Artesian Resources Corporation (ARTNA): History, Ownership, Mission, How It Works & Makes Money

When you look at a utility like Artesian Resources Corporation (ARTNA), do you see a slow-moving, regulated entity, or a stable growth engine that just invested $40.5 million into its water and wastewater infrastructure this year alone? The reality is a company that has been the largest regulated water utility on the Delmarva Peninsula since 1905, still delivering strong financial results like 2025 year-to-date revenues of $84.9 million and net income of $18.7 million, a 12.9% increase over the prior year period. How does a century-old business maintain that kind of momentum, and what does its business model-where the core water segment still drives roughly 90% of its revenue-tell you about its future stability and defintely its dividend outlook?

Artesian Resources Corporation (ARTNA) History

You need to understand where Artesian Resources Corporation (ARTNA) is going, but that starts with knowing where it came from. This isn't a Silicon Valley startup; it's a utility with roots stretching back over a century, which means its growth is slow, steady, and defintely capital-intensive. The company's evolution from a single-county water supplier to the Delmarva Peninsula's largest investor-owned utility is a story of consistent, regulated expansion and strategic diversification.

As a seasoned analyst, I look at their history and see a blueprint for stability. For instance, their trailing twelve-month (TTM) revenue as of September 30, 2025, hit an impressive $112 million, with TTM net income at $22.532 million, showing that the century-old model still works.

Given Company's Founding Timeline

Year established

The company's principal subsidiary, Artesian Water Company, Inc., was established in 1905.

Original location

The original operations began in New Castle County, Delaware, specifically to supply water to a new housing development. Today, the corporate headquarters are located in Newark, Delaware.

Founding team members

The company was founded by Aaron K. Taylor. The Taylor family has maintained a significant leadership role for generations, with Nicholle R. Taylor currently serving as President, CEO, and Chair of the Board.

Initial capital/funding

The company began as a small, privately owned utility. While the specific initial capital amount is not public, its early funding was dedicated to installing the infrastructure to run water directly into homes in New Castle County. The holding company, Artesian Resources Corporation, was later incorporated in 1927, providing the structure for future capital raises and expansion.

Given Company's Evolution Milestones

Given Company's Transformative Moments

The biggest transformation for Artesian Resources Corporation wasn't a single acquisition, but a deliberate shift in strategy from a simple water utility to a comprehensive water resource management company. This move was about controlling the entire value chain and diversifying revenue.

Here's the quick math: Regulated water sales are the core, but non-utility services-like the Service Line Protection Plans (SLPP)-provide a valuable hedge. SLPP revenue, for example, increased by approximately 10.8% in the third quarter of 2025 alone due to rate increases put into effect late in 2024. That's smart financial management.

• The Holding Company Structure: Incorporating Artesian Resources Corporation in 1927 allowed the business to become the parent of multiple regulated and non-regulated subsidiaries, which is crucial for managing regulatory environments across different states.
• Strategic Diversification: The creation of subsidiaries like Artesian Wastewater Management, Inc. and Artesian Utility Development, Inc. means the company isn't just selling water; it's designing, building, and operating the necessary infrastructure for both water and wastewater, selling its expertise as a contract service.
• Geographic Expansion: Moving beyond Delaware into Maryland and Pennsylvania was a crucial, long-term decision that cemented its position as the largest investor-owned water utility on the Delmarva Peninsula.

If you want to dive deeper into who is buying into this long-term stability, check out Exploring Artesian Resources Corporation (ARTNA) Investor Profile: Who's Buying and Why?

Still, the core of the business remains its commitment to infrastructure. The $18.7 million in net income for the first nine months of 2025 is directly tied to the rate base growth that these continuous infrastructure investments support. This utility model is not about quick flips; it's about compounding value over decades.

Artesian Resources Corporation (ARTNA) Ownership Structure

Artesian Resources Corporation (ARTNA) operates as a publicly held utility holding company, and its ownership structure is a blend of institutional, insider, and retail investors, with a notable dual-class stock system that concentrates voting power.

This structure, which includes Class A non-voting common stock and Class B common stock, means that while the public holds the majority of the economic interest, a smaller group of stakeholders, primarily insiders, controls the majority of the voting rights. This is a crucial distinction for understanding governance, and you can see a deeper dive into the financials at Breaking Down Artesian Resources Corporation (ARTNA) Financial Health: Key Insights for Investors.

Artesian Resources Corporation's Current Status

The company is a Publicly Held corporation, with its Class A Non-Voting Common Stock trading on the NASDAQ Global Select Market (NASDAQ-GS) under the ticker symbol ARTNA. As of November 2025, Artesian Resources Corporation has a market capitalization of approximately $336 million and around 10.3 million total shares outstanding. The public status ensures regulatory oversight from the Securities and Exchange Commission (SEC) and public utility commissions across Delaware, Maryland, and Pennsylvania, providing transparency for investors.

The stock's liquidity is low, with an average daily volume of only 27,287 shares as of early November 2025.

Artesian Resources Corporation's Ownership Breakdown

The ownership landscape shows that institutional investors hold the largest block, but the significant insider stake, coupled with the Class B voting stock, points to strong internal control. This is a classic utility model: widely held, but closely controlled.

Here's the quick math: Institutional investors own over half the company, but insiders own a fifth, which is a powerful block in a company with a dual-class structure. T. Rowe Price Investment Management, Inc. is a top institutional holder, owning approximately 927,232 shares as of the first quarter of 2025, valued at over $30 million.

Artesian Resources Corporation's Leadership

The executive team is led by a long-standing family presence, which is common in regulated utilities, ensuring a consistent, long-term strategy for infrastructure investment and customer service. The leadership is deeply entrenched in the Delaware community, which is key for regulatory relations in their primary service area.

• Dian C. Taylor: Chairman of the Board, President, and Chief Executive Officer (CEO). She provides the ultimate strategic direction, holding the top three governance and executive roles.
• Nicholle R. Taylor: Chief Executive Officer, President, and Director. She also serves as President of the main subsidiary, Artesian Water Company Inc., suggesting a clear succession plan and operational focus.
• David B. Spacht: Chief Financial Officer (CFO) and President of Artesian Wastewater Management, overseeing the company's financial health and a key growth segment.
• Joseph A. Dinunzio: Executive Vice President and Secretary, a critical role for corporate governance and legal compliance.
• Jennifer Leigh Finch: Principal Accounting Officer and Senior Vice President, Finance and Corporate Treasurer, managing the defintely complex accounting and treasury functions.
• The Board of Directors was recently strengthened with the appointment of Salvatore J. "Chip" Rossi in July 2025, a financial expert who retired from Bank of America, bringing risk management expertise to the Audit Committee.

The total compensation for all key executives was approximately $3,561,204 in the last reported fiscal year, reflecting the scope of their responsibility in managing a regulated utility with over $112 million in trailing 12-month revenue as of September 30, 2025.

Artesian Resources Corporation (ARTNA) Mission and Values

Artesian Resources Corporation's (ARTNA) mission centers on a dual commitment: delivering essential, high-quality utility services and upholding a long-term fiduciary duty to its shareholders. This focus on operational excellence and financial stability is the cultural DNA that has driven the company for over a century.

You're investing in a utility, so the mission is about reliability, not disruption. Artesian Resources' core purpose extends beyond the $112 million in trailing 12-month (TTM) revenue as of September 30, 2025, focusing on service continuity and infrastructure investment for the 301,000 people they serve.

Artesian Resources Corporation's Core Purpose

Official mission statement

The company's mission is a clear, three-part directive that has remained consistent throughout its history as the oldest and largest regulated water utility on the Delmarva Peninsula (Delaware, Maryland, and Pennsylvania).

• Provide the best quality water.
• Offer environmentally friendly wastewater solutions.
• Deliver the best customer service.

Honestly, utilities don't get much simpler than that. The mission is the business model.

Vision statement

While a single-sentence vision statement isn't formally published, Artesian Resources' long-term strategy acts as its forward-looking vision, emphasizing resilience, environmental stewardship, and expansion. This is a total water resource management company, not just a water supplier.

• Be a total water resource management company, expanding capabilities across the Delmarva Peninsula.
• Ensure resilient, efficient, and environmentally responsible water and wastewater systems.
• Commit to proactive, well-planned investments in infrastructure to maintain high-quality service.
• Sustain a solid rate of return for shareholders, backed by stable, consistent financial performance.

Here's the quick math: With a TTM diluted Earnings Per Share (EPS) of $2.17 as of Q3 2025, the vision is grounded in tangible financial results alongside its operational goals.

Artesian Resources Corporation Core Values

The company's cultural DNA is built on integrity and a stakeholder-centric approach-balancing customers, employees, and investors. They defintely put their money where their values are, like the $45.9 million committed to infrastructure investment in 2024 to ensure resilient systems.

• Integrity and Ethics: Act with honesty and avoid conflicts of interest in all professional dealings, promoting full, fair, and timely disclosure in public communications.
• Superior Customer Service: Dedication to quality and providing superior service at a reasonable cost to over 301,000 people.
• Employee Safety and Wellbeing: Prioritize health and safety in the workplace as a core value, including a wellness program for physical, financial, and mental wellbeing.
• Financial Responsibility: Focus on delivering a solid rate of return to shareholders, evidenced by over 28 consecutive years of dividend increases.

To be fair, a utility's core values must be about long-term stability.

Artesian Resources Corporation slogan/tagline

Artesian Resources does not use a single, widely-promoted consumer slogan, but its most consistent identifier is a statement of its enduring value proposition and legacy.

• Providing Value for Over 115 Years.

For a detailed breakdown of the company's ethical guidelines and long-term goals, you should review their formal documents: Mission Statement, Vision, & Core Values of Artesian Resources Corporation (ARTNA).

Artesian Resources Corporation (ARTNA) How It Works

Artesian Resources Corporation operates as a regulated public utility, generating revenue primarily by sourcing, treating, and distributing water, plus collecting and treating wastewater across the Delmarva Peninsula.

The company's business model is straightforward: invest in essential infrastructure, secure regulated rates to ensure a return on that investment, and expand its customer base, which drives its year-to-date 2025 revenues of $84.9 million.

Artesian Resources Corporation's Product/Service Portfolio

Artesian Resources Corporation's Operational Framework

The core of Artesian Resources' value creation is its regulated utility segment, which accounted for 93.5% of total operating revenues for the nine months ended September 30, 2025. This model relies on continuous infrastructure investment and regulatory approval to maintain a stable, predictable return.

• Capital Investment: The company is a heavy investor in its asset base, committing $40.5 million year-to-date 2025 to water and wastewater infrastructure projects, including new main installations and a new wastewater treatment plant.
• Rate Base Expansion: Capital expenditures like the $40.5 million invested are added to the rate base, which is the asset value upon which regulators allow the company to earn a return, ensuring long-term profitability.
• Regulatory Revenue Growth: Revenue growth is secured through rate adjustments, such as the temporary 1.22% rate increase effective June 3, 2025, in Delaware, which helps recover costs and fund new investments.
• Customer Growth: Expansion is defintely a key driver; the metered water customer base in Delaware and Maryland grew by approximately 1.8% year-over-year as of September 30, 2025.

Here's the quick math: customer growth plus approved rate increases directly translates to higher utility operating revenue, which rose by about $3.8 million YTD Q3 2025. You can dive deeper into the ownership structure and market sentiment by Exploring Artesian Resources Corporation (ARTNA) Investor Profile: Who's Buying and Why?

Artesian Resources Corporation's Strategic Advantages

The company's success stems from its entrenched position as a public utility-a classic defensive stock with significant barriers to entry for competitors. It's a recession-resistant business.

• Geographic Monopoly and Regulatory Moat: As a regulated utility, Artesian Resources holds a near-monopoly in its service territories across the Delmarva Peninsula, making its cash flows stable and recession-resistant.
• Predictable Cash Flow: The company's regulated environment and long-term contracts ensure highly safe cash flows, which supports its track record of 30 consecutive years of dividend increases, including the 132nd consecutive quarterly hike in Q3 2025.
• Infrastructure Scale: Its extensive system includes 1,311 miles of water main, serving a population of approximately 301,000 in a slow-growing but stable region.
• Financial Resilience: The company's financial health is strong, with an interest coverage ratio of 3.7 in the first half of 2025, an improvement from 3.2 in the prior year period.

The key action for you is to monitor the pending rate case with the Delaware Public Service Commission, as a full approval could net an incremental increase to revenue of $9.4 million annually.

Artesian Resources Corporation (ARTNA) How It Makes Money

Artesian Resources Corporation makes money primarily by providing essential, regulated water and wastewater services to residential, commercial, and governmental customers across the Delmarva Peninsula, specifically in Delaware, Maryland, and Pennsylvania. This core utility business accounts for the vast majority of its revenue, which is stabilized by government-approved rates and a growing customer base.

Artesian Resources Corporation's Revenue Breakdown

For the nine months ended September 30, 2025, Artesian Resources Corporation reported total operating revenues of approximately $84.9 million. The revenue is split into two main streams, with the regulated utility operations driving the bulk of the income.

The Regulated Utility segment is the financial engine, and within it, water sales are the largest component, growing 3.3% year-to-date through September 2025. Other utility operating revenue, which is mainly wastewater service, grew even faster at 11.6% year-to-date, driven by an expanding customer base. The Non-Utility revenue stream, which includes the Service Line Protection Plan (SLP Plan), is small but shows strong growth, which is defintely a good sign for diversification.

Business Economics

The economics of Artesian Resources Corporation are rooted in its status as a regulated utility, which provides a high degree of revenue stability but also ties its pricing to regulatory approval. You're essentially investing in a near-monopoly business with predictable cash flows.

• Rate-Base Regulation: Pricing is not market-driven; it is set by state public service commissions, like the Delaware Public Service Commission (DEPSC), to allow the company to recover operating costs and earn a reasonable rate of return on its invested capital (rate base).
• Rate Increases: Revenue growth is heavily dependent on successful rate cases. For instance, a temporary rate increase of 1.22% on gross water sales was put into effect on June 3, 2025, pending a permanent rate determination, which is a critical near-term risk and opportunity.
• Infrastructure Investment (CapEx): The company must continuously invest in its infrastructure to maintain service and meet regulatory compliance. Artesian Resources invested a substantial $40.5 million year-to-date through September 2025 in water and wastewater infrastructure, including new mains and PFAS treatment work. This capital expenditure (CapEx) is added to the rate base, which allows the company to earn a return on it, creating a virtuous cycle for regulated growth.
• Cost Pressures: Operating costs are rising, notably utility operating expenses, which increased 10.8% in Q3 2025, driven by higher payroll and supply costs. A new electric supply contract, effective May 2025, increased electric supply rates by approximately 25%, adding about $0.5 million in annual expenses.

Artesian Resources Corporation's Financial Performance

The company's financial performance through the first nine months of 2025 reflects the stability of its regulated model combined with strategic growth and rate actions. Here's the quick math on profitability and capital deployment.

• Net Income Growth: Net income for the nine months ended September 30, 2025, was $18.7 million, a strong increase of 12.9% compared to the same period in the prior year.
• Earnings Per Share (EPS): Diluted net income per share for the nine-month period was $1.81, an increase of 12.4% year-over-year. This growth outpaced revenue growth, indicating effective cost management and higher non-operating income from construction activity.
• Operating Income: Operating income for the nine months ended September 30, 2025, was $22.019 million, up from $20.508 million in the previous year, showing improved operational efficiency.
• Dividend Record: Artesian Resources has a long history of returning capital, marking its 132nd consecutive quarterly dividend hike in Q3 2025, which reinforces its appeal to income-focused investors.
• Balance Sheet Health: Total assets stood at $833.9 million as of September 30, 2025, up from $796.0 million a year earlier, reflecting the ongoing investment in the utility plant.

To dive deeper into the sustainability of these numbers, you should read Breaking Down Artesian Resources Corporation (ARTNA) Financial Health: Key Insights for Investors.

Artesian Resources Corporation (ARTNA) Market Position & Future Outlook

Artesian Resources Corporation (ARTNA) maintains a stable, defensive market position as the largest regulated water utility on the Delmarva Peninsula, underpinned by a solid infrastructure investment strategy. The company is poised for measured, low-single-digit growth, with projections for full-year 2025 diluted earnings per share (EPS) around the $2.00 mark, reflecting its regulated utility stability and recent rate adjustments.

The core of the company's future outlook rests on its ability to execute on its $40.5 million year-to-date infrastructure investment through September 30, 2025, which is defintely a key driver for future rate base growth and profitability.

Competitive Landscape

In the regulated water utility space, the competition is less about price wars and more about geographic service area exclusivity and capital expenditure efficiency. Artesian Resources' primary competitive advantage is its long-standing, regulated monopoly status across its core service territory in Delaware, where it has operated since 1905.

Here's the quick math on market positioning: Artesian is the dominant regional player, but it competes for capital and acquisitions against much larger national entities. It is the eighth largest investor-owned water utility in the U.S. by total capitalization, which gives it scale, but not the national reach of the largest players.

Opportunities & Challenges

You need to map out the near-term opportunities and risks to understand where the 3.9% projected annual revenue growth will come from and what could derail it. The utility sector is slow-moving, but the regulatory and environmental landscape is changing fast. Breaking Down Artesian Resources Corporation (ARTNA) Financial Health: Key Insights for Investors

Industry Position

Artesian Resources is positioned as a resilient, small-cap utility with a high-quality earnings profile. Its net profit margin of 20.2% as of November 2025 is a strong indicator of operational efficiency in a regulated environment.

The company's valuation is compelling compared to its peer group. Its price-to-earnings (P/E) ratio of 14.7x is well below the peer average of 30.9x, suggesting the market is not fully pricing in its stable profit profile and 30-year track record of dividend increases. The stable sector profile means revenue expansion is constrained, but the profitability is reliable.

• Dominant Regional Footprint: Operates as the largest regulated water utility on the Delmarva Peninsula.
• Financial Stability: Net income for the nine months ended September 30, 2025, was $18.7 million, up 12.9% year-over-year.
• Low Volatility: The stock's beta of 0.35 indicates it is significantly less volatile than the broader S&P 500, a key trait for defensive investors.

The company is a classic 'sleep-well-at-night' stock. It won't give you a massive growth pop, but it pays you to wait.