Aggressive capital deployment, evidenced by a CapEx-to-OCF ratio that peaked at 198.5% in 2025Q2, necessitates frequent equity financing to support the company's long-term infrastructure goals.
Middlesex Water Company (MSEX) cash flow statement — 30-year operating, investing & financing cash flows
| Metric | TTM | Dec'25 | Dec'24 | Dec'23 | Dec'22 | Dec'21 | Dec'20 | Dec'19 | Dec'18 | Dec'17 | Dec'16 | Dec'15 | Dec'14 | Dec'13 | Dec'12 | Dec'11 | Dec'10 | Dec'09 | Dec'08 | Dec'07 | Dec'06 | Dec'05 | Dec'04 | Dec'03 | Dec'02 | Dec'01 | Dec'00 | Dec'99 | Dec'98 | Dec'97 | Dec'96 |
|---|
| Cash from Operations | 58.64M | 62.6M | 58.73M | 52.78M | 61.36M | 33.03M | 53.35M | 36.05M | 45.86M | 42.84M | 47.07M | 51.21M | 32.57M | 33.8M | 29.57M | 22.84M | 25.57M | 18.51M | 19.12M | 18.82M | 15.91M | 13.5M | 15.56M | 14.25M | 11.1M | 12.33M | 10M | 10M | 10.4M | 12.6M | 10.3M |
| Operating CF Growth % | -77.07% | 6.58% | 11.27% | -13.98% | 85.78% | -38.1% | 47.99% | -21.39% | 7.05% | -8.98% | -8.09% | 57.23% | -3.65% | 14.31% | 29.5% | -10.67% | 38.14% | -3.19% | 1.58% | 18.3% | 17.86% | -13.25% | 9.2% | 28.39% | -10.02% | 23.39% | -0.04% | -3.85% | -17.46% | 22.33% | 15.73% |
| Operating CF / Revenue % | 28.45% | 32.15% | 30.61% | 31.74% | 37.78% | 23.07% | 37.68% | 26.79% | 33.22% | 32.76% | 35.42% | 40.64% | 27.81% | 29.44% | 26.79% | 22.37% | 24.88% | 20.28% | 21% | 21.85% | 19.62% | 18.09% | 21.92% | 22.22% | 17.92% | 20.68% | 18.35% | 18.69% | 24.13% | 31.27% | 27.11% |
| Net Income | 47.94M | 42.82M | 44.35M | 31.52M | 42.43M | 36.54M | 38.42M | 33.89M | 32.45M | 22.81M | 22.74M | 20.03M | 18.45M | 16.63M | 14.4M | 13.45M | 14.33M | 9.98M | 12.21M | 11.84M | 10.04M | 8.48M | 8.45M | 6.63M | 7.77M | 6.95M | 5.31M | 7.9M | 6.5M | 5.9M | 5.2M |
| Depreciation & Amortization | 32.15M | 32.49M | 28.04M | 29.44M | 27.48M | 26.8M | 20.84M | 17.23M | 15.78M | 14.85M | 13.53M | 13.09M | 12.19M | 11.86M | 11.23M | 10.43M | 9.96M | 9.22M | 8.53M | 8.18M | 7.76B | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Deferred Taxes | -2.02M | -5.23M | -1.6M | -5.6M | -5.33M | -10.99M | -13.49M | -11.72M | -8.72M | 7.94M | 3.55M | 15.75M | 3.13M | 2.92M | 3.96M | 1.57M | 630K | 5.52M | 1.03M | 399K | 896.99K | 164.87K | 603.27K | 306.92K | 148.02K | 318.97K | 201.32K | -100K | 100K | 800K | 800K |
| Other Non-Cash Items | -4.99M | -1.27M | -1.05M | -1.76M | -6.22M | -1.64M | -2.89M | -2.25M | -892K | -690K | -524K | 2.38M | -315K | -427K | -460K | -92K | -507K | -967K | -434K | -271K | -632.37K | 6.61M | 5.78M | 5.32M | 3.88M | 5.42M | 4.37M | 2.9M | 2.8M | 2.9M | 2.9M |
| Working Capital Changes | -15.89M | -7.45M | -12.54M | -3.04M | 1.38M | -19.02M | 9.38M | -1.74M | 6.16M | -2.91M | 6.94M | -665K | -1.42M | 2.33M | -108K | -2.92M | 831K | -5.63M | -2.8M | -807K | -2.16M | -1.76M | 728.45K | 1.99M | -693.8K | -355.98K | 122.22K | -700K | 1M | 3M | 1.4M |
| Capital Expenditures | -97.24M | -96.35M | -74.62M | -90.18M | -91.33M | -79.38M | -105.62M | -89.13M | -72.09M | -50.3M | -47.38M | -25.77M | -22.6M | -20.08M | -21.58M | -23.56M | -29.6M | -20.13M | -28.43M | -21.93M | -30.36M | -25.29M | -29.86M | -19.57M | -16.49M | -12.75M | -13.64M | -23.3M | -26.3M | -10.2M | -6.2M |
| CapEx / Revenue % | 47.17% | 49.49% | 38.89% | 54.24% | 56.23% | 55.45% | 74.59% | 66.22% | 52.21% | 38.46% | 35.65% | 20.45% | 19.29% | 17.48% | 19.55% | 23.08% | 28.82% | 22.06% | 31.23% | 25.47% | 37.45% | 33.89% | 42.06% | 30.53% | 26.62% | 21.37% | 25.04% | 43.55% | 61.02% | 25.31% | 16.32% |
| CapEx / D&A | 3.02x | 2.97x | 2.66x | 3.06x | 3.32x | 2.96x | 5.07x | 5.17x | 4.57x | 3.39x | 3.50x | 1.97x | 1.85x | 1.69x | 1.92x | 2.26x | 2.97x | 2.18x | 3.33x | 2.68x | 0.00x | - | - | - | - | - | - | - | - | - | - |
| CapEx Coverage (OCF/CapEx) | 0.60x | 0.65x | 0.79x | 0.59x | 0.67x | 0.42x | 0.51x | 0.40x | 0.64x | 0.85x | 0.99x | 1.99x | 1.44x | 1.68x | 1.37x | 0.97x | 0.86x | 0.92x | 0.67x | 0.86x | 0.52x | 0.53x | 0.52x | 0.73x | 0.67x | 0.97x | 0.73x | 0.43x | 0.40x | 1.24x | 1.66x |
| Cash from Investing | -99.34M | -100.96M | -74.62M | -90.18M | -88.21M | -79.38M | -105.62M | -89.13M | -72.09M | -51.32M | -47.38M | -24.38M | -21.84M | -21.41M | -22.31M | -20.07M | -31.39M | -19.67M | -30.93M | -23.06M | -33.21M | -18.69M | -39.22M | -17.52M | -16.61M | -12.52M | -14.64M | -20.8M | -28.6M | -11.3M | -7.7M |
| Acquisitions | 0 | -4.61M | 0 | 0 | 3.12M | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 857K | -1.66M | -1.2M | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 200K | 0 |
| Purchase of Investments | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | -1.66M | -1.2M | -300K | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Sale of Investments | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 1.39M | 0 | 1.66M | 1.2M | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Other Investing | -55.71M | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | -1.02M | -24.38M | 1.39M | -100K | 323K | 464K | 3.8M | -1.79M | 456K | -2.5M | -1.13M | -2.85M | 6.6M | -9.36M | 2.06M | -125.9K | 230.01K | -996.03K | 2.5M | -2.3M | -1.3M | -1.5M |
| Cash from Financing | 39.94M | 38.61M | 17.73M | 35.96M | 27.15M | 39.48M | 16.17M | 93.91M | 25.49M | 9.54M | 714K | -26.03M | -12.89M | -10.58M | -7.34M | -2.12M | 4M | 2.16M | 13.07M | 445K | 20.15M | 4.14M | 24.69M | 3.34M | 3.92M | 2.22M | 1.97M | 6.6M | 25.1M | -2.9M | -3.2M |
| Dividends Paid | -26.16M | -24.92M | -23.52M | -22.56M | -20.93M | -19.49M | -18.3M | -16.3M | -15.07M | -14.15M | -13.28M | -12.7M | -12.38M | -12.13M | -11.88M | -11.64M | -10.72M | -9.79M | -9.57M | -9.39M | -8.44M | -7.94M | -7.63M | -7.05M | -6.77M | -6.56M | -6.4M | -6.2M | -5.3M | -5M | -4.8M |
| Dividend Payout Ratio % | - | 58.2% | 52.78% | 71.19% | 49.05% | 53.01% | 47.31% | 47.7% | 46.01% | 61.39% | 57.77% | 62.68% | 66.31% | 71.8% | 81.13% | 85.05% | 73.34% | 96.04% | 76.61% | 77.18% | 81.58% | 90.73% | 87.33% | 106.27% | 87.12% | 94.33% | 120.72% | 78.48% | 81.54% | 84.75% | 92.31% |
| Debt Issuance (Net) | 2M | 1000K | -1000K | 1000K | 1000K | 1000K | 1000K | 1000K | 1000K | 1000K | 1000K | 716K | -1000K | -1000K | 1000K | 1000K | -1000K | 1000K | 1000K | 1000K | -898.67K | 1000K | 1000K | 1000K | 1000K | 1000K | 1000K | 1000K | 1000K | 0 | -200K |
| Stock Issued | 40.37M | 29.79M | 974K | 12.12M | 10.34M | 3.84M | 1.23M | 56.78M | 1.15M | 1.23M | 1.45M | 1.46M | 1.49M | 1.37M | 1.59M | 1.5M | 29.84M | 1.25M | 1.48M | 1.42M | 28.09M | 4.08M | 15.06M | 3.61M | 3.21M | 1.26M | 1.24M | 1.1M | 14.3M | 1.1M | 1.2M |
| Share Repurchases | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | -9K | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Other Financing | 2.46M | 2.35M | 65.37M | 806K | 3K | 10.23M | 8.39M | 3.22M | 3.87M | 1.08M | 855K | 486K | 681K | 6.87M | -6.6M | 1.76M | 1.08M | -48K | -168K | 1.03M | 1.4M | 1.27M | 833.82K | 1.6M | 579.29K | -5.83M | 3.32M | 6.3M | -9.5M | 1M | 400K |
| Net Change in Cash | -759K | 249K | 1.84M | -1.44M | 295K | -6.87M | -36.09M | 40.84M | -736K | 1.06M | 410K | 796K | -2.16M | 1.81M | -81K | 653K | -1.82M | 990K | 1.26M | -3.8M | 2.84M | -1.05M | 1.03M | 67.72K | -1.6M | 2.04M | -2.67M | -4.2M | 6.9M | -1.5M | -600K |
| Exchange Rate Effect | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 100K | 0 |
| Cash at Beginning | 3.71M | 4.23M | 2.39M | 3.83M | 3.53M | 10.4M | 46.5M | 5.66M | 6.4M | 3.88M | 3.47M | 2.67M | 4.83M | 3.02M | 3.11M | 2.45M | 4.28M | 3.29M | 2.03M | 5.83M | 2.98M | 4.03M | 3.01M | 2.94M | 4.53M | 2.5M | 5.17M | 9.4M | 2.5M | 4M | 4.9M |
| Cash at End | 3.48M | 4.47M | 4.23M | 2.39M | 3.83M | 3.53M | 10.4M | 46.5M | 5.66M | 4.94M | 3.88M | 3.47M | 2.67M | 4.83M | 3.02M | 3.11M | 2.45M | 4.28M | 3.29M | 2.03M | 5.83M | 2.98M | 4.03M | 3.01M | 2.94M | 4.53M | 2.5M | 5.2M | 9.4M | 2.5M | 4.3M |
| Free Cash Flow | -38.6M | -33.76M | -15.89M | -37.4M | -29.97M | -46.35M | -52.26M | -53.07M | -26.23M | -7.46M | -304K | 25.44M | 9.97M | 13.72M | 7.99M | -726K | -4.04M | -1.62M | -9.31M | -3.11M | -14.45M | -11.79M | -14.3M | -5.33M | -5.39M | -413.55K | -3.64M | -13.3M | -15.9M | 2.4M | 4.1M |
| FCF Growth % | -281.31% | -112.42% | 57.5% | -24.76% | 35.33% | 11.32% | 1.52% | -102.33% | -251.7% | -2353.29% | -101.19% | 155.03% | -27.32% | 71.69% | 1201.1% | 82.03% | -149.01% | 82.58% | -199.26% | 78.47% | -22.58% | 17.55% | -168.53% | 1.22% | -1203.75% | 88.65% | 72.6% | 16.35% | -762.5% | -41.46% | 4200% |
| FCF Margin % | -18.73% | -17.34% | -8.28% | -22.49% | -18.45% | -32.38% | -36.91% | -39.43% | -19% | -5.7% | -0.23% | 20.19% | 8.52% | 11.95% | 7.24% | -0.71% | -3.93% | -1.78% | -10.23% | -3.61% | -17.83% | -15.8% | -20.14% | -8.31% | -8.71% | -0.69% | -6.69% | -24.86% | -36.89% | 5.96% | 10.79% |
| FCF / Net Income % | -80.52% | -78.83% | -35.83% | -118.63% | -70.65% | -126.84% | -136.02% | -156.61% | -80.83% | -32.7% | -1.34% | 127.02% | 54.08% | 82.52% | 55.53% | -5.4% | -28.19% | -16.26% | -76.29% | -26.28% | -143.97% | -139.11% | -169.33% | -80.32% | -69.43% | -5.95% | -68.68% | -168.35% | -244.62% | 40.68% | 78.85% |
Quick answers to the most common questions about buying MSEX stock.
Middlesex Water Company (MSEX) generated $62.6M in net cash from operating activities in 2025. This reflects the cash generated directly from core business operations.
Middlesex Water Company (MSEX) reported negative free cash flow of $33.8M in 2025, indicating capital requirements exceeded cash from operations.
Middlesex Water Company (MSEX) spent $96.4M on capital expenditures in 2025. CapEx represents the cash invested in physical assets like property, plant, and equipment to maintain or grow the business.
In 2025, Middlesex Water Company (MSEX) returned $24.9M to shareholders via cash dividends. This shows the company's commitment to returning capital to its equity investors.
Key Metrics
Top Statement Risk
Regulatory lag and PFAS-related capital intensity
Metrics are mathematically derived from official filings.
Infrastructure Investment Outpacing Operating Cash
As reported in the quarterly cash flow statements, MSEX consistently records a CapEx-to-OCF ratio exceeding 100%, with a peak of 198.5% in 2025Q2, indicating that the company is aggressively reinvesting in its distribution network to drive long-term rate base expansion despite short-term cash flow deficits.
The persistent gap between capital deployment and operating cash flow is a structural feature of the company's 'Renew' program rather than a sign of operational distress. Investors should interpret this as a deliberate strategy to maximize the regulated asset base, provided the New Jersey BPU continues to authorize timely rate recovery for these investments.
Equity Reliance Sustains Capital Programs
Based on the provided financial data, MSEX frequently utilizes net stock issuance to bridge its free cash flow deficit, including a notable $16.8 million issuance in 2025Q3, which suggests management prefers equity-funded growth to maintain a conservative debt profile while navigating heavy infrastructure requirements.
The reliance on equity markets to fund capital expenditures appears to be a strategic choice to preserve balance sheet flexibility. While this approach mitigates interest rate sensitivity, it warrants further investigation into the potential for shareholder dilution if the rate base growth does not sufficiently outpace the expansion of the share count.
Dividend Coverage Amidst Capital Intensity
According to recent cash flow filings, MSEX maintains an OCF-to-dividend coverage ratio that has fluctuated between 1.2x and 3.5x, suggesting that while dividend payments are currently supported by operating cash, the high capital intensity of the business leaves little room for error during periods of lower cash generation.
The dividend appears sustainable under current regulatory conditions, though the variability in coverage ratios reflects the timing of rate case outcomes and seasonal demand. Investors should monitor whether future PFAS-related compliance costs force a trade-off between maintaining the dividend payout and funding essential system upgrades.
Operating Cash Flow Quality Trends
As indicated by the quarterly cash flow data, MSEX generated $18.5 million in operating cash flow during 2025Q4, demonstrating the underlying stability of its regulated revenue streams despite the inherent volatility caused by seasonal consumption patterns and the timing of regulatory true-ups in the New Jersey market.
The ability of the regulated segment to generate consistent cash flow is the primary anchor for the company's credit profile. However, the fluctuation in OCF suggests that the company remains sensitive to regulatory lag, which may temporarily compress cash margins before the BPU approves necessary rate adjustments.