NEWARK, DE — Artesian Resources Corporation (Nasdaq: ARTNA) reported first-quarter earnings growth driven by temporary water rate increases, customer growth and higher wastewater and service plan revenue, as the utility continued investing in infrastructure upgrades across the Delmarva Peninsula.
Diluted earnings per share rose 7.5% to $0.57 for the quarter ended March 31, compared with $0.53 a year earlier. Net income increased 9.2% to $5.9 million.
Quarterly revenue rose 7.3% to $27.8 million from the prior-year period.
The company attributed the revenue increase primarily to temporary water rate increases allowed under Delaware law pending final approval from the Delaware Public Service Commission, along with customer growth.
Water sales revenue increased $1.5 million, or 7.3%, while other utility operating revenue climbed about 6.2% due to higher industrial wastewater and residential wastewater revenue.
Non-utility operating revenue rose 9.5%, driven largely by growth in the company’s Service Line Protection plans and fee increases implemented at the start of 2026.
Operating expenses excluding depreciation and taxes increased 5.7% to reflect higher payroll, employee benefits, treatment costs and transmission and distribution system expenses, partially offset by lower administrative costs.
Income tax expense increased 11.2% because of higher pre-tax income, while other income declined due to lower patronage refunds and reduced allowance for funds used during construction tied to slower long-term construction activity.
Artesian invested $13.1 million during the quarter in water and wastewater infrastructure projects, including new mains, hydrants, wastewater force mains, pumping station upgrades and PFAS treatment improvements.
Chair, President and Chief Executive Officer Nicki Taylor said the infrastructure spending is intended to support regulatory compliance and long-term system reliability.
“These investments address aging infrastructure, support water quality and help maintain the long-term resilience of our operations while supporting responsible growth for the communities we serve,” Taylor said.
Artesian Water Company, the utility’s principal subsidiary, supplies about 9.7 billion gallons of water annually through more than 1,500 miles of water main infrastructure serving more than one-third of Delaware residents.
Support the local news that supports Chester County. MyChesCo delivers reliable, fact-based reporting and essential community resources—free for everyone. If you value that, click here to become a patron today.