YORK WATER CO (YORW)·Q2 2025 Earnings Summary

Executive Summary

• Q2 operating revenues were $19.199M, up $0.449M (+2.4% YoY), with net income of $5.052M (+$0.059M YoY) and EPS of $0.35 (flat YoY); sequentially, revenue rose from $18.456M in Q1 and EPS improved from $0.25 .
• Results modestly beat Wall Street consensus: EPS $0.35 vs $0.33*, and revenue $19.199M vs $19.0M*, driven by DSIC collections and customer growth, partially offset by higher O&M, depreciation, interest expense, and lower AFUDC .
• Management filed a general rate case requesting a $24.2M annual revenue increase tied to $145M of capital investments through Feb 2027, which could be effective Aug 1, 2025 or delayed to March 2026—an explicit regulatory catalyst for forward earnings and cash flow .
• 2025 capital plan remains intact at ~$46.0M (YTD $22.2M invested plus $23.8M planned), supporting system upgrades, wastewater treatment construction, and enterprise software modernization .

What Went Well and What Went Wrong

What Went Well

• DSIC and customer growth supported revenue expansion; “Increased revenues were primarily due to growth in the customer base and revenues from the Distribution System Improvement Charge (DSIC)” .
• Tax rate tailwind: “Income taxes decreased due to higher deductions from the IRS tangible property regulations,” aiding EPS resilience despite cost pressure .
• Regulatory positioning: “We do not take rate increases lightly… this increase is necessary in order to invest in every aspect of our system” — rate case seeks $24.2M annual increase to underpin future returns .

What Went Wrong

• Cost pressure: Higher O&M and depreciation, and higher interest expense limited drop-through on the revenue uplift .
• Lower AFUDC: Reduced capitalized financing costs on construction projects, further muting earnings leverage .
• First-half earnings down: 1H net income of $8.690M vs $9.320M prior year (-$0.630M), EPS $0.60 vs $0.65, reflecting persistent cost and AFUDC headwinds .

Financial Results

Sequential Performance (oldest → newest)

Year-over-Year (oldest → newest)

Versus Wall Street Consensus (S&P Global)

Values retrieved from S&P Global.*

KPIs

No segment breakdown disclosed in the Q2 materials .

Guidance Changes

Earnings Call Themes & Trends

No Q2 2025 earnings call transcript was found; trends below reflect management commentary from press releases.

Management Commentary

• “We do not take rate increases lightly. Our last increase was three years ago and following months of consideration 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, rate case press release .
• Commentary highlighted that revenue gains stemmed from DSIC and customer growth, with tax benefits from IRS tangible property regulations partially offset by higher O&M, depreciation, interest expense, and lower AFUDC .
• 2025 capital allocation focused on main extensions, wastewater treatment plant construction, enterprise software upgrade, and routine infrastructure improvements to ensure reliable service for a growing customer base .

Q&A Highlights

No Q2 2025 earnings call transcript or Q&A was available in the document set reviewed; all insights are from the 8‑K/press release and regulatory filings .

Estimates Context

• EPS and revenue modestly beat consensus: $0.35 vs $0.33* EPS and $19.199M vs $19.0M* revenue, aided by DSIC/customer growth and reduced taxes, offset by higher O&M, depreciation, interest, and lower AFUDC; expect incremental upward bias to near-term revenue/EPS estimates contingent on rate case timing .
• Coverage depth is limited (single estimate for EPS and revenue), implying potential for estimate volatility as regulatory outcomes and cost trends evolve.*

Values retrieved from S&P Global.*

Key Takeaways for Investors

• Modest beat: EPS of $0.35 and revenue of $19.199M topped consensus, with sequential improvement from Q1; operating drivers were DSIC and customer growth .
• Cost headwinds remain: Higher O&M, depreciation, interest expense, and lower AFUDC continue to constrain earnings leverage; monitor cadence of cost normalization .
• Regulatory catalyst: The $24.2M annual revenue request tied to $145M investments is a key swing factor; timing (Aug 2025 vs March 2026) will influence near-term earnings and cash flow trajectory .
• Capex plan intact: 2025 capex (~$46.0M) is tracking to plan; execution on wastewater plant construction and enterprise software upgrade supports long-term reliability and efficiency .
• Dividend steady: Quarterly dividend at $0.2192, up YoY from $0.2108, underscores conservative capital return amid elevated capex and regulatory agenda .
• Estimate sensitivity: With limited Street coverage, outcomes of the rate case and cost trends could prompt estimate revisions; monitor AFUDC and interest cost dynamics closely .
• Narrative driver: The rate case and infrastructure investment program are likely to be the primary stock-reaction catalysts over the next two quarters, with potential uplift upon approval and clarity on effective date .