Middlesex Water Company (MSEX) Q3 2025 earnings summary

Executive summary

• Operating revenues for Q3 2025 were $54.1 million, down $1.0 million year-over-year, mainly due to lower customer consumption from unfavorable weather, partially offset by rate increases and customer growth in certain segments.

• Net income for Q3 2025 was $13.96 million, a decrease from $14.32 million in Q3 2024, reflecting lower revenues and higher interest charges, partially offset by lower income taxes.

• Year-to-date net income was $34.2 million, down $1.3 million year-over-year, with diluted EPS of $1.90 versus $1.98.

• The company completed the acquisition of the Ocean View water utility assets in Delaware for $4.6 million and received initial PFAS litigation settlement payments totaling $1.1 million in Q3 and October 2025.

• Invested $72 million in infrastructure during the first nine months, representing 77% of the 2025 capital budget.

Financial highlights

• Q3 2025 operating income was $17.7 million, up slightly from $17.5 million in Q3 2024.

• Nine-month 2025 revenues were $147.7 million, up from $144.8 million in 2024; net income for the period was $34.2 million, down from $35.5 million.

• Basic and diluted EPS for Q3 2025 were $0.77, compared to $0.80 in Q3 2024; nine-month EPS was $1.90, down from $1.99.

• Cash flows from operating activities for the nine months ended September 30, 2025, increased to $44.1 million from $37.3 million year-over-year.

• Capital expenditures for the nine months were $71.6 million, up from $49.5 million in 2024.

Outlook and guidance

• Operating costs are expected to increase in 2025 and 2026, prompting a base rate increase request in June 2025.

• The company plans to invest approximately $93 million in 2025 for infrastructure upgrades and system resiliency, with 77% already deployed.

• Customer growth continues in Delaware, but economic conditions may challenge future growth.

• Filed a fourth Distribution System Improvement Charge (DSIC) rate application in October 2025, expected to add $0.9 million in annual revenues.

• Focus remains on selective and sustainable growth, infrastructure investment, and expanding customer base.