The York Water(US:YORW)2025-11-06 15:00Financial Performance - Net income for Q3 2025 was $6,201, an increase of $338 or 5.8% from $5,863 in Q3 2024, driven by higher operating revenues and lower income taxes [81]. - For the first nine months of 2025, net income was $14,891, a decrease of $292 or 1.9% from $15,183 in the same period of 2024, impacted by higher operating expenses and interest on debt [87]. Revenue Growth - Operating revenues for Q3 2025 increased by $646 or 3.3% to $20,361, primarily due to customer base growth and a $673 increase from the distribution system improvement charge (DSIC) approved by PPUC [82]. - Operating revenues for the first nine months of 2025 increased by $1,923 or 3.4% to $58,016, driven by customer base growth and $1,590 from the DSIC [89]. Customer Base Expansion - The average number of water customers served increased by 1,101 to 73,684 in 2025, while wastewater customers rose by 530 to 7,115, mainly due to acquisitions [82]. - The Company signed agreements to acquire wastewater and water assets, expected to add approximately 100 and 140 customers respectively, with closings anticipated in Q2 2026 [98][99]. Operating Expenses - Operating expenses for Q3 2025 rose by $787 or 6.7% to $12,447, attributed to higher distribution system maintenance, depreciation, and wages [83]. - Interest on debt for the first nine months of 2025 rose by $1,006 or 15.4% to $7,555, due to increased long-term debt and higher interest rates [91]. Debt and Capitalization - Interest on debt increased by $372 or 16.6% to $2,615 in Q3 2025, primarily due to an increase in long-term debt outstanding [84]. - Common stockholders' equity as a percentage of total capitalization decreased to 50.9% as of September 30, 2025, from 52.6% as of December 31, 2024 [109]. - The Company's total long-term debt as a percentage of total capitalization was 49.1% as of September 30, 2025, up from 47.4% at the end of 2024 [115]. - The Company has a committed line of credit of $50,000, with $37,430 borrowed as of September 30, 2025, and an interest rate of 5.45% [111]. Investments and Expenditures - The Company invested $37,102 in construction expenditures for main extensions and upgrades for the nine months ended September 30, 2025 [103]. - Anticipated construction expenditures for the remainder of 2025 are approximately $10,000, primarily funded through internally-generated funds [104]. - Internally-generated funds from operations increased to $21,432 during the first nine months of 2025, compared to $20,391 in the same period of 2024 [108]. Regulatory and Environmental Factors - Effective October 1, 2025, the Company's tariff included a DSIC on revenues of 4.89% [96]. - A drought watch was declared for 29 counties in Pennsylvania, which may impact future revenues and operating expenses [129]. - The Company maintains a substantial deferred income tax asset due to accelerated depreciation from the Tax Cuts and Jobs Act of 2017 [118]. Credit Rating - Standard & Poor's affirmed the Company's credit rating at A- with a stable outlook as of July 30, 2025 [121].