Artesian Resources (ARTNA) investor relations material

Executive summary

• Operating revenues for Q1 2026 were $27.8 million, up 7.3% year-over-year, driven by temporary rate increases and customer growth in both water and wastewater services.

• Net income applicable to common stock rose 9.2% to $5.9 million, with diluted EPS up 7.5% to $0.57, compared to $0.53 in Q1 2025.

• Regulated utility operations accounted for 92.5% of total revenues, with non-utility businesses also showing growth, particularly in service line protection plans.

Financial highlights

• Water sales revenue increased $1.5 million (7.3%) year-over-year, primarily from temporary rate hikes and customer additions.

• Other utility operating revenue rose 6.2%, and non-utility operating revenue grew 9.5% due to higher SLP Plan participation and fee increases.

• Operating expenses (excluding depreciation and income taxes) increased 5.7%, with payroll, benefits, and system costs up $0.9 million.

• Operating income for Q1 2026 was $6.3 million, up from $5.5 million in Q1 2025.

• Net cash provided by operating activities was $8.6 million, down from $11.0 million in Q1 2025, mainly due to changes in receivables and payables.

Outlook and guidance

• Continued focus on expanding water, wastewater, and SLP Plan services across the Delmarva Peninsula.

• Ongoing capital improvements planned for water and wastewater infrastructure, with regulatory support for cost recovery and compliance.

• Anticipated growth in non-utility subsidiaries, especially contract operations and SLP Plans.

• Management expects sufficient liquidity from operations, credit lines, developer contributions, and capital markets to fund near-term needs.

• Forward-looking statements highlight risks from regulatory approvals, weather, economic conditions, and rate request outcomes.