Artesian Resources Corporation (Nasdaq: ARTNA) announced its financial results for the third quarter and year-to-date periods ended September 30, 2026. The company reported diluted net income per share of $0.65 for the third quarter of 2026, a decrease from $0.68 in the same period of the prior year.
Net income for the three months ended September 30, 2026, totaled $6.8 million. This represents a decrease of $0.2 million, or 3.0%, compared to the $7.0 million recorded during the same period in 2025. Total revenues for the quarter were $31.9 million, an increase of $1.5 million, or 4.8%, compared to the prior year.
Water sales revenue increased by $0.8 million, or 3.4%, driven by higher overall water consumption, an increase in the number of customers served, and revenue from the Distribution System Improvement Charge (DSIC). The DSIC rate became effective on July 1, 2026, at 0.62%. Additionally, revenue increased due to two temporary rate increases permitted under Delaware law until permanent rates are determined by the Delaware Public Service Commission.
Other utility operating revenue increased approximately $0.5 million, or 12.6%, primarily due to higher wastewater revenue from industrial treatment services and new residential and commercial customers. Non-utility operating revenue increased approximately $0.1 million, or 7.5%, attributed to an increase in Service Line Protection Plan (SLP Plan) fees that took effect on January 1, 2026.
Operating expenses, excluding depreciation and taxes, increased by $1.4 million, or 8.7%. This rise was primarily due to higher supply and treatment costs, payroll and employee benefit costs, purchased power costs, and administrative costs. Federal and state income tax expense decreased by $0.2 million, or 9.0%, due to lower pre-tax book income and the reversal of accrued penalties and interest related to uncertain tax positions.
For the nine months ended September 30, 2026, diluted net income per share increased 3.3% to $1.87, compared to $1.81 in the prior year. Net income for the nine months was $19.3 million, an increase of $0.6 million, or 3.1%, compared to the prior year. Total revenues for the nine months were $90.4 million, an increase of $5.5 million, or 6.4%.
Capital expenditures for the first nine months of 2026 totaled $40.8 million. These investments focused on water and wastewater infrastructure, including the installation of new mains and hydrants, upgrades to pumping and treatment stations, and PFAS treatment upgrades. The company stated these investments are aimed at ensuring high-quality, reliable service and compliance with water quality regulations.
