msex-20260331

UNITED STATES SECURITIES AND EXCHANGE COMMISSION

WASHINGTON, DC 20549

FORM 10-Q

(Mark One)


☑			QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the quarterly period ended March 31, 2026


☐			TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the transition period from _________________ to______________________

Commission File Number 0-422

MIDDLESEX WATER COMPANY

(Exact name of registrant as specified in its charter)


New Jersey			22-1114430
(State of incorporation)			(IRS employer identification no.)

485C Route One South, Iselin, New Jersey 08830

(Address of principal executive offices, including zip code)

(732) 634-1500

(Registrant's telephone number, including area code)

Securities registered pursuant to Section 12(b) of the Act:


Title of each class	Trading Symbol(s)	Name of each exchange on which registered
Common Stock	MSEX	NASDAQ

Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days.

Yes ☑ No☐

Indicate by check mark whether the registrant has submitted electronically and posted on its corporate Web site, if any, every Interactive Data File required to be submitted and posted pursuant to Rule 405 of Regulation S-T during the preceding 12 months (or such shorter period that the registrant was required to submit and post files).

Yes ☑ No ☐

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, a smaller reporting company or an emerging growth company. See the definitions of large accelerated filer, accelerated filer, non-accelerated filer, smaller reporting company and emerging growth company in Rule 12b-2 of the Exchange Act.

Large accelerated filer

☑

Accelerated filer

☐

Non-accelerated filer

☐

Smaller reporting company

☐

Emerging growth company

☐

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐

Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Act).

Yes ☐ No ☑

The number of shares outstanding of each of the registrant's classes of common stock, as of April 29, 2026: Common Stock, No Par Value: 18,624,329 shares outstanding.


PART I.	FINANCIAL INFORMATION	PAGE

Item 1.	Financial Statements (Unaudited):

	Condensed Consolidated Statements of Income for the three months in each of the periods ended March 31, 2026 and 2025	1

	Condensed Consolidated Balance Sheets at March 31, 2026 and December 31, 2025	2

	Condensed Consolidated Statements of Cash Flows for the three months in each of the periods ended March 31, 2026 and 2025	3

	Condensed Consolidated Statements of Capital Stock and Long-Term Debt as of March 31, 2026 and December 31, 2025	4

	Condensed Consolidated Statements of Common Stockholders’ Equity for the three months in each of the periods ended March 31, 2026 and 2025	5

	Notes to Unaudited Condensed Consolidated Financial Statements	6

Item 2.	Management's Discussion and Analysis of Financial Condition and Results of Operations	17

Item 3.	Quantitative and Qualitative Disclosures of Market Risk	23

Item 4.	Controls and Procedures	24

PART II.	OTHER INFORMATION

Item 1.	Legal Proceedings	25

Item 1A.	Risk Factors	25

Item 2.	Unregistered Sales of Equity Securities and Use of Proceeds	25

Item 3.	Defaults upon Senior Securities	25

Item 4.	Mine Safety Disclosures	25

Item 5.	Other Information	25

Item 6.	Exhibits	26

SIGNATURES		27


	Three Months Ended March 31,
	2026		2025

Operating Revenues	$	48,714	$	44,301

Operating Expenses:
Operations and Maintenance	23,012		21,109
Depreciation	7,036		6,527
Other Taxes	5,564		5,108

Total Operating Expenses	35,612		32,744

Operating Income	13,102		11,557

Other Income:
Allowance for Funds Used During Construction	633		372
Other Income, net	1,369		1,425

Total Other Income, net	2,002		1,797

Interest Charges	3,214		2,713

Income before Income Taxes	11,890		10,641

Income Taxes	1,285		1,162

Net Income	10,605		9,479

Preferred Stock Dividend Requirements	18		22

Earnings Applicable to Common Stock	$	10,587	$	9,457

Earnings per share of Common Stock:
Basic	$	0.57	$	0.53
Diluted	$	0.57	$	0.53

Average Number of
Common Shares Outstanding:
Basic	18,545		17,890
Diluted	18,575		17,951


		March 31, 2026		December 31, 2025
ASSETS
UTILITY PLANT:	Water Production	$	333,738	$	328,496
	Transmission and Distribution	954,107		938,118
	General	107,783		111,325
	Construction Work in Progress	49,593		44,400
	TOTAL	1,445,221		1,422,339
	Less Accumulated Depreciation	276,456		275,132
	UTILITY PLANT - NET	1,168,765		1,147,207

CURRENT ASSETS:	Cash and Cash Equivalents	2,040		2,800
	Accounts Receivable, net of allowance for credit losses of $1,873 and $1,625 in 2026 and 2025, respectively	18,690		19,213
	Unbilled Revenues	10,347		9,361
	Materials and Supplies (at average cost)	8,095		7,549
	Prepayments	5,986		2,843
	Regulatory Assets	1,669		—
	TOTAL CURRENT ASSETS	46,827		41,766

OTHER ASSETS:	Operating Lease Right of Use Asset	1,830		1,972
	Restricted Cash	1,675		1,675
	Regulatory Assets	103,001		110,284
	Non-utility Assets - Net	12,454		12,354
	Employee Benefit Plans	45,041		44,328
	Other	6,445		6,151
	TOTAL OTHER ASSETS	170,446		176,764
	TOTAL ASSETS	$	1,386,038	$	1,365,737

CAPITALIZATION AND LIABILITIES
CAPITALIZATION:	Common Stock, No Par Value, authorized 40,000, issued 18,577 and 18,521 in 2026 and 2025, respectively	$	282,243	$	279,148
	Retained Earnings	218,803		214,883
	TOTAL COMMON EQUITY	501,046		494,031
	Preferred Stock, No Par Value; authorized 120; issued 13	1,343		1,343
	Long-term Debt	371,676		378,874
	TOTAL CAPITALIZATION	874,065		874,248

CURRENT	Current Portion of Long-term Debt	7,666		7,850
LIABILITIES:	Notes Payable	47,000		28,250
	Accounts Payable	29,496		31,326
	Accrued Taxes	22,116		15,992
	Accrued Interest	3,291		3,311
	Regulatory Liabilities	3,142		—
	Unearned Revenues and Advanced Service Fees	467		497
	Other	6,477		6,569
	TOTAL CURRENT LIABILITIES	119,655		93,795

COMMITMENTS AND CONTINGENT LIABILITIES (Note 7)

OTHER LIABILITIES:	Advances for Construction	25,963		25,519
	Lease Obligations	1,653		1,838
	Accumulated Deferred Income Taxes	111,152		110,475
	Regulatory Liabilities	61,365		68,437
	Other	195		229
	TOTAL OTHER LIABILITIES	200,328		206,498

CONTRIBUTIONS IN AID OF CONSTRUCTION		191,990		191,196
	TOTAL CAPITALIZATION AND LIABILITIES	$	1,386,038	$	1,365,737


	Three Months Ended March 31,
	2026		2025
CASH FLOWS FROM OPERATING ACTIVITIES:
Net Income	$	10,605	$	9,479
Adjustments to Reconcile Net Income to
Net Cash Provided by Operating Activities:
Depreciation and Amortization	8,187		7,913
Provision for Deferred Income Taxes and Investment Tax Credits	(2,072)		(1,142)
Equity Portion of Allowance for Funds Used During Construction (AFUDC)	(384)		(218)
Cash Surrender Value of Life Insurance	80		88
Stock Compensation Expense	401		389
Changes in Assets and Liabilities:
Accounts Receivable	523		(1,279)
Unbilled Revenues	(986)		480
Materials & Supplies	(546)		(312)
Prepayments	(3,143)		(3,984)
Accounts Payable	(2,132)		(195)
Accrued Taxes	6,124		5,468
Accrued Interest	(20)		(460)
Employee Benefit Plans	(1,199)		(1,324)
Unearned Revenue & Advanced Service Fees	(30)		59
Other Assets and Liabilities	(3,677)		(1,180)

NET CASH PROVIDED BY OPERATING ACTIVITIES	11,731		13,782
CASH FLOWS FROM INVESTING ACTIVITIES:
Utility Plant Expenditures, Including AFUDC-Debt of $249 in 2026 and $154 in 2025	(20,641)		(18,911)

NET CASH USED IN INVESTING ACTIVITIES	(20,641)		(18,911)
CASH FLOWS FROM FINANCING ACTIVITIES:
Redemption of Long-term Debt	(8,904)		(1,587)
Proceeds from Issuance of Long-term Debt	1,496		28
Net Short-term Bank Borrowings	18,750		11,000
Payment of Grantee Withholding Taxes in Exchange for Restricted Stock	(125)		(225)
Proceeds from Issuance of Common Stock	2,819		221
Payment of Common Dividends	(6,667)		(6,081)
Payment of Preferred Dividends	(18)		(22)
Construction Advances and Contributions-Net	799		226

NET CASH PROVIDED BY FINANCING ACTIVITIES	8,150		3,560
NET CHANGES IN CASH, CASH EQUIVALENTS AND RESTRICTED CASH	(760)		(1,569)
CASH, CASH EQUIVALENTS AND RESTRICTED CASH AT BEGINNING OF PERIOD	4,475		4,226
CASH, CASH EQUIVALENTS AND RESTRICTED CASH AT END OF PERIOD	$	3,715	$	2,657


	March 31, 2026		December 31, 2025
Common Stock, No Par Value
Shares Authorized - 40,000
Shares Outstanding -2026 - 18,577; 2025 - 18,521	$	282,243	$	279,148
Retained Earnings	218,803		214,883
TOTAL COMMON EQUITY	$	501,046	$	494,031

Cumulative Preferred Stock, No Par Value:
Shares Authorized - 120
Shares Outstanding -2026 -13; 2025 - 13
Convertible:
Shares Outstanding, $7.00 Series - 2026 - 2; 2025 - 2;	$	264	$	264
Nonredeemable:
Shares Outstanding, $7.00 Series -1	79		79
Shares Outstanding, $4.75 Series - 10	1,000		1,000
TOTAL PREFERRED STOCK	$	1,343	$	1,343

Long-term Debt:
First Mortgage Bonds, 0.00%-5.99%, due 2026-2059	$	300,431	$	301,172
Secured Notes, 3.94%-7.05%, due 2028-2046	56,159		63,971
State Revolving Trust Notes, 0.00%-4.03%, due 2026-2047	21,685		20,540
SUBTOTAL LONG-TERM DEBT	378,275		385,683
Add: Premium on Issuance of Long-term Debt	6,099		6,148
Less: Unamortized Debt Expense	(5,032)		(5,107)
Less: Current Portion of Long-term Debt	(7,666)		(7,850)
TOTAL LONG-TERM DEBT	$	371,676	$	378,874


	Common Stock Shares	Common Stock Amount		Retained Earnings		Total

Balance at January 1, 2025	17,887	$	248,202	$	197,061	$	445,263
Net Income	—	—		9,479		9,479
Dividend Reinvestment & Common Stock Purchase Plan	4	221		—		221
Restricted Stock Award -Net-Employees	1	167		—		167
Conversion of $7 Preferred Stock to Common Stock	2	21		—		21
Cash Dividends on Common Stock ($0.3400 Per Share)	—	—		(6,081)		(6,081)
Cash Dividends on Preferred Stock	—	—		(22)		(22)
Balance at March 31, 2025	17,894	$	248,611	$	200,437	$	449,048

Balance at January 1, 2026	18,521	$	279,148	$	214,883	$	494,031
Net Income	—	—		10,605		10,605
Dividend Reinvestment & Common Stock Purchase Plan	4	217		—		217
Restricted Stock Award -Net-Employees	3	276		—		276
At-The-Market Program Common Stock Issuance	49	2,662		—		2,662
Common Stock Issuance Expense	—	(60)		—		(60)
Cash Dividends on Common Stock ($0.3600 Per Share)	—	—		(6,667)		(6,667)
Cash Dividends on Preferred Stock	—	—		(18)		(18)
Balance at March 31, 2026	18,577	$	282,243	$	218,803	$	501,046


	(Thousands of Dollars)
	March 31, 2026				December 31, 2025
	Carrying Amount		Fair Value		Carrying Amount		Fair Value
FMBs	$	125,431	$	119,770	$	126,172	$	120,430


	(In Thousands Except per Share Amounts)
	Three Months Ended March 31,
	2026				2025
Basic:		Income		Shares	Income		Shares
Net Income		$	10,605	18,545	$	9,479	17,890
Preferred Dividend		(18)			(22)
Earnings Applicable to Common Stock		$	10,587	18,545	$	9,457	17,890

Basic EPS		$	0.57		$	0.53

Diluted:
Earnings Applicable to Common Stock		$	10,587	18,545	$	9,457	17,890
$7.00 Series Preferred Dividend		4		30	10		61
Adjusted Earnings Applicable to Common Stock		$	10,591	18,575	$	9,467	17,951

Diluted EPS		$	0.57		$	0.53


	(In Thousands)
	Three months ended March 31,
	2026		2025
Operation by Segments
Operating Revenues:
Regulated	$	45,780	$	41,496
Non – Regulated	3,089		2,952
Total Reportable Segments	48,869		44,448
Inter-segment Elimination	(155)		(147)
Consolidated Operating Revenues	$	48,714	$	44,301

Operating Expenses
Purchased Water:
Regulated	$	1,941	$	1,907
Non – Regulated	—		—
Total Reportable Segments	1,941		1,907
Inter-segment Elimination	(34)		(28)
Consolidated Purchased Water	$	1,907	$	1,879

Other Operations and Maintenance Expenses:
Regulated	$	18,988	$	17,493
Non – Regulated	2,238		1,856
Total Reportable Segments	21,226		19,349
Inter-segment Elimination	(121)		(119)
Consolidated Other Operations and Maintenance Expenses	$	21,105	$	19,230

Other Taxes:
Regulated	$	5,496	$	5,050
Non – Regulated	68		$	58
Consolidated Other Taxes	$	5,564	$	5,108

Depreciation:
Regulated	$	6,963	$	6,464
Non – Regulated	73		$	63
Consolidated Depreciation	$	7,036	$	6,527

Operating Income:
Regulated	$	12,512	$	10,701
Non – Regulated	590		$	856
Consolidated Operating Income	$	13,102	$	11,557

Other Income:
Regulated	$	2,177	$	1,901
Non – Regulated	25		55
Total Reportable Segments	2,202		1,956
Inter-segment Elimination	(200)		(159)
Consolidated Other Income, Net	$	2,002	$	1,797


	(Thousands of Dollars)
	As of March 31, 2026		As of December 31, 2025
Assets:
Regulated	$	1,398,877	$	1,377,391
Non – Regulated	9,018		9,076
Total Reportable Segments	1,407,895		1,386,467
Inter-segment Elimination	(21,857)		(20,730)
Consolidated Assets	$	1,386,038	$	1,365,737


	(Millions)
	As of March 31, 2026							Line of Credit
	Outstanding		Available		Maximum		Credit Type	Expiration Date
Bank of America	$	—	$	60.0	$	60.0	Uncommitted	July 31, 2026
PNC Bank	27.0		73.0		100.0		Committed	January 31, 2029
CoBank, ACB (CoBank)	20.0		—		20.0		Committed	May 20, 2028
	$	47.0	$	133.0	$	180.0


	(In Thousands)
	Pension Benefits				Other Benefits

	Three Months Ended March 31,
	2026		2025		2026		2025
Service Cost	$	286	$	242	$	86	$	85
Interest Cost	1,209		1,159		441		430
Expected Return on Assets	(1,591)		(1,687)		(1,021)		(928)
Amortization of Unrecognized Losses (Gains)	18		12		(214)		(153)
Net Periodic Benefit*	$	(78)	$	(274)	$	(708)	$	(566)


	(In Thousands)
	Three Months Ended March 31,
	2026		2025
Regulated Tariff Sales
Residential	$	24,187	$	23,114
Commercial	6,867		6,585
Industrial	3,602		2,999
Fire Protection	3,832		3,722
Wholesale	7,224		5,014
Non-Regulated Contract Operations	2,969		2,833
Total Revenue from Contracts with Customers	$	48,681	$	44,267
Other Regulated Revenues	68		62
Other Non-Regulated Revenues	120		119

SEC Form 10-Q filed by Middlesex Water Company