Middlesex Water Company Reports Third Quarter 2025 Earnings

Rhea-AI Summary

Middlesex Water Company (NASDAQ: MSEX) reported third quarter 2025 results and operational updates on October 31, 2025. Q3 net income was $14.0 million with diluted EPS $0.77. Nine‑month net income was $34.2 million with diluted EPS $1.90. Operating revenues for the nine months were $147.7 million. The company invested $72 million in water and wastewater infrastructure through September 30, 2025, about 77% of its $93 million 2025 capital plan. The board declared a $0.36 quarterly dividend (5.88% increase), raising the annual dividend to $1.44, payable December 1, 2025. Middlesex executed an asset purchase agreement to acquire Pinewood Acres water assets in Delaware and filed related regulatory applications.

Positive

• Investment of $72 million in utility infrastructure (nine months)
• 77% of 2025 capital budget deployed through Sept 30, 2025
• Declared quarterly dividend of $0.36, raising annual rate to $1.44
• Executed asset purchase agreement to acquire Pinewood Acres water assets

Negative

• Nine‑month net income down $1.3 million year‑over‑year
• Operating expenses increased by $2.5 million for nine months
• Lower consumption from unfavorable weather reduced quarterly revenues

• Diluted earnings per share (“EPS”) of $0.77
• Invested $72 million in water and wastewater utility infrastructure during the nine months ended September 30, 2025, or approximately 77% of the 2025 capital budget
• Declared $0.36 common stock cash dividend, a 5.88% increase
• Executed the asset purchase agreement to acquire Pinewood Acres water utility assets in Delaware

ISELIN, N.J., Oct. 31, 2025 (GLOBE NEWSWIRE) -- Middlesex Water Company (“Middlesex” or the “Company”) (NASDAQ: MSEX) today announced financial results for the third quarter ended September 30, 2025.

“We continue to focus on our selective and sustainable growth pillar, and we are pleased to announce the execution of an asset purchase agreement to acquire the water utility asset of Pinewoods Acres in Delaware," said Nadine Leslie, Chair, President and Chief Executive Officer of Middlesex Water Company. "This acquisition aligns with our MWC2030 strategy to bring our high standards of operational excellence, safety, and water quality to a broader customer base.”

Third Quarter 2025 Results

Middlesex reported net income of $14.0 million and diluted EPS of $0.77, compared to net income of $14.3 million and diluted EPS of $0.80 for the same quarter in 2024.

Operating revenues for the quarter ended September 30, 2025, were $54.1 million, a decrease of $1.0 million, compared to $55.1 million for the same quarter last year. The decrease is attributable to lower consumption driven by unfavorable weather partially offset by rate increases and customer growth.

Operating expenses for the quarter ended September 30, 2025, were $36.4 million, a decrease of approximately $1.2 million, compared to $37.6 million for the same quarter last year. The decrease is primarily driven by higher capitalizable costs and lower legal, financial and regulatory costs, partially offset by higher variable production costs from weather-driven lower water quality and higher depreciation.

Year-to-Date Results

Net income for the nine months ended September 30, 2025 was $34.2 million, a $1.3 million decrease when compared to the same period in 2024. Diluted earnings per share were $1.90 and $1.98 for the nine months ended September 30, 2025, and 2024, respectively. The decrease is attributable to the one-time recovery in the first quarter 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 the nine months ended September 30, 2025, were $147.7 million, an increase of approximately $2.9 million over the same period in 2024. Operating revenues increased $1.8 million in the Middlesex System and $1.4 million in the Tidewater System, largely driven by rate increases and customer growth, partially offset by lower consumption driven by unfavorable weather and a $0.3 million decrease primarily due to lower supplemental contract services revenue in our non-regulated businesses.

Operating expenses for the nine months ended September 30, 2025, increased $2.5 million over the same period in 2024, primarily due to higher variable production costs from weather-driven lower water quality, increased weather-driven main break activity and higher depreciation expense due to higher average utility plant in service and the one-time recovery in 2024 of previously incurred depreciation expense and water treatment operating costs at Middlesex’s Park Avenue water treatment plant.

Selective and Sustainable Growth

Middlesex invested approximately $72 million to upgrade, replace and enhance the resiliency of its water and wastewater utility infrastructure during the nine months ended September 30, 2025, or approximately 77% of its planned 2025 annual investment of $93 million.

In October 2025, Middlesex filed a fourth Distribution System Improvement Charge ("DSIC") rate application that is expected to result in $0.9 million of annual revenues, which is in addition to the existing $2.3 million of annual revenues from previous DSIC filings.

In October 2025, Tidewater Utilities, Inc., a wholly owned subsidiary of Middlesex, filed an application with the Delaware Public Service Commission for approval of the purchase of Pinewood Acres water utility assets for $0.2 million. Pinewood Acres serves approximately 350 customers in Kent County, Delaware.

Dividend Declared, Announced 5.88% Increase

As previously announced on October 24, 2025, the Company’s Board of Directors declared a fourth quarter cash dividend of $0.36 per common share, a 5.88% increase from the $0.34 per share dividend last declared in July 2025. This increase raises the annual dividend rate to $1.44 from $1.36 per share of common stock and marks Middlesex's 53rd consecutive year of dividend increases. The dividend at the new rate is payable December 1, 2025 to shareholders of record as of November 17, 2025. 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:
Brian Hague, Vice President of Communications & Corporate Affairs
bhague@middlesexwater.com
(732) 638-7549

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

MIDDLESEX WATER COMPANY CONDENSED CONSOLIDATED STATEMENTS OF INCOME (Unaudited) (In thousands except per share amounts)
	Three Months Ended September 30,								Nine Months Ended September 30,
		2025				2024				2025				2024
Operating Revenues	$	54,091			$	55,100			$	147,715			$	144,770
Operating Expenses:
Operations and Maintenance		23,738				25,359				67,913				67,649
Depreciation		6,941				6,309				20,171				18,010
Other Taxes		5,709				5,931				16,460				16,430
Total Operating Expenses		36,388				37,599				104,544				102,089
Operating Income		17,703				17,501				43,171				42,681
Other Income (Expense):
Allowance for Funds Used During Construction		432				354				1,218				787
Other Income (Expense), net		1,454				1,614				4,364				9,202
Total Other Income, net		1,886				1,968				5,582				9,989
Interest Charges		4,200				3,411				10,535				10,721
Income before Income Taxes		15,389				16,058				38,218				41,949
Income Taxes		1,431				1,739				4,001				6,402
Net Income		13,958				14,319				34,217				35,547
Preferred Stock Dividend Requirements		18				29				59				89
Earnings Applicable to Common Stock	$	13,940			$	14,290			$	34,158			$	35,458
Earnings per share of Common Stock:
Basic	$	0.77			$	0.80			$	1.90			$	1.99
Diluted	$	0.77			$	0.80			$	1.90			$	1.98
Average Number of Common Shares Outstanding:
Basic		18,123				17,838				17,992				17,828
Diluted		18,154				17,952				18,023				17,943

FAQ

What were Middlesex Water (MSEX) Q3 2025 earnings per share?

Diluted EPS for Q3 2025 was $0.77.

How much did Middlesex (MSEX) invest in 2025 infrastructure through Sept 30?

Middlesex invested approximately $72 million, about 77% of its $93 million 2025 plan.

What dividend did Middlesex Water (MSEX) declare in October 2025?

The board declared a quarterly cash dividend of $0.36, payable Dec 1, 2025; annualized to $1.44.

What is the financial impact of the Pinewood Acres acquisition for MSEX?

Middlesex executed an asset purchase agreement to acquire Pinewood Acres water assets; purchase price filed with regulators was $0.2 million.

Why did Middlesex (MSEX) revenues decline in Q3 2025?

Quarterly operating revenues fell due to lower consumption driven by unfavorable weather, partially offset by rate increases and customer growth.

Did Middlesex (MSEX) file any regulatory rate applications in Oct 2025?

Yes; Middlesex filed a fourth DSIC application expected to add $0.9 million of annual revenue in addition to existing DSIC revenues.