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 September 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	14,434,680 Shares outstanding as of November 6, 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)

	Sep. 30, 2025			Dec. 31, 2024
ASSETS
UTILITY PLANT, at original cost	$	701,167		$	664,927
Plant acquisition adjustments		(9,781	)		(9,838	)
Accumulated depreciation		(132,006	)		(124,082	)
Net utility plant		559,380			531,007

OTHER PHYSICAL PROPERTY, net of accumulated depreciation of $564 in 2025 and $536 in 2024		1,509			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		7,536			7,249
Unbilled revenues		3,744			3,604
Recoverable income taxes		1,053			587
Materials and supplies inventories, at cost		3,118			3,413
Prepaid expenses		2,207			1,597
Total current assets		17,659			16,451

OTHER LONG-TERM ASSETS:
Prepaid pension cost		25,436			25,009
Note receivable		255			255
Deferred regulatory assets		57,442			54,061
Other assets		5,383			5,156
Total other long-term assets		88,516			84,481

Total Assets	$	667,064		$	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)

	Sep. 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 14,433,475 shares in 2025 and 14,386,282 shares in 2024	$	139,502	$	138,089
Retained earnings		98,519		93,103
Total common stockholders’ equity		238,021		231,192

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

LONG-TERM DEBT		226,993		205,561

COMMITMENTS		–		–

CURRENT LIABILITIES:
Current portion of long-term debt		330		–
Accounts payable		7,475		9,525
Dividends payable		2,911		2,892
Accrued compensation and benefits		1,909		1,806
Accrued interest		1,320		2,490
Deferred regulatory liabilities		840		864
Other accrued expenses		524		712
Total current liabilities		15,309		18,289

DEFERRED CREDITS:
Customers’ advances for construction		22,507		20,546
Deferred income taxes		65,927		61,157
Deferred employee benefits		3,545		3,526
Deferred regulatory liabilities		43,912		43,947
Other deferred credits		510		386
Total deferred credits		136,401		129,562

Contributions in aid of construction		50,340		48,869

Total Stockholders’ Equity and Liabilities	$	667,064	$	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 September 30						Nine Months Ended September 30
	2025			2024			2025			2024

OPERATING REVENUES:	$	20,361		$	19,715		$	58,016		$	56,093

OPERATING EXPENSES:
Operation and maintenance		5,364			4,961			15,398			14,635
Administrative and general		3,070			3,013			9,331			9,244
Depreciation and amortization		3,568			3,297			10,638			9,647
Taxes other than income taxes		445			389			1,366			1,235
		12,447			11,660			36,733			34,761

Operating income		7,914			8,055			21,283			21,332

OTHER INCOME (EXPENSES):
Interest on debt		(2,615	)		(2,243	)		(7,555	)		(6,549	)
Allowance for funds used during construction		218			301			594			1,782
Other pension costs		133			159			398			365
Other income (expenses), net		(32	)		(51	)		(307	)		(266	)
		(2,296	)		(1,834	)		(6,870	)		(4,668	)

Income before income taxes		5,618			6,221			14,413			16,664

Income tax expense (benefit)		(583	)		358			(478	)		1,481

Net Income	$	6,201		$	5,863		$	14,891		$	15,183

Basic Earnings Per Share	$	0.43		$	0.41		$	1.03		$	1.06

Diluted Earnings Per Share	$	0.43		$	0.41		$	1.03		$	1.06

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 September 30, 2025 and 2024

	Common Stock Shares		Common Stock Amount		Retained Earnings			Total

Balance, June 30, 2025		14,420,319	$	139,071	$	95,480		$	234,551
Net income		–		–		6,201			6,201
Cash dividends declared, $0.2192 per share		–		–		(3,162	)		(3,162	)
Issuance of common stock under dividend reinvestment, direct stock and employee stock purchase plans		13,168		390		–			390
Stock-based compensation		(12)		41		–			41
Balance, September 30, 2025		14,433,475	$	139,502	$	98,519		$	238,021

Balance, December 31, 2024		14,386,282	$	138,089	$	93,103		$	231,192
Net income		–		–		14,891			14,891
Cash dividends declared, $0.6576 per share		–		–		(9,475	)		(9,475	)
Issuance of common stock under dividend reinvestment, direct stock and employee stock purchase plans		38,965		1,202		–			1,202
Stock-based compensation		8,228		211		–			211
Balance, September 30, 2025		14,433,475	$	139,502	$	98,519		$	238,021

	Common Stock Shares		Common Stock Amount		Retained Earnings			Total

Balance, June 30, 2024		14,361,225	$	137,138	$	88,277		$	225,415
Net income		–		–		5,863			5,863
Cash dividends declared, $0.2108 per share		–		–		(3,028	)		(3,028	)
Issuance of common stock under dividend reinvestment, direct stock and employee stock purchase plans		10,704		390		–			390
Stock-based compensation		–		48		–			48
Balance, September 30, 2024		14,371,929	$	137,576	$	91,112		$	228,688

Balance, December 31, 2023		14,332,245	$	136,174	$	85,004		$	221,178
Net income		–		–		15,183			15,183
Cash dividends declared, $0.6324 per share		–		–		(9,075	)		(9,075	)
Issuance of common stock under dividend reinvestment, direct stock and employee stock purchase plans		34,327		1,214		–			1,214
Stock-based compensation		5,357		188		–			188
Balance, September 30, 2024		14,371,929	$	137,576	$	91,112		$	228,688

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)

	Nine Months Ended September 30
	2025			2024
CASH FLOWS FROM OPERATING ACTIVITIES:
Net income	$	14,891		$	15,183
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation and amortization		10,638			9,647
Stock-based compensation		211			188
Increase (decrease) in deferred income taxes		(482	)		124
Other		344			111
Changes in assets and liabilities:
Increase in accounts receivable and unbilled revenues		(893	)		(638	)
(Increase) decrease in recoverable income taxes		(466	)		332
Increase in materials and supplies inventories, prepaid expenses, prepaid pension cost, deferred regulatory and other assets		(6,471	)		(7,662	)
Increase in accounts payable, accrued compensation and benefits, other accrued expenses, deferred employee benefits, deferred regulatory liabilities, and other deferred credits		4,830			3,185
Increase (decrease) in accrued interest and taxes		(1,170	)		(79	)
Net cash provided by operating activities		21,432			20,391

CASH FLOWS FROM INVESTING ACTIVITIES:
Utility plant additions, including debt portion of allowance for funds used during construction of $332 in 2025 and $996 in 2024		(37,102	)		(32,993	)
Acquisitions of water and wastewater systems		–			(264	)
Net cash used in investing activities		(37,102	)		(33,257	)

CASH FLOWS FROM FINANCING ACTIVITIES:
Customers’ advances for construction and contributions in aid of construction		4,006			3,042
Repayments of customer advances		(574	)		(452	)
Proceeds of long-term debt issues		43,712			71,764
Debt issuance costs		–			(167	)
Repayments of long-term debt		(22,090	)		(53,305	)
Changes in cash overdraft position		(1,130	)		(181	)
Issuance of common stock		1,202			1,214
Dividends paid		(9,456	)		(9,049	)
Net cash provided by financing activities		15,670			12,866

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	$	8,202		$	5,924
Income taxes		470			629

Supplemental disclosure of non-cash investing and financing activities:
Accounts payable includes $3,089 in 2025 and $7,334 in 2024 for the construction of utility plant.
Contributions in aid of construction in 2024 includes $63 recorded as part of the MESCO, Inc. acquisition.

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 nine months ended September 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
	Sep. 30, 2025			Dec. 31, 2024			Change

Accounts receivable – customers	$	8,737		$	8,392		$	345
Other receivables		409			467			(58	)
		9,146			8,859			287
Less: allowance for doubtful accounts		(1,610	)		(1,610	)		–
Accounts receivable, net	$	7,536		$	7,249		$	287

Unbilled revenue	$	3,744		$	3,604		$	140

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 $6,201 and $5,863 for the three months ended September 30, 2025 and 2024, respectively, and $14,891 and $15,183 for the nine months ended September 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 September 30				Nine Months Ended September 30
	2025		2024		2025		2024

Weighted average common shares, basic		14,412,114		14,354,021		14,396,599		14,339,876
Effect of dilutive securities:
Employee stock-based compensation		38		821		55		211
Weighted average common shares, diluted		14,412,152		14,354,842		14,396,654		14,340,087

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 nine months ended September 30, 2025 and 2024. As of September 30, 2025, 618,004 shares remain authorized for repurchase.

4. Debt

	As of Sep. 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 2027		37,430			15,808
Total long-term debt		229,800			208,178
Less discount on issuance of long-term debt		(127	)		(136	)
Less unamortized debt issuance costs		(2,350	)		(2,481	)
Less current maturities		(330	)		–
Long-term portion	$	226,993		$	205,561

In the third quarter of 2025, the Company renewed its committed line of credit and extended the maturity date to September 2027. No other terms or conditions of the line of credit agreement were modified.

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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 (0.03)% for the three months ended September 30, 2025 and 2024, respectively, and 0.53% and (0.04)% for the nine months ended September 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 September 30, 2025 and 2024, respectively, and $48 and $(3) for the nine months ended September 30, 2025 and 2024, respectively. The overall swap result was a loss of $1 and $252 for the three months ended September 30, 2025 and 2024, respectively, and $170 and $15 for the nine months ended September 30, 2025 and 2024, respectively. The Company expects to reclassify $116 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 September 30, 2025. If a violation due to credit rating, or some other default provision, were triggered on September 30, 2025, the Company would have been required to pay the counterparty approximately $519.

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		September 30, 2025		Fair Value Measurements at Reporting Date Using Significant Other Observable Inputs (Level 2)
Interest Rate Swap		$510		$510

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 September 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 September 30, 2025. The use of the Company’s credit quality resulted in a reduction in the swap liability of $9 as of September 30, 2025. 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 $229,800 at September 30, 2025, and $208,178 at December 31, 2024, had an estimated fair value of approximately $207,000 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 September 30, 2025 of $22,507 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 $2,058 and $1,961 through September 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 operating revenues disaggregated by service and customer type.

	Three Months Ended September 30				Nine Months Ended September 30
	2025		2024		2025		2024
Water utility service:
Residential	$	11,343	$	10,887	$	32,219	$	31,153
Commercial and industrial		5,592		5,527		15,742		15,292
Fire protection		1,240		1,156		3,644		3,360
Wastewater utility service:
Residential		1,695		1,578		4,891		4,554
Commercial and industrial		334		301		1,028		969
Billing and revenue collection services		18		121		61		373
Collection services

SEC Form 10-Q filed by York Water Company