NEWARK, DE — Artesian Resources Corporation (Nasdaq: ARTNA) delivered solid financial results for the first quarter of 2025, reporting net income of $5.4 million, a 23.2% jump from $4.4 million in the same quarter last year. Diluted net income per share rose 23.0% to $0.53, compared to $0.43 a year earlier. Quarterly revenues increased by $1.3 million, or 5.5%, year-over-year, reaching $25.9 million.
“Our strong financial results for the quarter are the result of our commitment to superior service to all customers and continued focus on managing increasing cost pressures associated with meeting more stringent water quality standards,” said Nicki Taylor, President and CEO.
Water sales drove much of this growth, rising $0.9 million, or 4.3%, due to increased water consumption, a Distribution System Improvement Charge of 1.66% applied in Delaware, and a growing customer base. Other utility operating revenues climbed 11.4%, primarily from increased wastewater revenue, while non-utility operating revenue rose 8.0%, mainly from Service Line Protection Plan contributions.
Operating expenses, excluding depreciation and income taxes, increased by $0.5 million, or 3.1%, largely driven by higher administrative and power-related costs, partially offset by reductions in supply, treatment, and payroll costs.
Looking ahead, Artesian filed with the Delaware Public Service Commission on April 4, 2025, seeking a 10.75% annual rate increase, equivalent to $9.4 million. The proposed rates aim to support the maintenance of utility infrastructure and to offset rising operational expenses, including electricity and chemical costs for water treatment. A temporary rate adjustment of 1.22% is requested to take effect on June 3, 2025, pending approval.
“Although we are reporting strong first quarter results, the significant increase in electric supply costs upon the expiration of the previous 3-year contract term and increased costs to treat for PFAS, as well as continued investments in utility plant to maintain reliable and safe service to customers compel the request for rate relief,” Taylor added.
During the quarter, the company invested $10.4 million in water and wastewater infrastructure projects, emphasizing the rehabilitation of aging systems, elevated storage tank upgrades, and the construction of a new wastewater treatment plant. These projects are part of Artesian’s ongoing efforts to provide reliable service to its growing customer base.
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