York Water Company Reports 32.3% Increase in Net Income for Q1 2026

The York Water Company reported a net income of $4.814 million for the first quarter of 2026, reflecting a 32.3% increase from $3.638 million in the same period of 2025. This growth was primarily driven by an 8.8% rise in operating revenues, which reached $20.074 million, up from $18.456 million a year earlier. The increase in revenue was attributed to a rate hike effective March 1, 2026, and an expansion in the customer base, which saw an increase of 998 water customers and 620 wastewater customers compared to the previous year.

Operating expenses also rose, totaling $13.721 million for the first quarter, a 12.7% increase from $12.173 million in the prior year. The rise in expenses was largely due to higher costs associated with distribution system maintenance, wages, insurance, and purchased power. Interest expenses increased by 12.2% to $2.715 million, driven by a higher average debt outstanding. Despite these increases, the company benefited from a lower effective tax rate of -21.3%, down from 11.5% in the previous year, due to higher deductions under IRS regulations.

In terms of strategic developments, York Water completed two acquisitions in early 2026, adding approximately 380 wastewater customers. The company also signed agreements to acquire additional water assets, which are expected to close in the fourth quarter of 2026, further expanding its customer base. The company is actively pursuing other acquisition opportunities to enhance its service offerings and mitigate potential declines in per capita water consumption.

Operationally, the company reported a total of 74,184 water customers and 7,332 wastewater customers as of March 31, 2026. The average daily water availability was 41.1 million gallons, with average daily consumption at approximately 23.1 million gallons. The company anticipates continued revenue growth for the remainder of the year, supported by the recent rate increase and expected higher summer demand.

Looking ahead, York Water expects to invest approximately $38.1 million in construction expenditures for 2026, focusing on infrastructure improvements and expansions. The company plans to fund these expenditures primarily through internally generated funds and customer contributions. Additionally, following a successful public offering in April 2026, which raised approximately $47.7 million, the company has significantly reduced its short-term borrowings, positioning itself for future growth and capital needs.