York Water's Third-Quarter Revenue Growth Slows

The Tip Desk · November 11, 2026 · 3 min read

Operating revenues reached $24.33 million as March rates and customer growth more than offset a zeroed DSIC.

The York Water Company (YORW) reported third-quarter operating revenues of $24,333,000, up $3,972,000 from the third quarter of 2025, as rates effective March 1, 2026 and growth in the customer base more than offset a reset to zero of the Distribution System Improvement Charge.

The year-over-year revenue increase was smaller than the $4,316,000 gain versus the second quarter of 2025 that the company had reported for the immediately preceding quarter. Sequential quarterly operating revenues still rose to $24,333,000 from $23,515,000 in the second quarter of 2026.

Net income for the three-month period was $7,809,000, up $1,608,000 from the third quarter of 2025. The company said the increased revenue was partially offset by higher operation and maintenance expenses, depreciation, and income taxes. That net-income increase was also smaller than the $2,563,000 year-over-year gain reported for the second quarter. Sequential net income rose to $7,809,000 from $7,615,000 in the second quarter of 2026.

Basic and diluted earnings per share were $0.48 for the three-month period, up $0.05 from the same period last year. Sequential basic and diluted EPS declined to $0.48 from $0.49 in the second quarter of 2026, as average shares outstanding increased to 16,219 thousand from 15,883 thousand.

The DSIC is a Pennsylvania Public Utility Commission allowed charge that water utilities collect from customers for the replacement of aging infrastructure. The company said increased revenues were primarily due to the March 1, 2026 rate increase, partially offset by the DSIC reset, with customer-base growth also adding to revenues.

For the first nine months of 2026, operating revenues were $67,922,000, up $9,906,000 from the first nine months of 2025. Net income for the nine-month period was $20,238,000, up $5,347,000. Basic and diluted earnings per share were $1.30 for the nine-month period, up $0.27. The company attributed the nine-month revenue increase to the same March rates and customer growth, partially offset by the DSIC reset, with higher operation and maintenance expenses, depreciation, and income taxes partially offsetting the revenue increase.

During the first nine months of 2026, the company invested $36.2 million in capital projects for main extensions, wastewater treatment plant construction, and an upgrade to the enterprise software system, as well as various replacements and improvements to infrastructure and routine items. It also invested $470,000 in the acquisition of two wastewater systems, including the CMV Sewage Co. in York County and the Pine Run Retirement Community in Adams County.

The company estimates it will invest an additional $11.8 million in 2026, excluding acquisitions, for additional main extensions, a continuing upgrade to the enterprise software system, and routine improvements to pipes, service lines, and other facilities. That remaining estimate was down from an additional $26.8 million estimate after the first six months.

Dividends declared per common share were $0.2280 for the quarter.