On August 6, The York Water Company (NASDAQ:YORW) reported second-quarter and six-month results that moved well past last year’s numbers. Both revenue and net income climbed, largely because a rate increase took effect March 1. But the company also spent the period pouring money into pipes, a wastewater plant, and two small system acquisitions, a reminder that this utility earns its keep underground, not on a store shelf.
Rates And Customers Both Deliver
Second quarter operating revenue reached $23.52 million, up $4.32 million from the same quarter a year earlier. Net income rose to $7.62 million, an increase of $2.56 million, and earnings per share climbed to $0.49 from $0.35. President JT Hand pointed to the March 1 rate increase as the main driver, with growth in the customer base adding further support. The six-month picture tells the same story at a larger scale. Revenue for the first half of 2026 hit $43.59 million, up $5.93 million from $37.66 million a year earlier, while net income rose to $12.43 million from $8.69 million.
Six-month earnings per share landed at $0.82, up $0.22. Income taxes for the half year actually fell, a result of higher deductions tied to IRS tangible property regulations, which let more of that revenue growth flow straight to the bottom line. The company also kept building. It invested $21.1 million in the first six months on main extensions, wastewater treatment plant construction, and an enterprise software upgrade, and spent $0.47 million acquiring two wastewater systems, CMV Sewage Co. in York County and the Pine Run Retirement Community in Adams County.
Growth That Comes With A Bill
The same rate increase that lifted revenue was partially offset by a reset of the Distribution System Improvement Charge back to zero, a Pennsylvania Public Utility Commission mechanism that lets water utilities recover infrastructure replacement costs between rate cases. Higher operation and maintenance expenses, depreciation, and income taxes also chipped away at the second quarter’s gains. And the earnings growth is being spread across more shares.
Average shares outstanding rose to 15,883,000 in the second quarter from 14,397,000 a year earlier, and to 15,165,000 for the six-month period from 14,389,000, which means part of the per-share improvement had to outrun a bigger denominator. The spending isn’t slowing down either. York Water expects to invest another $26.8 million in 2026 alone, excluding acquisitions, on main extensions, the continuing software upgrade, and routine replacements to its pipes and service lines. That is the ongoing cost of running a regulated water and wastewater system built for a growing customer base.
Sentiment Stays Muted But Steady
Hedge fund ownership of York Water slipped to 15 funds from 16 in the prior quarter, a mild pullback rather than a rush for the exits. Short interest sits at 4.28% of the float, which points to some skepticism in the market but nothing close to a crowded bearish bet. The stock trades at a forward price-to-earnings ratio of 25.45 as of September 11, a multiple that prices in steady, utility-style growth rather than anything explosive. Taken together, the numbers describe a stock that isn’t stirring up strong conviction in either direction right now.
The Long Game For A Utility
York Water’s second-quarter and six-month numbers show a rate increase doing exactly what it was designed to do, while the DSIC reset and heavier spending show the flip side of running a capital-intensive utility. Dividends grew alongside earnings, rising to $0.2280 per share for the quarter from $0.2192. For the growth to keep compounding, the company needs future rate cases to keep pace with the $26.8 million in spending still planned for this year. For the bears’ caution to matter more, rising expenses and a growing share count would need to outpace what those rate increases can deliver.
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