Middlesex Water Company Reports 2025 Earnings

Rhea-AI Summary

Middlesex Water Company (NASDAQ:MSEX) reported 2025 net income of $42.8 million and diluted EPS of $2.36. The company invested $96 million in 2025 and plans $506 million of infrastructure spending from 2026–2028, including $255 million for PFAS treatment.

The New Jersey Board of Public Utilities approved a rate increase effective February 23, 2026, raising annual operating revenues by $14.5 million, an ROE of 9.6%, and authorized surcharge programs recovering up to $10.7 million.

Positive

• Rate increase adds $14.5 million annually to operating revenues
• $506 million planned infrastructure investment for 2026–2028
• $255 million allocated for PFAS treatment at Carl J. Olsen plant
• $96 million invested in utility infrastructure during 2025

Negative

• Net income decreased $1.5 million versus 2024
• Diluted EPS fell to $2.36 from $2.47 in 2024
• Higher depreciation and interest expense pressured fourth-quarter results

News Market Reaction – MSEX

+0.94%

1 alert

+0.94% News Effect

On the day this news was published, MSEX gained 0.94%, reflecting a mild positive market reaction.

Data tracked by StockTitan Argus on the day of publication.

Key Figures

Diluted EPS 2025: $2.36 Diluted EPS 2024: $2.47 Net income 2025: $42.8 million +5 more

8 metrics

Diluted EPS 2025 $2.36 Full-year 2025 diluted earnings per share vs 2024

Diluted EPS 2024 $2.47 Prior-year diluted EPS used for comparison

Net income 2025 $42.8 million Full-year 2025 net income, down $1.5M vs 2024

Operating revenue 2025 $194.7 million Full-year 2025 operating revenues, up about $2.8M vs 2024

2025 infrastructure capex $96 million Water and wastewater utility infrastructure investments in 2025

2026-2028 infra plan $506 million Planned utility infrastructure investment from 2026 through 2028

NJ rate increase $14.5 million Annual operating revenue increase approved by NJBPU

Quarterly dividend $0.36 per share First quarter 2026 common stock cash dividend

Market Reality Check

Price: $54.13 Vol: Volume 160,075 is 1.49x t...

normal vol

$54.13 Last Close

Volume Volume 160,075 is 1.49x the 20-day average, indicating elevated interest into the report. normal

Technical Price at $54.47 is trading slightly above the 200-day MA of $54.15, suggesting a stable longer-term trend into earnings.

Peers on Argus

MSEX gained 0.94% with elevated volume, while peers like ARIS (+4.23%), CWCO (+1...

1 Up

MSEX gained 0.94% with elevated volume, while peers like ARIS (+4.23%), CWCO (+1.34%), ARTNA (+0.51%), YORW (+0.24%) and CDZI (+3.01%) also moved higher, pointing to a supportive sector backdrop around the print.

Historical Context

5 past events · Latest: Feb 13 (Neutral)

Pattern 5 events

Date	Event	Sentiment	Move	Catalyst
Feb 13	Earnings timing	Neutral	-0.6%	Announcement of reporting date for 2025 earnings and 10-K filing.
Jan 30	System acquisition	Positive	-0.8%	Tidewater completed Pinewood Acres water system acquisition in Delaware.
Jan 27	Dividend declaration	Positive	-1.9%	Board declared a quarterly cash dividend of $0.36 per share.
Dec 22	Board appointment	Positive	-1.0%	Appointment of experienced utility finance executive Robert Hoglund to board.
Nov 06	Conference appearance	Neutral	+1.4%	CFO scheduled to present at Baird 2025 Global Industrial Conference.

Pattern Detected

Recent history shows a tendency for mild negative reactions to positive corporate updates, with occasional alignment on neutral news.

Recent Company History

Over the past six months, Middlesex Water’s key news flow has included an upcoming earnings date on Feb 13, 2026, the Pinewood Acres system acquisition on Jan 30, 2026, a recurring $0.36 quarterly dividend declaration on Jan 27, 2026, a new board appointment on Dec 22, 2025, and a conference presentation notice on Nov 6, 2025. Several positive items, such as the acquisition and dividend, previously saw modest share price declines, while neutral conference-related news coincided with a small gain, framing today’s earnings release against a backdrop of cautious trading.

Market Pulse Summary

This announcement highlights slightly lower 2025 EPS of $2.36 and net income of $42.8 million alongs...

Analysis

This announcement highlights slightly lower 2025 EPS of $2.36 and net income of $42.8 million alongside higher operating revenue of $194.7 million. It underscores a large capital program, including $96 million invested in 2025 and $506 million planned from 2026–2028, supported by a $14.5 million annual rate increase and continued dividends of $0.36 per share. Investors may focus on execution of PFAS treatment projects, regulatory cost recovery mechanisms, and trends in consumption and operating expenses.

Key Terms

diluted earnings per share, pfas, resiliency and environmental system improvement charge, distribution system improvement charge, +1 more

5 terms

diluted earnings per share financial

"Diluted earnings per share (“EPS”) of $2.36"

Diluted earnings per share is a measure of a company's profit allocated to each share of stock, taking into account all possible shares that could be created through stock options, convertible bonds, or other securities. It shows the lowest possible earnings per share if all these potential shares were issued, helping investors understand the worst-case scenario for their ownership. This figure matters because it provides a more conservative view of a company's profitability per share.

pfas medical

"treatment upgrades at Middlesex’s Park Avenue water treatment plant for Perfluoroalkyl Substances (“PFAS”)"

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.

resiliency and environmental system improvement charge regulatory

"approved a Resiliency and Environmental System Improvement Charge ("RESIC")"

A resiliency and environmental system improvement charge is a fee added to customer bills to pay for upgrades that make infrastructure tougher against storms, outages, or pollution and to meet environmental rules. Think of it like a household surcharge to replace an old roof and install cleaner heating so the home lasts longer and meets new codes. For investors, it affects a utility’s revenue, cash flow and ability to recover upgrade costs through regulated rates.

distribution system improvement charge regulatory

"and a Distribution System Improvement Charge ("DSIC") Foundational Filing"

A distribution system improvement charge is a regulated surcharge utilities add to customer bills to recover costs for upgrading local power lines, poles, transformers and other delivery equipment. It matters to investors because it speeds up cost recovery and stabilizes a utility’s cash flow and earnings between full rate reviews—like allowing a homeowner to add a small, ongoing fee to pay for immediate repairs instead of waiting to save up for a big bill.

return on common equity financial

"an authorized return on common equity of 9.6% and a common equity ratio of 54.25%"

Return on common equity measures the profit a company generates for ordinary shareholders over a period, usually a year, by dividing net income available to those common shareholders by the average common shareholders’ equity. It tells investors how efficiently their invested dollars are being used—like checking how much profit each dollar of ownership produces—and helps compare profitability across companies and evaluate management performance.

AI-generated analysis. Not financial advice.

• Diluted earnings per share (“EPS”) of $2.36
• Invested $96 million in water and wastewater utility infrastructure during 2025, successfully delivering the planned 2025 capital investments
• Utility infrastructure investment of $506 million planned from 2026 through 2028
• Constructive outcome of regulatory proceedings in New Jersey
• Declared $0.36 per share common stock dividend

ISELIN, N.J., Feb. 19, 2026 (GLOBE NEWSWIRE) -- Middlesex Water Company (“Middlesex” or the “Company”) (NASDAQ: MSEX) today announced financial results for the fourth quarter and year end 2025.

“We appreciate the diligence and commitment of the New Jersey Board of Public Utilities Staff and the Division of Rate Counsel throughout the review of our general rate case,” said Nadine Leslie, Chair, President and Chief Executive Officer of Middlesex Water Company. “This constructive outcome supports our selective and sustainable growth strategy, enabling continued prudent investment in the Middlesex System to provide safe and reliable water utility service, while maintaining affordability and strengthening long‑term value for our customers and shareholders.”

2025 Results

Net income for 2025 was $42.8 million, a $1.5 million decrease when compared to 2024. Diluted earnings per share were $2.36 and $2.47 for 2025 and 2024, respectively. The decrease is attributable to the one-time recovery in 2024 of previously incurred depreciation, operating and carrying costs of $4.3 million (net of tax) associated with the construction and operation of the water treatment facilities at Middlesex’s Park Avenue water treatment plant and lower consumption driven by unfavorable weather, offset by rate increases and customer growth.

Operating revenues for 2025 were $194.7 million, an increase of approximately $2.8 million over the same period in 2024. Operating revenues increased $1.5 million in the Middlesex System, $1.6 million in the Tidewater System and $0.2 million in the Pinelands System, largely driven by rate increases and customer growth, partially offset by lower consumption driven by unfavorable weather and a $0.6 million decrease primarily due to lower supplemental contract services revenue in our non-regulated businesses.

Operating expenses for 2025 increased $1.7 million over the same period in 2024, primarily due to higher depreciation expense, partially offset by lower operating and maintenance expenses. Operating and maintenance expenses decreased due to higher capitalizable costs and lower legal, financial and regulatory matter costs, partially offset by increased production costs from weather-driven lower water quality, increased weather-driven main break repair costs, higher labor cost due to wage and employee headcount increases and the one-time recovery in 2024 of previously incurred water treatment operating costs at Middlesex’s Park Avenue Plant. Depreciation expense increased due to higher average utility plant in service and the one-time recovery in 2024 of previous depreciation costs related to the Perfluoroalkyl Substances (“PFAS”) treatment upgrades at Middlesex’s Park Avenue water treatment plant.

Fourth Quarter 2025 Results

Middlesex reported net income of $8.6 million and diluted EPS of $0.46 for the fourth quarter of 2025, compared to net income of $8.8 million and diluted EPS of $0.49 for the same quarter in 2024. The decrease is driven by higher interest expense and income taxes offset in part by higher operating income.

Selective and Sustainable Growth

Middlesex invested approximately $96 million to upgrade, replace and enhance the resiliency of its water and wastewater utility infrastructure during 2025.

In 2026, the Company plans to invest approximately $126 million in infrastructure investments, including our RENEW program to replace water mains in our Middlesex System, installation of hydrants and meters, and various water main and services replacements and improvements. From 2026 through 2028, the Company expects to invest $506 million in infrastructure investments, which includes approximately $255 million to install treatment for PFAS at our Carl J. Olsen surface water treatment plant in Edison, New Jersey.

In February 2026, the New Jersey Board of Public Utilities ("NJBPU") approved the settlement agreement in our general base rate application between Middlesex and Pinelands, NJBPU Staff and the New Jersey Division of Rate Counsel, with new rates effective February 23, 2026. The NJBPU order approved an increase in our annual operating revenues by $14.5 million, an authorized return on common equity of 9.6% and a common equity ratio of 54.25%.

In addition, in February 2026, the NJBPU approved a Resiliency and Environmental System Improvement Charge ("RESIC") and a Distribution System Improvement Charge ("DSIC") Foundational Filing for the three- year period ending October 28, 2028. Under the approved combined RESIC and DSIC programs, our New Jersey regulated utilities will submit semi-annual surcharge filings to the NJBPU for qualifying capital investments completed every six-month period to be recovered up to $10.7 million.

In January 2026, Tidewater Utilities, Inc., a wholly owned subsidiary of Middlesex, completed the acquisition of the water utility assets of the Pinewood Acres' water utility assets, as approved by the Delaware Public Service Commission, for $0.2 million. Pinewood Acres serves approximately 350 customers in Kent County, Delaware.

Dividend Declared

On January 27, 2026, the Company’s Board of Directors declared a first quarter cash dividend of $0.36 per common share. Dividends on common shares will be paid on March 2, 2026, to shareholders of record as of February 17, 2026. Middlesex has paid cash dividends in varying amounts continually since 1912.

About Middlesex Water Company

Middlesex Water Company (“Middlesex”) is one of the nation’s premier investor-owned water and wastewater utilities. Established in 1897, Middlesex is a trusted provider of life-sustaining services to more than half a million people in New Jersey and Delaware. The company focuses on employee engagement, operational excellence, superior customer experience, investment in infrastructure, and selective and sustainable growth to deliver value to our customers, investors, and the communities we serve.

Forward-Looking Statements

This press release contains “forward-looking statements” within the meaning of U.S. federal securities laws reflecting the current beliefs or expectations of Middlesex Water Company “MSEX” or the “Company” regarding its future performance, its financial condition, its strategic plans and cash flows, its results of operations as well as any other statements that do not directly relate to any historical or current facts. These statements reflect the Company’s current views and information currently available. This information is based on estimates, assumptions, and analysis that the Company believes, as of the date hereof, provide a reasonable basis for the information contained herein. Forward-looking statements can generally be identified by the use of forward-looking words such as “outlook,” “believes,” “expects,” “potential,” “continues,” “may,” “will,” “should,” “seeks,” “approximately,” “predicts,” “intends,” “plans,” “estimates,” “anticipates,” “foresees,” or the negative of those words or other comparable terminology. The Company intends that these statements be covered by the safe harbors created under those laws. Actual results, performance or achievements may differ materially from forward-looking statements, and the assumptions on which forward-looking statements are based. There can be no assurance that the information contained herein is reflective of future performance, and investors are cautioned not to place undue reliance on forward-looking statements as a predictor of future performance. Unless otherwise specified, all information contained in this press release speaks only as of the date hereof. The Company undertakes no duty to update or revise the information contained herein, whether as a result of new information, future events or otherwise.

Media Contact:
Summer DeFEO, Director of Communications
sdefeo@middlesexwater.com
(732) 638-7510

Investor Relations Contact:
Jennifer Ketschke, Director of Investor Relations & Treasury
InvestorRelations@middlesexwater.com
(732) 638-7523

MIDDLESEX WATER COMPANY CONSOLIDATED STATEMENTS OF INCOME (In thousands except per share amounts)
	Years Ended December 31,						Three Months Ended December 31,
	2025			2024			2025			2024
Operating Revenues	$	194,694		$	191,877		$	46,979		$	47,107
Operating Expenses:
Operations and Maintenance		91,291			92,363			23,378			24,714
Depreciation		27,113			24,430			6,942			6,420
Other Taxes		21,914			21,874			5,454			5,444
Total Operating Expenses		140,318			138,667			35,774			36,578
Operating Income		54,376			53,210			11,205			10,529
Other Income (Expense):
Allowance for Funds Used During Construction		1,618			1,254			400			467
Other Income (Expense), net		5,944			10,815			1,580			1,613
Total Other Income, net		7,562			12,069			1,980			2,080
Interest Charges		14,295			14,023			3,760			3,302
Income before Income Taxes		47,643			51,256			9,425			9,307
Income Taxes		4,821			6,905			820			503
Net Income		42,822			44,351			8,605			8,804
Preferred Stock Dividend Requirements		76			112			17			23
Earnings Applicable to Common Stock	$	42,746		$	44,239		$	8,588		$	8,781
Earnings per share of Common Stock:
Basic	$	2.36		$	2.48		$	0.46		$	0.49
Diluted	$	2.36		$	2.47		$	0.46		$	0.49
Average Number of
Common Shares Outstanding:
Basic		18,096			17,842			18,404			17,881
Diluted		18,137			17,946			18,435			17,954

FAQ

What were Middlesex Water (MSEX) full-year 2025 earnings and EPS?

Middlesex reported $42.8 million net income and diluted EPS of $2.36 for 2025. According to the company, the decrease versus 2024 reflected a one-time 2024 recovery and lower consumption due to unfavorable weather.

How much will Middlesex (MSEX) invest from 2026 through 2028 and why?

Middlesex plans to invest $506 million from 2026–2028, including treatment and resiliency projects. According to the company, this funds PFAS treatment, main replacements, hydrants, meters, and system improvements.

What did the NJBPU decision mean for Middlesex Water (MSEX) rates on Feb 23, 2026?

The NJBPU approved new rates effective Feb 23, 2026, increasing annual operating revenues by $14.5 million. According to the company, the order set ROE at 9.6% and a common equity ratio of 54.25%.

What dividend did Middlesex Water (MSEX) declare and when is it payable?

The board declared a first-quarter cash dividend of $0.36 per share, payable March 2, 2026. According to the company, shareholders of record on February 17, 2026, will receive the dividend.

How did operating performance and expenses affect MSEX fourth-quarter 2025 results?

Fourth-quarter 2025 diluted EPS was $0.46, down from $0.49 a year earlier, driven by higher interest and taxes. According to the company, higher depreciation and weather-driven costs also affected results despite higher operating income.