Executive Summary

Q4 2024 revenue rose year over year to $18.866M (+$0.770M YoY), but net income fell to $5.142M and EPS to $0.36 as higher O&M, depreciation, and lower AFUDC offset DSIC-driven growth .
Sequentially, Q4 revenue, net income, and EPS declined versus Q3 (revenue $19.715M, net income $5.863M, EPS $0.41), reflecting continued expense pressure and lower AFUDC .
Full-year 2024 revenue increased to $74.959M while net income declined to $20.325M and EPS to $1.42; dividends per share rose 4% YoY, underscoring the company’s income orientation despite near-term margin headwinds .
Management plans significant capex: ~$46.0M in 2025 and ~$48.5M in 2026 to expand/upgrade water and wastewater infrastructure, a catalyst for future rate base growth and long-term earnings power .

What Went Well and What Went Wrong

What Went Well

DSIC and customer growth supported higher revenue in Q4 and throughout 2024; “Increased revenues were primarily due to revenues from Distribution System Improvement charge (DSIC), and growth in the customer base” .
Dividends increased 4% YoY for 2024, signaling confidence in cash generation and a commitment to shareholder income .
Strong execution on infrastructure program: $48.2M of 2024 construction spend, including Lake Williams dam spillway work and ~50,200 feet of pipe replacement to improve reliability and service quality .

What Went Wrong

Earnings pressured by higher O&M and depreciation and lower AFUDC, leading to YoY declines in net income and EPS for Q4 and FY 2024 .
Sequentially softer quarter: Q4 revenue, net income, and EPS trailed Q3 as cost pressure persisted and AFUDC declined .
Tax dynamics were a headwind in Q3 due to lower deductions from IRS tangible property regulations, contributing to the earnings decline that quarter .

Financial Results

Quarterly Performance: Q2 → Q3 → Q4 2024

Metric	Q2 2024	Q3 2024	Q4 2024
Revenue ($USD Millions)	$18.750	$19.715	$18.866
Net Income ($USD Millions)	$4.993	$5.863	$5.142
EPS ($USD)	$0.35	$0.41	$0.36
Dividends per Share ($USD)	$0.2108	$0.2108	$0.2192

Year-over-Year: Q4 2023 → Q4 2024

Metric	Q4 2023	Q4 2024
Revenue ($USD Millions)	$18.096	$18.866
Net Income ($USD Millions)	$6.012	$5.142
EPS ($USD)	$0.42	$0.36
Dividends per Share ($USD)	$0.2108	$0.2192

FY Results

Metric	FY 2023	FY 2024
Revenue ($USD Millions)	$71.031	$74.959
Net Income ($USD Millions)	$23.757	$20.325
EPS ($USD)	$1.66	$1.42
Dividends per Share ($USD)	$0.8189	$0.8516

Notes:

Margin data not disclosed in press materials; expense commentary indicates margin compression driven by O&M, depreciation, interest expense, and lower AFUDC .

KPIs and Operational Metrics

KPI	Current Period	Prior Context
2024 Construction Expenditures ($USD Millions)	$48.2	Focus on Lake Williams dam spillway armoring/replacement, wastewater treatment construction, and infrastructure upgrades
Pipe Replaced (feet, 2024)	~50,200	Distribution system enhancement to reduce expenses and improve customer service
2024 Acquisitions ($USD)	$0.783M	Four water and two wastewater systems acquired in 2024
Nine-Month Capex ($USD Millions, 2024)	$33.0	Included Lake Williams dam and wastewater projects
DSIC Impact	Revenue driver in Q2/Q3/Q4	Allowed charge to recover replacement of aging infrastructure
AFUDC	Lower in Q2/Q3/Q4	Reduced other income, contributing to EPS pressure

Guidance Changes

Metric	Period	Previous Guidance	Current Guidance	Change
Capex	FY 2025	N/A	~$46.0M	New disclosure
Capex	FY 2026	N/A	~$48.5M	New disclosure
Enterprise Software Upgrade, tanks, main extensions	2025–2026	N/A	Included in planned investments	New disclosure
Dividends	Ongoing	N/A	2024 dividends per share increased 4% YoY (result, not forward guidance)	N/A

No revenue, margin, OpEx, OI&E, or tax rate guidance was provided in the documents reviewed .

Earnings Call Themes & Trends

A Q4 2024 earnings call transcript was not available in our document catalog. The thematic trend analysis below leverages Q2/Q3 press releases and the Q4 press release.

Topic	Previous Mentions (Q2 2024)	Previous Mentions (Q3 2024)	Current Period (Q4 2024)	Trend
DSIC and customer growth	Revenue supported by DSIC and customer base growth	DSIC and customer growth driving revenue	DSIC and customer growth cited again	Stable positive driver
AFUDC	Lower AFUDC pressured earnings	Lower AFUDC continued	Lower AFUDC continued	Persistent headwind
O&M and Depreciation	Higher O&M and depreciation weighed on results	Higher O&M and depreciation continued	Higher O&M and depreciation persisted	Ongoing cost pressure
Interest on Debt	Higher interest expense vs. PY	Higher interest expense vs. PY	Higher interest expense vs. PY	Rising financing costs
Tax/Regulatory	IRS tangible property regulation reduced deductions in Q3, increasing taxes	Same note in Q3	No Q4 tax call-out beyond standard cautionary notes	Q3-specific headwind
Capex Program	$20.9M in H1 2024 capex	$33M in nine months	$48.2M full-year; 2025–2026 plan disclosed	Scaling investment

Management Commentary

“Increased revenues were primarily due to an increase in rates effective March 1, 2023, revenues from Distribution System Improvement charge (DSIC), and growth in the customer base.”
“The increased revenue and lower pension costs were more than offset by higher operation and maintenance expenses, depreciation, interest on debt, and a lower allowance for funds used during construction (AFUDC).”
“During the year, the Company invested $48.2 million in construction expenditures… [and] replaced approximately 50,200 feet of pipe…”
“York Water plans to invest approximately $46.0 million in 2025 and $48.5 million in 2026…”
“Income taxes increased due to lower deductions from the IRS tangible property regulations.” (Q3 release context)

Q&A Highlights

An earnings call transcript for Q4 2024 was not found in our document set; Q&A details and any clarifications are unavailable based on the materials reviewed.

Estimates Context

Wall Street consensus (S&P Global) for Q4 2024 EPS and revenue was unavailable in our request window; therefore, we cannot formally assess beats/misses versus consensus.
Given the reported YoY revenue increase and YoY EPS decline, estimate revisions may focus on sustained expense pressure (O&M, depreciation), interest costs, and the trajectory of AFUDC, with potential upward bias to long-term rate base growth expectations reflecting the announced 2025–2026 capex plan .

Key Takeaways for Investors

Revenue resilience from DSIC/customer growth is intact, but earnings are constrained by higher O&M, depreciation, interest expense, and lower AFUDC; near-term margin pressure persists .
Q4 sequential softness vs. Q3 underscores the importance of cost management and AFUDC dynamics; watch for any regulatory filings or timing shifts that could alleviate pressure .
The sizable 2025–2026 capex plan supports future rate base expansion and earnings power; expect periodic DSIC resets and future rate actions to monetize these investments .
Dividend growth (4% YoY in 2024) highlights a durable income profile, a key attribute for utility investors amid transitionary cost headwinds .
Infrastructure execution remains robust (50,200 feet pipe replaced; Lake Williams dam work), building operational reliability and potential long-term efficiency gains .
Absent consensus estimates in our dataset, focus on internal trend markers (revenue growth vs. expense trajectory) and regulatory cadence to gauge near-term stock reaction catalysts.
Medium-term thesis: disciplined capex with regulatory recovery (DSIC, rate cases) should drive steady earnings growth once current expense and AFUDC headwinds normalize .

Citations: Q4 2024 press release and 8-K ; Q3 2024 press release ; Q3 2024 8-K ; Q2 2024 8-K .

YORK WATER CO (YORW)·Q4 2024 Earnings Summary