Artesian Resources (ARTNA) Q1 2025 earnings summary

Executive summary

• Operating revenues for Q1 2025 were $25.9 million, up 5.5% year-over-year, driven by higher water consumption, customer growth, and rate adjustments.

• Net income applicable to common stock increased 23.2% to $5.4 million; diluted EPS rose to $0.53.

• Regulated utility segment contributed 92.7% of total operating revenues for the quarter.

• Customer base expanded, with Delaware water customers up 1.6%, Maryland up 2.2%, and Delaware wastewater customers up 6.3% year-over-year.

• Growth supported by DSIC revenue and SLP Plans.

Financial highlights

• Water sales revenue rose 4.3% to $20.7 million; other utility operating revenue increased 11.4%; non-utility revenue grew 8.0%.

• Operating income was $5.5 million, up from $4.7 million in Q1 2024.

• Basic and diluted EPS were $0.53, up from $0.43 year-over-year.

• Cash provided by operating activities was $11.0 million; capital expenditures totaled $10.4 million.

• Cash and cash equivalents at quarter-end were $3.7 million.

Outlook and guidance

• Filed for a 12.41% rate increase in April 2025 and a temporary 1.22% increase to support capital improvements and offset rising costs.

• Facing a 25% increase in electric supply rates starting May 2025, estimated to add $0.5 million in annual expenses.

• Continued customer growth expected in Delaware and Maryland, with expansion in regulated water and wastewater services and SLP Plans.

• Capital improvements planned over the next three years for infrastructure upgrades and expansion.