Artesian's Third-Quarter Revenue Growth Cools

The Tip Desk · November 12, 2026 · 3 min read

Third-quarter revenue rose 4.8% to $31.9 million as diluted earnings slipped to $0.65 a share.

Artesian Resources Corporation (ARTNA), a water and wastewater provider on the Delmarva Peninsula, reported third-quarter revenue of $31.9 million, 4.8% above the year-earlier period, a slower pace than the 7.4% increase recorded in the second quarter.

Diluted net income per share fell to $0.65 from $0.68 a year earlier, reversing a 4.9% year-over-year rise to $0.64 in the second quarter. Net income for the three months ended September 30, 2026 was $6.8 million, down 3.0% from a year earlier.

Water sales revenue increased $0.8 million, or 3.4%, which the company said was primarily the result of higher overall water consumption, more customers served, and an increase in Distribution System Improvement Charge revenue. The DSIC rate effective July 1, 2026 was 0.62%. Water sales also included two temporary rate increases permitted under Delaware law until permanent rates are set by the Delaware Public Service Commission.

Other utility operating revenue rose about $0.5 million, or 12.6%, primarily from industrial wastewater treatment services and additional residential and commercial wastewater customers. Non-utility operating revenue increased about $0.1 million, or 7.5%, primarily from Service Line Protection Plan fees that took effect January 1, 2026.

Operating expenses excluding depreciation and income taxes increased $1.4 million, or 8.7%, faster than the 7.6% year-over-year rise in the second quarter. Utility operating expenses rose $1.1 million, or 8.0%, which the company attributed primarily to a $0.4 million increase in supply and treatment costs, plus $0.2 million each in payroll and employee benefits, purchased power, and administrative costs.

Federal and state income tax expense decreased $0.2 million, or 9.0%, primarily due to lower pre-tax book income and the reversal of accrued penalty and interest related to uncertain tax positions on the 2022 return after the statute of limitations lapsed in the third quarter. Property and other taxes increased $0.4 million on higher New Castle County rates and more taxable utility plant. Interest charges rose $0.2 million, including customer refund interest tied to the temporary rate-increase revenue. Other income decreased $0.2 million on lower AFUDC from reduced long-term construction activity.

For the nine months ended September 30, 2026, diluted net income per share increased 3.3% to $1.87. Net income was $19.3 million. Revenue totaled $90.4 million, 6.4% above the year-earlier nine months, slower than the 7.4% increase for the six months ended June 30. Water sales revenue rose $3.7 million, or 5.4%, which the company said was primarily the result of the temporary Delaware rate increases, higher consumption, and more customers. Other utility operating revenue increased about $1.3 million, or 11.8%, and non-utility operating revenue rose about $0.5 million, or 9.1%.

Nine-month operating expenses excluding depreciation and income taxes increased $3.4 million, or 7.4%. Utility operating expenses rose $2.8 million, or 7.4%, primarily from a $1.3 million increase in payroll and employee benefits, a $0.8 million increase in supply and treatment costs, and smaller rises in purchased power, administrative, and transmission, distribution and collection costs. Non-utility operating expenses increased $0.3 million, or 10.0%, primarily from plumbing repair costs on the SLP Plans. Depreciation and amortization rose $0.3 million, or 2.7%. Interest charges increased $0.4 million.

The company invested $40.8 million in the first nine months of 2026 in water and wastewater infrastructure, including new mains, services and hydrants, pumping and treatment station upgrades including PFAS treatment, new wastewater treatment plants, renewals of aging infrastructure, meter-reading equipment, transportation equipment, and computer hardware and software. Chair, President and CEO Nicki Taylor said the company continues to make investments that protect water quality, address aging infrastructure, and help ensure service for the communities it serves.