York Water Company Reports 50.7% Net Income Growth in Q2 2026

The York Water Company reported significant financial growth in its latest quarterly filing, with net income for the second quarter of 2026 reaching $7.6 million, a 50.7% increase from $5.1 million in the same period last year. This growth was driven by a 22.5% rise in operating revenues, which totaled $23.5 million compared to $19.2 million in the second quarter of 2025. The increase in revenue was primarily attributed to a rate hike effective March 1, 2026, and an expanded customer base, which saw an increase of 876 water customers and 643 wastewater customers due to recent acquisitions.

In terms of operational metrics, the average number of water customers served rose to 74,335, while wastewater customers increased to 7,660. The company also noted a decrease in per capita water consumption, which was approximately 2.7% lower than the previous year. Operating expenses for the quarter increased by 13.2% to $13.7 million, largely due to higher costs associated with distribution system maintenance, wages, and wastewater treatment. Despite these rising costs, the company managed to reduce interest expenses by 9.5% to $2.3 million, reflecting a decrease in both short-term and long-term debt.

Strategically, York Water completed two acquisitions in early 2026, adding approximately 380 wastewater customers. The company is also pursuing additional acquisitions and bulk water contracts to further expand its service territory. In April 2026, York Water successfully raised $47.6 million through a public offering of common stock, which was used to repay short-term borrowings and fund capital expenditures. This move improved the company's equity ratio, which stood at 60.5% as of June 30, 2026, compared to 51.7% at the end of 2025.

Looking ahead, the company anticipates continued revenue growth driven by the recent rate increase and an expected rise in customer numbers. However, it also acknowledged potential challenges, including the impact of drought conditions on water usage and revenues. The company is actively monitoring these conditions and has implemented measures to manage operational costs effectively. Overall, York Water remains optimistic about its financial outlook, supported by a stable credit rating of A- from Standard & Poor’s and a commitment to maintaining a strong capital structure.