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YW

YORK WATER CO (YORW)·Q1 2025 Earnings Summary

Executive Summary

  • Q1 2025 operating revenue rose 4.7% year over year to $18.456M, but net income fell 15.9% to $3.638M as higher O&M, depreciation, interest, and lower AFUDC offset DSIC-driven revenue growth . EPS of $0.25 declined $0.05 YoY .
  • Results were below Wall Street consensus: EPS $0.25 vs $0.34 (one estimate) and revenue $18.456M vs $19.000M; both were misses, with EPS missing by $0.09 and revenue by $0.544M (~2.9%)*.
  • Management reiterated 2025 capital program (~$46M total; $9.3M spent plus $36.7M planned) and subsequently filed a general rate case requesting a $24.2M annual revenue increase (effective Aug 1, 2025 if granted; PUC may delay to Mar 2026), a potential medium-term catalyst .
  • Dividend declared per share was $0.2192 in Q1 2025 (up from $0.2108 in Q1 2024), continuing York Water’s long record of dividend increases .

Asterisk (*) denotes values retrieved from S&P Global.

What Went Well and What Went Wrong

What Went Well

  • DSIC and customer growth drove revenue increase: “Increased revenues were primarily due to growth in the customer base and revenues from the Distribution System Improvement Charge (DSIC)” .
  • Pension costs declined, partially offsetting cost pressures .
  • Continued execution on capital plan: $9.3M invested in Q1 in mains, enterprise software upgrade, and infrastructure; plan to invest an additional $36.7M in 2025 to support system reliability and wastewater capabilities .

What Went Wrong

  • AFUDC declined, and higher O&M, depreciation, and interest on debt drove profit compression; these headwinds more than offset revenue growth and lower pension costs .
  • EPS fell $0.05 YoY to $0.25 despite revenue growth, reflecting margin pressure .
  • Prior quarter and nine-month trends already showed rising expenses and lower AFUDC; Q3 2024 noted higher O&M, depreciation, lower AFUDC, and tax impacts (lower deductions), foreshadowing continued earnings pressure .

Financial Results

MetricQ1 2024Q3 2024Q4 2024Q1 2025Q1 2025 Estimate*
Revenue ($USD Millions)$17.628 $19.715 $18.866 $18.456 $19.000*
EPS ($USD)$0.30 $0.41 $0.36 $0.25 $0.34*
Margin MetricQ1 2024Q3 2024Q4 2024Q1 2025
Net Income Margin %24.546%*29.739%*27.255%*19.712%*
EBIT Margin %33.952%*41.664%*36.404%*34.764%*
EBITDA Margin %51.441%*58.387%*53.975%*54.075%*

Asterisk (*) denotes values retrieved from S&P Global.

KPIs

KPIQ1 2024Q3 2024Q4 2024Q1 2025
Avg. Shares Outstanding (000s)14,325 14,354 14,366 14,381
Dividends Declared per Share ($)$0.2108 $0.2108 $0.2192 $0.2192
Operational KPI (Q1 2025)Value
Capex ($USD Millions)$9.3
Additional 2025 Planned Capex ($USD Millions)$36.7
2025 Capex Plan ($USD Millions)~$46.0
People Served>212,000
Municipalities Served57

Guidance Changes

MetricPeriodPrevious GuidanceCurrent GuidanceChange
Capital ExpenditureFY 2025~$46.0M (guided Mar 4, 2025) ~$46.0M total implied ($9.3M spent + $36.7M planned) Maintained
Capital ExpenditureFY 2026$48.5M No update provided in Q1 materials Maintained
General Rate Case – Annual Revenue IncreaseRegulatory (effective earliest Aug 1, 2025; may be delayed to Mar 2026)N/ARequest filed for $24.2M annual revenue increase New
Dividend per ShareQ1 2025$0.2108 (Q1 2024) $0.2192 Raised YoY

Earnings Call Themes & Trends

No Q1 2025 earnings call transcript was found in our document catalog; themes are drawn from press releases.

TopicPrevious Mentions (Q3 2024)Previous Mentions (Q4 2024)Current Period (Q1 2025)Trend
Regulatory/Rate CaseNo new rate case; DSIC driving revenue; noted tax impacts 2025 and 2026 capex plans disclosed General rate case filed seeking $24.2M revenue increase; timing guidance (Aug 2025 or Mar 2026) Increasing regulatory activity
Capex & Infrastructure$33M invested YTD; Lake Williams dam, wastewater projects $48.2M invested FY 2024; 50,200 feet pipe replaced $9.3M invested Q1; plan additional $36.7M in 2025 Sustained high investment
Revenue DriversDSIC and customer growth DSIC and customer growth DSIC and customer growth Consistent drivers
Cost PressuresHigher O&M, depreciation, lower AFUDC; taxes higher Higher O&M, depreciation; lower AFUDC Higher O&M, depreciation, interest; lower AFUDC Persistent headwinds
Customer BaseExpansion to 57 municipalities; acquisitions Broader service across south-central PA >212,000 people in 57 municipalities Gradual growth

Management Commentary

  • Strategy: Management emphasized DSIC and customer growth as primary revenue drivers, offset by lower AFUDC and higher O&M, depreciation, and interest costs, reflecting ongoing investment and cost pressures .
  • Capital plan: “During the first three months of 2025, the Company invested $9.3 million… The Company estimates it will invest an additional $36.7 million in 2025… to ensure a safe, adequate, and reliable supply of drinking water… and proper handling and disposal of wastewater” .
  • Regulatory posture (direct quote): “We do not take rate increases lightly… we found that this increase is necessary in order to invest in every aspect of our system to ensure continual safe, reliable, water and wastewater services for our customers.” – JT Hand, President & CEO .

Q&A Highlights

No Q1 2025 earnings call transcript was available; therefore, no Q&A highlights could be extracted from primary sources in this period.

Estimates Context

  • EPS: Actual $0.25 vs $0.34 consensus (one estimate) → MISS by $0.09*.
  • Revenue: Actual $18.456M vs $19.000M consensus (one estimate) → MISS by $0.544M (~2.9%)*.
  • Implication: With persistent cost headwinds (O&M, depreciation, interest) and lower AFUDC, near-term estimate revisions may trend lower on EPS until the rate case outcome and cost trajectory improve .

Asterisk (*) denotes values retrieved from S&P Global.

Key Takeaways for Investors

  • Revenue growth (+4.7% YoY) is intact via DSIC and customer additions, but margin compression continues given higher O&M, depreciation, interest, and lower AFUDC; EPS fell to $0.25 .
  • Both EPS and revenue missed consensus, suggesting potential near-term pressure on estimates and sentiment until cost trends stabilize and regulatory relief is visible***.
  • Capital intensity remains high: ~$46M planned capex for 2025 supports long-term reliability and wastewater capacity but burdens near-term earnings via depreciation and carry costs .
  • The filed general rate case ($24.2M annual revenue increase) is a medium-term catalyst; timing uncertainty (Aug 2025 earliest, possibly Mar 2026) warrants monitoring of docket progress and interim mechanisms .
  • Dividend trajectory remains positive (Q1 2025 dividend $0.2192 vs $0.2108 YoY), offering defensive yield amid earnings pressure .
  • Watch AFUDC trends: lower AFUDC reduced other income; as major projects shift phases, AFUDC may remain subdued, impacting earnings quality .
  • Trading implication: In the near term, stock may be sensitive to rate case milestones and any signals on O&M/depreciation run-rate; medium-term thesis hinges on regulatory outcomes and efficient execution of the capital plan .

Asterisk (*) denotes values retrieved from S&P Global.