Here are 1-3 brief analogies for The York Water Company (YORW):

• Like your local electric utility, but for water and wastewater services.
• American Water Works (AWK) for south-central Pennsylvania.

• Drinking Water Distribution: Provides impounded, purified, and distributed drinking water to residential, commercial, and industrial customers.
• Wastewater Collection and Treatment: Operates systems for the collection and treatment of wastewater.

Major Customers of The York Water Company (YORW)

The York Water Company serves a diverse customer base and does not primarily sell to a few major public companies whose names would be disclosed. Instead, it serves a large number of customers across different categories within its 51 municipalities in south-central Pennsylvania. Its major customer categories include:

• Residential Customers: Individuals and households within the 51 municipalities that consume drinking water and utilize wastewater services for their homes.
• Commercial and Industrial Customers: A wide range of businesses and industries located within its service territory. The company specifically lists serving industries such as fixtures and furniture, electrical machinery, food products, paper, ordnance units, textile products, air conditioning systems, laundry detergents, barbells, and motorcycle industries. These represent various commercial and industrial enterprises that require water for their operations and wastewater treatment services.

Joseph "JT" Hand, President & Chief Executive Officer

Joseph "JT" Hand is the 22nd President and Chief Executive Officer of The York Water Company, appointed on March 1, 2020. Prior to this role, he served as the Chief Operating Officer from 2008 to 2020, where he directed the majority of the Company's operations and executed growth and quality strategies. Before joining The York Water Company, Mr. Hand served 22 years on Active Duty in the US Army, concluding his service as Deputy Commander and Deputy District Engineer for the Baltimore District, U.S. Army Corps of Engineers. He holds a Bachelor of Science in Civil Engineering from the University of Vermont and a Master's Degree in Business Administration from York College of Pennsylvania. Mr. Hand is also a Director of the National Association of Water Companies and Chair of its Pennsylvania Chapter.

Matthew "Matt" E. Poff, Chief Financial Officer & Treasurer

Matthew "Matt" E. Poff has held the position of Chief Financial Officer and Treasurer of The York Water Company since January 2018. Before becoming CFO, he served as the Company's Controller from 2009 to 2017. Prior to joining York Water, Mr. Poff was the CFO for a regional contractor and held various positions of increasing responsibility at Beard Miller Company LLP, a regional accounting firm in York, PA, for over ten years.

Alexandra "Alex" C. Chiaruttini, Chief Administrative Officer & General Counsel

Alexandra "Alex" C. Chiaruttini joined The York Water Company in 2020 as Chief Administrative Officer and General Counsel. She brought over 15 years of experience from private practice as an environmental attorney, focusing on water, wastewater, and water resource issues in the mid-Atlantic region. Ms. Chiaruttini earned a Bachelor's degree in Behavioral Neuroscience from Lehigh University, a Master of Science degree from Duquesne University, and a J.D. from The Dickinson School of Law.

Matthew J. Scarpato, Chief Operating Officer

Matthew J. Scarpato was appointed Chief Operating Officer of The York Water Company, effective October 1, 2025. He previously served as the Vice President of Operations from July 2023 to October 2025. Before joining York Water, Mr. Scarpato held roles as Vice President of Operations and Chief Financial Officer in the Senior Living industry from 2020 to 2023, and as Chief Operating Officer and Chief Financial Officer of the York Jewish Community Center from 2010 to 2020. His background also includes positions in consulting and banking.

Mark S. Snyder, Vice President of Engineering

Mark S. Snyder has been the Vice President of Engineering at The York Water Company since May 2009. His earlier roles within the Company include Engineering Manager from October 2007 to April 2009 and Engineer from December 2006 to October 2007. Before his tenure at York Water, Mr. Snyder worked as a project manager and design engineer for several consulting firms in the Mid-Atlantic region, such as Buchart Horn, RETTEW, and KCI Technologies. He is a licensed Professional Engineer in Pennsylvania and holds a Bachelor's Degree in Civil Engineering and a Master's Degree in Environmental Engineering from The Pennsylvania State University.

The York Water Company (YORW) faces several key risks inherent to its nature as a regulated water and wastewater utility. These risks primarily revolve around the substantial capital demands for infrastructure, the regulatory environment governing rate approvals, and the impact of broader economic conditions.

1. Infrastructure Investment Needs and Rising Costs: The York Water Company has significant and ongoing capital expenditure requirements to maintain, upgrade, and expand its aging water and wastewater infrastructure. This includes projects like rehabilitating dams, replacing water mains, and expanding treatment plants. Such heavy capital spending has led to consistently negative free cash flow in past years, necessitating external financing and contributing to rising debt and interest expenses. The increased operational costs associated with these investments also put pressure on the company's profitability.
2. Regulatory Risks and Rate Approvals: As a regulated utility, YORW's financial performance is heavily influenced by actions from regulatory bodies, particularly the Pennsylvania Public Utility Commission (PPUC). The company's ability to recover its substantial infrastructure investment costs and achieve an allowed return on invested capital is directly dependent on timely and favorable rate approvals. Delays in regulatory decisions or unfavorable rate-setting can significantly impact revenue growth and financial stability.
3. Economic Conditions and Interest Rate Sensitivity: The company's performance is sensitive to broader economic trends, including inflation and fluctuating interest rates. Rising interest rates directly increase the cost of debt, impacting profitability, especially given the company's need for external financing for capital projects. Economic downturns could also affect customer demand or their ability to pay.

The addressable market for The York Water Company's main products and services in Pennsylvania is estimated as follows:

• Drinking Water Services: The market size for Water Supply & Irrigation Systems in Pennsylvania is projected to be $14.4 billion in 2026.
• Wastewater Services: The market size for Waste Treatment & Disposal Services in Pennsylvania is projected to be $1.5 billion in 2026.

The York Water Company provides drinking water and wastewater services to over 214,000 people across 58 municipalities within Adams, Franklin, and York Counties in south-central Pennsylvania.

The York Water Company (YORW) is expected to drive future revenue growth over the next 2-3 years through a combination of customer expansion, infrastructure-related charges, regulated rate increases, strategic acquisitions, and ongoing capital investments.

Here are the key drivers:

1. Growth in Customer Base: The company consistently identifies growth in its customer base as a primary contributor to revenue increases. For instance, operating revenues for 2025 increased, primarily driven by customer base growth. Similarly, growth in the customer base also added to revenues in 2023 and 2024.
2. Distribution System Improvement Charge (DSIC): As a regulated utility, YORW leverages the Pennsylvania Public Utility Commission-allowed Distribution System Improvement Charge (DSIC) to recover costs associated with replacing aging infrastructure. This charge has been a consistent revenue driver, contributing to increased operating revenues in 2023, 2024, and 2025.
3. Rate Increases: Increases in approved rates are a significant driver for revenue growth. An increase in rates effective March 1, 2023, was a primary factor in the company's increased revenues for both 2023 and 2024. Analysts also point to a pending rate case decision as a potential catalyst for future growth.
4. Strategic Acquisitions: York Water actively pursues the acquisition of water and wastewater systems to expand its service territory and customer base. In 2025, the company added approximately 1,655 net water and wastewater customers, with acquisitions driving wastewater customer growth. Multiple pending acquisitions are expected to add roughly 535 more customers. The company invested in the acquisition of water and wastewater systems in 2023 and 2024.
5. Capital Investments and Infrastructure Projects: Significant ongoing capital expenditures in infrastructure are fundamental to enabling customer growth and justifying future rate adjustments. The company invested $48.7 million in 2025 on infrastructure projects, including main extensions and system upgrades. York Water anticipates investing approximately $48 million annually in both 2026 and 2027 for projects such as water treatment plant construction, pipeline replacements, and main extensions, all aimed at enhancing service and meeting growing customer demand. These investments are crucial for long-term sustainable growth and the justification of future rate increases.

Capital Allocation Decisions for The York Water Company (YORW)

Outbound Investments

• In 2026, The York Water Company acquired the wastewater collection and treatment assets serving the Chanceford Crossing community, adding approximately 280 customers.
• In 2025, the company announced an agreement to acquire the wastewater system assets within the Pine Run Retirement Community in Adams County, which would add 141 wastewater customers upon full build-out.
• In 2024, York Water invested a combined $783,000 in the acquisition of four water systems and two wastewater systems.

Capital Expenditures

• The York Water Company invested $48.7 million in capital projects in 2025, which included main extensions, enterprise software upgrades, and infrastructure replacements, such as replacing about 54,100 feet of water main and 1,800 feet of wastewater main.
• The company anticipates investing approximately $48 million in each of 2026 and 2027, excluding acquisitions, for projects like water treatment plant construction, pipeline replacements, and routine system improvements.
• In 2024, capital expenditures amounted to $48.2 million for projects including armoring and replacing the spillway of the Lake Williams dam, wastewater treatment plant construction, and replacing approximately 50,200 feet of pipe.