Based on the provided financial report, I generated the title for the article: "York Water Company Reports Financial Results for the Quarter Ended March 31, 2025" Please note that the title may not be exact, as the provided text is a financial report and not a news article.

Overview of the Company’s Financial Performance

The Company, which primarily operates in the water and wastewater utility business, reported a decrease in net income for the first quarter of 2025 compared to the same period in 2024. The key factors contributing to this decline were:

• Lower allowance for funds used during construction
• Higher operating expenses, particularly for depreciation, maintenance, water treatment, and wages/benefits
• Higher interest expense due to rising interest rates

These negative impacts were partially offset by:

• Higher operating revenues driven by customer growth and increased consumption
• Lower pension costs

Revenue and Profit Trends

Operating revenues increased by 4.7% in the first quarter of 2025 compared to the same period in 2024, primarily due to growth in the customer base. The average number of water customers increased by 1,238 and the average number of wastewater customers increased by 358, mainly from acquisitions. The Company also saw a 3.2% increase in total per capita consumption.

However, net income declined by 15.9% in the first quarter of 2025 compared to the same period in 2024. This was driven by higher operating expenses, particularly for depreciation, maintenance, water treatment, and wages/benefits. Interest expense also increased due to rising interest rates. These factors more than offset the increase in operating revenues.

For the remainder of 2025, the Company expects revenues to show a modest increase due to the distribution system improvement charge (DSIC) and continued customer growth. Operating expenses are also expected to rise further due to higher depreciation, water/wastewater treatment costs, and maintenance expenses.

Strengths and Weaknesses

Strengths:

• Diversified customer base not dependent on any single large customer
• Adequate water supply and storage capacity to meet customer demand
• Ability to obtain timely and adequate rate increases from the regulator
• Ongoing initiatives to expand the customer base through acquisitions and bulk water contracts

Weaknesses:

• Vulnerability to weather conditions, particularly prolonged hot and dry periods that can impact water usage and revenues
• Rising operating costs, especially for depreciation, maintenance, and water/wastewater treatment
• Increasing interest expense due to higher interest rates on debt

Outlook

The Company’s outlook for the remainder of 2025 is cautiously optimistic. While revenues are expected to show modest growth from the DSIC and customer additions, operating expenses are also projected to rise further. Interest expense is also likely to increase as interest rates remain elevated.

The Company is pursuing various growth initiatives, including acquisitions and bulk water contracts, to help offset any potential declines in per capita water consumption. It also plans to continue investing in infrastructure improvements, which should support future revenue growth.

Overall, the Company appears to be navigating the current operating environment reasonably well, but will need to carefully manage its costs and continue seeking timely and adequate rate relief to maintain profitability.