RGC Resources, Inc. Reports 2025 Earnings

Rhea-AI Summary

RGC Resources (Nasdaq: RGCO) reported consolidated fiscal 2025 net income of $13.3 million or $1.29 per share for the year ended September 30, 2025, versus $11.8 million, or $1.16 per share, in fiscal 2024. Annual operating revenues rose to $95.33 million from $84.64 million, driven by record gas delivery volumes and higher operating margins, partially offset by inflation and lower equity earnings from the Mountain Valley Pipeline investment.

For Q4 2025 the company reported a seasonal net loss of $204,000 (loss of $0.02 per share) versus quarterly net income of $141,000 in Q4 2024. Total assets were $329.84 million, long-term debt was $145.77 million, and stockholders' equity was $113.55 million as of September 30, 2025.

Positive

• Net income +12.9% year-over-year to $13.3M
• EPS increased +11.2% to $1.29
• Operating revenues +12.6% to $95.33M
• Record annual gas delivery volumes

Negative

• Equity earnings from MVP down ~16% to $3.23M
• Quarter ended Sept 30, 2025 reported seasonal net loss of $204K
• Long-term debt increased to $145.77M (up ~6.6%)

Insights

Senior Utilities Financial Analyst

Full-year earnings rose to $13.3 million, driven by record gas volumes and higher margins; Q4 was a modest seasonal loss.

The company reported consolidated net income of $13.3 million for the year ended September 30, 2025 versus $11.8 million the prior year, producing diluted EPS of $1.29 compared with $1.16. Annual operating revenue increased to $95.33 million from $84.64 million, while operating income rose to $18.45 million from $17.08 million, reflecting higher delivered volumes and improved operating margins.

Quarterly results weakened seasonally, producing a small net loss of $204,000 for Q4, driven by higher expense levels and the absence of prior-period allowance for funds used during construction in equity earnings from the Mountain Valley Pipeline. Watch operating expense trends, MVP equity earnings recognition, and interest costs given long-term debt moved to $145.8 million; near-term monitoring through the next annual report and upcoming quarterly filings is appropriate.

Corporate Finance & Capital Structure Expert

Earnings growth and infrastructure investment improved equity, but leverage and quarterly seasonality warrant attention.

Total assets grew to $329.84 million and stockholders' equity increased to $113.55 million, reflecting capital investment in utility property (now $274.91 million net). Long-term debt rose to $145.77 million, and management noted a successful refinancing and maturity extension for RGC Midstream in September, which reduces immediate refinancing risk.

Key dependencies include sustained customer growth from infrastructure investments and the timing/level of MVP equity earnings; monitor cash dividends per share ($0.83 for the year) and operating expense trends in the next two quarters to assess whether annual margin gains persist into the next heating season.

ROANOKE, Va., Nov. 19, 2025 (GLOBE NEWSWIRE) -- RGC Resources, Inc. (Nasdaq: RGCO) announced consolidated Company earnings of $13.3 million, or $1.29 per share, for the fiscal year ended September 30, 2025, compared to $11.8 million, or $1.16 per share, for the fiscal year ended September 30, 2024. The strong increase reflected record levels of gas deliveries aided by higher operating margins, partially offset by inflationary cost increases and lower equity earnings from the Company’s investment in the Mountain Valley Pipeline (MVP). MVP’s equity earnings in the first three quarters of fiscal 2024 contained significant allowance for funds used during construction.

Roanoke Gas made further investments in its utility infrastructure to drive customer growth and enhance system reliability. CEO Paul Nester stated, “We delivered gas effectively and efficiently to all of our customers in what turned out to be one of the coldest winters in the last decade, resulting in the highest annual volume of gas we have ever delivered. Also, we are pleased to have successfully refinanced and extended the maturity of RGC Midstream’s debt in September.”

Net loss for the quarter ended September 30, 2025 was $204,000, or $0.02 per share, compared to net income of $141,000, or $0.01 per share, for the quarter ended September 30, 2024. The fourth quarter is seasonally weaker and had higher expense levels year over year, which resulted in a modest loss.

RGC Resources, Inc. provides energy and related products and services to customers in Virginia through its operating subsidiaries Roanoke Gas Company and RGC Midstream, LLC.

The statements in this release that are not historical facts constitute “forward-looking statements” made pursuant to the safe harbor provision of the Private Securities Litigation Reform Act of 1995 that involve risks and uncertainties. In order to comply with the terms of the safe harbor, the Company notes that a variety of factors could cause the Company’s actual results and experience to differ materially from any expectations expressed in the Company’s forward-looking statements, regarding customer growth, infrastructure investment and margins. These risks and uncertainties include inflation, gas prices and supply, geopolitical considerations, expectations regarding the rate making, MVP operation and Southgate and Boost construction, along with risks included under Item 1-A in the Company’s fiscal 2024 Form10-K. Forward-looking statements reflect the Company’s current expectations only as of the date they are made. The Company assumes no duty to update these statements should expectations change or actual results differ from current expectations except as required by applicable laws and regulations.

Past performance is not necessarily a predictor of future results.

Summary financial statements for the fourth quarter and twelve months are as follows:

RGC Resources, Inc. and Subsidiaries
Condensed Consolidated Statements of Income
(Unaudited)
		Three Months Ended							Twelve Months Ended
		September 30,							September 30,
			2025				2024			2025			2024
Operating revenues		$	14,318,014			$	13,104,302		$	95,334,212		$	84,641,232
Operating expenses			14,795,036				12,861,881			76,886,711			67,559,472
Operating income (loss)			(477,022	)			242,421			18,447,501			17,081,760
Equity in earnings of unconsolidated affiliate			807,162				872,048			3,234,632			3,851,871
Other income, net			1,051,914				887,837			2,232,883			1,028,761
Interest expense			1,620,552				1,734,906			6,543,511			6,504,885
Income (loss) before income taxes			(238,498	)			267,400			17,371,505			15,457,507
Income tax expense (benefit)			(34,159	)			126,578			4,091,535			3,696,611
Net income (loss)		$	(204,339	)		$	140,822		$	13,279,970		$	11,760,896
Net earnings (loss) per share of common stock:
Basic		$	(0.02	)		$	0.01		$	1.29		$	1.16
Diluted		$	(0.02	)		$	0.01		$	1.29		$	1.16
Cash dividends per common share		$	0.2075			$	0.2000		$	0.8300		$	0.8000
Weighted average number of common shares outstanding:
Basic			10,333,432				10,223,785			10,304,109			10,152,909
Diluted			10,338,346				10,228,365			10,308,686			10,156,480
Condensed Consolidated Balance Sheets
(Unaudited)
						September 30,
Assets							2025			2024
Current assets						$	23,319,191		$	25,072,301
Utility property, net							274,913,583			262,041,454
Other non-current assets							31,606,792			33,585,468
Total Assets						$	329,839,566		$	320,699,223
Liabilities and Stockholders' Equity
Current liabilities						$	22,539,724		$	28,698,430
Long-term debt, net							145,769,163			136,672,908
Deferred credits and other non-current liabilities							47,977,889			47,191,110
Total Liabilities							216,286,776			212,562,448
Stockholders' Equity							113,552,790			108,136,775
Total Liabilities and Stockholders' Equity						$	329,839,566		$	320,699,223

Contact:	Timothy J. Mulvaney
	VP, Treasurer and CFO
Telephone:	(540) 777-3997

FAQ

What were RGC Resources (RGCO) fiscal 2025 net income and EPS on November 19, 2025?

RGC Resources reported fiscal 2025 net income of $13.3 million and EPS of $1.29 for the year ended September 30, 2025.

Why did RGCO quarterly results show a loss in Q4 2025?

The company cited seasonal weakness and higher expense levels, resulting in a Q4 2025 net loss of $204,000.

How did RGC Resources' revenue change in fiscal 2025 compared to 2024?

Operating revenues increased to $95.33 million in fiscal 2025 from $84.64 million in fiscal 2024, a ~12.6% rise.

What impact did the Mountain Valley Pipeline have on RGCO's 2025 results?

Equity earnings from the Mountain Valley Pipeline decreased, contributing to lower equity earnings versus fiscal 2024 ($3.23M in 2025).

What are RGCO's key balance sheet figures as of September 30, 2025?

As of Sept 30, 2025 total assets were $329.84M, long-term debt was $145.77M, and stockholders' equity was $113.55M.

Did RGC Resources change its dividend in fiscal 2025?

Cash dividends per common share increased slightly to $0.83 for fiscal 2025 from $0.80 in fiscal 2024.