Artesian Resources Corp (NASDAQ: ARTNA)

Artesian Resources Corp operates as a holding company for seven wholly-owned subsidiaries, providing water, wastewater, and other related services across Delaware, Maryland, and Pennsylvania. The company's primary operations revolve around the distribution and sale of water, including services for public and private fire protection, as well as wastewater management. Artesian Resources Corp is a key player in the utility sector, specifically in the water and wastewater management industry, offering essential services that cater to residential, commercial, industrial, municipal, and utility customers.

The company generates revenue through the distribution and sale of water, wastewater services, and additional offerings such as contract water and wastewater operations, and various protection plans. Artesian Water Company, Inc., the principal subsidiary, is the oldest and largest investor-owned public water utility on the Delmarva Peninsula, contributing significantly to the company's revenue stream. The primary products and services include water distribution, wastewater treatment, and related infrastructure services. The customer base is diverse, encompassing residential, commercial, industrial, governmental, municipal, and utility sectors.

• Artesian Water: This segment is the principal subsidiary, distributing and selling water to a wide range of customers including residential, commercial, industrial, governmental, municipal, and utility clients throughout Delaware. Artesian Water also provides services to other water utilities, including operations, and has contract operation agreements with private, municipal, and state water providers. Additionally, it offers water for public and private fire protection. Artesian Water produced approximately 80.5% of the company's 2025 consolidated operating revenues, highlighting its critical role in the business. The segment utilizes various treatment methods to meet federal, state, and local water quality standards, ensuring the delivery of safe and reliable water supplies.

• Artesian Water Maryland: Began operations in August 2007, this segment distributes and sells water to residential, commercial, industrial, and municipal customers in Cecil County, Maryland. Artesian Water Maryland owns and operates nine public water systems, utilizing both groundwater and treated surface water to meet the needs of its customers. The segment has a surface water treatment facility with the capacity to treat up to 1.0 million gallons per day from an intake in the Susquehanna River.

• Artesian Water Pennsylvania: This segment commenced operations in 2002, providing water service to a residential community in Chester County, Pennsylvania.

• Artesian Wastewater: Started providing wastewater services in Sussex County, Delaware in July 2005, this segment owns wastewater collection and treatment infrastructure, offering regulated wastewater services to customers in Delaware. Artesian Wastewater operates four wastewater treatment facilities, which are permitted to treat and/or dispose of approximately 2.3 million gallons per day. The segment also owns a disposal facility that includes a 90-million-gallon storage lagoon and spray irrigation to agricultural land, providing treated process wastewater disposal services for an industrial customer.

• TESI: Operating as a subsidiary of Artesian Wastewater, TESI provides wastewater services to customers in Sussex County, Delaware, including all residents within the Town of Milton. TESI owns and operates four wastewater treatment facilities, with a combined capacity to treat and/or dispose of approximately 525,000 gallons per day.

• Artesian Wastewater Maryland: Incorporated in June 2008, this segment is authorized to provide regulated wastewater services to customers in the State of Maryland but is currently not operational.

• Artesian Utility: Formed in 1996, this segment designs and builds water and wastewater infrastructure, providing contract water and wastewater operation services on the Delmarva Peninsula. Artesian Utility also evaluates land parcels, provides recommendations to developers, and operates water and wastewater facilities in Delaware for municipal and governmental agencies. The segment offers protection plans such as the Water Service Line Protection Plan, Sewer Service Line Protection Plan, and Internal Service Line Protection Plan.

• Artesian Development: This segment is a real estate holding company that owns properties, including land approved for office buildings, a water treatment plant, wastewater facility, and property for current operations, including an office facility in Sussex County, Delaware.

Artesian Resources Corp holds a strong position within the water and wastewater management industry, particularly in the Delmarva Peninsula. The company's competitive advantages include its long-standing presence in the region, extensive infrastructure, and a commitment to meeting stringent water quality standards. Artesian Resources Corp faces competition from other public utilities, municipalities, and entities seeking to expand their service areas. However, the company's ability to provide additional water and wastewater services is subject to regulatory approvals and competition from other regulated utilities. The company's operational initiatives are not impacted by competing franchise applications, ensuring uninterrupted service and protection against service area encroachment.

The general customer base for Artesian Resources Corp is diverse, including residential, commercial, industrial, governmental, municipal, and utility customers. The company serves a wide range of clients across Delaware, Maryland, and Pennsylvania, providing essential water and wastewater services that are critical for daily operations and public health.