NEWARK, DE — Artesian Resources Corporation (Nasdaq: ARTNA) posted higher second-quarter earnings and revenue as temporary water-rate increases, customer growth and expanding wastewater operations outweighed higher operating and borrowing costs.
Net income rose 4.5% to $6.6 million for the three months ended June 30, while diluted earnings increased 4.9% to $0.64 per share from $0.61 a year earlier.
Revenue increased 7.4% to $30.7 million.
Water sales revenue rose $1.3 million, or 5.8%, primarily because of temporary rate increases permitted under Delaware law while permanent rates remain under consideration by the Delaware Public Service Commission, along with growth in the number of customers served.
Other utility operating revenue increased about $600,000, or 16%, driven by higher industrial wastewater treatment revenue and additional residential and commercial wastewater customers.
The company’s wastewater customer count increased 6.6% over the past 12 months, according to Chair, President and Chief Executive Officer Nicki Taylor.
Non-utility operating revenue climbed about $200,000, or 10.2%, reflecting higher fees for Artesian’s Service Line Protection Plans that took effect Jan. 1 and an increase in participating customers.
Higher revenue was partly offset by rising costs. Operating expenses excluding depreciation and income taxes increased 7.6%, or $1.2 million.
Utility operating expenses rose $900,000, including a $500,000 increase in payroll and employee benefits and increases of about $200,000 each for supply and treatment expenses and administrative costs. Non-utility operating expenses increased 28.1%, largely because of higher plumbing repair costs associated with the service-line plans.
Interest expense also increased by about $200,000 as higher borrowing on promissory notes raised long-term debt costs. Other income declined about $300,000 because of lower allowance for funds used during construction.
For the first six months of 2026, Artesian earned $12.5 million, up 6.7% from a year earlier. Diluted earnings per share increased 6.1% to $1.21.
Six-month revenue rose 7.4% to $58.4 million. Water sales revenue increased $2.9 million, or 6.5%, while other utility operating revenue advanced about $800,000, or 11.3%.
Non-utility revenue increased about $400,000, or 9.9%, over the six-month period.
Artesian invested $25.9 million in water and wastewater infrastructure during the first half of the year. Projects included new mains, services and hydrants; rehabilitation of aging infrastructure; meter upgrades; wastewater force mains; pumping and treatment station improvements; PFAS treatment upgrades; and construction of new wastewater treatment plants.
“Our capital program is focused on supporting the long-term needs of the communities we serve by addressing aging infrastructure, enhancing system resiliency, and meeting these obligations,” Taylor said.
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