York Water Profit Growth Accelerated on Rate Increase
Second-quarter operating revenue climbed 22.5% to $23.515 million.
York Water Company (YORW), the Pennsylvania water and wastewater utility, reported a 50.7% increase in second-quarter net income to $7.615 million as a rate increase lifted revenue.
The quarter extended a turnaround that began early in the year. Profit growth accelerated from 32.3% in the first quarter, while net income rebounded 58.2% sequentially after declining in each of the previous two quarters.
Operating revenue rose $4.316 million, or 22.5%, from a year earlier, accelerating from growth of 8.8% in the first quarter and roughly 3% in each of the preceding two quarters. Earnings increased 40% to $0.49 a share, compared with a 32% increase in the first quarter.
The main source of revenue growth shifted to the rate increase that took effect March 1. Customer growth also contributed, while the reset of York Water’s distribution-system improvement charge to zero partly offset those gains. Customer additions and improvement-charge revenue had driven growth during the second half of 2024.
The expense mix became less favorable in the second quarter. Operation and maintenance costs and depreciation increased, and income taxes weighed on the year-over-year comparison. Lower taxes had helped offset higher operating, depreciation and interest expenses in the first quarter.
For the first six months, revenue increased 15.8% to $43.589 million, while net income rose 43% to $12.429 million and earnings advanced 36.7% to $0.82 a share. Average shares outstanding climbed 10.3% in the second quarter after York Water completed a 1.522-million-share offering that generated about $41.4 million in net proceeds.
York Water maintained its 2026 capital-investment plan at about $47.9 million, excluding acquisitions. The company spent $21.1 million through June and expects to invest another $26.8 million during the rest of the year, including work on water and wastewater infrastructure. First-half acquisition spending remained $470,000 for two wastewater systems.