Artesian Resources Corporation (ARTNA) investor relations material

Executive summary

• Net income for Q2 2025 rose 18.1% year-over-year to $6.3 million, with EPS at $0.61, compared to $0.52 in Q2 2024.

• Operating revenues for Q2 2025 increased 4.1% year-over-year to $28.5 million, driven by water sales, temporary rate increases, and customer growth.

• Regulated utility segment contributed 93% of total operating revenues for the first half of 2025.

• Revenue growth was supported by higher water sales, expanded wastewater customer base, and increased Service Line Protection Plan revenue.

• Customer base for water and wastewater services continued to grow, with notable increases in Delaware and Maryland.

Financial highlights

• Q2 2025 operating revenues: $28.5M (up 4.1% YoY); six-month revenues: $54.4M (up 4.8% YoY).

• Q2 2025 net income: $6.3M (up 18.1% YoY); six-month net income: $11.7M (up 20.4% YoY).

• Operating income for Q2 2025: $7.9M (up from $7.2M YoY); six-month operating income: $13.4M (up from $11.9M YoY).

• Non-utility operating revenue grew 12.3% in Q2 and 10.1% year-to-date, reflecting higher SLPP rates.

• Cash provided by operating activities for six months: $18.9M; capital expenditures: $26.3M.

Outlook and guidance

• Temporary rate increase of 2.88% effective June 3, 2025, pending permanent rates; further rate increases under review.

• Continued focus on expanding water, wastewater, and service line protection plan services across the Delmarva Peninsula.

• Capital improvements planned for water and wastewater infrastructure in Delaware and Maryland over the next three years.

• Management expects ongoing growth in customer base and revenues, with focus on sustainability and compliance.

• Continued investment in infrastructure and treatment of emerging contaminants to meet regulatory standards.