Artesian Resources Corporation (ARTNA) investor relations material

Executive summary

• Operating revenues for Q3 2025 increased 4.6% year-over-year to $30.5 million, driven by temporary rate increases and customer growth in water and wastewater services.

• Net income for Q3 rose 2.2% to $7.0 million, with EPS of $0.68, and for the nine months ended September 30, 2025, net income increased 12.9% to $18.7 million, with EPS of $1.81.

• The regulated utility segment accounted for 93.5% of total operating revenues for the nine months ended September 30, 2025.

• $40.5 million was invested in water and wastewater infrastructure in the first nine months of 2025.

Financial highlights

• Water sales revenue increased 3.1% in Q3, primarily due to a temporary rate increase and customer growth.

• Other utility operating revenue rose 12.6% in Q3, mainly from increased wastewater revenue.

• Non-utility operating revenue grew 10.8% in Q3, driven by higher Service Line Protection Plan rates.

• Operating expenses (excluding depreciation and income taxes) increased 6.7% in Q3, with utility operating expenses up 10.8% due to higher payroll, supply, and administrative costs.

• Depreciation and amortization expense increased 6.4% in Q3, reflecting continued investment in utility plant.

Outlook and guidance

• The company expects continued growth in regulated water and wastewater services, supported by ongoing capital investments and strategic partnerships.

• Anticipates further expansion in non-utility services, particularly Service Line Protection Plans and contract operations.

• Management expects to fund future activities through operating cash flow, credit lines, government grants, and capital market financing.

• Focus remains on operational excellence, regulatory compliance, and strong financial management to support long-term growth and stability.

• Continued investment in infrastructure to address aging assets and meet future regulatory standards.