Middlesex Water Company Reports Revenue Growth and Strategic Acquisitions in Q2 2025

Middlesex Water Company reported its financial results for the second quarter and first half of 2025, revealing a slight increase in operating revenues. For the three months ended June 30, 2025, the company generated operating revenues of $49.3 million, up from $49.1 million in the same period of 2024. For the six months, revenues rose to $93.6 million from $89.7 million year-over-year. Despite this revenue growth, net income for the second quarter was $10.8 million, a marginal increase from $10.5 million in the prior year, while net income for the first half decreased to $20.3 million from $21.2 million.

The company's operating expenses also increased, with total operating expenses for the second quarter rising to $35.4 million from $33.8 million in 2024. This increase was attributed to higher operations and maintenance costs, which rose to $23.1 million from $21.8 million, and increased depreciation expenses. The company’s operating income for the second quarter was $13.9 million, down from $15.3 million in the previous year. The decline in operating income was influenced by increased costs associated with weather-related repairs and higher labor expenses.

Strategically, Middlesex Water completed the acquisition of the water utility assets of the Town of Ocean View, Delaware, for approximately $4.6 million in April 2025. This acquisition is expected to enhance the company's customer base, as Ocean View serves around 900 customers. Additionally, the company has been proactive in addressing regulatory changes, particularly regarding new drinking water regulations for perfluoroalkyl substances (PFAS) issued by the U.S. Environmental Protection Agency, which require compliance monitoring and potential treatment solutions.

As of June 30, 2025, Middlesex Water reported a total of 18,016,640 shares of common stock outstanding. The company has also been active in its capital expenditures, with plans to invest approximately $93 million in 2025 to upgrade and replace utility infrastructure. This includes significant projects such as the replacement of water mains and the construction of new elevated water tanks. The company anticipates that these investments will support future growth and improve service reliability.

Looking ahead, Middlesex Water expects to continue facing challenges related to operating costs and customer demand, particularly influenced by weather patterns. The company has filed for a base rate increase to recover costs associated with infrastructure investments and to maintain service quality. The management remains focused on strategic growth through infrastructure investments, timely rate adjustments, and selective acquisitions, while also navigating the regulatory landscape to ensure compliance and operational efficiency.