UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

FORM 10-Q

(Mark One)

☒	QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the quarterly period ended June 30, 2025

☐	TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the transition period from __________ to __________

Commission file number 001-34245

THE YORK WATER COMPANY

(Exact name of registrant as specified in its charter)

Pennsylvania	23-1242500
(State or other jurisdiction of incorporation or organization)	(I.R.S. Employer Identification No.)

130 East Market Street, York, Pennsylvania	17401
(Address of principal executive offices)	(Zip Code)

Registrant’s telephone number, including area code (717) 845-3601

Securities registered pursuant to Section 12(b) of the Act:

Common Stock, No par value	YORW	The Nasdaq Global Select Market
(Title of Class)	(Trading Symbol)	(Name of Each Exchange on Which Registered)

Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days.

⌧ Yes

☐ No

Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation S-T (§232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit such files).

⌧ Yes

☐ No

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, a smaller reporting company, or an emerging growth company. See the definitions of “large accelerated filer,” “accelerated filer,” “smaller reporting company,” and “emerging growth company” in Rule 12b-2 of the Exchange Act:

Large accelerated filer ☐	Accelerated filer ☐		Non-accelerated filer ⌧

Smaller reporting company ☒		Emerging growth company ☐

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐

Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act).

☐ Yes		⌧ No
Indicate the number of shares outstanding of each of the issuer’s classes of common stock, as of the latest practicable date.
Common stock, No par value	14,421,177 Shares outstanding as of August 12, 2025

TABLE OF CONTENTS

PART I	Financial Information

Item 1.	Financial Statements	3
Item 2.	Management’s Discussion and Analysis of Financial Condition and Results of Operations	16
Item 3.	Quantitative and Qualitative Disclosures About Market Risk	24
Item 4.	Controls and Procedures	24

PART II	Other Information

Item 5.	Other Information	25
Item 6.	Exhibits	26

Signatures		27

Page 2

THE YORK WATER COMPANY

PART I - FINANCIAL INFORMATION

Item 1.

Financial Statements.

Balance Sheets (Unaudited)

(In thousands of dollars, except per share amounts)

	Jun. 30, 2025			Dec. 31, 2024
ASSETS
UTILITY PLANT, at original cost	$	687,929		$	664,927
Plant acquisition adjustments		(9,800	)		(9,838	)
Accumulated depreciation		(129,414	)		(124,082	)
Net utility plant		548,715			531,007

OTHER PHYSICAL PROPERTY, net of accumulated depreciation of $555 in 2025 and $536 in 2024		1,518			1,534

CURRENT ASSETS:
Cash and cash equivalents		1			1
Accounts receivable, net of reserves of $1,610 in 2025 and $1,610 in 2024		7,484			7,249
Unbilled revenues		3,493			3,604
Recoverable income taxes		824			587
Materials and supplies inventories, at cost		3,448			3,413
Prepaid expenses		1,921			1,597
Total current assets		17,171			16,451

OTHER LONG-TERM ASSETS:
Prepaid pension cost		25,293			25,009
Note receivable		255			255
Deferred regulatory assets		55,475			54,061
Other assets		5,304			5,156
Total other long-term assets		86,327			84,481

Total Assets	$	653,731		$	633,473

The accompanying notes are an integral part of these statements.

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THE YORK WATER COMPANY

Balance Sheets (Unaudited)

(In thousands of dollars, except per share amounts)

	Jun. 30, 2025		Dec. 31, 2024
STOCKHOLDERS’ EQUITY AND LIABILITIES
COMMON STOCKHOLDERS’ EQUITY:
Common stock, no par value, authorized 46,500,000 shares, issued and outstanding 14,420,319 shares in 2025 and 14,386,282 shares in 2024	$	139,071	$	138,089
Retained earnings		95,480		93,103
Total common stockholders’ equity		234,551		231,192

PREFERRED STOCK, authorized 500,000 shares, no shares issued		–		–

LONG-TERM DEBT		218,056		205,561

COMMITMENTS		–		–

CURRENT LIABILITIES:
Current portion of long-term debt		330		–
Accounts payable		8,517		9,525
Dividends payable		2,897		2,892
Accrued compensation and benefits		1,708		1,806
Accrued interest		2,483		2,490
Deferred regulatory liabilities		858		864
Other accrued expenses		446		712
Total current liabilities		17,239		18,289

DEFERRED CREDITS:
Customers’ advances for construction		21,812		20,546
Deferred income taxes		63,743		61,157
Deferred employee benefits		3,541		3,526
Deferred regulatory liabilities		43,924		43,947
Other deferred credits		525		386
Total deferred credits		133,545		129,562

Contributions in aid of construction		50,340		48,869

Total Stockholders’ Equity and Liabilities	$	653,731	$	633,473

The accompanying notes are an integral part of these statements.

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THE YORK WATER COMPANY

Statements of Income (Unaudited)

(In thousands of dollars, except per share amounts)

	Three Months Ended June 30						Six Months Ended June 30
	2025			2024			2025			2024

OPERATING REVENUES:	$	19,199		$	18,750		$	37,655		$	36,378

OPERATING EXPENSES:
Operation and maintenance		4,823			4,862			10,034			9,674
Administrative and general		3,338			3,157			6,261			6,231
Depreciation and amortization		3,506			3,267			7,070			6,350
Taxes other than income taxes		446			402			921			846
		12,113			11,688			24,286			23,101

Operating income		7,086			7,062			13,369			13,277

OTHER INCOME (EXPENSES):
Interest on debt		(2,521	)		(2,183	)		(4,940	)		(4,306	)
Allowance for funds used during construction		191			347			376			1,481
Other pension costs		132			436			265			206
Other income (expenses), net		(203	)		(148	)		(275	)		(215	)
		(2,401	)		(1,548	)		(4,574	)		(2,834	)

Income before income taxes		4,685			5,514			8,795			10,443

Income tax expense (benefit)		(367	)		521			105			1,123

Net Income	$	5,052		$	4,993		$	8,690		$	9,320

Basic Earnings Per Share	$	0.35		$	0.35		$	0.60		$	0.65

Diluted Earnings Per Share	$	0.35		$	0.35		$	0.60		$	0.65

The accompanying notes are an integral part of these statements.

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THE YORK WATER COMPANY

Statements of Common Stockholders’ Equity (Unaudited)

(In thousands of dollars, except per share amounts)

For the Periods Ended June 30, 2025 and 2024

	Common Stock Shares		Common Stock Amount		Retained Earnings			Total

Balance, March 31, 2025		14,399,650	$	138,556	$	93,587		$	232,143
Net income		–		–		5,052			5,052
Cash dividends declared, $0.2192 per share		–		–		(3,159	)		(3,159	)
Issuance of common stock under dividend reinvestment, direct stock and employee stock purchase plans		13,412		417		–			417
Stock-based compensation		7,257		98		–			98
Balance, June 30, 2025		14,420,319	$	139,071	$	95,480		$	234,551

Balance, December 31, 2024		14,386,282	$	138,089	$	93,103		$	231,192
Net income		–		–		8,690			8,690
Cash dividends declared, $0.4384 per share		–		–		(6,313	)		(6,313	)
Issuance of common stock under dividend reinvestment, direct stock and employee stock purchase plans		25,797		812		–			812
Stock-based compensation		8,240		170		–			170
Balance, June 30, 2025		14,420,319	$	139,071	$	95,480		$	234,551

	Common Stock Shares		Common Stock Amount		Retained Earnings			Total

Balance, March 31, 2024		14,343,500	$	136,622	$	86,309		$	222,931
Net income		–		–		4,993			4,993
Cash dividends declared, $0.2108 per share		–		–		(3,025	)		(3,025	)
Issuance of common stock under dividend reinvestment, direct stock and employee stock purchase plans		11,855		419		–			419
Stock-based compensation		5,870		97		–			97
Balance, June 30, 2024		14,361,225	$	137,138	$	88,277		$	225,415

Balance, December 31, 2023		14,332,245	$	136,174	$	85,004		$	221,178
Net income		–		–		9,320			9,320
Cash dividends declared, $0.4216 per share		–		–		(6,047	)		(6,047	)
Issuance of common stock under dividend reinvestment, direct stock and employee stock purchase plans		23,623		824		–			824
Stock-based compensation		5,357		140		–			140
Balance, June 30, 2024		14,361,225	$	137,138	$	88,277		$	225,415

The accompanying notes are an integral part of these statements.

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THE YORK WATER COMPANY

Statements of Cash Flows (Unaudited)

(In thousands of dollars, except per share amounts)

	Six Months Ended June 30
	2025			2024
CASH FLOWS FROM OPERATING ACTIVITIES:
Net income	$	8,690		$	9,320
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation and amortization		7,070			6,350
Stock-based compensation		170			140
Increase (decrease) in deferred income taxes		(155	)		220
Other		244			(73	)
Changes in assets and liabilities:
Increase in accounts receivable and unbilled revenues		(440	)		(557	)
(Increase) decrease in recoverable income taxes		(237	)		332
Increase in materials and supplies inventories, prepaid expenses, prepaid pension cost, deferred regulatory and other assets		(3,319	)		(5,316	)
Increase in accounts payable, accrued compensation and benefits, other accrued expenses, deferred employee benefits, deferred regulatory liabilities, and other deferred credits		1,587			1,444
Increase (decrease) in accrued interest and taxes		(7	)		981
Net cash provided by operating activities		13,603			12,841

CASH FLOWS FROM INVESTING ACTIVITIES:
Utility plant additions, including debt portion of allowance for funds used during construction of $210 in 2025 and $827 in 2024		(22,182	)		(20,867	)
Acquisitions of water and wastewater systems		–			(52	)
Net cash used in investing activities		(22,182	)		(20,919	)

CASH FLOWS FROM FINANCING ACTIVITIES:
Customers’ advances for construction and contributions in aid of construction		2,984			1,928
Repayments of customer advances		(247	)		(262	)
Proceeds of long-term debt issues		26,423			56,565
Debt issuance costs		–			(167	)
Repayments of long-term debt		(13,692	)		(45,377	)
Changes in cash overdraft position		(1,393	)		607
Issuance of common stock		812			824
Dividends paid		(6,308	)		(6,040	)
Net cash provided by financing activities		8,579			8,078

Net change in cash and cash equivalents		–			–
Cash and cash equivalents at beginning of period		1			1
Cash and cash equivalents at end of period	$	1		$	1

Supplemental disclosures of cash flow information:
Cash paid during the period for:
Interest, net of amounts capitalized	$	4,588		$	2,744
Income taxes		470			300

Supplemental disclosure of non-cash investing and financing activities:
Accounts payable includes $5,016 in 2025 and $7,771 in 2024 for the construction of utility plant.

The accompanying notes are an integral part of these statements.

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THE YORK WATER COMPANY

Notes to Interim Financial Statements

(In thousands of dollars, except per share amounts)

1. Basis of Presentation

The interim financial statements are unaudited but, in the opinion of management, reflect all adjustments, consisting of only normal recurring accruals, necessary for a fair presentation of results for such periods. Because the financial statements cover an interim period, they do not include all disclosures and notes normally provided in annual financial statements, and therefore, should be read in conjunction with the financial statements and notes thereto contained in the Company’s Annual Report on Form 10-K for the year ended December 31, 2024.

Operating results for the three and six months ended June 30, 2025 are not necessarily indicative of the results that may be expected for the year ending December 31, 2025.

2. Accounts Receivable and Unbilled Revenue

Accounts receivable are summarized in the following table:

	As of			As of
	Jun. 30, 2025			Dec. 31, 2024			Change

Accounts receivable – customers	$	8,725		$	8,392		$	333
Other receivables		369			467			(98	)
		9,094			8,859			235
Less: allowance for doubtful accounts		(1,610	)		(1,610	)		–
Accounts receivable, net	$	7,484		$	7,249		$	235

Unbilled revenue	$	3,493		$	3,604		$	(111	)

Differences in timing of revenue recognition, billings, and cash collections result in receivables. Generally, billing occurs subsequent to revenue recognition, resulting in unbilled revenue on the balance sheet. The Company does not receive advances or deposits from customers before revenue is recognized so no contract liabilities are reported. Accounts receivable are recorded when the right to consideration becomes unconditional and are presented separately on the balance sheet. The changes in accounts receivable – customers and in unbilled revenue were primarily due to the normal timing difference between performance and the customer’s payments.

3. Common Stock and Earnings Per Share

Net income of $5,052 and $4,993 for the three months ended June 30, 2025 and 2024, respectively, and $8,690 and $9,320 for the six months ended June 30, 2025 and 2024, respectively, is used to calculate both basic and diluted earnings per share. Basic earnings per share is based on the weighted average number of common shares outstanding. Diluted earnings per share is based on the weighted average number of common shares outstanding plus potentially dilutive shares. The dilutive effect of employee stock-based compensation is included in the computation of diluted earnings per share and is calculated using the treasury stock method and expected proceeds upon exercise or issuance of the stock-based compensation.

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The following table summarizes the shares used in computing basic and diluted earnings per share:

	Three Months Ended June 30				Six Months Ended June 30
	2025		2024		2025		2024

Weighted average common shares, basic		14,396,648		14,340,575		14,388,712		14,332,727
Effect of dilutive securities:
Employee stock-based compensation		–		257		–		214
Weighted average common shares, diluted		14,396,648		14,340,832		14,388,712		14,332,941

On March 11, 2013, the Board of Directors, or the Board, authorized a share repurchase program granting the Company authority to repurchase up to 1,200,000 shares of the Company’s common stock from time to time. The stock repurchase program has no specific end date and the Company may repurchase shares in the open market or through privately negotiated transactions. The Company may suspend or discontinue the repurchase program at any time. No shares were repurchased during the three or six months ended June 30, 2025 and 2024. As of June 30, 2025, 618,004 shares remain authorized for repurchase.

4. Debt

For the six months ended June 30, 2025, the Company did not enter into any new long-term debt arrangements or modify its outstanding long-term debt, which is summarized in the table below.

	As of Jun. 30, 2025			As of Dec. 31, 2024

Variable Rate Pennsylvania Economic Development Financing Authority Exempt Facilities Revenue Refunding Bonds, Series 2008A, due 2029	$	12,000		$	12,000
3.00% Pennsylvania Economic Development Financing Authority Exempt Facilities Revenue Refunding Bonds, Series A of 2019, due 2036		10,500			10,500
3.10% Pennsylvania Economic Development Financing Authority Exempt Facilities Revenue Refunding Bonds, Series B of 2019, due 2038		14,870			14,870
3.23% Senior Notes, due 2040		15,000			15,000
4.00% - 4.50% York County Industrial Development Authority Exempt Facilities Revenue Bonds, Series 2015, due 2029 – 2045		10,000			10,000
4.54% Senior Notes, due 2049		20,000			20,000
3.24% Senior Notes, due 2050		30,000			30,000
5.50% Senior Notes, due 2053		40,000			40,000
5.67% Senior Notes, due 2054		40,000			40,000
Committed Line of Credit, due September 2026		28,539			15,808
Total long-term debt		220,909			208,178
Less discount on issuance of long-term debt		(130	)		(136	)
Less unamortized debt issuance costs		(2,393	)		(2,481	)
Less current maturities		(330	)		–
Long-term portion	$	218,056		$	205,561

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5. Interest Rate Swap Agreement

The Company is exposed to certain risks relating to its ongoing business operations. The primary risk managed by using derivative instruments is interest rate risk. The Company utilizes an interest rate swap agreement to effectively convert the Company’s $12,000 variable-rate debt issue to a fixed rate. Interest rate swaps are contracts in which a series of interest rate cash flows are exchanged over a prescribed period. The notional amount on which the interest payments are based ($12,000) is not exchanged. The interest rate swap provides that the Company pays the counterparty a fixed interest rate of 3.16% on the notional amount of $12,000. In exchange, the counterparty pays the Company a variable interest rate based on 59% of the daily simple Secured Overnight Financing Rate plus a spread adjustment of 11.448 basis points on the notional amount. The intent is for the variable rate received from the swap counterparty to approximate the variable rate the Company pays to bondholders on its variable rate debt issue, resulting in a fixed rate being paid to the swap counterparty and reducing the Company’s interest rate risk. The Company’s net payment rate on the swap averaged 0.54% and (0.04)% for the three months ended June 30, 2025 and 2024, respectively, and 0.53% and (0.04)% for the six months ended June 30, 2025 and 2024, respectively.

The interest rate swap agreement is classified as a financial derivative used for non-trading activities. The accounting standards regarding accounting for derivatives and hedging activities require companies to recognize all derivative instruments as either assets or liabilities at fair value on the balance sheet. In accordance with the standards, the interest rate swap is recorded on the balance sheet in other deferred credits at fair value (see Note 6).

The Company uses regulatory accounting treatment rather than hedge accounting to defer the unrealized gains and losses on its interest rate swap. These unrealized gains and losses are recorded as a regulatory asset or regulatory liability. Based on current ratemaking treatment, the Company expects the unrealized gains and losses to be recognized in rates as a component of interest expense as the swap settlements occur. Swap settlements are recorded in the income statement with the hedged item as interest expense. Swap settlements resulted in the reclassification from regulatory assets to interest expense of $16 and $(1) for the three months ended June 30, 2025 and 2024, respectively, and $32 and $(2) for the six months ended June 30, 2025 and 2024, respectively. The overall swap result was a (gain) loss of $55 and $(62) for the three months ended June 30, 2025 and 2024, respectively, and $169 and $(237) for the six months ended June 30, 2025 and 2024, respectively. The Company expects to reclassify $101 before tax from regulatory assets to interest expense as a result of swap settlements over the next 12 months.

The interest rate swap agreement contains provisions that require the Company to maintain a credit rating of at least BBB- with Standard & Poor’s. If the Company’s rating were to fall below this rating, it would be in violation of these provisions, and the counterparty to the derivative could request immediate payment if the derivative was in a liability position. On July 30, 2025, Standard & Poor’s affirmed the Company’s credit rating at A-, with a stable outlook and adequate liquidity. The Company’s interest rate swap was in a liability position as of June 30, 2025. If a violation due to credit rating, or some other default provision, were triggered on June 30, 2025, the Company would have been required to pay the counterparty approximately $535.

The interest rate swap will expire on October 1, 2029. Other than the interest rate swap, the Company has no other derivative instruments.

6. Fair Value of Financial Instruments

The accounting standards regarding fair value measurements establish a fair value hierarchy which indicates the extent to which inputs used in measuring fair value are observable in the market. Level 1 inputs include quoted prices for identical instruments and are the most observable. Level 2 inputs include quoted prices for similar assets and observable inputs such as interest rates, commodity rates and yield curves. Level 3 inputs are not observable in the market and include management’s own judgments about the assumptions market participants would use in pricing the asset or liability.

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The Company has recorded its interest rate swap liability at fair value in accordance with the standards. The liability is recorded under the caption “Other deferred credits” on the balance sheet. The table below illustrates the fair value of the interest rate swap as of the end of the reporting period.

Description		June 30, 2025		Fair Value Measurements at Reporting Date Using Significant Other Observable Inputs (Level 2)
Interest Rate Swap		$525		$525

Fair values are measured as the present value of all expected future cash flows based on the swap yield curve as of the date of the valuation. These inputs to this calculation are deemed to be Level 2 inputs. The balance sheet carrying value reflects the Company’s credit quality as of June 30, 2025. The rate used in discounting all prospective cash flows anticipated to be made under this swap reflects a representation of the yield to maturity for 30-year debt on utilities rated A- as of June 30, 2025. The use of the Company’s credit quality resulted in a reduction in the swap liability of $10 as of June 30, 2024. The fair value of the swap reflecting the Company’s credit quality as of December 31, 2024 is shown in the table below.

Description		December 31, 2024		Fair Value Measurements at Reporting Date Using Significant Other Observable Inputs (Level 2)
Interest Rate Swap		$386		$386

The carrying amount of current assets and liabilities that are considered financial instruments approximates fair value as of the dates presented. The Company’s total long-term debt, with a carrying value of $220,909 at June 30, 2025, and $208,178 at December 31, 2024, had an estimated fair value of approximately $197,000 and $189,000, respectively. The estimated fair value of debt was calculated using a discounted cash flow technique that incorporates a market interest yield curve with adjustments for duration and risk profile. These inputs to this calculation are deemed to be Level 2 inputs. The Company recognized its credit rating in determining the yield curve and did not factor in third-party credit enhancements including the letter of credit on the 2008 Pennsylvania Economic Development Financing Authority Series A issue.

Customers’ advances for construction and note receivable had carrying values at June 30, 2025 of $21,812 and $255, respectively. At December 31, 2024, customers’ advances for construction and note receivable had carrying values of $20,546 and $255, respectively. The relative fair values of these amounts cannot be accurately estimated since the timing of future payment streams is dependent upon several factors, including new customer connections, customer consumption levels and future rate increases.

7. Commitments

The Company was granted approval by the Pennsylvania Public Utility Commission, or PPUC, to modify its tariff to include the cost of the annual replacement of up to 400 lead customer-owned service lines over nine years from the date of the agreement. The tariff modification allows the Company to replace customer-owned service lines at its own initial cost. The Company will record the costs as a regulatory asset to be recovered in future base rates to customers, over a four-year period. The cost for the customer-owned lead service line replacements was approximately $2,018 and $1,961 through June 30, 2025 and December 31, 2024, respectively, and is included as a regulatory asset. Based on its experience, the Company estimates that lead customer-owned service lines replacements will cost $2,100. This estimate is subject to adjustment as more facts become available.

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8. Revenue

The following table shows the Company’s revenues disaggregated by service and customer type.

	Three Months Ended June 30				Six Months Ended June 30
	2025		2024		2025		2024
Water utility service:
Residential	$	10,626	$	10,422	$	20,876	$	20,266
Commercial and industrial		5,214		5,109		10,150		9,765
Fire protection		1,214		1,123		2,404		2,204
Wastewater utility service:
Residential		1,614		1,502		3,196		2,976
Commercial and industrial		349		352		694		668
Billing and revenue collection services		17		122		43		252
Collection services		30		–		33		3
Other revenue		19		6		29		16
Total Revenue from Contracts with Customers		19,083		18,636		37,425		36,150

SEC Form 10-Q filed by York Water Company