The York Water Company (YORW) investor relations material

Executive summary

• Net income for Q1 2026 rose 32.3% year-over-year to $4,814, driven by higher revenues and lower income taxes, partially offset by increased expenses and interest costs.

• Operating revenues increased 8.8% to $20,074, primarily due to a rate increase effective March 1, 2026, and customer growth.

• Earnings per share increased to $0.33 from $0.25 year-over-year.

• Customer base expanded with 998 new water customers and 620 new wastewater customers, mainly from acquisitions.

Financial highlights

• Operating income for Q1 2026 was $6,353, up from $6,283 in Q1 2025.

• Operating expenses rose 12.7% to $13,721, with notable increases in maintenance, wages, insurance, and depreciation.

• Interest on debt increased 12.2% to $2,715 due to higher average debt outstanding.

• Dividends declared per share were $0.2280, up from $0.2192 in Q1 2025.

• Effective tax rate was (21.3)% in Q1 2026, down from 11.5% in Q1 2025, due to higher deductions under IRS tangible property regulations.

Outlook and guidance

• Revenues expected to rise for the remainder of 2026 from rate increases, higher summer demand, and customer growth.

• Depreciation, amortization, and other operating expenses anticipated to increase as infrastructure investments continue.

• Interest expense projected to decrease after repayment of line of credit following April 2026 equity offering.

• Construction expenditures for the rest of 2026 estimated at $38,100, funded mainly by internal cash, credit, and equity.