Middlesex Water Co.: Q4 FY2025 earnings call

What management said about Q4 FY2025, from the documents filed with the SEC on 19 February 2026: press release. Guidance figures: 4 new, 1 kept. The quarter’s numbers.

Key takeaways

Full-year diluted EPS fell to $2.36: Diluted EPS was $2.36 for 2025 against $2.47 for 2024. Net income was $42.8 million, down $1.5 million, which the company attributed to a 2024 one-time recovery and lower consumption from unfavorable weather. Source
Fourth-quarter EPS was $0.46: Fourth-quarter net income was $8.6 million and diluted EPS $0.46, against $0.49 a year earlier. The company attributed the decrease to higher interest expense and income taxes, offset in part by higher operating income. Source
All three systems added revenue: Operating revenues were $194.7 million for 2025, up about $2.8 million. The Middlesex System added $1.5 million, the Tidewater System $1.6 million and the Pinelands System $0.2 million. Source
Operating expenses rose $1.7 million: Operating expenses for 2025 rose $1.7 million, mainly from higher depreciation, partly offset by lower operating and maintenance expense. Depreciation also reflected higher average utility plant in service. Source
Fourth-quarter interest and taxes rose: Fourth-quarter interest charges were $3.8 million against $3.3 million, and income taxes were $0.8 million against $0.5 million. Operating income for the quarter rose to $11.2 million from $10.5 million. Source
Management cited supportive rate result: Management described the New Jersey rate case outcome as supporting its selective and sustainable growth strategy and continued investment. Source
2025 investment delivered as planned: Management said the company invested about $96 million in water and wastewater infrastructure in 2025 and delivered the planned 2025 capital investments. Source

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

Guidance

Area	Period	Figure	Against last quarter
Capital investment Source	2026	approximately $126 million	New
Capital investment Source	2026 through 2028	$506 million	New
New Jersey base rates Source	effective February 23, 2026	$14.5 million annual operating revenue increase; 9.6% authorized return on common equity; 54.25% common equity ratio	New
RESIC and DSIC surcharge recovery Source	each six-month filing, through the three-year period ending October 28, 2028	up to $10.7 million	New
Common dividend Source	first quarter 2026	$0.36 per share	Kept

What changed from last quarter

New: The New Jersey Board of Public Utilities approved the general base rate settlement, with new rates effective February 23, 2026. Source
New: The NJBPU approved a RESIC and DSIC Foundational Filing covering the three-year period ending October 28, 2028. Source
New: Tidewater Utilities completed the purchase of Pinewood Acres water utility assets for $0.2 million, after the October 2025 agreement and application. Source
New guidance: The company gave a 2026 capital plan of about $126 million and a 2026 through 2028 plan of $506 million. Source
Guidance kept: The first quarter 2026 dividend was declared at $0.36 per common share, the same rate as the fourth quarter 2025 declaration. Source

Results and growth drivers

Full-year diluted EPS fell to $2.36: Diluted EPS was $2.36 for 2025 against $2.47 for 2024. Net income was $42.8 million, down $1.5 million, which the company attributed to a 2024 one-time recovery and lower consumption from unfavorable weather. Source
Fourth-quarter EPS was $0.46: Fourth-quarter net income was $8.6 million and diluted EPS $0.46, against $0.49 a year earlier. The company attributed the decrease to higher interest expense and income taxes, offset in part by higher operating income. Source
2024 one-time recovery affected comparison: The company cited a 2024 one-time recovery of previously incurred costs at the Park Avenue water treatment plant, $4.3 million net of tax, as a reason for lower 2025 earnings. Source

Segments and regions

All three systems added revenue: Operating revenues were $194.7 million for 2025, up about $2.8 million. The Middlesex System added $1.5 million, the Tidewater System $1.6 million and the Pinelands System $0.2 million. Source
Rate increases and customers drove revenue: The company said the system revenue increases were largely driven by rate increases and customer growth. Source
Non-regulated contract revenue declined: Revenue from non-regulated businesses fell $0.6 million, primarily because supplemental contract services revenue was lower. Source

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

Operating costs and depreciation

Operating expenses rose $1.7 million: Operating expenses for 2025 rose $1.7 million, mainly from higher depreciation, partly offset by lower operating and maintenance expense. Depreciation also reflected higher average utility plant in service. Source
Lower O&M from capitalizable costs: Operations and maintenance expense fell because of higher capitalizable costs and lower legal, financial and regulatory matter costs. Source
Weather and labor pushed some costs up: Production costs rose with weather-driven lower water quality, main break repairs increased with weather, and labor cost rose on wage and headcount increases. Source

Interest, taxes and other income

Fourth-quarter interest and taxes rose: Fourth-quarter interest charges were $3.8 million against $3.3 million, and income taxes were $0.8 million against $0.5 million. Operating income for the quarter rose to $11.2 million from $10.5 million. Source
Full-year income taxes declined: Income taxes were $4.8 million for 2025 against $6.9 million in 2024. Source
Other income fell from 2024 level: Other income, net was $5.9 million for 2025 against $10.8 million in 2024. Allowance for funds used during construction rose to $1.6 million from $1.3 million. Source

New Jersey regulatory outcome

Management cited supportive rate result: Management described the New Jersey rate case outcome as supporting its selective and sustainable growth strategy and continued investment. Source
Settlement covers Middlesex and Pinelands: The NJBPU approved a settlement in the general base rate application between Middlesex and Pinelands, with NJBPU Staff and the Division of Rate Counsel as parties. Source
Staff and Rate Counsel thanked: Management thanked the NJBPU Staff and the Division of Rate Counsel for their diligence and commitment during review of the general rate case. Source

Capital investment and infrastructure

2025 investment delivered as planned: Management said the company invested about $96 million in water and wastewater infrastructure in 2025 and delivered the planned 2025 capital investments. Source
2026 program centers on water mains: The 2026 program includes the RENEW program to replace water mains in the Middlesex System, plus hydrants, meters and service replacements. Source
PFAS treatment in multi-year plan: The 2026 through 2028 plan includes treatment for PFAS at the Carl J. Olsen surface water treatment plant in Edison, New Jersey. Source

Growth and acquisitions

Pinewood Acres acquisition completed: Tidewater completed the purchase of Pinewood Acres water utility assets in Delaware for $0.2 million, serving about 350 customers in Kent County. Source
Selective and sustainable growth strategy: Management tied its selective and sustainable growth strategy to continued prudent investment in the Middlesex System. Source
Serves over half a million people: The company describes itself as a provider of life-sustaining services to more than half a million people in New Jersey and Delaware. Source

Dividends and share count

Dividends paid since 1912: Management said the company has paid cash dividends in varying amounts continually since 1912. Source
Diluted share count increased: Average diluted shares were 18.4 million in the fourth quarter, against 18.0 million a year earlier, and 18.1 million for 2025 against 17.9 million for 2024. Source
Earnings to common after preferred dividends: Earnings applicable to common stock were $42.7 million for 2025, after preferred dividend requirements of $76 thousand. Source

Coming up, as management said on 19 February 2026

Dividend payment date: The first quarter 2026 dividend on common shares is payable March 2, 2026, to holders of record as of February 17, 2026. Source
Semi-annual surcharge filings to come: New Jersey regulated utilities will submit semi-annual surcharge filings for qualifying capital investments completed in each six-month period. Source

Figures management reported

Figure	Reported
Rate case revenue increase Source	$14.5 million annual operating revenues
Authorized return on common equity Source	9.6%
Common equity ratio Source	54.25%
Capital plan 2026 Source	approximately $126 million
Capital plan 2026 through 2028 Source	$506 million

Risks management discussed

Demand: Weather lowered consumption in 2025, partly offsetting rate increases and customer growth. Source
Operational: Weather-related water quality, main break repairs and labor costs raised operating costs in 2025. Source
Financial: Higher interest expense and income taxes drove the fourth-quarter decrease in earnings. Source
Demand: Non-regulated supplemental contract services revenue declined, reducing revenue by $0.6 million. Source

Earlier plans management reported on

Met: Management said the company delivered the planned 2025 capital investments, investing about $96 million during 2025. 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 2025 Earnings

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., February 19, 2026 -- 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

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

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

Contacts
Summer DeFEO, Director of Communications sdefeo@middlesexwater.com
(732) 638-7510
Jennifer Ketschke, Director of Investor Relations & Treasury
InvestorRelations@middlesexwater.com
(732) 638-7523