Artesian Resources (ARTNA) investor relations material

Executive summary

• Operating revenues for Q2 2026 increased 7.4% year-over-year to $30.7 million, driven by temporary rate increases and customer growth in both water and wastewater services.

• Net income for Q2 2026 rose 4.5% to $6.6 million, with EPS at $0.64, up from $0.61 in Q2 2025; diluted EPS rose 4.9% for Q2 and 6.1% for the first half of 2026.

• Revenues for the first half of 2026 reached $58.4 million, up 7.4% year-over-year.

• Net income for the first half was $12.5 million, a 6.7% increase year-over-year.

• Regulated utility operations accounted for 92.9% of total revenues for the six months ended June 30, 2026.

Financial highlights

• Water sales revenue grew 5.8% in Q2 and 6.5% in the first half, with other utility revenues up 16.0% in Q2 and 11.3% in the first half.

• Non-utility operating revenue increased 10.2% in Q2 and 9.9% in the first half, mainly from higher SLP Plan fees and participation.

• Operating income for Q2 2026 was $8.6 million (up from $7.9 million in Q2 2025); first half 2026: $14.9 million (up from $13.4 million in 2025).

• Operating expenses (excluding depreciation and taxes) rose 7.6% in Q2 and 6.6% in the first half, mainly from payroll, benefits, and supply costs.

• Cash provided by operating activities for the six months was $18.8 million.

Outlook and guidance

• Continued customer growth is expected in Delaware and Maryland, with strategic expansion in water and wastewater services.

• Planned capital improvements over the next three years include water and wastewater infrastructure projects in Delaware and Maryland.

• Management anticipates sufficient liquidity from operations, credit lines, developer contributions, and capital markets to fund future needs.

• Growth strategy focuses on infrastructure investment, customer expansion, and compliance with evolving regulations.

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