Executive Summary

Q2 2025 was steady operationally: revenue rose modestly to $49.3M and diluted EPS was $0.60, both up slightly year over year as rate increases and customer growth offset weather-driven consumption weakness and higher variable production costs .
Results missed S&P Global consensus: EPS $0.60 vs $0.67* and revenue $49.3M vs $51.3M*, primarily on lower consumption from unfavorable weather and higher production costs tied to water quality .
Regulatory momentum is a clear catalyst: Delaware base rate settlement adds $5.5M annual revenues effective July 3 (9.5% ROE, 53.5% equity ratio) and NJ base rate filing seeks +$24.9M; DSIC/RESIC filings could add up to $11.4M through surcharges .
Capital plan execution remains strong: $51M invested in H1 (55% of 2025 plan); dividend maintained at $0.34/share with a 52-year CAGR dividend increase track record .

What Went Well and What Went Wrong

Price and volume levers worked: Rate increases and customer growth supported Q2 revenue of $49.3M (+0.4% YoY) despite weather headwinds .
Constructive regulation: Delaware settlement approved +$5.5M annual operating revenue, 9.5% allowed ROE, 53.5% equity ratio—supportive for forward cash flows .
Execution on capex and resilience: $51M deployed in H1 (55% of $93M plan); management emphasized continuing prudent investments to ensure safe, reliable service. “The constructive outcome of the general rate case in Delaware supports our selective and sustainable growth pillar…” — CEO Nadine Leslie .

Consumption and costs: Lower consumption from unfavorable weather and higher variable production costs from weather-driven lower water quality pressured the P&L .
Operating expense inflation: Ops & maintenance, labor and depreciation drove OpEx up to $35.4M from $33.8M YoY in Q2 .
Missed Street numbers: EPS $0.60 vs $0.67* and revenue $49.3M vs $51.3M*, suggesting estimates may need to reflect weather sensitivity and cost inflation in production .

Metric	Q2 2024	Q4 2024	Q1 2025	Q2 2025
Revenue ($M)	$49.146	$47.107	$44.301	$49.323
Net Income ($M)	$10.546	$8.804	$9.479	$10.778
Diluted EPS ($)	$0.59	$0.49	$0.53	$0.60
Operating Income ($M)	$15.315	$10.529	$11.557	$13.912
Total Operating Expenses ($M)	$33.831	$36.578	$32.744	$35.411

Q2 2025 vs S&P Global consensus (Street):

Revenue: $49.323M vs $51.345M consensus* (miss) .
EPS: $0.60 vs $0.67 consensus* (miss).
Values marked with * retrieved from S&P Global.

Margins and EBITDA (S&P Global):

Metric	Q2 2024	Q4 2024	Q1 2025	Q2 2025
EBITDA ($M)	$23.609*	$19.600*	$20.637*	$22.623*
EBITDA Margin (%)	48.04%*	41.61%*	46.58%*	45.87%*
Net Income Margin (%)	21.46%*	18.69%*	21.40%*	21.85%*
Values marked with * retrieved from S&P Global.

YTD System Trends (context)

H1 2025 revenue up ~$4.0M YoY: +$3.1M Middlesex system, +$1.2M Tidewater system; non-regulated -$0.4M. Drivers: rate increases, customer growth; offset: weather-driven lower consumption .

Metric	Period	Previous Guidance	Current Guidance	Change
Quantitative financial guidance	FY/Q3+	Not provided	Not provided	Maintained (no guidance issued)
Dividend per share (quarterly)	Q3 2025	$0.34 (Q2 2025)	$0.34 (payable Sep 2, 2025)	Maintained
Delaware base rates	Effective Jul 3, 2025	N/A	+$5.5M annual revenue increase; 9.5% ROE; 53.5% equity ratio	New/Approved
NJ base rate request	Filed Jun 2025	N/A	+$24.9M annual base revenue request (19.3%)	New/Filed
NJ DSIC/RESIC surcharges	3-year program ending Oct 2028	N/A	Semi-annual surcharges for qualifying capex, up to $11.4M or 7.5% of total annual revenues (cap subject to final order)	New/Filed

Note: No Q2 2025 earnings call transcript was available; themes below are drawn from company press releases.

Topic	Previous Mentions (Q4 2024 and Q1 2025)	Current Period (Q2 2025)	Trend
Regulation & Rate Cases	2024 uplift tied to NJBPU base rate increase; noted one-time recoveries and stronger demand	DEPSC settlement +$5.5M annual revenue (9.5% ROE); NJ base rate filing +$24.9M; DSIC/RESIC filings	Improving visibility; constructive
Capital Investment & Resiliency	2024 capex $75M; 2025 plan $93M; 2025–2027 capex plan $387M	$51M invested in H1 (55% of 2025 plan)	Executing ahead of plan pace
Consumption/Weather	2024 benefited from weather-driven demand	Q2 impacted by unfavorable weather lowering consumption	Headwind near-term
Water Quality/Production Costs	Enhanced treatment processes drove costs in prior periods	Higher variable production costs from weather-driven lower water quality	Ongoing cost pressure
Customer Growth/M&A	Ocean View acquisition completed (≈900 customers)	Continued customer growth cited as driver	Positive, incremental
Dividend Policy	52 years of annual increases; $0.34 per quarter in 2025	$0.34 declared for Q3 2025	Stable returns focus

“The constructive outcome of the general rate case in Delaware supports our selective and sustainable growth pillar and the ability to continue making prudent investments in our Tidewater System to provide safe and reliable water utility service … at affordable rates.” — Nadine Leslie, Chair, President & CEO .
On growth: “We are excited to welcome Ocean View residents as our customers… demonstrating our focus on selective and sustainable growth” .
On infrastructure and resilience (NJBPU filing): Investments to modernize treatment plants, replace mains and hydrants, advance lead service line removal, and upgrade treatment methods and IT systems to strengthen resilience against climate risks and emerging contaminants .

No earnings call transcript available for Q2 2025; no Q&A to summarize. Company communications centered on the press release, regulatory filings, and the dividend declaration .

Q2 2025 actuals vs S&P Global consensus: EPS $0.60 vs $0.67* (miss); Revenue $49.3M vs $51.3M* (miss). Number of covering estimates: EPS 3; Revenue 3*.
Implications: Street models likely need to reflect (1) weather-driven consumption volatility, (2) elevated variable production costs tied to water quality, and (3) timing of regulatory relief (DEPSC benefit mid-Q3; NJ outcome pending) .
Values marked with * retrieved from S&P Global.

Q2 2025 vs Consensus	Actual	Consensus*	Delta
Revenue ($M)	$49.323	$51.345*	-$2.022
Diluted EPS ($)	$0.60	$0.67*	-$0.07
Values marked with * retrieved from S&P Global.

Regulatory tailwinds are building: Delaware settlement starts in Q3, while NJ filings (base rate and DSIC/RESIC) could drive 2026 run-rate revenue upside upon approval .
Core trends ex-weather remain constructive: Rate increases and customer growth continue to offset weather-related consumption and variable production cost pressure .
2025 capex tracking ahead of pace (55% in H1) supports forward rate base growth and underpins dividend stability and potential future increases .
Near-term estimate resets likely: Q2 miss vs consensus suggests models should incorporate higher production costs and consumption variability; watch for sequential lift from DEPSC rates in Q3 .
Dividend intact: $0.34 per quarter affirmed; 52 consecutive years of annual dividend increases demonstrate commitment to income investors .
Watch the NJ docket timeline and DSIC/RESIC cadence; interim/step surcharges can smooth recovery of ongoing capex and mitigate inflationary cost pressures .
Monitoring items: weather and water quality costs into H2, integration benefits from Ocean View, any traction on further customer growth or acquisitions .

Disclaimer on estimates and certain financial metrics: Values marked with * are retrieved from S&P Global.