Financial Data and Key Metrics Changes - Consolidated revenue for 2025 was $493 million, a 3% increase from $480 million in 2024 [19] - Gross margin improved to 7% of revenue in 2025, up from a negative 12% in 2024, reflecting a $90 million increase in total gross margin [19] - Adjusted EBITDA for 2025 was $5 million, a significant improvement from a negative $61 million in 2024 [20] Business Line Data and Key Metrics Changes - Revenue from Shimmick projects was $395 million in 2025, a 12% increase year-over-year, representing 75% of total revenue [2] - Gross margin for Shimmick projects increased to 10%, a 400 basis point improvement over the previous year [3] - Non-core project revenue decreased to $96 million in 2025 from $125 million in 2024, reflecting the focus on winding down these projects [19] Market Data and Key Metrics Changes - The backlog grew to $793 million at the end of 2025, with a book-to-burn ratio of 1.4 times [18] - The company expects a robust pipeline supporting $600 million to $1 billion in bidding volumes per month [7] - The market environment remains healthy, with consistent investment in core markets [4] Company Strategy and Development Direction - The company is focused on three strategic pillars: growing the top line, winding down low-margin non-core projects, and driving operational improvements [2] - The strategy includes diversifying the customer base and focusing on growth markets geographically [4] - The company aims to position itself as a top infrastructure provider by winning strategic, risk-balanced work [24] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism for 2026, expecting revenue growth between 12% and 22% [22] - The company anticipates improved gross margins driven by a favorable project mix and efficient SG&A management [31] - Management noted that the market remains healthy, with a strong backlog and pipeline dynamics moving in the right direction [12] Other Important Information - The company ended 2025 with total liquidity of $44 million, consisting of $20 million in cash and $24 million available under credit agreements [18] - The company has been awarded contracts worth $128 million in early 2026, with an additional $234 million pending [21] Q&A Session Summary Question: How does the mix of projects impact margins going into 2026? - Management expects gross margins to increase, influenced by the mix of projects, with some projects yielding higher margins than others [31] Question: What is the visibility on overall spending and macro environment across territories? - Management indicated strong activity in California and Texas, with no shortage of opportunities in the next 12-24 months [34] Question: What is the guidance for 2026, especially regarding EBITDA and non-core revenue? - Management simplified guidance, expecting to burn through most non-core work, which currently represents about 11% of the backlog [43] Question: Can you provide more details on the electrical infrastructure projects? - The electrical business is seeing strong bidding activity, with project sizes ranging from $5 million to $200 million, particularly in Texas and California [46] Question: How is the company managing the wrap-up of legacy non-core projects? - Management reported that only two non-core projects remain active, with expectations to complete them this year [50]

Financial Performance - The York Water Company reported 2025 operating revenues of $77,488,000, an increase of $2,529,000 compared to 2024, while net income decreased by $267,000 to $20,058,000 [2] - Basic and diluted earnings per share for 2025 were $1.39, down $0.03 from 2024 [2] - For the fourth quarter of 2025, operating revenues increased by $606,000, and net income rose by $25,000 compared to the fourth quarter of 2024, with earnings per share remaining stable at $0.36 [4] Revenue Drivers - The increase in revenues was primarily attributed to growth in the customer base and revenues from the Distribution System Improvement Charge (DSIC), which is a charge allowed by the Pennsylvania Public Utility Commission for infrastructure replacement [2][4] - The company recognized a non-recurring gain on life insurance, contributing to the revenue increase [2][4] Expenses and Costs - Higher operation and maintenance expenses, depreciation, and increased interest on debt offset the revenue gains, leading to a decrease in net income [2][4] - Income taxes decreased due to higher deductions from IRS tangible property regulations [2] Capital Investments - The company invested $48.7 million in capital projects during 2025, focusing on main extensions, software upgrades, and infrastructure improvements [3] - For 2026 and 2027, York Water anticipates investments of approximately $48 million each year for further main extensions, software upgrades, and construction projects to support its growing customer base [5] Operational Metrics - The company replaced approximately 54,100 feet of water main and 1,800 feet of wastewater main in 2025 to enhance distribution and collection systems [3] - The average number of common shares outstanding for 2025 was 14,404, compared to 14,347 in 2024 [6]

Core Insights - The WWETT Show is a significant event for wastewater and environmental services professionals, scheduled for February 16-19, 2026, at the Indiana Convention Center [1] - The event addresses the urgent need for improved wastewater facilities, with an estimated funding requirement of $630.1 billion for clean water infrastructure over the next two decades according to the EPA [2] Event Features - The WWETT Show includes education programming, live demonstrations, and networking opportunities, focusing on innovative solutions for wastewater management [2][7] - Over 500 exhibitors will showcase products across more than 100 categories, including trucks, software, inspection equipment, and wastewater treatment technologies [4] - More than 80 first-time exhibitors will present new technologies and equipment, enhancing discovery opportunities for attendees [5] Educational Opportunities - The conference program will feature a record number of sessions covering various topics such as wastewater treatment operations, plumbing trends, and mental health in the trades [8] - Continuing education credits will be available through partnerships with nearly 50 accrediting bodies, supporting professional growth and certification maintenance [9] Live Demonstrations - Attendees will experience hands-on demonstrations of advanced technologies in wastewater services, including trenchless technology and electric cutters [10] Special Initiatives - The inaugural Women of Wastewater Awards will recognize women's contributions to the industry, alongside a dedicated track for women in wastewater focusing on career development and business success [12][13] Networking Events - Various networking opportunities will be available, including themed parties and mixers, facilitating connections among professionals in a relaxed environment [15]

Core Insights - The WWETT Show is a significant event for wastewater and environmental services professionals, scheduled for February 16-19, 2026, at the Indiana Convention Center [1][17] - The event will focus on the evolving challenges in wastewater management and the need for improved infrastructure, with an estimated funding requirement of $630.1 billion over the next two decades according to the EPA [2] Event Features - The WWETT Show will feature over 500 exhibitors showcasing products across more than 100 categories, including trucks, software, inspection equipment, and wastewater treatment technologies [4][5] - Educational programming will include a record number of sessions covering various topics such as operations, plumbing trends, and mental health in the trades, along with certification courses [8][9] Networking and Community Engagement - The event will host various networking opportunities, including themed parties and mixers aimed at connecting professionals in the industry [15] - The inaugural Women of Wastewater Awards will celebrate women's contributions to the industry, alongside a dedicated track for women in wastewater [12][13] Live Demonstrations and Innovations - Attendees will experience live demonstrations of advanced technologies and equipment, providing hands-on insights into the latest advancements in the field [10] - The event serves as a platform for municipalities and the private sector to discover innovative solutions and strategies for efficient water treatment processes [7]