Middlesex Water Company (MSEX) Q1 2025 earnings summary

Executive summary

• Operating revenues for Q1 2025 increased by $3.8 million year-over-year, driven by base rate increases, DSIC rate increases, and higher customer demand in both Middlesex and Tidewater systems.

• Net income for Q1 2025 was $9.5 million, down from $10.7 million in Q1 2024, mainly due to lower other income and higher depreciation, as well as the absence of a prior-year one-time recovery.

• Tidewater completed the acquisition of Ocean View, Delaware water utility assets for $4.6 million in April 2025, expanding its customer base by approximately 900.

• Declared a $0.34 per share cash dividend, continuing a 52-year streak of annual dividend increases.

• Invested $19 million in infrastructure upgrades in Q1 2025, with a plan to invest $93 million in 2025.

Financial highlights

• Q1 2025 operating revenues: $44.3 million (Q1 2024: $40.5 million).

• Net income: $9.5 million (Q1 2024: $10.7 million).

• Basic EPS: $0.53 (Q1 2024: $0.60); Diluted EPS: $0.53 (Q1 2024: $0.59).

• Operating income: $11.6 million (Q1 2024: $9.9 million).

• Operating expenses increased to $32.7 million from $30.7 million year-over-year, mainly due to higher production costs and weather-driven main break activity.

Outlook and guidance

• Anticipates increased operating costs in 2025 and 2026, with potential for a base rate increase request by Middlesex in mid-2025.

• Organic residential customer growth in Tidewater system was approximately 3.5% in 2024, but economic conditions may challenge future growth.

• Strategy focuses on infrastructure investment, timely cost recovery, selective acquisitions, and contract operations.

• Filed a third DSIC rate application, expected to generate $1.9 million in annual revenues starting June 2025.

• Plans to invest approximately $93 million in water and wastewater infrastructure during 2025.