Key Highlights

  • Operating revenues rose to $60.2 million in the third quarter, from $54.1 million a year earlier.
  • Net income was $18.0 million, or $0.95 per diluted share, versus $14.0 million, or $0.77.
  • Nine-month Net Income reached $43.4 million, or $2.31 per share, compared with $34.2 million, or $1.90.
  • Operating cash flow for the nine months rose $6.9 million to $51.0 million.
  • The company plans to spend about $506 million on capital projects across 2026 to 2028.

Water revenue climbs 11.3% as base rates and Demand both rise

Middlesex Water (NASDAQ:MSEX) has operated as a water Utility in New Jersey since 1897 and in Delaware since 1992. It serves roughly 61,000 retail customers in central New Jersey and about 66,000 in Delaware through its Tidewater subsidiary. In its Quarterly Report for the period ended September 30, 2026, operating revenues were $60.2 million, compared with $54.1 million, an increase of about 11.3% on a calculated basis.

Middlesex system revenues rose $4.7 million on higher wholesale demand, customer consumption and Base Rate increases effective February 23, 2026. Tidewater revenues rose $1.2 million on higher consumption, customer growth and rate increases, and non-regulated revenues rose $0.2 million.

Rate case and tax benefits widen Operating Income to $22.3 million

Operating income was $22.3 million versus $17.7 million, and net income was $18.0 million, up about 29.2% on a calculated basis. Diluted EPS rose to $0.95 from $0.77, even though average diluted shares increased to 19,026 thousand from 18,154 thousand.

Operations and maintenance expense rose $1.1 million, mainly on variable production costs from higher demand and employee-related costs. Income taxes rose $1.0 million on higher pre-tax income, partly offset by a larger flow-through benefit from repair deductions.

Regulated segment drives Earnings while the non-regulated arm slips

The regulated segment earned $17.6 million in the quarter, up from $13.3 million, on revenues of $56.9 million. The non-regulated segment, which runs municipal contract operations, earned $0.4 million, down from $0.6 million, even as its revenue rose to $3.3 million.

For the nine months, revenues were $165.3 million versus $147.7 million, and operations and maintenance expense rose $5.4 million, partly on a higher allowance for Credit loss reserve.

A $126 million capital program leans on debt, Equity issuance and PFAS treatment

Middlesex plans to invest about $126 million in 2026 and roughly $506 million over 2026 to 2028, including about $255 million to upgrade the Carl J. Olson treatment plant to remove PFAS from source water. Utility plant expenditures were $83.9 million in the nine months.

To fund the work, the company used its at-the-market equity program, selling 253,537 shares in the quarter at a weighted average price of $58.32 and receiving $14.6 million of net proceeds. Long-term Debt was $392.2 million at September 30, 2026, versus $378.9 million at year end.

Regulatory filings and settlement payments shape the recovery path

The New Jersey regulator approved $14.5 million of base rate increases in February 2026. In September 2026, the company filed for an additional $0.8 million and $1.7 million of annual revenue through infrastructure and resiliency charges.

PFAS litigation settlement payments of $9.6 million received through September 30, 2026 will ultimately be refunded to customers. The company paid common dividends of $0.36 per share each quarter in 2026, up from $0.34 a year ago.

What to watch next for a water utility that keeps issuing shares

Cash flow from operations covered about 61% of nine-month plant spending on a calculated basis, so the balance continues to come from financing. Shares outstanding were 19,129,679 as of October 28, 2026.

Improvement charge approvals, PFAS compliance timing and further equity issuance are the items to watch as the capital program builds.