context

1 past event · Latest: Aug 06

1 event

1. Aug 06

   Q2 earnings report

   24h Move

   +0.8%

   Six-month 2026 earnings and revenue growth provide a same-year progression baseline.

24h Move is the share-price change in the day after each event; other market factors may also have contributed.

Key Terms

allowance for funds used during construction, pfas

2 terms

allowance for funds used during construction financial

"Allowance for funds used during construction, or AFUDC."

Allowance for funds used during construction (AFUDC) is the accounting practice of adding the cost of borrowing money and using company funds while building long-term assets to the value of that asset instead of treating it as an immediate expense. For investors, AFUDC matters because it boosts reported profits and increases the company’s asset base today while deferring financing costs to future periods, similar to adding construction loan interest to the price of a house under renovation.

pfas technical

"including PFAS treatment upgrades"

PFAS are a group of human-made chemicals used in many everyday products, such as non-stick cookware, water-repellent clothing, and food packaging, because they resist heat, water, and grease. They are often called "forever chemicals" because they do not break down easily in the environment or the human body, potentially leading to health concerns. For investors, the presence of PFAS-related risks can impact companies’ reputations, legal liabilities, and future costs.

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NEWARK, Del., Nov. 10, 2026 (GLOBE NEWSWIRE) -- Artesian Resources Corporation (Nasdaq: ARTNA), a leading provider on the Delmarva Peninsula of water and wastewater services, and other related business services, today announced third quarter and year-to-date results for 2026.  

Third Quarter Results

Diluted net income per share decreased to $0.65, compared to $0.68 for the same period in 2025. Net income for the three months ended September 30, 2026 was $6.8 million, a $0.2 million, or 3.0%, decrease compared to net income recorded during the three months ended September 30, 2025.  

Revenues totaled $31.9 million for the three months ended September 30, 2026, $1.5 million, or 4.8%, more than revenues for the three months ended September 30, 2025.

Water sales revenue increased $0.8 million, or 3.4%, primarily the result of an increase in overall water consumption, an increase in the number of customers served, and an increase in Distribution System Improvement Charge, or DSIC, revenue. The DSIC rate effective July 1, 2026 was 0.62%. In addition, water sales revenue increased related to two temporary rate increases as permitted under Delaware law, until permanent rates are determined by the DEPSC.   

Other utility operating revenue increased approximately $0.5 million, or 12.6%, primarily due to an increase in wastewater revenue related to industrial wastewater treatment services and an increase in wastewater revenue associated with additional residential and commercial customers.

Non-utility operating revenue increased approximately $0.1 million, or 7.5%, primarily due to an increase in Service Line Protection Plan, or SLP Plan, revenue, resulting from an increase in fees that were placed into effect on January 1, 2026.

Operating expenses, excluding depreciation and income taxes, increased $1.4 million, or 8.7%. Utility operating expenses increased $1.1 million, or 8.0%, primarily the result of a $0.4 million increase in supply and treatment costs, a $0.2 million increase in payroll and employee benefit costs, a $0.2 million increase in purchased power costs, and a $0.2 million increase in administrative costs.

Federal and state income tax expense decreased $0.2 million, or 9.0%, primarily due to lower pre-tax book income and the reversal of accrued penalty and interest related to uncertain tax positions taken on the 2022 tax return for which the statute of limitations lapsed during the third quarter of 2026.

Property and other taxes increased $0.4 million, primarily due to an increase in New Castle County, Delaware tax rates on utility plant and an increase in utility plant subject to taxation. Property taxes are assessed on land, buildings and certain utility plant, which include the footage and size of pipe, hydrants and wells.

Other income decreased $0.2 million, primarily due to a decrease in allowance for funds used during construction, or AFUDC, as a result of lower long-term construction activity subject to AFUDC.

Interest charges increased $0.2 million, primarily due to an increase in long-term debt interest related to higher borrowing levels on the Company’s promissory notes and reserve for customer refund interest associated with the temporary rate increase revenue.

Year-to-Date Results

Diluted net income per share increased 3.3% to $1.87, compared to $1.81 for the same period in 2025. Net income for the nine months ended September 30, 2026 was $19.3 million, a $0.6 million, or 3.1%, increase compared to net income recorded during the nine months ended September 30, 2025.

Revenues totaled $90.4 million for the nine months ended September 30, 2026, $5.5 million, or 6.4%, more than revenues for the nine months ended September 30, 2025.

Water sales revenue increased $3.7 million, or 5.4%, primarily the result of temporary rate increases as permitted under Delaware law, until permanent rates are determined by the DEPSC, as well as increases in overall water consumption and an increase in the number of customers served.   

Other utility operating revenue increased approximately $1.3 million, or 11.8%, primarily due to an increase in revenue related to industrial wastewater treatment services and an increase in wastewater revenue associated with additional residential and commercial customers.

Non-utility operating revenue increased approximately $0.5 million, or 9.1%, primarily due to an increase in SLP Plan revenue, resulting from an increase in fees that were placed into effect on January 1, 2026 and an increase in the number of customers participating in the SLP Plans.

Operating expenses, excluding depreciation and income taxes, increased $3.4 million, or 7.4%. Utility operating expenses increased $2.8 million, or 7.4%, primarily the result of a $1.3 million increase in payroll and employee benefit costs, a $0.8 million increase in supply and treatment costs, a $0.3 million increase in purchased power costs, a $0.3 million increase in administrative costs, and a $0.2 million increase in transmission, distribution and collection costs. Non-utility operating expenses increased $0.3 million, or 10.0%, primarily due to an increase in plumbing repair costs associated with the SLP Plans.

Depreciation and amortization expense increased $0.3 million, or 2.7%, 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.

Property and other taxes increased $0.2 million, primarily due to an increase in New Castle County, Delaware tax rates on utility plant and an increase in utility plant subject to taxation.

Other income decreased $0.7 million, primarily due to a decrease in AFUDC, as a result of lower long-term construction activity subject to AFUDC.

Interest charges increased $0.4 million, primarily due to an increase in long-term debt interest related to higher borrowing levels on the Company’s promissory notes and lines of credit as well as reserve for customer refund interest associated with the temporary rate increase revenue.

Capital Expenditures

As part of Artesian’s ongoing effort to ensure high-quality reliable service and compliance with emerging water quality regulations, $40.8 million was invested in the first nine months of 2026 in water and wastewater infrastructure projects. To better serve our customers, these investments include installation of new mains, services and hydrants, upgrading existing pumping and treatment stations, including PFAS treatment upgrades, construction of new wastewater treatment plants, renewals associated with the rehabilitation of aging infrastructure, upgrading and replacing our meter reading equipment, transportation equipment purchases, and computer hardware and software upgrades.

“As an essential drinking water provider, investment in treatment and infrastructure is paramount in ensuring our ability to provide safe drinking water, fire protection and reliable service,” said Nicki Taylor, Chair, President and CEO. “We continue to make thoughtful, prudent investments that protect water quality, address aging infrastructure and help ensure quality service for the communities we serve.”

About Artesian Resources
Artesian Resources Corporation operates as a holding company of wholly-owned subsidiaries offering water and wastewater services, and several 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.

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, 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 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							Nine months ended
		September 30,							September 30,
		2026			2025				2026			2025
Operating Revenues
Water sales	$	25,678		$	24,837			$	72,299		$	68,608
Other utility operating revenue		4,256			3,780				12,044			10,777
Non-utility operating revenue		2,014			1,874				6,043			5,541
		31,948			30,491				90,386			84,926
Operating Expenses
Utility operating expenses		14,502			13,431				41,091			38,261
Non-utility operating expenses		1,228			1,265				3,736			3,396
Depreciation and amortization		3,575			3,497				10,547			10,268
State and federal income taxes		2,250			2,473				6,572			6,488
Property and other taxes		1,563			1,206				4,719			4,494
		23,118			21,872				66,665			62,907
Operating Income		8,830			8,619				23,721			22,019
Allowance for funds used during construction		303			584				1,061			1,771
Miscellaneous		1			(48	)			1,432			1,411
Income Before Interest Charges		9,134			9,155				26,214			25,201
Interest Charges		2,378			2,193				6,949			6,514
Net Income	$	6,756		$	6,962			$	19,265		$	18,687
Weighted Average Common Shares Outstanding - Basic		10,330			10,312				10,324			10,308
Net Income per Common Share - Basic	$	0.65		$	0.68			$	1.87		$	1.81
Weighted Average Common Shares Outstanding - Diluted		10,335			10,314				10,329			10,309
Net Income per Common Share - Diluted	$	0.65		$	0.68			$	1.87		$	1.81

Artesian Resources Corporation
Condensed Consolidated Balance Sheets
(In thousands)
(Unaudited)
	September 30,			December 31,
	2026			2025
Assets
Utility Plant, at original cost less accumulated depreciation	$	842,721		$	801,694
Current Assets		33,465			21,417
Regulatory and Other Assets		27,044			28,118
	$	903,230		$	851,229
Capitalization and Liabilities
Stockholders' Equity	$	259,839		$	249,922
Long Term Debt, Net of Current Portion		181,929			174,276
Current Liabilities		36,081			33,722
Net Advances for Construction		327			374
Contributions in Aid of Construction		342,910			311,076
Other Liabilities		82,144			81,859
	$	903,230		$	851,229

FAQ

AI-generated questions and answers. How Rhea-AI works. Not financial advice.

What were Artesian Resources' third-quarter 2026 earnings and revenue?

Artesian reported $0.65 in diluted earnings per share and $31.9 million in revenue for the third quarter of 2026. Revenue increased 4.8% from the same period in 2025, while net income declined 3.0% to $6.8 million. Diluted earnings per share were $0.68 a year earlier.

How did Artesian Resources perform in the first nine months of 2026?

Artesian's nine-month revenue increased 6.4% to $90.4 million, while net income increased 3.1% to $19.3 million. Diluted earnings per share rose 3.3% to $1.87, compared with $1.81 for the same period in 2025.

What infrastructure projects did Artesian fund in the first nine months of 2026?

Artesian's $40.8 million infrastructure investment included new mains, services and hydrants, pumping and treatment-station upgrades, and new wastewater treatment plants. Projects also included PFAS treatment upgrades, aging-infrastructure rehabilitation, meter-reading equipment upgrades, transportation equipment purchases, and computer hardware and software upgrades.