10 Most Profitable Utility Stocks to Buy Now

6. Middlesex Water Company (NASDAQ:MSEX)

Net Profit Margin: 23.11%

Middlesex Water Company (NASDAQ:MSEX) owns and operates regulated water utility and wastewater systems across the United States. The company works in Delaware, Pennsylvania, and New Jersey, which are in the east. The business is divided into two operating segments: non-regulated and regulated. Water collection and distribution to residential, commercial, industrial, and fire safety customers are all part of the regulated industry. Contract services for running private water and wastewater systems are part of the unregulated industry. The Regulated division and residential customers account for the majority of the company’s revenue.

Middlesex Water Company (NASDAQ:MSEX)’s revenues for 2024 were $191.9 million, up $25.6 million from 2023’s $166.3 million. The New Jersey Board of Public Utilities’ approved base rate increase in March 2024 and higher weather-driven customer demand were the main causes of the $19.9 million increase in Middlesex System revenues. Tidewater Utilities, Inc. had a $4.5 million increase in revenue in its Delaware System, mostly as a result of growing customer demand and weather-related customer growth. Higher supplemental contract services resulted in a $0.7 million increase in non-regulated revenues. In 2024, the firm reported a net income of $44.4 million, which was $12.8 million more than in 2023.

The cost of operations and maintenance in 2024 was $92.4 million, up $9.3 million from $83.1 million in 2023. The main causes of this increase were higher labor costs from yearly wage increases, higher energy costs from rising water demand, and higher legal, financial, and regulatory costs. Its net profit margin soared by 23.11%, ranking it sixth on our list of the Best Utility Stocks.