msex-20260630

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 June 30, 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 Global Select Market

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 July 29, 2026: Common Stock, No Par Value: 18,843,946 shares outstanding.

Table of Contents

INDEX


PART I.	FINANCIAL INFORMATION	PAGE

Item 1.	Financial Statements (Unaudited):

	Condensed Consolidated Statements of Income for the three and six months ended June 30, 2026 and 2025	1

	Condensed Consolidated Balance Sheets at June 30, 2026 and December 31, 2025	2

	Condensed Consolidated Statements of Cash Flows for the six months ended June 30, 2026 and 2025	3

	Condensed Consolidated Statements of Capital Stock and Long-Term Debt as of June 30, 2026 and December 31, 2025	4

	Condensed Consolidated Statements of Common Stockholders’ Equity for the three and six months ended June 30, 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	24

Item 4.	Controls and Procedures	25

PART II.	OTHER INFORMATION

Item 1.	Legal Proceedings	26

Item 1A.	Risk Factors	26

Item 2.	Unregistered Sales of Equity Securities and Use of Proceeds	26

Item 3.	Defaults upon Senior Securities	26

Item 4.	Mine Safety Disclosures	26

Item 5.	Other Information	26

Item 6.	Exhibits	27

SIGNATURES		28

Table of Contents

PART I. FINANCIAL INFORMATION

Item 1. Financial Statements (Unaudited):

MIDDLESEX WATER COMPANY

CONDENSED CONSOLIDATED STATEMENTS OF INCOME

(Unaudited)

(In thousands except per share amounts)


	Three Months Ended June 30,				Six Months Ended June 30,
	2026		2025		2026		2025

Operating Revenues	$	56,357	$	49,323	$	105,071	$	93,624

Operating Expenses:
Operations and Maintenance	25,399		23,066		48,411		44,175
Depreciation	6,761		6,703		13,797		13,230
Other Taxes	5,968		5,642		11,532		10,750

Total Operating Expenses	38,128		35,411		73,740		68,155

Operating Income	18,229		13,912		31,331		25,469

Other Income:
Allowance for Funds Used During Construction	700		413		1,334		786
Other Income, net	1,648		1,485		3,017		2,910

Total Other Income, net	2,348		1,898		4,351		3,696

Interest Charges	4,016		3,623		7,231		6,336

Income before Income Taxes	16,561		12,187		28,451		22,829

Income Taxes	1,789		1,409		3,074		2,571

Net Income	14,772		10,778		25,377		20,258

Preferred Stock Dividend Requirements	18		19		35		41

Earnings Applicable to Common Stock	$	14,754	$	10,759	$	25,342	$	20,217

Earnings per share of Common Stock:
Basic	$	0.79	$	0.60	$	1.36	$	1.13
Diluted	$	0.79	$	0.60	$	1.36	$	1.13

Average Number of
Common Shares Outstanding:
Basic	18,707		17,962		18,627		17,926
Diluted	18,737		17,993		18,657		17,957

See Accompanying Notes to Condensed Consolidated Financial Statements.

Table of Contents

MIDDLESEX WATER COMPANY

CONDENSED CONSOLIDATED BALANCE SHEETS

(Unaudited)

(In thousands)


		June 30, 2026		December 31, 2025
ASSETS
UTILITY PLANT:	Water Production	$	336,222	$	328,496
	Transmission and Distribution	973,482		938,118
	General	107,645		111,325
	Construction Work in Progress	60,369		44,400
	TOTAL	1,477,718		1,422,339
	Less Accumulated Depreciation	280,774		275,132
	UTILITY PLANT - NET	1,196,944		1,147,207

CURRENT ASSETS:	Cash and Cash Equivalents	1,801		2,800
	Accounts Receivable, net of allowance for credit losses of $3,074 and $1,625 in 2026 and 2025, respectively	20,957		19,213
	Unbilled Revenues	12,332		9,361
	Materials and Supplies (at average cost)	8,979		7,549
	Prepayments	5,812		2,843
	Regulatory Assets	2,142		—
	TOTAL CURRENT ASSETS	52,023		41,766

OTHER ASSETS:	Operating Lease Right of Use Asset	1,689		1,972
	Restricted Cash	1,675		1,675
	Regulatory Assets	106,119		110,284
	Non-utility Assets - Net	12,353		12,354
	Employee Benefit Plans	46,230		44,328
	Other	6,449		6,151
	TOTAL OTHER ASSETS	174,515		176,764
	TOTAL ASSETS	$	1,423,482	$	1,365,737

CAPITALIZATION AND LIABILITIES
CAPITALIZATION:	Common Stock, No Par Value, authorized 40,000, issued 18,843 and 18,521 in 2026 and 2025, respectively	$	294,243	$	279,148
	Retained Earnings	226,849		214,883
	TOTAL COMMON EQUITY	521,092		494,031
	Preferred Stock, No Par Value; authorized 120; issued 13	1,343		1,343
	Long-term Debt	395,598		378,874
	TOTAL CAPITALIZATION	918,033		874,248

CURRENT	Current Portion of Long-term Debt	7,651		7,850
LIABILITIES:	Notes Payable	34,000		28,250
	Accounts Payable	31,024		31,326
	Accrued Taxes	18,972		15,992
	Accrued Interest	3,390		3,311
	Regulatory Liabilities	2,318		—
	Unearned Revenues and Advanced Service Fees	450		497
	Other	6,891		6,569
	TOTAL CURRENT LIABILITIES	104,696		93,795

COMMITMENTS AND CONTINGENT LIABILITIES (Note 7)

OTHER LIABILITIES:	Advances for Construction	26,870		25,519
	Lease Obligations	1,496		1,838
	Accumulated Deferred Income Taxes	113,837		110,475
	Regulatory Liabilities	63,718		68,437
	Other	172		229
	TOTAL OTHER LIABILITIES	206,093		206,498

CONTRIBUTIONS IN AID OF CONSTRUCTION		194,660		191,196
	TOTAL CAPITALIZATION AND LIABILITIES	$	1,423,482	$	1,365,737

See Accompanying Notes to Condensed Consolidated Financial Statements.

Table of Contents

MIDDLESEX WATER COMPANY

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS

(Unaudited)

(In thousands)


	Six Months Ended June 30,
	2026		2025
CASH FLOWS FROM OPERATING ACTIVITIES:
Net Income	$	25,377	$	20,258
Adjustments to Reconcile Net Income to
Net Cash Provided by Operating Activities:
Depreciation and Amortization	15,116		15,457
Provision for Deferred Income Taxes and Investment Tax Credits	(3,546)		(3,084)
Equity Portion of Allowance for Funds Used During Construction (AFUDC)	(818)		(468)
Cash Surrender Value of Life Insurance	163		(149)
Stock Compensation Expense	1,167		958
Changes in Assets and Liabilities:
Accounts Receivable	(1,744)		(2,046)
Unbilled Revenues	(2,971)		(2,337)
Materials & Supplies	(1,430)		(204)
Prepayments	(2,969)		(3,616)
Accounts Payable	672		8,326
Accrued Taxes	2,980		3,395
Accrued Interest	79		154
Employee Benefit Plans	(2,637)		(2,699)
Other Assets and Liabilities	(1,308)		(1,859)

NET CASH PROVIDED BY OPERATING ACTIVITIES	28,131		32,086
CASH FLOWS FROM INVESTING ACTIVITIES:
Utility Plant Expenditures, Including AFUDC-Debt of $516 in 2026 and $318 in 2025	(53,468)		(50,635)
Acquisition of Water Systems	(150)		(4,607)

NET CASH USED IN INVESTING ACTIVITIES