Artesian Resources(US:ARTNA)2026-03-16 21:13Revenue and Income - Regulated utility segment accounted for 93.2% of total operating revenues in 2025, with total revenues of $112.9 million, an increase of $5.0 million or 4.6% from 2024[158]. - Water sales revenue increased by $2.8 million, or 3.2%, due to temporary rate increases and an increase in the number of customers served[159]. - Total operating revenues for 2025 reached $112,941,000, an increase of 4.8% from $107,952,000 in 2024[196]. - Net income applicable to common stock increased by $2.4 million, or 11.9%, with total revenue rising by $5.0 million[171]. - Net income applicable to common stock for 2025 was $22,822,000, up 11.9% from $20,394,000 in 2024[196]. - Basic net income per common share increased to $2.21 in 2025, compared to $1.98 in 2024, reflecting a growth of 11.6%[196]. - Consolidated revenues for 2025 were $112,941,000, up 4.5% from $107,952,000 in 2024 and 14.2% from $98,861,000 in 2023[339]. - Regulated Utility Revenues for 2025 reached $105,506,000, an increase of 4.3% from $101,210,000 in 2024 and 14.4% from $92,228,000 in 2023[339]. Customer and Service Growth - The number of metered water customers in Delaware and Maryland increased by approximately 1.8% as of December 31, 2025, while the number of wastewater customers in Delaware increased by approximately 6.5%[146][147]. - Customer enrollment in SLP Plans increased by 4.1%, 2.0%, and 5.7% for WSLP, SSLP, and ISLP Plans, respectively, as of December 31, 2025[148]. - Artesian Water served approximately 99,100 customers, Artesian Water Maryland served approximately 2,700 customers, and Artesian Water Pennsylvania served approximately 40 customers as of December 31, 2025[320]. Operating Expenses and Financial Ratios - Operating expenses increased by $2.7 million, or 4.4%, with utility operating expenses rising by $2.6 million, or 5.3%[163][164]. - The ratio of operating expenses to total revenue was 56.2% for 2025, slightly down from 56.4% in 2024[166]. - Operating income for 2025 was $27,782,000, an increase of 6.2% from $26,151,000 in 2024[196]. - Consolidated operating income for 2025 was $27,782,000, an increase of 6.2% from $26,151,000 in 2024 and 23.8% from $22,446,000 in 2023[339]. Capital Expenditures and Investments - Capital expenditures in 2025 were $58.8 million, an increase from $45.9 million in 2024, focusing on infrastructure rehabilitation and new construction projects[176]. - Projected net investments in utility plant for 2026 are expected to be approximately $64.3 million[174]. - The company plans to continue its investment in utility plant, with construction work in progress valued at $45,667 million as of December 31, 2025[212]. Cash Flow and Financing - Cash flow from operating activities for the year ended December 31, 2025, was $40.3 million, up from $36.8 million in 2024, primarily due to changes in net income and working capital[175]. - Cash flows provided by financing activities increased to $17.3 million in 2025 from $7.1 million in 2024, driven by higher contributions in aid of construction[180]. - The company has a $40 million line of credit with Citizens Bank, with $34.3 million available as of December 31, 2025[181]. - The company expects to renew its $20 million line of credit with CoBank, which had $20 million available as of December 31, 2025[291]. Regulatory and Compliance - Artesian Wastewater received a permit for a new 625,000 gallon per day regional wastewater treatment facility, expected to enhance service capabilities[154]. - The company is in compliance with financial covenants related to long-term debt agreements and revolving lines of credit as of December 31, 2025[183]. - The company adopted new accounting standards for income taxes effective December 31, 2025, requiring additional disclosures but not impacting operations or cash flows[341]. Taxation and Deferred Items - Federal income tax expense for 2025 totaled $5,009,000, an increase from $4,629,000 in 2024[279]. - Total income tax expense for 2025 was $7,831 million, resulting in an effective tax rate of 25.6%, compared to 26.4% in 2024 and 27.6% in 2023[281]. - Deferred tax assets net of valuation allowance decreased to $7,368 million in 2025 from $7,720 million in 2024[283]. Miscellaneous - The company plans to expand its regulated water service area in Cecil County and continue strategic acquisitions to enhance operations[150][151]. - Artesian Water received reimbursements totaling approximately $10.0 million related to treatment costs from the Delaware Sand & Gravel Landfill Superfund Site, with payments scheduled in four installments of approximately $2.5 million each from August 2022 to July 2025[241]. - The company has accrued approximately $22 thousand in penalties and interest related to uncertain tax positions for the full year 2025[235].