ARTNA earnings analysis
What we found in ARTNA's 10-Q: the parts that mattered, the offsets in the same document, and what the company said about what comes next.
Our reading of the filing · Free to read, no account needed
Artesian Resources delivered solid Q2 2026 results, with revenue of $30.7 million up 7.4% year over year and EPS of $0.64 versus $0.61 in Q2 2025. Growth was supported by temporary Delaware rate increases, customer additions, wastewater activity and SLP Plans, while net income increased 4.5% despite higher operating and interest costs. Liquidity was supported by $18.8 million of operating cash flow, $10.0 million of new long-term debt and $20.3 million of developer contributions, although $25.9 million of capex produced approximately $7.1 million of implied negative free cash flow.
The parts that mattered.
Pulled out of the filing itself, with the figures the company reported.
- Revenue Growth Accelerated
- Revenue was $30.7 million in Q2 2026, up $2.1 million, or 7.4%, year over year. Water sales rose 5.8%, other utility revenue rose 16.0%, and non-utility revenue rose 10.2%.
- EPS Beat and Improved
- EPS was $0.64, versus $0.61 in Q2 2025 and $0.57 in Q1 2026, representing year-over-year and sequential improvement. EPS also exceeded the reported $0.55 consensus estimate by $0.09.
- Broad-Based Customer Growth
- Customer growth remained favorable: Delaware metered water customers increased 1.8%, Maryland metered water customers increased 1.5%, Delaware wastewater customers increased 6.6%, and eligible SLP Plan customers increased 13.0% year over year.
- Operating Cash Flow Stable
- Six-month operating cash flow was $18.8 million, broadly stable versus $18.9 million in the prior-year period. Capital expenditures were $25.9 million, implying approximately $7.1 million of negative operating cash flow less capex.
- Liquidity Sources Remain Available
- The company obtained $10.0 million of long-term debt and $20.3 million of net developer contributions and advances during the first six months. It reported $40 million available under Citizens Bank’s line and $20 million available under CoBank’s line.
- Wastewater Capacity Expansion
- The new 625,000-gallon-per-day regional wastewater treatment facility was completed in Q1 2026, and the company received a permit in February 2026 for an additional 1,250,000-gallon-per-day facility.
And the other side of it.
The offsets in the same document — the things a summary that only listed the good news would have left out.
- Operating Cost Inflation
- Operating expenses excluding depreciation and income taxes increased 7.6% year over year in Q2, including a $0.5 million increase in payroll and benefits, a $0.2 million increase in supply and treatment costs, and a $0.2 million increase in administrative costs.
- Negative Free Cash Flow
- Capital intensity remains high: six-month capex was $25.9 million versus $18.8 million of operating cash flow, resulting in approximately $7.1 million of implied negative free cash flow before financing and other investing items.
- Large Long-Term Obligations
- The company’s material contractual cash obligations totaled $292.424 million, including $245.174 million of first mortgage bond principal and interest and $215.627 million due after five years.
- Weather and Rate-Case Exposure
- Weather can reduce demand for water; water sales accounted for 79.7% of quarterly operating revenue, making results sensitive to rainfall and temperature. Management also noted that rate recovery depends on regulatory approval and timing.
- PFAS Compliance Costs
- PFAS compliance requires initial monitoring by 2027 and national compliance with new maximum contaminant levels by April 2029; the company anticipates additional treatment investment and operating costs.
- No New Risk-Factor Changes
- Item 1A states there were no material changes to the risk factors in the 2025 Form 10-K. Separately, the company had $60 million of variable-rate credit lines available, exposing borrowing costs to higher interest rates, although no amounts were outstanding at June 30, 2026.
What they reported.
What the company itself reported, taken out of the document.
- Earnings per share
- $0.64
- Segment
- Regulated utility: 92.9% of total operating revenue for the six months ended June 30, 2026, versus 93.0% in the prior-year period.
- Segment
- Water sales represented 79.7% of quarterly operating revenue, versus 80.9% in the prior-year quarter; water sales revenue increased 5.8% year over year.
- Segment
- Other utility operating revenue increased 16.0% year over year, primarily from industrial wastewater treatment and additional wastewater customers.
- Segment
- Non-utility operating revenue increased 10.2% year over year, driven by higher SLP Plan fees and participation.
What they said about what is next.
No explicit quantitative revenue or EPS guidance was provided. Management expects to fund the next 12 months through operating cash flow, credit lines, developer contributions, settlement funds, grants and capital-market financing, and expects to renew its $40 million and $20 million credit lines.
The filing reads better than the one before it.
What came before.
- 10-Q · May 8, 2026
- Artesian Resources Corporation reported strong Q1 2026 results with total revenue of $27.8 million and EPS of $0.57, both exceeding analyst expectations. Revenue grew by 7.3% year-over-year, primarily driven by an…
- 10-K · March 16, 2026
- Artesian Resources reports 2025 consolidated revenue of $112.9 million and diluted EPS of $2.21, with Artesian Water accounting for approximately 80.5% of 2025 operating revenues. Revenue and EPS ticked up versus 2024,…
- 10-Q · May 9, 2025
- Artesian reported quarterly revenue of $25,886,000 (up $1,342,000 vs. $24,544,000 a year ago) and operating income of $5,546,000 (up $827,000 YoY). Net income applicable to common increased to $5,435,000 and diluted EPS…
- 10-Q · May 10, 2023
- Artesian Resources reported first-quarter operating revenues of $22,495,000, up $308,000 versus prior-year quarter, but operating income fell to $4,060,000 (down $683,000) and diluted EPS declined to $0.39 from $0.47.…
This is our reading of a public filing, not the filing. Read the original on SEC.gov · Educational only. Nothing here is investment advice.
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