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YW

YORK WATER CO (YORW)·Q3 2025 Earnings Summary

Executive Summary

  • Q3 2025 delivered steady growth: revenue rose to $20.361M (+3.3% YoY) and EPS to $0.43 (+$0.02 YoY), driven by customer growth and DSIC, partially offset by higher O&M, depreciation, interest, and lower AFUDC .
  • Results versus S&P Global consensus: EPS beat ($0.43 vs $0.38, +13.2%) while revenue missed ($20.361M vs $21.000M, -3.0%). Bold beat on EPS; modest top-line miss. Estimates were based on a single covering analyst* .
  • Nine-month 2025 context: operating revenues $58.016M (+$1.923M YoY) but net income $14.891M (-$0.292M YoY) amid higher O&M, depreciation, interest and lower AFUDC .
  • Capital intensity continues: YTD capex $37.1M with an additional ~$10.0M planned in 2025 to support mains, enterprise software upgrades, and routine infrastructure; rate case filed in May seeks a $24.2M annual revenue increase to recover $145M in investments (potential medium-term catalyst) .

What Went Well and What Went Wrong

What Went Well

  • Revenue and EPS grew YoY in Q3: $20.361M revenue (+$0.646M YoY) and $0.43 EPS (+$0.02 YoY), supported by customer growth and DSIC collections .
  • Management highlights tax benefits: “Income taxes decreased due to higher deductions from the IRS tangible property regulations,” aiding net income despite cost pressures .
  • Strong execution on capital program: $37.1M invested YTD with continuity in infrastructure and enterprise software upgrades; additional ~$10.0M planned for the year .

What Went Wrong

  • Operating cost headwinds persist: higher O&M, depreciation, and interest expense, plus lower AFUDC reduced margin expansion despite revenue growth .
  • YTD profitability declined: nine-month net income $14.891M vs $15.183M in 2024; EPS $1.03 vs $1.06 as cost pressures outweighed revenue gains .
  • Top-line came in below consensus: Q3 revenue $20.361M vs $21.000M consensus (-$0.639M); while EPS beat, the revenue miss may temper the near-term narrative* .

Financial Results

MetricQ3 2024Q1 2025Q2 2025Q3 2025
Operating Revenues ($USD Millions)$19.715 $18.456 $19.199 $20.361
Net Income ($USD Millions)$5.863 $3.638 $5.052 $6.201
Basic & Diluted EPS ($USD)$0.41 $0.25 $0.35 $0.43
EBITDA Margin %58.387%*54.0745%*55.857%*57.0453%*
Net Income Margin %29.7387%*19.7117%*26.3138%*30.4552%*

Notes: *Values retrieved from S&P Global.

Vs. Consensus (Q3 2025):

MetricActual Q3 2025Consensus Q3 2025Surprise
EPS ($USD)$0.43 $0.38*+$0.05 (+13.16%)
Revenue ($USD Millions)$20.361 $21.000*-$0.639 (-3.04%)

Notes: Values retrieved from S&P Global. Primary EPS - # of Estimates: 1; Revenue - # of Estimates: 1.

KPIs and Operating Metrics:

KPIQ1 2025Q2 2025Q3 2025
Dividends Declared Per Share ($)$0.2192 $0.2192 $0.2192
Avg. Common Shares Outstanding (000s)14,381 14,397 14,412
Capex (YTD, $USD Millions)$9.3 $22.2 $37.1

Segment Breakdown: Not disclosed in Q3 press release or 8-K .

Guidance Changes

York Water did not issue formal quantitative guidance in Q3 2025 press materials; focus remains on the ongoing rate case and planned 2025 investments .

MetricPeriodPrevious GuidanceCurrent GuidanceChange
RevenueFY/QtrN/AN/AMaintained: No formal guidance
MarginsFY/QtrN/AN/AMaintained: No formal guidance
OpExFY/QtrN/AN/AMaintained: No formal guidance
OI&E / InterestFY/QtrN/AN/AMaintained: No formal guidance
Tax RateFY/QtrN/AN/AMaintained: No formal guidance
Segment-specificFY/QtrN/AN/AMaintained: No segment guidance
DividendFY/Qtr$0.2192 declared$0.2192 declaredMaintained

Earnings Call Themes & Trends

No Q3 2025 earnings call transcript was found in the document catalog; themes below reflect press releases and 8-Ks.

TopicPrevious Mentions (Q1 & Q2 2025)Current Period (Q3 2025)Trend
DSIC & customer growthRevenue growth primarily from DSIC and customer base; costs offset gains Same drivers cited for Q3 revenue increase Stable-positive
Cost pressures (O&M, depreciation, interest)Higher O&M, depreciation, interest weighed on earnings Continued pressure noted in Q3 Persistent
AFUDCLower AFUDC reduced earnings in Q1 & Q2 Lower AFUDC continued in Q3 Persistent
Tax benefitsLower taxes from tangible property regulations not emphasized in Q1; noted in Q2 Highlighted as tailwind in Q3 Improving
Capital program$9.3M (Q1), $22.2M (Q2) focused on mains & software $37.1M YTD; +$10.0M planned for 2025 Accelerating
Regulatory/rate casePUC filing: $24.2M annual revenue increase for $145M investments through Feb 2027 No new rate-case update in Q3 PR; context remains relevant Ongoing

Management Commentary

  • “Increased revenues were primarily due to growth in the customer base and revenues from the Distribution System Improvement Charge (DSIC).”
  • “Income taxes decreased due to higher deductions from the IRS tangible property regulations.”
  • “The increased revenue and lower income taxes were partially offset by higher operation and maintenance expenses and depreciation, higher interest on debt, and lower allowance for funds used during construction (AFUDC).”
  • On capital investment focus: $37.1M invested YTD and ~$10.0M additional planned in 2025 for mains, software upgrades, and routine infrastructure .
  • Regulatory posture: rate request seeks $24.2M annual revenue increase tied to $145M investments since the last rate increase, supporting compliance and reliability .

Q&A Highlights

No Q3 2025 earnings call transcript could be located in the document catalog or company press postings; therefore Q&A highlights and any call-based guidance clarifications are unavailable. Search covered company filings and press releases; only the press release and 8-K were furnished .

Estimates Context

  • Versus S&P Global consensus, Q3 EPS beat ($0.43 vs $0.38), while revenue missed ($20.361M vs $21.000M). Coverage breadth was limited (one estimate for both EPS and revenue)* .
  • Given recurring cost headwinds (O&M, depreciation, interest) and lower AFUDC, sell-side may modestly adjust forward profitability assumptions despite DSIC-supported revenue growth .

Notes: *Values retrieved from S&P Global.

Key Takeaways for Investors

  • Defensive utility profile with regulatory recovery mechanisms (DSIC, pending rate case) drove a resilient EPS beat despite cost headwinds; top-line miss was modest and partly a function of estimate sparsity* .
  • Margin trajectory improved sequentially and YoY on net income margin, but cost pressures and lower AFUDC remain structural watch items; interest costs are an ongoing drag .
  • Capex intensity continues, with enterprise software upgrades and system modernization underpinning long-term reliability—rate-case outcome is a key medium-term catalyst for cash flow recovery .
  • Dividend stability sustained ($0.2192 per quarter) with moderate share count creep; income profile remains intact .
  • Near-term trading: EPS beat could support the stock, but lack of call detail and revenue miss may cap upside; monitor regulatory milestones and any updates on AFUDC and interest cost trajectory .
  • Medium-term thesis: regulated growth via customer additions and DSIC plus rate-case recovery should normalize earnings; cost discipline and capital efficiency will determine margin durability .

Citations:

  • Q3 press release and 8-K:
  • Q2 press release and 8-K:
  • Q1 press release and 8-K:
  • Rate request press release:

Notes: *Values retrieved from S&P Global.