MIDDLESEX WATER COMSEX
MIDDLESEX WATER CO Segments Disclosure
Business Segment Data
The Company’s Chief Operating Decision Maker (CODM) consists of the Company’s Chief Executive Officer, Chief Financial Officer, and Chief Operating Officer. The CODM evaluates segment performance and profitability using net
income. This metric provides a clear, consistent basis for analyzing the financial results of each segment and supports decision-making regarding the allocation of resources.
Resource allocation to the Company’s regulated and non-regulated segments begins with the annual budgeting process, which establishes initial funding and resource levels for each segment. The budget incorporates key financial and operational inputs, including anticipated revenues, expenses, capital and financing requirements, aligning with the Company’s strategic objectives and regulatory obligations. The CODM reviews budget-to-actual variances on a monthly, quarterly and year to-date basis and makes interim decisions to reallocate resources among segments as needed, ensuring a timely and effective response to changing conditions. For the regulated segment, the CODM uses this assessment to determine whether the segment is achieving its regulatory authorized rate of return.
The segments follow the same accounting policies as described in Note 1 – Organization, Summary of Significant Accounting Policies and Recent Developments. Segment profit or loss is based on Net Income. Expenses used to determine operating income before taxes are charged directly to each segment or are allocated based on the applicable cost allocation factors. Assets allocated to each segment are based upon specific identification of such assets provided by Company records. The effects of all intra-segment and/or intercompany transactions are eliminated in the consolidated financial statements.
The Company has identified two reportable segments. One is the regulated business of collecting, treating and distributing water on a retail and wholesale basis to residential, commercial, industrial and fire protection customers in parts of New Jersey and Delaware and includes Middlesex, Tidewater, Pinelands Water and Southern Shores. This segment also includes a regulated wastewater system in New Jersey, Pinelands Wastewater. The Company is subject to regulations as to its rates, services and other matters by the states of New Jersey and Delaware with respect to utility service within these states. The other segment is primarily comprised of non-regulated contract services for the operation and maintenance of municipal and private water and wastewater systems in New Jersey and Delaware and includes USA, USA-PA, and White Marsh.
| (In Thousands) | ||||||||||||||||||||
| Years Ended December 31, | ||||||||||||||||||||
| Operation by Segments | 2025 | 2024 | 2023 | |||||||||||||||||
| Revenues: | ||||||||||||||||||||
| Regulated | $ | 182,654 | $ | 179,359 | $ | 154,617 | ||||||||||||||
| Non – Regulated | 12,985 | 13,552 | 12,773 | |||||||||||||||||
| Total Reportable Segments | 195,639 | 192,911 | 167,390 | |||||||||||||||||
| Inter-segment Elimination | (945) | (1,034) | (1,116) | |||||||||||||||||
| Consolidated Revenues | $ | 194,694 | $ | 191,877 | $ | 166,274 | ||||||||||||||
| Operating Expenses | ||||||||||||||||||||
| Purchased Water: | ||||||||||||||||||||
| Regulated | $ | 8,458 | $ | 8,064 | $ | 9,144 | ||||||||||||||
| Non – Regulated | — | — | — | |||||||||||||||||
| Total Reportable Segments | 8,458 | 8,064 | 9,144 | |||||||||||||||||
| Inter-segment Elimination | (464) | (567) | (663) | |||||||||||||||||
| Consolidated Purchased Water | $ | 7,994 | $ | 7,497 | $ | 8,481 | ||||||||||||||
| Other Operations and Maintenance Expenses: | ||||||||||||||||||||
| Regulated | $ | 75,293 | $ | 76,483 | $ | 66,670 | ||||||||||||||
| Non – Regulated | 8,485 | 8,850 | 8,415 | |||||||||||||||||
| Total Reportable Segments | 83,778 | 85,333 | 75,085 | |||||||||||||||||
| Inter-segment Elimination | (481) | (467) | (453) | |||||||||||||||||
| Consolidated Other Operations and Maintenance Expenses | $ | 83,297 | $ | 84,866 | $ | 74,632 | ||||||||||||||
| Other Taxes: | ||||||||||||||||||||
| Regulated | $ | 21,675 | $ | 21,644 | $ | 18,504 | ||||||||||||||
| Non – Regulated | 239 | 230 | 240 | |||||||||||||||||
| Consolidated Other Taxes | $ | 21,914 | $ | 21,874 | $ | 18,744 | ||||||||||||||
| Depreciation: | ||||||||||||||||||||
| Regulated | $ | 26,844 | $ | 24,173 | $ | 24,931 | ||||||||||||||
| Non – Regulated | 269 | 257 | 263 | |||||||||||||||||
| Consolidated Depreciation | $ | 27,113 | $ | 24,430 | $ | 25,194 | ||||||||||||||
| Operating Income: | ||||||||||||||||||||
| Regulated | $ | 50,865 | $ | 49,462 | $ | 35,820 | ||||||||||||||
| Non – Regulated | 3,511 | 3,748 | 3,403 | |||||||||||||||||
| Consolidated Operating Income | $ | 54,376 | $ | 53,210 | $ | 39,223 | ||||||||||||||
| Other Income (Expense), Net: | ||||||||||||||||||||
| Regulated | $ | 8,001 | $ | 12,195 | $ | 6,637 | ||||||||||||||
| Non – Regulated | 236 | 281 | 214 | |||||||||||||||||
| Total Reportable Segments | 8,237 | 12,476 | 6,851 | |||||||||||||||||
| Inter-segment Elimination | (675) | (407) | (366) | |||||||||||||||||
| Consolidated Other Income, Net | $ | 7,562 | $ | 12,069 | $ | 6,485 | ||||||||||||||
| (In Thousands) | ||||||||||||||||||||
| Years Ended December 31, | ||||||||||||||||||||
| Operation by Segments (continued) | 2025 | 2024 | 2023 | |||||||||||||||||
| Interest Expense: | ||||||||||||||||||||
| Regulated | $ | 14,970 | $ | 14,430 | $ | 13,508 | ||||||||||||||
| Non – Regulated | — | — | — | |||||||||||||||||
| Total Reportable Segments | 14,970 | 14,430 | 13,508 | |||||||||||||||||
| Inter-segment Elimination | (675) | (407) | (365) | |||||||||||||||||
| Consolidated Interest Expense | $ | 14,295 | $ | 14,023 | $ | 13,143 | ||||||||||||||
| Income Taxes: | ||||||||||||||||||||
| Regulated | $ | 3,637 | 5,653 | (146) | ||||||||||||||||
| Non – Regulated | 1,184 | 1,252 | 1,187 | |||||||||||||||||
| Consolidated Income Taxes | $ | 4,821 | $ | 6,905 | $ | 1,041 | ||||||||||||||
| Net Income: | ||||||||||||||||||||
| Regulated | $ | 40,258 | $ | 41,575 | $ | 29,094 | ||||||||||||||
| Non – Regulated | 2,564 | 2,776 | 2,430 | |||||||||||||||||
| Consolidated Net Income | 42,822 | 44,351 | 31,524 | |||||||||||||||||
| Capital Expenditures: | ||||||||||||||||||||
| Regulated | $ | 96,015 | $ | 74,584 | $ | 90,047 | ||||||||||||||
| Non – Regulated | 339 | 38 | 132 | |||||||||||||||||
| Total Capital Expenditures | $ | 96,354 | $ | 74,622 | $ | 90,179 | ||||||||||||||
| (In Thousands) | ||||||||||||||
| As of December 31, 2025 | As of December 31, 2024 | |||||||||||||
| Assets: | ||||||||||||||
| Regulated | $ | 1,377,391 | $ | 1,264,472 | ||||||||||
| Non – Regulated | 9,076 | 7,671 | ||||||||||||
| Total Reportable Segments | 1,386,466 | 1,272,143 | ||||||||||||
| Inter-segment Elimination | (20,730) | (16,969) | ||||||||||||
| Consolidated Assets | $ | 1,365,737 | $ | 1,255,174 | ||||||||||
Historical Timeline
| Fiscal Year | Filed | |
|---|---|---|
| 2025 | Feb 19, 2026 | Showing above |
| 2024 | Feb 28, 2025 | |
| 2023 | Mar 1, 2024 | |
| 2022 | Feb 24, 2023 | |
| 2018 | Mar 8, 2019 | |
About Segments Disclosures
Segment disclosures break a company into its reportable operating units, revealing revenue, profit, and asset allocation that consolidated financial statements obscure. Under ASC 280, segments must match how the chief operating decision maker views the business, providing a window into internal management structure and resource allocation priorities.
Key signals: compare segment margins to identify which units drive profitability and which destroy value. Watch for changes in the number of reportable segments — segment aggregation or disaggregation often coincides with strategic shifts or attempts to obscure declining performance. Intersegment elimination patterns reveal internal pricing practices. The reconciliation between segment totals and consolidated figures exposes corporate overhead allocation and unallocated items. Geographic revenue concentration highlights regulatory and currency exposure. Compare segment-level capital expenditure against segment revenue to assess where management is investing for future growth versus harvesting existing assets.