Middlesex Water’s 2025 Net Income Declines as NJ BPU Approves $14.5M Rate Hike
Middlesex Water’s 2025 net income fell to $42.8 million, or $2.36 per share, while revenues rose to $194.7 million. The company invested $96 million in infrastructure last year, plans $126 million for 2026 and won approval for a $14.5 million rate increase plus up to $10.7 million in surcharge recoveries.
1. Full-year 2025 Results
Middlesex Water reported net income of $42.8 million for 2025, down $1.5 million from 2024, on diluted EPS of $2.36 versus $2.47. Operating revenues climbed $2.8 million to $194.7 million, driven by rate increases and customer growth offset by lower consumption and one-time recovery effects.
2. Fourth Quarter Performance
In Q4 2025, net income was $8.6 million with diluted EPS of $0.46, compared to $8.8 million and $0.49 per share in Q4 2024. The quarter’s results reflected higher interest expense and taxes offset by increased operating income.
3. Infrastructure Investment Plans
The company invested $96 million in water and wastewater infrastructure in 2025 and plans $126 million in 2026, including main replacements, hydrant and meter installations. From 2026 through 2028, Middlesex expects to invest $506 million, with $255 million earmarked for PFAS treatment upgrades.
4. Regulatory Approvals and Financial Actions
The New Jersey Board of Public Utilities approved a $14.5 million annual revenue increase with an authorized 9.6% ROE and 54.25% common equity ratio. Combined RESIC and DSIC programs allow up to $10.7 million in semi-annual surcharge recoveries. The company also acquired Pinewood Acres assets for $0.2 million and declared a $0.36 per share quarterly dividend.