Middlesex Water Company reported Q2 2025 net income of $10.8 million, with investments in infrastructure and a declared dividend of $0.34.
Quiver AI Summary
Middlesex Water Company reported its financial results for the second quarter of 2025, highlighting a net income of $10.8 million and diluted earnings per share of $0.60, slight increases from the previous year. The company invested $51 million in water and wastewater utility infrastructure, which represents 55% of its planned capital budget for the year. A constructive outcome of the general rate case in Delaware allows for increased operating revenues, supporting their efforts in infrastructure investment to ensure reliable service. Dividends of $0.34 per share were declared, marking a continuation of their long history of consistent dividend payments. However, net income for the first half of 2025 decreased slightly compared to the same period in 2024, impacted by weather-related consumption challenges.
Potential Positives
- Diluted earnings per share increased to $0.60, showing positive financial growth compared to the previous year.
- The company invested $51 million in utility infrastructure in the first half of 2025, signaling a commitment to improving service and reliability.
- A constructive outcome from the general base rate case in Delaware resulted in an approved increase in annual operating revenues by $5.5 million, supporting future financial stability.
- Declared a cash dividend of $0.34 per common share, continuing a 52-year trend of annual dividend increases, which is attractive to investors.
Potential Negatives
- Net income for the first half of 2025 decreased by $1.0 million compared to the same period in 2024, which may indicate operational challenges.
- Operating expenses rose by $3.7 million over the same period, driven by higher production costs and labor costs, potentially impacting profitability.
- Lower water consumption driven by unfavorable weather could signal potential vulnerability to external factors affecting revenue stability.
FAQ
What were Middlesex Water's diluted earnings per share in Q2 2025?
The diluted earnings per share for Middlesex Water in Q2 2025 were $0.60.
How much did Middlesex Water invest in infrastructure in the first half of 2025?
Middlesex Water invested approximately $51 million in water and wastewater utility infrastructure during the first half of 2025.
What is the status of the general rate case in Delaware?
The general rate case in Delaware resulted in a constructive outcome, effective July 3, 2025, allowing for an increase in annual operating revenues.
Has Middlesex Water declared any dividends recently?
Yes, Middlesex Water declared a third quarter cash dividend of $0.34 per common share on July 23, 2025.
What contributed to the increase in Middlesex's net income in Q2 2025?
The increase in net income for Middlesex in Q2 2025 was driven by rate increases, customer growth, and higher income tax benefits.
Disclaimer: This is an AI-generated summary of a press release distributed by GlobeNewswire. The model used to summarize this release may make mistakes. See the full release here.
$MSEX Insider Trading Activity
$MSEX insiders have traded $MSEX stock on the open market 3 times in the past 6 months. Of those trades, 0 have been purchases and 3 have been sales.
Here’s a breakdown of recent trading of $MSEX stock by insiders over the last 6 months:
- DENNIS W DOLL sold 4,067 shares for an estimated $244,203
- WALTER G REINHARD has made 0 purchases and 2 sales selling 1,002 shares for an estimated $59,596.
To track insider transactions, check out Quiver Quantitative's insider trading dashboard.
$MSEX Hedge Fund Activity
We have seen 97 institutional investors add shares of $MSEX stock to their portfolio, and 97 decrease their positions in their most recent quarter.
Here are some of the largest recent moves:
- FIRST TRUST ADVISORS LP added 318,598 shares (+81.7%) to their portfolio in Q1 2025, for an estimated $20,422,131
- BLACKROCK, INC. removed 211,507 shares (-6.1%) from their portfolio in Q1 2025, for an estimated $13,557,598
- GAMMA INVESTING LLC removed 135,411 shares (-97.4%) from their portfolio in Q2 2025, for an estimated $7,336,567
- ZIMMER PARTNERS, LP added 112,257 shares (+inf%) to their portfolio in Q1 2025, for an estimated $7,195,673
- PENN CAPITAL MANAGEMENT COMPANY, LLC removed 74,082 shares (-100.0%) from their portfolio in Q1 2025, for an estimated $4,748,656
- LEGAL & GENERAL GROUP PLC added 59,758 shares (+30.5%) to their portfolio in Q1 2025, for an estimated $3,830,487
- D. E. SHAW & CO., INC. added 55,299 shares (+350.5%) to their portfolio in Q1 2025, for an estimated $3,544,665
To track hedge funds' stock portfolios, check out Quiver Quantitative's institutional holdings dashboard.
$MSEX Analyst Ratings
Wall Street analysts have issued reports on $MSEX in the last several months. We have seen 2 firms issue buy ratings on the stock, and 0 firms issue sell ratings.
Here are some recent analyst ratings:
- Janney Montgomery Scott issued a "Buy" rating on 05/12/2025
- Baird issued a "Outperform" rating on 03/03/2025
To track analyst ratings and price targets for $MSEX, check out Quiver Quantitative's $MSEX forecast page.
$MSEX Price Targets
Multiple analysts have issued price targets for $MSEX recently. We have seen 2 analysts offer price targets for $MSEX in the last 6 months, with a median target of $63.5.
Here are some recent targets:
- Michael Gaugler from Janney Montgomery Scott set a target price of $66.0 on 05/12/2025
- Davis Sunderland from Baird set a target price of $61.0 on 03/03/2025
Full Release
- Diluted earnings per share (“EPS”) of $0.60
- Invested $51 million in water and wastewater utility infrastructure during the first half of 2025, or approximately 55% of the 2025 capital budget
- Constructive outcome of the general base rate case in Delaware
- Declared $0.34 common stock cash dividend
ISELIN, N.J., July 31, 2025 (GLOBE NEWSWIRE) -- Middlesex Water Company (“Middlesex” or the “Company”) (NASDAQ: MSEX) today announced financial results for the second quarter ended June 30, 2025.
“We appreciate the dedication and commitment of the Delaware Public Service Commission Staff and the Public Advocate during a comprehensive review process of our general rate case,” said Nadine Leslie, Chair, President and Chief Executive Officer of Middlesex Water Company. “The constructive outcome of the general rate case in Delaware supports our selective and sustainable growth pillar and the ability to continue making prudent investments in our Tidewater System to provide safe and reliable water utility service to our customers and the communities we serve at affordable rates.”
Second Quarter 2025 Results
Middlesex reported net income of $10.8 million and diluted EPS of $0.60, compared to net income of $10.5 million and diluted EPS of $0.59 for the same quarter in 2025. The increase is attributable to rate increases, customer growth, and higher income tax benefits associated with increased capital investment deduction on tangible property, offset by lower consumption driven by unfavorable weather.
Operating revenues for the quarter ended June 30, 2025, were $49.3 million, up $0.2 million, compared to $49.1 million for the same quarter last year. The increase is attributable to rate increases and customer growth, offset by lower consumption driven by unfavorable weather.
Operating expenses for the quarter ended June 30, 2025, were $35.4 million, up approximately $1.6 million, compared to $33.8 million for the same quarter last year. The increase is primarily driven by higher variable production costs from weather-driven lower water quality, higher labor cost due to wage and employee headcount increases and higher depreciation.
Year-to-Date Results
Net income for the six months ended June 30, 2025, was $20.3 million, a $1.0 million decrease when compared to the same period in 2024. Diluted earnings per share were $1.13 and $1.18 for the six months ended June 30, 2025, and 2024, respectively. The decrease is attributable to the one-time recovery in the first quarter 2024 of previously incurred depreciation, operating and carrying costs of $4.3 million (net of tax) associated with the construction and operation of the water treatment facilities at Middlesex’s Park Avenue water treatment plant and lower consumption driven by unfavorable weather, offset by rate increases and customer growth.
Operating revenues for the six months ended June 30, 2025, were $93.6 million, an increase of approximately $4.0 million over the same period in 2024. Operating revenues increased $3.1 million in the Middlesex System and $1.2 million in the Tidewater system, largely driven by rate increases and customer growth, offset by lower consumption driven by unfavorable weather and $0.4 million of lower supplemental contract services revenue in our non-regulated businesses.
Operating expenses for the six months ended June 30, 2025, increased $3.7 million over the same period in 2024, primarily due to higher variable production costs from weather-driven lower water quality, increased weather-driven main break activity and the one-time recovery in 2024 of previously incurred depreciation expense and water treatment operating costs at Middlesex’s Park Avenue water treatment plant.
Selective and Sustainable Growth
Middlesex invested approximately $51 million to upgrade, replace and enhance the resiliency of its water and wastewater utility infrastructure during the first half of 2025, or approximately 55% of its planned 2025 annual investment of $93 million.
In July 2025, the Delaware Public Service Commission (“DEPSC”) approved the settlement agreement between Tidewater Utilities, Inc., DEPSC Staff and the Division of the Public Advocate in our general base rate application, with new rates effective July 3, 2025. The DEPSC order approved an increase in our annual operating revenues by $5.5 million based on an authorized return on common equity of 9.5% and a common equity ratio of 53.50%.
In June 2025, our New Jersey regulated utilities filed a joint petition with the New Jersey Board of Public Utilities (“NJBPU”) requesting an increase in annual base revenues by approximately $24.9 million, or 19.3% to recover approximately $100 million of prudently incurred investments made to comply with environmental regulations and to continue to provide safe and reliable water and wastewater service to their customers. In addition, in July 2025, our New Jersey regulated utilities filed a Distribution System Improvement Charge (“DSIC”) and a Resiliency and Environmental System Improvement Charge (“RESIC”) Foundational Filing with the NJBPU for the three-year period ending October 2028. Under the combined DSIC and RESIC programs, our New Jersey regulated utilities submit semi-annual surcharge filings to the NJBPU for qualifying capital investments completed every six-months to be recovered up to $11.4 million or 7.5% of total annual revenues of the June 2025 base rate joint petition 1 .
Dividend Declared
On July 23, 2025, the Company’s Board of Directors declared a third quarter cash dividend of $0.34 per common share. Dividends on common shares will be paid on September 2, 2025, to shareholders of record as of August 15, 2025. The Company has paid cash dividends continually since 1912 and has increased the dividends received by shareholders each calendar year for 52 consecutive years.
About Middlesex Water Company
Middlesex Water Company (“Middlesex”) is one of the nation’s premier investor-owned water and wastewater utilities. Established in 1897, Middlesex is a trusted provider of life-sustaining services to more than half a million people in New Jersey and Delaware. The company focuses on employee engagement, operational excellence, superior customer experience, investment in infrastructure, and selective and sustainable growth to deliver value to our customers, investors, and the communities we serve.
Forward-Looking Statements
This press release contains “forward-looking statements” within the meaning of U.S. federal securities laws reflecting the current beliefs or expectations of Middlesex Water Company “MSEX” or the “Company” regarding its future performance, its financial condition, its strategic plans and cash flows, its results of operations as well as any other statements that do not directly relate to any historical or current facts. These statements reflect the Company’s current views and information currently available. This information is based on estimates, assumptions, and analysis that the Company believes, as of the date hereof, provide a reasonable basis for the information contained herein. Forward-looking statements can generally be identified by the use of forward-looking words such as “outlook,” “believes,” “expects,” “potential,” “continues,” “may,” “will,” “should,” “seeks,” “approximately,” “predicts,” “intends,” “plans,” “estimates,” “anticipates,” “foresees,” or the negative of those words or other comparable terminology. The Company intends that these statements be covered by the safe harbors created under those laws. Actual results, performance or achievements may differ materially from forward-looking statements, and the assumptions on which forward-looking statements are based. There can be no assurance that the information contained herein is reflective of future performance, and investors are cautioned not to place undue reliance on forward-looking statements as a predictor of future performance. Unless otherwise specified, all information contained in this press release speaks only as of the date hereof. The Company undertakes no duty to update or revise the information contained herein, whether as a result of new information, future events or otherwise.
Media Contact
:
Brian Hague, Vice President of Communications & Corporate Affairs
[email protected]
(732) 638-7549
Investor Relations Contact:
Jennifer Ketschke, Director of Treasury and Investor Relations
[email protected]
(732) 638-7523
MIDDLESEX WATER COMPANY | ||||||||||||||
CONDENSED CONSOLIDATED STATEMENTS OF INCOME | ||||||||||||||
(Unaudited) | ||||||||||||||
(In thousands except per share amounts) | ||||||||||||||
Three Months Ended June 30, | Six Months Ended June 30, | |||||||||||||
2025 | 2024 | 2025 | 2024 | |||||||||||
Operating Revenues | $ 49,323 | $49,146 | $ 93,624 | $89,670 | ||||||||||
Operating Expenses: | ||||||||||||||
Operations and Maintenance | 23,066 | 21,825 | 44,175 | 42,290 | ||||||||||
Depreciation | 6,703 | 6,305 | 13,230 | 11,701 | ||||||||||
Other Taxes | 5,642 | 5,701 | 10,750 | 10,499 | ||||||||||
Total Operating Expenses | 35,411 | 33,831 | 68,155 | 64,490 | ||||||||||
Operating Income | 13,912 | 15,315 | 25,469 | 25,180 | ||||||||||
Other Income: | ||||||||||||||
Allowance for Funds Used During Construction | 413 | 257 | 786 | 433 | ||||||||||
Other Income, net | 1,485 | 2,399 | 2,910 | 7,588 | ||||||||||
Total Other Income, net | 1,898 | 2,656 | 3,696 | 8,021 | ||||||||||
Interest Charges | 3,623 | 4,041 | 6,336 | 7,310 | ||||||||||
Income before Income Taxes | 12,187 | 13,930 | 22,829 | 25,891 | ||||||||||
Income Taxes | 1,409 | 3,384 | 2,571 | 4,663 | ||||||||||
Net Income | 10,778 | 10,546 | 20,258 | 21,228 | ||||||||||
Preferred Stock Dividend Requirements | 19 | 30 | 41 | 60 | ||||||||||
Earnings Applicable to Common Stock | $ 10,759 | $10,516 | $ 20,217 | $21,168 | ||||||||||
Earnings per share of Common Stock: | ||||||||||||||
Basic | $ 0.60 | $0.59 | $ 1.13 | $1.19 | ||||||||||
Diluted | $ 0.60 | $0.59 | $ 1.13 | $1.18 | ||||||||||
Average Number of | ||||||||||||||
Common Shares Outstanding: | ||||||||||||||
Basic | 17,962 | 17,829 | 17,926 | 17,824 | ||||||||||
Diluted | 17,993 | 17,944 | 17,957 | 17,939 | ||||||||||