York Water Co. Q2 Net Income Rises 7.1% Amid Steady Revenue Growth

TL;DR

**YORW is a rock-solid utility play, buy the dip for steady dividends and growth.**

AI Summary

The York Water Company reported a net income of $7.5 million for the second quarter of 2025, a 7.1% increase from $7.0 million in the second quarter of 2024. Revenue for the six months ended June 30, 2025, reached $39.2 million, up from $37.5 million in the prior year period, representing a 4.5% increase. The company's retained earnings increased from $155.4 million on December 31, 2024, to $160.1 million on June 30, 2025. Total common stock remained stable at $1.0 million across both periods. Key business changes include ongoing capital investments in infrastructure, as evidenced by the various senior notes and bonds outstanding, such as the Senior Notes Due 2054 and PEDFA Exempt Facilities Revenue Refunding Bonds Series A of 2019. Risks include interest rate fluctuations affecting its variable-rate debt, like the Variable Rate Pennsylvania Economic Development Financing Authority Exempt Facilities Revenue Refunding Bonds Series 2008A Due 2029. The strategic outlook emphasizes continued investment in water and wastewater systems to ensure reliable service and support future growth, underpinned by a stable regulated utility model.

Why It Matters

York Water Co.'s consistent financial performance, marked by a 7.1% increase in Q2 2025 net income, signals stability for investors in a typically defensive sector. This steady growth, coupled with ongoing infrastructure investments, reinforces its competitive position against other regional utilities by ensuring reliable service. For customers, these investments translate to improved water quality and system resilience, while employees benefit from a stable employer in a critical industry. The broader market sees a testament to the enduring value of regulated utilities, especially as infrastructure spending remains a national priority.

Risk Assessment

Risk Level: low — The risk level is low due to the company's stable revenue growth in a regulated utility sector, with a 4.5% increase in revenue to $39.2 million for the six months ended June 30, 2025. While the company has variable-rate debt, such as the PEDFA Series 2008A bonds, the overall financial health and consistent net income growth to $7.5 million in Q2 2025 mitigate significant risk.

Analyst Insight

Investors should consider YORW for its defensive characteristics and consistent dividend history. The 7.1% net income growth in Q2 2025 and ongoing infrastructure investments suggest continued stability and potential for long-term capital appreciation in a rising interest rate environment.

Financial Highlights

revenue

$39.2M

net Income

$7.5M

revenue Growth

+4.5%

Key Numbers

• $7.5M — Net Income (Increased 7.1% in Q2 2025 from $7.0M in Q2 2024)
• $39.2M — Revenue (Increased 4.5% for six months ended June 30, 2025, from $37.5M in prior year)
• 7.1% — Net Income Growth (Quarter-over-quarter increase in net income from Q2 2024 to Q2 2025)
• 4.5% — Revenue Growth (Year-over-year increase in revenue for the six-month period)
• $160.1M — Retained Earnings (Increased from $155.4M on December 31, 2024, to June 30, 2025)
• 2025-06-30 — Period End Date (Reporting period for the 10-Q filing)
• 2025-08-12 — Filing Date (Date the 10-Q was filed with the SEC)

Key Players & Entities

• YORK WATER CO (company) — filer of the 10-Q
• Bloomberg (company) — publisher of the analysis
• SEC (regulator) — regulates financial filings
• $7.5 million (dollar_amount) — net income for Q2 2025
• $7.0 million (dollar_amount) — net income for Q2 2024
• $39.2 million (dollar_amount) — revenue for six months ended June 30, 2025
• $37.5 million (dollar_amount) — revenue for six months ended June 30, 2024
• $155.4 million (dollar_amount) — retained earnings on December 31, 2024
• $160.1 million (dollar_amount) — retained earnings on June 30, 2025
• Pennsylvania Economic Development Financing Authority (company) — issuer of variable-rate bonds

FAQ

Risk Factors

• Interest Rate Fluctuations [medium — financial]: The company is exposed to interest rate risk, particularly on its variable-rate debt. For example, the Variable Rate Pennsylvania Economic Development Financing Authority Exempt Facilities Revenue Refunding Bonds Series 2008A Due 2029 are subject to fluctuations in interest rates, which could increase borrowing costs and impact profitability.
• Regulatory Environment [medium — regulatory]: As a regulated utility, York Water Company operates within a framework of state and local regulations. Changes in environmental standards, water quality requirements, or rate-setting policies could necessitate significant capital expenditures or impact revenue generation.
• Infrastructure Maintenance and Investment [medium — operational]: The company's business relies on extensive water and wastewater infrastructure. Ongoing capital investments are required to maintain and upgrade these systems, as evidenced by various senior notes and bonds outstanding. Failure to adequately invest could lead to service disruptions or increased maintenance costs.

Industry Context

York Water Company operates in the regulated water utility sector, characterized by stable demand, significant capital intensity, and a strong emphasis on infrastructure maintenance and regulatory compliance. The industry faces ongoing challenges related to aging infrastructure, water scarcity, and evolving environmental regulations, requiring continuous investment to ensure service reliability and meet future needs.

Regulatory Implications

As a regulated utility, York Water Company's operations and financial performance are subject to oversight by state and local regulatory bodies. Compliance with water quality standards, environmental regulations, and approved rate structures is critical. Any changes in these regulations could necessitate capital expenditures or impact pricing power.

What Investors Should Do

1. Monitor interest rate trends.
2. Review capital expenditure plans.
3. Analyze dividend payout trends.

Key Dates

• 2025-06-30: Quarterly Period End — Marks the end of the reporting period for the 10-Q filing, providing a snapshot of the company's financial position.
• 2025-08-12: 10-Q Filing Date — The date the company officially submitted its quarterly report to the SEC, making the financial information publicly available.
• 2025-04-01: Start of Q2 2025 — Beginning of the second quarter for which financial results are reported in this 10-Q.
• 2024-06-30: Prior Year Quarter End — Provides a comparative point for Q2 2025 results, enabling year-over-year analysis.
• 2024-12-31: Prior Year End — Used as a baseline for retained earnings comparison.

Glossary

10-Q

A quarterly report required by the U.S. Securities and Exchange Commission (SEC) that provides a comprehensive update on a company's financial performance and position. (This document is the primary source of the financial data and analysis presented.)

Retained Earnings

The cumulative amount of net income that a company has retained over time, rather than distributing to shareholders as dividends. (An increase in retained earnings indicates profitability and the company's ability to reinvest earnings back into the business.)

Senior Notes

Unsecured debt instruments issued by a company, ranking higher in priority than subordinated debt in the event of bankruptcy. (Indicates the company's long-term debt obligations and financing strategy.)

Variable Rate Debt

Debt where the interest rate is not fixed and can fluctuate over the life of the loan, typically tied to a benchmark interest rate. (Highlights exposure to interest rate risk, as seen with the PEDFA bonds.)

PEDFA Exempt Facilities Revenue Refunding Bonds

Bonds issued by a Public Finance Authority (like PEDFA) to finance specific projects, often with tax advantages, and then refinanced to secure better terms. (Represents a specific type of debt financing used by the company, subject to interest rate risk.)

Year-Over-Year Comparison

The current 10-Q filing shows positive momentum compared to the prior year period. Revenue for the first six months of 2025 increased by 4.5% to $39.2 million, and net income saw a 7.1% rise in Q2 2025 to $7.5 million. Retained earnings have grown to $160.1 million as of June 30, 2025, indicating continued profitability. No significant new risks were highlighted, but the existing risks related to interest rate fluctuations and regulatory changes remain relevant.

Filing Documents

• form10q.htm (10-Q) — 863KB
• exhibit10_1-063025.htm (EX-10.1) — 138KB
• exhibit311.htm (EX-31.1) — 11KB
• exhibit312.htm (EX-31.2) — 12KB
• exhibit321.htm (EX-32.1) — 6KB
• exhibit322.htm (EX-32.2) — 6KB
• image01.jpg (GRAPHIC) — 4KB
• 0000108985-25-000070.txt ( ) — 4625KB
• yorw-20250630.xsd (EX-101.SCH) — 34KB
• yorw-20250630_cal.xml (EX-101.CAL) — 57KB
• yorw-20250630_def.xml (EX-101.DEF) — 126KB
• yorw-20250630_lab.xml (EX-101.LAB) — 493KB
• yorw-20250630_pre.xml (EX-101.PRE) — 266KB
• form10q_htm.xml (XML) — 580KB

Financial Statements

Financial Statements 3 Item 2.

Management's Discussion and Analysis of Financial Condition and Results of

Management's Discussion and Analysis of Financial Condition and Results of Operations 16 Item 3.

Quantitative and Qualitative Disclosures About Market Risk

Quantitative and Qualitative Disclosures About Market Risk 24 Item 4.

Controls and Procedures

Controls and Procedures 24 PART II Other Information Item 5. Other Information 25 Item 6. Exhibits 26

Signatures

Signatures 27 Page 2 THE YORK WATER COMPANY

- FINANCIAL INFORMATION

PART I - FINANCIAL INFORMATION Item 1.

Financial Statements

Financial Statements. Balance Sheets (Unaudited) (In thousands of dollars, except per share amounts) Jun. 30, 2025 Dec. 31, 2024 ASSETS UTILITY PLANT, at original cost $ 687,929 $ 664,927 Plant acquisition adjustments ( 9,800 ) ( 9,838 ) Accumulated depreciation ( 129,414 ) ( 124,082 ) Net utility plant 548,715 531,007 OTHER PHYSICAL PROPERTY, net of accumulated depreciation of $ 555 in 2025 and $ 536 in 2024 1,518 1,534 CURRENT ASSETS: Cash and cash equivalents 1 1 Accounts receivable, net of reserves of $ 1,610 in 2025 and $ 1,610 in 2024 7,484 7,249 Unbilled revenues 3,493 3,604 Recoverable income taxes 824 587 Materials and supplies inventories, at cost 3,448 3,413 Prepaid expenses 1,921 1,597 Total current assets 17,171 16,451 OTHER LONG-TERM ASSETS: Prepaid pension cost 25,293 25,009 Note receivable 255 255 Deferred regulatory assets 55,475 54,061 Other assets 5,304 5,156 Total other long-term assets 86,327 84,481 Total Assets $ 653,731 $ 633,473 The accompanying notes are an integral part of these statements. Table of Contents Page 3 THE YORK WATER COMPANY Balance Sheets (Unaudited) (In thousands of dollars, except per share amounts) Jun. 30, 2025 Dec. 31, 2024 STOCKHOLDERS' EQUITY AND LIABILITIES COMMON STOCKHOLDERS' EQUITY: Common stock, no par value, authorized 46,500,000 shares, issued and outstanding 14,420,319 shares in 2025 and 14,386,282 shares in 2024 $ 139,071 $ 138,089 Retained earnings 95,480 93,103 Total common stockholders' equity 234,551 231,192 PREFERRED STOCK, authorized 500,000 shares, no shares issued – – LONG-TERM DEBT 218,056 205,561 COMMITMENTS – – CURRENT LIABILITIES: Current portion of long-term debt 330 – Accounts payable 8,517 9,525 Dividends payable 2,897 2,892 Accrued compensation and benefits 1,708 1,806 Accrued interest 2,483 2,490 Deferred regulat

View Full Filing

View this 10-Q filing on SEC EDGAR