NEWARK, DE — Artesian Resources Corporation (Nasdaq: ARTNA) posted strong second quarter results for 2025, with net income rising 18.1% to $6.3 million. Earnings per diluted share grew 17.3% to $0.61, up from $0.52 a year ago. The gains were driven by increased water sales, expanded wastewater service, and higher revenue from service line protection plans.
Total revenue for the quarter rose 4.1% to $28.5 million. The company attributed its growth to a combination of temporary rate increases approved by the Delaware Public Service Commission, the expansion of its customer base, and sustained infrastructure investments.
Utility operating revenue benefited from a 2.6% increase in water sales, largely due to Distribution System Improvement Charges and higher consumption. Wastewater services brought in 10.7% more revenue than the same period last year, reflecting continued customer growth.
Non-utility revenue climbed 12.3%, fueled by increased participation in Artesian’s Service Line Protection Plan, which saw a rate adjustment in late 2024.
Operating expenses, excluding depreciation and taxes, rose modestly by 1.8%. Utility expenses were up 2.7%, reflecting higher costs related to power, administration, and system operations. Artesian noted a new electric supply contract that went into effect in May, raising power costs by an estimated $0.5 million annually due to a 25% rate increase.
Despite those cost pressures, Artesian maintained cost discipline. Non-utility expenses fell 11.9%, helped by reduced payroll and administrative spending.
Income tax expenses rose 11.2% due to higher pre-tax earnings, partially offset by regulatory tax amortizations. Other income increased $0.3 million on higher construction-related financing activity.
First Half 2025 Performance
For the six months ended June 30, net income reached $11.7 million, up 20.4% from the same period in 2024. Diluted EPS climbed 20% to $1.14. Revenues totaled $54.4 million, an increase of 4.8%, supported by broad-based growth across utility and non-utility segments.
Operating expenses grew 2.4% year-to-date, while depreciation dipped slightly. Other income rose by $0.5 million, also linked to capital project financing.
Capital Spending and Infrastructure Focus
Artesian invested $26.3 million in water and wastewater projects during the first half of the year, targeting system upgrades, new mains, and a wastewater treatment plant under construction. The company also continued its efforts to combat PFAS contamination through removal and filtration initiatives.
“Our proactive work to address PFAS through targeted removal initiatives, alongside our attention to replacement of aging infrastructure, positions us to meet future regulatory standards and maintain the high level of service our customers expect,” said Nicki Taylor, Chair, President and CEO.
Artesian’s continued investment in infrastructure underscores its strategy of balancing environmental compliance, customer service, and long-term growth across its service regions.
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