Middlesex(US:MSEX)2025-10-31 20:15Revenue 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].