Middlesex Water Co.: Q3 FY2025 earnings call

What management said about Q3 FY2025, from the documents filed with the SEC on 31 October 2025: press release. Guidance figures: 1 raised, 1 new, 1 kept. The quarter’s numbers.

Key takeaways

Quarterly diluted EPS fell to $0.77: Net income was $14.0 million and diluted EPS was $0.77, compared with $14.3 million and $0.80 in the third quarter of 2024. Source
Quarterly revenue fell on lower consumption: Operating revenues were $54.1 million, down $1.0 million. Lower consumption from unfavorable weather was partly offset by rate increases and customer growth. Source
Quarterly operating expenses fell $1.2 million: Operating expenses were $36.4 million. Higher capitalizable costs and lower legal, financial and regulatory costs drove the decrease, partly offset by production costs and depreciation. Source
Nine-month costs rose on weather: Nine-month operating expenses rose $2.5 million. The company cited weather-driven lower water quality, which raised production costs, and weather-driven main break activity. Depreciation also increased. Source
Investment reached $72 million: Infrastructure investment of about $72 million through nine months equals approximately 77% of the 2025 capital budget. Source
Pinewood Acres purchase agreement signed: Middlesex signed an asset purchase agreement for Pinewood Acres water utility assets in Delaware. The CEO spelled the name "Pinewoods Acres" in one passage. Source
Dividend raised 5.88% to $0.36: The quarterly dividend rises from $0.34 to $0.36, a 5.88% increase, marking the 53rd consecutive year of dividend increases. Source

“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”
Nadine Leslie, Chair, President and Chief Executive Officer

Guidance

Area	Period	Figure	Against last quarter
Capital investment Source	Full year 2025	$93 million	Kept
DSIC annual revenue Source	Annual, from fourth DSIC filing	$0.9 million	New
Dividend Source	Annual dividend rate	$1.44 per share	Raised from $1.36 per share

What changed from last quarter

Guidance raised: The quarterly common dividend was declared at $0.36, up from $0.34, a 5.88% increase, which lifts the annual dividend rate. Source
New: Middlesex executed an asset purchase agreement to acquire the Pinewood Acres water utility assets in Delaware. Source
New: Middlesex filed a fourth DSIC rate application in October 2025, expected to add $0.9 million of annual revenue. Source

Results and growth drivers

Quarterly diluted EPS fell to $0.77: Net income was $14.0 million and diluted EPS was $0.77, compared with $14.3 million and $0.80 in the third quarter of 2024. Source
Quarterly revenue fell on lower consumption: Operating revenues were $54.1 million, down $1.0 million. Lower consumption from unfavorable weather was partly offset by rate increases and customer growth. Source
Nine-month EPS lower year over year: Nine-month diluted EPS was $1.90 against $1.98. The company attributed the decline to a one-time 2024 recovery of $4.3 million (net of tax) and lower consumption. Source
Nine-month revenue up $2.9 million: Operating revenues for the nine months were $147.7 million, up about $2.9 million from the same period in 2024. Source

Segments and regions

Both systems grew revenue year to date: Middlesex System revenue rose $1.8 million and Tidewater System revenue rose $1.4 million over nine months, largely from rate increases and customer growth. Source
Non-regulated revenue declined: Non-regulated revenue fell $0.3 million for nine months, mainly on lower supplemental contract services revenue. Source

“This acquisition aligns with our MWC2030 strategy to bring our high standards of operational excellence, safety, and water quality to a broader customer base.”
Nadine Leslie, Chair, President and Chief Executive Officer

Costs, margins and pricing

Quarterly operating expenses fell $1.2 million: Operating expenses were $36.4 million. Higher capitalizable costs and lower legal, financial and regulatory costs drove the decrease, partly offset by production costs and depreciation. Source
Nine-month costs rose on weather: Nine-month operating expenses rose $2.5 million. The company cited weather-driven lower water quality, which raised production costs, and weather-driven main break activity. Depreciation also increased. Source

Capital investment and infrastructure

Investment reached $72 million: Infrastructure investment of about $72 million through nine months equals approximately 77% of the 2025 capital budget. Source
Fourth DSIC filing made in October: The new DSIC application is expected to add $0.9 million of annual revenue, on top of $2.3 million already in place from earlier filings. Source

Acquisition and strategy

Pinewood Acres purchase agreement signed: Middlesex signed an asset purchase agreement for Pinewood Acres water utility assets in Delaware. The CEO spelled the name "Pinewoods Acres" in one passage. Source
Pinewood system serves about 350 customers: The Pinewood Acres system serves approximately 350 customers in Kent County, Delaware. Source
Acquisition tied to MWC2030 strategy: Management said the deal extends operational excellence, safety and water quality to a broader customer base under the MWC2030 strategy. Source

Shareholder returns

Dividend raised 5.88% to $0.36: The quarterly dividend rises from $0.34 to $0.36, a 5.88% increase, marking the 53rd consecutive year of dividend increases. Source

Coming up, as management said on 31 October 2025

Dividend payable December 1: The dividend at the new $0.36 rate is payable December 1, 2025, to holders of record as of November 17, 2025. Source
Pinewood purchase awaits Delaware approval: Tidewater filed for Delaware Public Service Commission approval of the $0.2 million purchase. The documents give no closing date. Source

Figures management reported

Figure	Reported
Capital plan Source	$93 million planned 2025 annual investment; about $72 million invested through September 30, 2025 (approximately 77%)
DSIC annual revenue Source	$0.9 million expected from fourth filing; $2.3 million existing from previous filings
Customers acquired Source	approximately 350 customers (Pinewood Acres, Kent County, Delaware)

Risks management discussed

Demand: Unfavorable weather reduced consumption, which lowered quarterly revenue despite rate increases and customer growth. Source
Operational: Weather-driven lower water quality raised production costs, and weather-driven main break activity increased, over nine months. Source

Earlier plans management reported on

Not stated: Management reported about 77% of the planned 2025 investment was completed through September 30, 2025, without stating a status. Source
Not stated: The company describes the current increase as its 53rd consecutive year of dividend increases. Source

Other quarters

Summarised with AI from the documents the company filed with the SEC. Every point is checked against the filing before it is shown: management’s own words word for word, figures against the line or table row they come from. A point that fails the check is left out. Source opens the filing at that line.

As filed with the SEC

Open the filing on EDGAR

Middlesex Water Company Reports Third Quarter 2025 Earnings

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., October 31, 2025 -- 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

Forward-looking statements notice

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.

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

Contacts
Brian Hague, Vice President of Communications & Corporate Affairs bhague@middlesexwater.com
(732) 638-7549
Jennifer Ketschke, Director of Treasury and Investor Relations jketschke@middlesexwater.com
(732) 638-7523