Middlesex Water Company (MSEX) Q2 2025 earnings summary

Executive summary

• Operating revenues for Q2 2025 were $49.3 million, up $0.2 million year-over-year, driven by rate increases and customer growth, offset by lower consumption due to unfavorable weather.

• Net income for Q2 2025 was $10.8 million, a slight increase from $10.5 million in Q2 2024; six-month net income was $20.3 million, down from $21.2 million year-over-year, mainly due to a one-time recovery in Q1 2024 and lower consumption.

• Major capital investments included $50.6 million in utility plant expenditures and the $4.6 million acquisition of Ocean View, Delaware water assets.

• Regulatory approvals and rate increases in New Jersey and Delaware are expected to support future revenue and infrastructure investment.

• Declared a $0.34 per share cash dividend for Q3 2025, continuing a 52-year streak of annual dividend increases.

Financial highlights

• Q2 2025 operating income was $13.9 million, down from $15.3 million in Q2 2024; six-month operating income was $25.5 million, up slightly from $25.2 million year-over-year.

• Diluted EPS for Q2 2025 was $0.60, flat or up slightly year-over-year; six-month diluted EPS was $1.13, down from $1.18.

• Operating cash flow for the first half of 2025 increased to $32.1 million from $17.9 million in 2024, mainly due to rate increases and vendor payment timing.

• Interest charges decreased to $3.6 million in Q2 2025 from $4.0 million in Q2 2024, reflecting lower average debt and interest rates.

• Operating expenses for the first half increased by $3.7 million, primarily due to higher production costs and increased main break activity.

Outlook and guidance

• Operating costs are expected to rise in 2025 and 2026, prompting continued focus on cost management and timely rate relief.

• Planned capital investments for 2025 total approximately $93 million, with projects focused on infrastructure upgrades and regulatory compliance.

• New rates in Delaware effective July 2025 are expected to increase annual operating revenues by $5.5 million, with an authorized return on equity of 9.5%.

• New Jersey utilities filed for a $24.9 million annual base revenue increase to recover $100 million in investments, with additional surcharge filings planned through 2028.

• Customer growth in Delaware remains positive but may be challenged by broader economic conditions.