Artesian Resources Corporation reported a net income applicable to common stock of $22.8 million for the fiscal year ending December 31, 2025, reflecting an increase of 11.9% compared to $20.4 million in 2024. Total revenue rose to $112.9 million, up from $108.0 million in the previous year, driven primarily by a $2.8 million increase in water sales and a $1.5 million rise in other utility operating revenue. The company's operating income also improved, reaching $27.8 million, a 6.2% increase from $26.2 million in 2024. The ratio of operating expenses to total revenue slightly decreased to 56.2% from 56.4% in the prior year, indicating improved operational efficiency.
In terms of operational developments, Artesian Resources expanded its customer base, serving approximately 99,100 customers in Delaware, 2,700 in Maryland, and 40 in Pennsylvania as of December 31, 2025. The company also reported a significant increase in capital expenditures, which totaled $58.8 million in 2025, compared to $45.9 million in 2024. These investments were aimed at enhancing service reliability and expanding service territory, including the construction of a new wastewater treatment plant and upgrades to existing infrastructure.
The company experienced a rise in operating expenses, which increased by $3.4 million, or 4.2%, primarily due to higher payroll and employee benefit costs, administrative expenses, and purchased power costs. Despite these increases, other income rose by $0.7 million, attributed to a higher allowance for funds used during construction, reflecting increased long-term construction activity. Interest charges decreased slightly by $0.1 million, primarily due to lower borrowing levels.
Looking ahead, Artesian Resources anticipates net investments in utility plant to be approximately $64.3 million for 2026, with total obligations related to interest and principal payments expected to be around $17.9 million. The company plans to continue leveraging its liquidity sources, including cash generated from operations and contributions from developers, to support its capital investment strategy and maintain its dividend payments. The management remains focused on ensuring that investments in utility plant and equipment are adequately recovered through customer rates, which may involve filing for rate increases as necessary.
About ARTESIAN RESOURCES CORP
Artesian Resources Corporation is a Delaware-based utility holding company focused on providing water and wastewater services across Delaware, Maryland, and Pennsylvania. Its primary subsidiary, Artesian Water Company, is the largest investor-owned water utility on the Delmarva Peninsula. With significant market opportunities in underserved areas, Artesian is expanding its service territories and enhancing infrastructure to meet regulatory standards, including new PFAS and lead regulations, while also offering service line protection plans.
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