Artesian's Wastewater Mix Widens as Water Growth Cools
Second-quarter revenue reached $30.7 million as other utility operating revenue rose 16.0% and water sales rose 5.8%.
Artesian Resources Corporation (ARTNA), a water and wastewater provider on the Delmarva Peninsula, reported second-quarter revenue of $30.7 million, $2.1 million, or 7.4%, more than the year-ago quarter. Diluted net income per share rose 4.9% to $0.64 from $0.61 a year earlier. Net income for the three months ended June 30, 2026, was $6.6 million.
The quarter’s mix shifted toward wastewater. Other utility operating revenue increased about $0.6 million, or 16.0%, which the company attributed to industrial wastewater treatment services and additional residential and commercial wastewater customers. Water sales revenue increased $1.3 million, or 5.8%, on temporary rate increases permitted under Delaware law until the Delaware Public Service Commission sets permanent rates, and on more customers served. Non-utility operating revenue increased about $0.2 million, or 10.2%, on Service Line Protection Plan fees that took effect January 1, 2026, and more participating customers.
Chair, President and CEO Nicki Taylor said wastewater customers rose 6.6% over the past 12 months.
Operating expenses excluding depreciation and income taxes increased $1.2 million, or 7.6%. Utility operating expenses rose $0.9 million, or 7.4%, including a $0.5 million increase in payroll and employee benefit costs, a $0.2 million increase in supply and treatment costs, and a $0.2 million increase in administrative costs. Non-utility operating expenses rose $0.3 million, or 28.1%, primarily on plumbing repair costs tied to the SLP Plans.
Other income decreased $0.3 million, primarily because of a lower allowance for funds used during construction resulting from reduced long-term construction activity. Interest charges increased $0.2 million on higher promissory-note borrowing. Depreciation and amortization rose $0.1 million, or 3.1%, on continued investment in utility plant. Federal and state income tax expense increased $0.1 million, or 4.6%.
For the six months ended June 30, 2026, revenues totaled $58.4 million, $4.0 million, or 7.4%, more than the six months ended June 30, 2025. Water sales revenue increased $2.9 million, or 6.5%. Other utility operating revenue increased about $0.8 million, or 11.3%. Non-utility operating revenue increased about $0.4 million, or 9.9%. Net income for the six months was $12.5 million; diluted net income per share was $1.21.
The company invested $25.9 million in water and wastewater infrastructure in the first six months of 2026, including new mains, services and hydrants, rehabilitation of aging infrastructure, meter-reading upgrades, wastewater force mains, pumping and treatment station upgrades, including PFAS treatment, and construction of new wastewater treatment plants. Taylor said the capital program is focused on aging infrastructure, system resiliency, and meeting evolving federal and state regulations.
Artesian Water Company, the principal subsidiary, is the oldest and largest regulated water utility on the Delmarva Peninsula and has provided water service since 1905.