MIDDLESEX WATER CO (MSEX)·Q4 2024 Earnings Summary

Executive Summary

• Q4 2024 delivered solid growth: revenue $47.11M and diluted EPS $0.49, up year over year vs Q4 2023 ($38.60M, $0.32), driven by NJBPU base rate increases, weather-driven demand, and interim rates in Delaware .
• Results beat external Street proxies: EPS $0.49 vs $0.36 consensus and revenue $47.11M vs $45.00M consensus; S&P Global consensus was unavailable, so MarketBeat proxies are shown; the beat was primarily rate and demand-driven .
• Full-year context: FY 2024 net income $44.4M and diluted EPS $2.47; revenues $191.9M (+$25.6M YoY) with notable one-time recovery of prior-period Park Avenue plant costs and strong demand across systems .
• 2025–2027 capital plan of $387M (including $93M in 2025 and $105M PFAS treatment at Carl J. Olsen) and Ocean View acquisition approval in Delaware provide medium-term growth visibility .
• Dividend maintained at $0.34 per share for Q1 2025, extending 52 consecutive years of annual increases, a support for income-oriented holders .

What Went Well and What Went Wrong

What Went Well

• Strong regulatory outcomes underpin earnings power: NJBPU base rate increase in March 2024 and DE interim rates boosted Q4 and FY results, with management highlighting a constructive regulatory environment .
• Demand tailwinds: Weather-driven customer demand across regulated systems contributed to Q4 and FY growth, lifting revenue and operating results .
• Strategic capital deployment: $75M invested in 2024 to enhance resiliency, with a multi-year plan of $387M signaling disciplined infrastructure-led growth .
• Management quote: “Our strong 2024 performance underscores the strength of our growth strategy… and the trust we have earned from our stakeholders” — CEO Nadine Leslie .

What Went Wrong

• O&M expenses rose meaningfully: FY 2024 O&M increased $9.3M YoY due to legal/regulatory costs, labor, enhanced treatment processes, and higher energy costs; Q3 had similar drivers (legal, Park Avenue treatment, energy/chemical) .
• Seasonal normalization vs Q3: Q4 revenue and EPS fell sequentially (Q4 revenue $47.11M vs Q3 $55.10M; EPS $0.49 vs $0.80) reflecting seasonality despite rate benefits .
• Limited quarterly segment disclosure: While FY system-level revenue increases were disclosed, quarter-by-quarter segment breakdowns were not, reducing visibility into specific drivers by system in Q4 .

Financial Results

Segment (FY 2024 revenue change vs FY 2023):

KPIs and Capital Program:

Estimate comparison (note: S&P Global consensus unavailable):

Guidance Changes

Earnings Call Themes & Trends

Management Commentary

• CEO Nadine Leslie: “Our strong 2024 performance underscores the strength of our growth strategy, the dedication of our team members, a constructive regulatory environment, and the trust we have earned from our stakeholders” .
• Q3 tone: “Our strong financial results are a reflection of our commitment to operational excellence… and working constructively with regulators to recover prudent infrastructure investments in a timely manner” .
• Q2 priorities: Focus on growth and succession, investing via RENEW and Water for Tomorrow to meet new federal regulations; DE rate case planned to maintain resiliency and compliance .

Q&A Highlights

• An earnings call transcript for Q4 2024 was not found in our document catalog or investor site listings; MarketBeat notes a conference call date/time but no transcript content was available. We searched earnings call transcripts and investor site archives and found none .
• As a result, specific Q&A clarifications on guidance, O&M trajectory, or PFAS project timing were not available from a transcript.

Estimates Context

• EPS: Actual $0.49 vs consensus proxy $0.36, a beat of +$0.13, driven by NJ base rate increases, weather-driven demand, and DE interim rates; S&P Global consensus was unavailable due to access limitations, so MarketBeat proxies are used .
• Revenue: Actual $47.11M vs consensus proxy $45.00M, beat of +$2.11M, consistent with demand tailwinds and regulatory actions .
• Implications: Given sequential seasonal normalization vs Q3, models may recalibrate quarterly seasonality but maintain higher run-rate assumptions for 2025 on rate case impacts and infrastructure-driven O&M, with a watch on PFAS capex deployment .

Key Takeaways for Investors

• Rate relief plus interim actions in DE and weather-driven demand underpinned a clean beat on EPS and revenue; watch continued regulatory cadence in 2025 for sustained EPS support .
• Sequential Q4 moderation from Q3 reflects seasonality; the YoY comp remains strong, indicating improved earnings power post-2024 rate actions .
• Multi-year $387M infrastructure plan (incl. $93M in 2025 and $105M PFAS treatment) signals ongoing capital visibility and potential future rate base growth; monitor regulatory recovery timing .
• O&M inflation and compliance/treatment costs are a headwind; investors should track cost discipline vs recovery mechanisms (DSIC, surcharges) to protect margins .
• Dividend durability (52 consecutive years of increases; $0.34 maintained) supports the income thesis; payout underpinned by constructive regulatory outcomes .
• Selective M&A (Ocean View) adds customers and potential synergies; small but positive footprint expansion .
• Near-term trading catalysts: PFAS project execution updates, DE rate case progression (interim to final), DSIC approval outcomes, and quarterly demand trends vs seasonality .

Sources

• Q4/FY 2024 8-K and Exhibit 99.1 press release with consolidated statements .
• Company press release: “Middlesex Water Company Reports 2024 Financial Results” .
• Q3 2024 8-K and press release (rate activity, interim rates, dividend increase, financials) .
• Q2 2024 press release and 8-K (financials, regulatory posture) .
• Investor site listings for quarterly releases .
• MarketBeat estimates proxies for Q4 2024 .