RGC Resources, Inc. Reports First Quarter 2026 Earnings
Rhea-AI Summary
RGC Resources (Nasdaq: RGCO) reported consolidated net income of $4.9 million, or $0.47 diluted EPS, for Q1 ended December 31, 2025, on operating revenues of $30.26 million.
Results reflected flat margins and higher personnel, IT, property tax and depreciation costs, partly offset by lower interest expense. The company filed a rate case in December seeking $4.3 million of additional annualized revenue; interim rates took effect January 1, 2026, subject to refund.
Positive
- Operating revenue +10.9% YoY ($30.26M vs $27.29M)
- Current liabilities down 37.6% improving near-term liquidity ($40.10M vs $64.32M)
Negative
- Long-term debt +24% (net $137.997M vs $111.336M) increasing leverage
- Operating income -10.6% ( $6.55M vs $7.33M) reflecting higher operating costs
Key Figures
Market Reality Check
Peers on Argus
RGCO fell 0.4% pre-news with mixed peer moves: OPAL (-2.19%), PCYO (-2.33%), NWN (-0.62%) down, while GWRS (+0.23%) and SPH (+0.45%) rose, suggesting stock-specific rather than broad sector action.
Previous Earnings Reports
| Date | Event | Sentiment | Move | Catalyst |
|---|---|---|---|---|
| Jan 28 | Earnings call schedule | Neutral | -1.9% | Announced timing and access details for Q1 2026 earnings call. |
| Nov 20 | Earnings call schedule | Neutral | -0.5% | Set date and logistics for Q4 2025 earnings conference call. |
| Aug 11 | Quarterly earnings | Positive | +6.2% | Reported stronger Q3 2025 earnings driven by MVP investment contribution. |
| Jul 31 | Earnings call schedule | Neutral | -2.3% | Announced schedule and access for Q3 2025 earnings call. |
| May 06 | Quarterly earnings | Positive | -2.3% | Reported strong Q2 FY2025 earnings with higher utility margins and revenues. |
Earnings-related headlines over the past year have produced modest average moves of about -0.17%, indicating generally muted price reactions to this type of news.
Over the last several quarters, RGC Resources has regularly issued earnings releases and scheduling notices, alongside dividend and annual meeting updates. Notable positives included strong Q2 and Q3 FY2025 results, with higher earnings and margins helped by rate increases and cooler weather. However, even positive earnings reports often saw only small or mixed next-day moves. Today’s Q1 2026 earnings, showing higher revenue but lower net income and EPS, follow that pattern of operational progress tempered by cost pressures and regulatory dynamics.
Historical Comparison
In the past year, RGCO issued 5 earnings-related releases with an average next-day move of -0.17%, showing historically muted reactions to earnings news.
Recent earnings updates show continued utility growth, weather-driven volume variability, and evolving rate outcomes, now including a new Q1 2026 rate case request.
Market Pulse Summary
This announcement highlights higher Q1 2026 operating revenues of $30.26 million but lower net income and diluted EPS, reflecting cost pressures in personnel, IT, taxes and depreciation. Management is pursuing a $4.3 million annualized rate increase and continues infrastructure investments to support customer growth and reliability. Recent history shows generally modest stock reactions to earnings news, so investors may watch regulatory outcomes, expense trends, and subsequent quarters’ margins to gauge financial trajectory.
Key Terms
forward-looking statements regulatory
AI-generated analysis. Not financial advice.
ROANOKE, Va., Feb. 05, 2026 (GLOBE NEWSWIRE) -- RGC Resources, Inc. (Nasdaq: RGCO) announced consolidated Company earnings of
Roanoke Gas remains focused on customer growth and enhanced system reliability and continues to make investments in its utility infrastructure. CEO Paul Nester stated, “Our distribution system performed superbly this quarter. Temperatures fluctuated significantly, averaging to colder than a year ago. However, we did not have the sustained cold period that we experienced last year as reflected in margin. Our steady customer growth has continued with new housing as well as a higher-than-normal number of reconnections this quarter.”
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 2025 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 first quarter are as follows:
| RGC Resources, Inc. and Subsidiaries | ||||||
| Condensed Consolidated Statements of Income | ||||||
| (Unaudited) | ||||||
| Three Months Ended | ||||||
| December 31, | ||||||
| 2025 | 2024 | |||||
| Operating revenues | $ | 30,260,468 | $ | 27,289,486 | ||
| Operating expenses | 23,710,131 | 19,961,465 | ||||
| Operating income | 6,550,337 | 7,328,021 | ||||
| Equity in earnings of unconsolidated affiliates | 827,070 | 854,213 | ||||
| Other income, net | 504,989 | 473,336 | ||||
| Interest expense | 1,671,150 | 1,779,930 | ||||
| Income before income taxes | 6,211,246 | 6,875,640 | ||||
| Income tax expense | 1,328,381 | 1,605,951 | ||||
| Net income | $ | 4,882,865 | $ | 5,269,689 | ||
| Net earnings per share of common stock: | ||||||
| Basic | $ | 0.48 | $ | 0.51 | ||
| Diluted | $ | 0.47 | $ | 0.51 | ||
| Cash dividends per common share | $ | 0.2175 | $ | 0.2075 | ||
| Weighted average number of common shares outstanding: | ||||||
| Basic | 10,219,791 | 10,259,717 | ||||
| Diluted | 10,353,866 | 10,263,997 | ||||
| Condensed Consolidated Balance Sheets | ||||||
| (Unaudited) | ||||||
| December 31, | ||||||
| Assets | 2025 | 2024 | ||||
| Current assets | $ | 32,188,904 | $ | 35,920,737 | ||
| Utility property, net | 277,034,983 | 265,540,721 | ||||
| Other non-current assets | 31,819,846 | 33,711,014 | ||||
| Total Assets | $ | 341,043,733 | $ | 335,172,472 | ||
| Liabilities and Stockholders' Equity | ||||||
| Current liabilities | $ | 40,099,501 | $ | 64,324,575 | ||
| Long-term debt, net | 137,997,452 | 111,336,132 | ||||
| Deferred credits and other non-current liabilities | 46,515,305 | 47,750,676 | ||||
| Total Liabilities | 224,612,258 | 223,411,383 | ||||
| Stockholders' Equity | 116,431,475 | 111,761,089 | ||||
| Total Liabilities and Stockholders' Equity | $ | 341,043,733 | $ | 335,172,472 | ||
| Contact: | Timothy J. Mulvaney |
| VP, Treasurer and CFO | |
| Telephone: | (540) 777-3997 |
FAQ
What were RGC Resources (RGCO) Q1 2026 earnings and EPS reported on Feb 5, 2026?
How did RGC Resources' (RGCO) revenue change in Q1 2026 compared to Q1 2025?
What did RGC Resources (RGCO) request in its December 2025 rate case and what is the status?
Why did RGC Resources (RGCO) report lower net income in Q1 2026 despite higher revenue?
How did RGC Resources' (RGCO) balance sheet change at December 31, 2025?
