York Water Company Reports 4.7% Revenue Growth but 15.9% Decrease in Net Income for Q1 2025

The York Water Company reported its financial results for the first quarter of 2025, revealing operating revenues of $18.5 million, a 4.7% increase from $17.6 million in the same period of 2024. The growth in revenue was primarily attributed to an increase in the customer base, with the average number of water customers rising by 1,238 to 73,186 and wastewater customers increasing by 358 to 6,712. However, net income for the quarter decreased by 15.9% to $3.6 million, down from $4.3 million in the prior year, largely due to higher operating expenses and increased interest on debt.

Operating expenses for the first quarter of 2025 totaled $12.2 million, reflecting a 6.7% increase from $11.4 million in the previous year. This rise was driven by higher costs in several areas, including depreciation and amortization, distribution system maintenance, and wages. The company also reported an increase in interest expenses, which rose by 13.9% to $2.4 million, primarily due to higher interest rates affecting its line of credit. The allowance for funds used during construction saw a significant decline, dropping from $1.1 million in the first quarter of 2024 to $185,000 in 2025, reflecting a lower volume of eligible construction.

In terms of strategic developments, York Water is pursuing acquisitions to expand its customer base. The company signed agreements to purchase water and wastewater assets from several entities, which are expected to add approximately 485 customers upon completion, anticipated in the second half of 2025. Additionally, the company has implemented a distribution system improvement charge (DSIC) that contributed $386,000 to revenues in the first quarter, allowing it to recover costs for infrastructure improvements without a formal rate filing.

Operationally, the company reported a slight decrease in accounts receivable, which fell to $6.9 million from $7.2 million, attributed to timing differences in revenue recognition and customer payments. The company’s total assets increased to $641.8 million as of March 31, 2025, up from $633.5 million at the end of 2024, driven by growth in utility plant investments. The company maintains a strong capital structure, with common stockholders’ equity representing 52.0% of total capitalization.

Looking ahead, York Water anticipates modest revenue growth for the remainder of 2025, supported by the expected increase in customer numbers and the continued impact of the DSIC. However, the company also acknowledges potential challenges from regulatory actions, weather patterns, and economic conditions that could affect its financial performance. The company plans to file for a rate increase in 2025 to further support its financial health and operational needs.