Middlesex Water Company Reports 10.9% Revenue Growth in Q1 2026

Middlesex Water Company reported a notable increase in financial performance for the first quarter of 2026, with operating revenues reaching $48.7 million, up from $44.3 million in the same period of 2025, marking an increase of 10.9%. The company's net income also rose to $10.6 million, compared to $9.5 million a year earlier, resulting in earnings per share of $0.57, up from $0.53. This growth in revenue and profitability can be attributed to increased demand from wholesale customers, customer consumption, and a base rate increase that took effect on February 23, 2026.

Operating expenses for the quarter increased to $35.6 million from $32.7 million, primarily due to higher operations and maintenance costs, which rose to $23.0 million from $21.1 million. The increase in expenses was driven by higher production costs and labor expenses associated with an expanded workforce. Additionally, depreciation expenses increased to $7.0 million from $6.5 million, reflecting a higher average utility plant in service. The company's interest charges also rose to $3.2 million from $2.7 million, reflecting a higher average debt outstanding.

Strategically, Middlesex Water Company completed the merger of its subsidiaries, Pinelands Water Company and Pinelands Wastewater Company, into its operations effective April 1, 2026. This merger is expected to enhance operational efficiencies and customer service. Furthermore, the company acquired the water utility assets of Pinewood Acres, LLC, which serves approximately 350 customers in Delaware, further expanding its customer base. The company continues to focus on its capital investment program, with plans to invest approximately $506 million from 2026 to 2028 to upgrade its infrastructure and meet regulatory compliance, particularly concerning emerging contaminants like PFAS.

As of March 31, 2026, Middlesex Water Company served approximately 61,000 retail customers in New Jersey and 65,000 in Delaware. The company reported a slight increase in customer counts, with organic growth in its Tidewater system. The company’s total assets increased to $1.39 billion from $1.37 billion at the end of 2025, supported by a robust capital structure that includes common equity of $501 million and long-term debt of $371.7 million. The company’s liquidity remains strong, with cash and cash equivalents totaling $3.7 million.

Looking ahead, Middlesex Water Company anticipates continued growth driven by strategic investments and regulatory approvals. The company is focused on maintaining its infrastructure and enhancing service quality while managing costs effectively. The outlook remains positive, with expectations for further revenue growth from both regulated and non-regulated segments, supported by ongoing capital projects and customer growth initiatives.