Revenue Performance - Middlesex Water Company's operating revenues for Q3 2025 decreased by $1.0 million compared to Q3 2024, primarily due to lower customer consumption driven by unfavorable weather [125]. - The Middlesex System revenues decreased by $1.3 million, while Tidewater System revenues increased by $0.3 million due to customer growth and base rate increases [125]. - Operating revenues for the nine months ended September 30, 2025, increased by $2.9 million to $147.715 million compared to the same period in 2024 [133]. Capital Investment and Acquisitions - The Company plans to invest approximately $93 million in 2025 as part of its multi-year capital construction program to upgrade and replace utility infrastructure [118]. - In April 2025, Tidewater completed the acquisition of the water utility assets of the Town of Ocean View, Delaware, for approximately $4.6 million, serving about 900 customers [113]. Operating Income and Expenses - Operating income for Q3 2025 was $17.703 million, compared to $17.501 million in Q3 2024, reflecting a slight increase [124]. - Operations and Maintenance Expense for the nine months ended September 30, 2025, increased by $0.3 million to $67.913 million due to increased production costs and higher labor costs [134]. - Depreciation expense for the nine months ended September 30, 2025, increased by $2.2 million to $20.171 million due to higher average utility plant in service [135]. Other Financial Metrics - Other Income, net for the nine months ended September 30, 2025, decreased by $4.4 million to $5.582 million primarily due to lower retirement benefit plans [137]. - Interest Charges for the nine months ended September 30, 2025, decreased by $0.2 million to $10.535 million due to lower average debt outstanding [138]. - Income Taxes for the nine months ended September 30, 2025, decreased by $2.4 million to $4.001 million primarily due to lower pretax income [139]. Cash Flow Analysis - Cash flows from operating activities increased by $6.8 million to $44.1 million for the nine months ended September 30, 2025 [141]. - Cash flows used in investing activities increased by $26.8 million to $76.2 million due to increased utility plant expenditures and Tidewater's acquisition of water utility assets [142]. - Cash flows from financing activities increased by $16.8 million to $32.9 million due to higher borrowings and proceeds from the issuance of common stock [143]. Regulatory and Compliance - The Company is implementing strategies to meet new USEPA PFAS regulations, including preliminary engineering studies for treatment solutions [117]. - The Company filed a Joint Application for a general base rate increase in June 2025 to address rising operating costs and infrastructure investments [121]. - Middlesex received approval to borrow up to $300 million from the New Jersey SRF Program through December 31, 2025 [145]. Customer Growth - Organic residential customer growth in the Tidewater system was approximately 3.5% in 2024, although current economic conditions may challenge this growth [121]. - The Company operates under a 10-year contract for the City of Perth Amboy, New Jersey, which includes emergency response and capital project management responsibilities [108]. Legal Matters - The Company received an initial settlement payment of $0.4 million from 3M Company related to PFAS litigation, with additional payments anticipated [112].

Financial Performance - Middlesex reported net income of $14.0 million and diluted EPS of $0.77 for Q3 2025, compared to net income of $14.3 million and diluted EPS of $0.80 in Q3 2024[3]. - Year-to-date net income for the nine months ended September 30, 2025, was $34.2 million, a decrease of $1.3 million compared to the same period in 2024[5]. - The company reported a diluted EPS of $1.90 for the nine months ended September 30, 2025, down from $1.98 in the same period in 2024[5]. Revenue and Expenses - Operating revenues for Q3 2025 were $54.1 million, a decrease of $1.0 million from $55.1 million in Q3 2024, primarily due to lower consumption from unfavorable weather[3]. - Operating revenues for the nine months ended September 30, 2025, were $147.7 million, an increase of approximately $2.9 million over the same period in 2024[6]. - Operating expenses for the nine months ended September 30, 2025, increased by $2.5 million compared to the same period in 2024, primarily due to higher variable production costs and increased main break activity[8]. Investments and Acquisitions - The company invested approximately $72 million in water and wastewater utility infrastructure during the nine months ended September 30, 2025, representing about 77% of its planned 2025 capital budget of $93 million[9]. - The company executed an asset purchase agreement to acquire Pinewood Acres water utility assets in Delaware for $0.2 million, serving approximately 350 customers[11]. Dividends and Rate Applications - Middlesex declared a cash dividend of $0.36 per common share, marking a 5.88% increase from the previous dividend of $0.34[12]. - Middlesex filed a fourth Distribution System Improvement Charge (DSIC) rate application expected to generate an additional $0.9 million in annual revenues[10].

Group 1 - Middlesex Water Company declared a quarterly cash dividend of $0.36 per share, marking a 5.88% increase from the previous dividend of $0.34 per share [1] - This increase raises the annual dividend rate to $1.44 from $1.36 per share, representing the 53rd consecutive year of dividend increases for Middlesex [1] - The new dividend rate will be payable on December 1, 2025, to shareholders of record as of November 17, 2025 [1] Group 2 - Middlesex Water Company is a leading investor-owned water and wastewater utility, established in 1897 [2] - The company serves over half a million people in New Jersey and Delaware, focusing on employee engagement, operational excellence, and sustainable growth [2] - Middlesex has been paying cash dividends since 1912, demonstrating a long-standing commitment to returning value to shareholders [1][2]

Core Insights - The article discusses the investment positions held by the author in MSEX and YORW, indicating a beneficial long position in these stocks [1]. Group 1 - The author expresses personal opinions regarding the stocks mentioned, emphasizing that the article is not receiving compensation beyond Seeking Alpha [1]. - It is noted that the author is not a licensed financial advisor, and the content should not be construed as financial advice [2]. - The article highlights the importance of due diligence and research by investors before making any investment decisions [2]. Group 2 - The article clarifies that past performance does not guarantee future results, and no specific investment recommendations are provided [3]. - It mentions that the views expressed may not reflect those of Seeking Alpha as a whole, indicating a diversity of opinions among analysts [3]. - The article emphasizes that the authors may include both professional and individual investors who may not be licensed or certified [3].

Core Points - The article discusses the investment positions held by the author in MSEX and YORW, indicating a beneficial long position in these shares [1] - It emphasizes the importance of conducting due diligence and research before making any investment decisions, particularly in high-risk trading styles [2] - The article clarifies that past performance does not guarantee future results and that the views expressed may not reflect those of Seeking Alpha as a whole [3] Company and Industry Summary - The author has a long position in MSEX and YORW, suggesting potential confidence in these companies' future performance [1] - The article highlights the risks associated with short-term trading and the necessity for investors to understand their risk tolerance [2] - It notes that Seeking Alpha's analysts may include both professional and individual investors, which could influence the perspectives shared in the article [3]

Core Viewpoint - Middlesex Water Company is set to report its financial results for Q3 2025 on October 31, 2025, after market close, with details available on its website [1] Company Overview - Middlesex Water Company is a leading investor-owned water and wastewater utility in the United States, established in 1897 [2] - The company serves over half a million people in New Jersey and Delaware, focusing on employee engagement, operational excellence, superior customer experience, infrastructure investment, and sustainable growth [2]

Core Insights - The article compares California Water Service Group (CWT) and Middlesex Water (MSEX) to determine which stock offers better value for investors [1] Valuation Metrics - CWT has a Zacks Rank of 2 (Buy), indicating a positive earnings outlook, while MSEX has a Zacks Rank of 4 (Sell) [3] - CWT's forward P/E ratio is 18.68, compared to MSEX's forward P/E of 21.37, suggesting CWT is more attractively priced [5] - CWT has a PEG ratio of 2.13, while MSEX's PEG ratio is significantly higher at 3.65, indicating CWT's expected earnings growth is more favorable [5] - CWT's P/B ratio is 1.6, whereas MSEX's P/B ratio is 2.08, further supporting CWT's valuation advantage [6] Investment Conclusion - CWT exhibits stronger estimate revision activity and more attractive valuation metrics than MSEX, making it the preferred choice for value investors at this time [7]

Middlesex Water Company Conference Summary Company Overview - **Company**: Middlesex Water Company (NasdaqGS: MSEX) - **Date of Conference**: September 17, 2025 - **Key Speakers**: Nadine Leslie (Chair, President, and CEO), Rally Zeroni (Senior Vice President, Treasurer, and CFO) Strategic Vision - **2030 Vision**: The company has launched a five-year strategic plan called MWC 2030, focusing on five strategic pillars: 1. **Employee Development**: Investment in leadership and upskilling programs to reduce turnover and improve efficiency [4][5] 2. **Operational Excellence**: Streamlining processes and focusing on compliance and safety to enhance reliability and stakeholder value [5] 3. **Customer Experience**: Anticipating customer needs and utilizing AI tools to improve service [6] 4. **Stakeholder Management**: Engaging with external stakeholders, including investors and community leaders [6] 5. **Selective and Sustainable Growth**: Investing in utility infrastructure and pursuing advantageous tuck-in opportunities [7] Regulatory Environment - **New Jersey Rate Case**: The New Jersey Board of Public Utilities is currently short-staffed, but the company does not anticipate significant delays in decision-making [9][10] - **Interim Rates**: Historically, the company has not implemented interim rates, but they will evaluate this as the rate case progresses [11] - **Delaware Rate Case**: A recent rate case was settled positively, with expectations to file again in two to three years [13] Financial Health and Customer Impact - **Customer Bills**: Represent less than 1% of household income, indicating a focus on affordability despite rising energy costs [15] - **Electricity Costs**: The company has fixed-cost contracts in place through early 2027, which helps manage energy market fluctuations [18] - **Consumption Trends**: Customer consumption has been lower due to unfavorable weather, but dry conditions may positively impact future consumption [21] Economic Conditions - **Local Economies**: Organic growth is observed in Delaware, with no significant impact on customer financial health noted [25][27] - **Inflation Impact**: The company is managing procurement processes effectively to mitigate inflationary pressures on costs [30] M&A Opportunities - **Growth Strategy**: The company is actively pursuing tuck-in acquisitions for water and wastewater systems within its geographic footprint, including New Jersey and Delaware [32][34] - **Geographic Expansion**: Potential expansion into neighboring states like Maryland and Pennsylvania is being considered [36] Capital Expenditure (CapEx) - **Increased CapEx**: The company anticipates elevated capital investments beyond 2027 to comply with new regulations and address aging infrastructure [39][40] - **Regulatory Compliance**: The company is prepared for stringent state and federal compliance requirements, particularly regarding emerging contaminants like PFAS [41][42] Financing Needs - **Financial Strategy**: A strong financial plan is in place, combining debt and equity financing to support capital programs [46] Investor Concerns - **Key Topics**: Investors are focused on rate cases, capital expenditures, and affordability, which are central to the company's operational strategy [47] Conclusion - **Outlook**: The company is optimistic about its strategic initiatives and the potential for long-term value creation for stakeholders [48]

Company Overview - Middlesex Water Company is a leading investor-owned water and wastewater utility in the United States, serving over half a million people in New Jersey and Delaware [3] - Established in 1897, the company emphasizes employee engagement, operational excellence, superior customer experience, infrastructure investment, and sustainable growth [3] Upcoming Conference Participation - The Chair, President, and CEO, Nadine Leslie, along with the Senior Vice President and CFO, Mohammed G. Zerhouni, will participate in the 5th Annual Virtual Water Utilities Conference on September 17, 2025 [1] - They will discuss the company's business strategy during a fireside chat moderated by Janney's Senior Analyst, Michael Gaugler [1] - The conference will also include virtual one-on-one meetings with institutional analysts and investors [2] Presentation Availability - The live webcast of the conference will be accessible at a specified link and will be available for 90 days on Middlesex Water's website under the Investors section [1]

Core Viewpoint - Middlesex Water missed Wall Street expectations for both revenue and profit in Q2 2025, reporting $49.3 million in GAAP revenue and $0.60 in GAAP EPS, which were below analyst estimates of $51.34 million and $0.66 respectively. The company experienced modest growth year-over-year but faced challenges from rising costs and weaker customer demand [1][5]. Financial Performance - Q2 2025 GAAP EPS was $0.60, slightly up from $0.59 in Q2 2024, but below the estimate of $0.66 [2] - GAAP revenue for Q2 2025 was $49.3 million, a 0.4% increase from $49.1 million in Q2 2024, but below the expected $51.34 million [2][5] - Net income for Q2 2025 was $10.8 million, up 2.9% from $10.5 million in Q2 2024 [2] - Total operating expenses increased by 4.7% to $35.4 million compared to Q2 2024 [2][6] Business Overview - Middlesex Water operates regulated water and wastewater utilities, serving over 500,000 people in New Jersey and Delaware, with revenues primarily derived from customer water consumption [3] - The company focuses on ongoing investments in infrastructure to comply with environmental regulations and secure regulatory approvals for rate increases [4] Regulatory Developments - In July 2025, the Delaware subsidiary Tidewater Utilities received approval for a settlement that raised annual operating revenue by $5.5 million, with a return on common equity of 9.5% [7] - The company filed for a $24.9 million base rate increase in New Jersey to recover nearly $100 million in infrastructure investments [7] Capital Investment - Capital investment remains a strategic priority, with $51 million spent in the first half of 2025, representing approximately 55% of the 2025 capital plan [8] - The company is pursuing expanded rights to recover capital costs through distribution system improvement surcharges, which could raise up to $11.4 million annually [8] Shareholder Returns - Middlesex Water declared a quarterly cash dividend of $0.34 per share, marking the 52nd consecutive year of annual dividend increases [10] Future Outlook - Management did not provide explicit EPS or revenue guidance for the remainder of fiscal 2025, with future performance dependent on the outcome of the pending New Jersey rate request and ongoing infrastructure investments [11]