Middlesex Water Company (NASDAQ: MSEX) reported full‑year 2025 results that included net income of $42.8 million and diluted earnings per share of $2.36, while operating revenues rose to $194.7 million—an increase of $2.8 million (1.5%) from 2024. Revenue growth was driven primarily by rate increases and customer expansion across the Middlesex, Tidewater, and Pinelands systems, with the Middlesex system accounting for roughly 67% of consolidated operating revenue and Tidewater about 25%.
Operating expenses climbed due to higher depreciation and interest costs, but a one‑time $4.3 million recovery from 2024 related to PFAS treatment upgrades at the Park Avenue plant helped offset the impact. Operating cash flow reached $58.7 million, and capital expenditures for 2025 totaled $96 million—correcting the earlier figure of $71.3 million reported in the original article. The company’s free cash flow was negative $15.9 million, a figure that was not confirmed in the fact‑check but was reported in the earnings release.
The full‑year EPS of $2.36 fell short of the consensus estimate of $2.38, a miss of $0.02 per share. Fourth‑quarter EPS of $0.46 also missed the consensus of $0.4692, a miss of $0.0092. Revenue for the year was $194.7 million versus the consensus of $195.21 million, a miss of $0.51 million, while Q4 revenue of $47.0 million fell short of the consensus of $47.95 million by $0.95 million. The misses were largely attributable to higher depreciation and interest expenses, the one‑time recovery in 2024, and modest headwinds such as weather‑related consumption declines.
On February 23 2026, the New Jersey Board of Public Utilities approved Middlesex’s general base‑rate case, authorizing an annual revenue increase of $14.5 million and a 9.6% return on common equity. The board also approved the RESIC and DSIC surcharge mechanisms, allowing semi‑annual recovery of up to $10.7 million for qualifying capital projects through October 28, 2028. These regulatory decisions are critical for converting the company’s $93 million 2025 capital program into earned revenue over the next three years.
Chair, President and CEO Nadine Leslie said, “We appreciate the diligence and commitment of the New Jersey Board of Public Utilities Staff and the Division of Rate Counsel throughout the review of our general rate case. This constructive outcome supports our selective and sustainable growth strategy, enabling continued prudent investment in the Middlesex System to provide safe and reliable water utility service, while maintaining affordability and strengthening long‑term value for our customers and shareholders.”
Market reaction to the earnings release was measured and cautiously optimistic. Investors focused on the regulatory win and the company’s forward‑looking capital plan, noting that the approved rate increases and surcharge mechanisms provide a clear path to fund the $506 million capital investment plan scheduled for 2026‑2028 and the $255 million PFAS treatment investment at the Carl J. Olsen plant.
Additional context highlights that Middlesex has a long history of continuous dividend payments since 1912, declared a quarterly cash dividend of $0.36 per share for the first quarter of 2026, and recently acquired the Pinewood Acres water utility assets in Delaware for $0.2 million, adding approximately 350 customers. The company’s 2025 capital program of $93 million and the $96 million capital expenditures underscore its commitment to modernizing infrastructure and meeting regulatory requirements.
In summary, Middlesex Water’s 2025 earnings were in line with expectations, and the New Jersey rate‑case approval strengthens the company’s financial position and supports its long‑term growth strategy in a highly regulated market.
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