RGC Resources, Inc. Reports Second Quarter Earnings
Rhea-AI Summary
RGC Resources (Nasdaq: RGCO) reported Q2 net income of $8.7M, or $0.84 diluted EPS, versus $7.7M, or $0.74 diluted EPS, a year-over-year increase driven by higher operating margins, interim base rates effective Jan 1, 2026 (subject to refund), stronger MVP earnings, and lower interest expense.
Six-month net income was $13.6M, or $1.31 diluted EPS. Total assets were $337.1M and long-term debt rose to $128.9M as of March 31, 2026.
Positive
- Operating revenues +24.7% QoQ/YoY (Q2 $45.46M vs $36.46M)
- Net income +13.9% YoY (Q2 $8.74M vs $7.68M)
- Equity earnings from MVP +12.9% YoY (Q2 $0.904M vs $0.801M)
Negative
- Operating expenses +31.1% YoY (Q2 $34.17M vs $26.06M)
- Long-term debt +11.9% YoY (Mar 31, 2026 $128.93M vs $115.23M)
Key Figures
Market Reality Check
Peers on Argus
RGCO was up 1.71% pre-release, while momentum peers NXXT and NWN were also moving up (about 2.17% and 1.97%), suggesting a broader regulated gas/utility bid.
Previous Earnings Reports
| Date | Event | Sentiment | Move | Catalyst |
|---|---|---|---|---|
| Apr 24 | Earnings call schedule | Neutral | -1.0% | Announced date and access details for upcoming Q2 2026 earnings call. |
| Feb 05 | Quarterly earnings | Neutral | -2.9% | Reported Q1 2026 results with flat margins and higher operating costs. |
| Jan 28 | Earnings call schedule | Neutral | -1.9% | Scheduled Q1 2026 earnings call with webcast and dial-in details. |
| Nov 20 | Earnings call schedule | Neutral | -0.5% | Planned call to review Q4 2025 results and provided access information. |
| Aug 11 | Quarterly earnings | Positive | +6.2% | Reported strong Q3 2025 earnings driven by MVP investment performance. |
Earnings-related headlines have typically produced small moves, with an average reaction of about -0.03%, and only one clearly strong positive move on notably strong results.
Recent history shows a steady cadence of earnings reports and conference call announcements for RGCO. Prior earnings items, including Q1 2026 results and multiple call schedules, saw generally modest negative to flat price reactions, while strong Q3 2025 earnings with MVP contributions coincided with a more pronounced gain. The current Q2 2026 release continues themes of rate case impacts, MVP earnings contribution, and regulated margin dynamics.
Historical Comparison
Earnings-related headlines for RGCO have typically led to minimal share price reactions, averaging about -0.03%, with only one notably strong positive move on particularly strong results.
Across recent earnings updates, RGCO has highlighted the impact of its rate case, interim rates effective January 1, 2026, and contributions from the Mountain Valley Pipeline, showing a consistent focus on regulated margins and MVP-related earnings.
Market Pulse Summary
This announcement highlights year-over-year gains in Q2 2026 net income and diluted EPS, aided by interim base rates and contributions from the Mountain Valley Pipeline investment, alongside lower interest expense. It continues themes seen in prior updates around rate-case dynamics and regulated margins. Investors may watch forthcoming decisions on the expedited rate case, ongoing operating expense trends, and future earnings contributions from MVP and core utility operations.
Key Terms
rate case regulatory
Dividend Reinvestment and Stock Purchase Plan financial
Restricted Stock Plan financial
forward-looking statements regulatory
AI-generated analysis. Not financial advice.
ROANOKE, Va., May 06, 2026 (GLOBE NEWSWIRE) -- RGC Resources, Inc. (Nasdaq: RGCO) announced consolidated Company earnings of
CEO Paul Nester stated, “We had a strong quarter in which our system performed superbly, particularly during the prolonged cold from Winter Storm Fern. The MVP pipeline delivered as promised across the eastern half of the country including to the benefit of our customers in the Roanoke Valley. Interim rates that became effective at the beginning of January were timely as challenges from inflationary pressures will continue to affect the remainder of the year.”
As noted above and announced last quarter, the Company has an expedited rate case which is currently being reviewed by the State Corporation Commission. Rates went into effect January 1, 2026 and are subject to refund.
Through the first six months of fiscal 2026, the Company’s net income of
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 inflation, customer growth, ratemaking, infrastructure investment and margins. These risks and uncertainties include gas prices and supply, geopolitical considerations, expectations regarding the MVP and the Company’s rate application along with risks included under Item 1-A in the Company’s fiscal 2025 Form 10-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 second quarter and fiscal year to date are as follows:
| RGC Resources, Inc. and Subsidiaries | |||||||||||
| Condensed Consolidated Statements of Income | |||||||||||
| (Unaudited) | |||||||||||
| Three Months Ended | Six Months Ended | ||||||||||
| March 31, | March 31, | ||||||||||
| 2026 | 2025 | 2026 | 2025 | ||||||||
| Operating revenues | $ | 45,457,009 | $ | 36,462,097 | $ | 75,717,477 | $ | 63,751,583 | |||
| Operating expenses | 34,173,059 | 26,062,155 | 57,883,190 | 46,023,620 | |||||||
| Operating income | 11,283,950 | 10,399,942 | 17,834,287 | 17,727,963 | |||||||
| Equity in earnings of unconsolidated affiliates | 903,991 | 801,175 | 1,731,061 | 1,655,388 | |||||||
| Other income, net | 692,421 | 463,633 | 1,197,410 | 936,969 | |||||||
| Interest expense | 1,585,838 | 1,630,275 | 3,256,988 | 3,410,205 | |||||||
| Income before income taxes | 11,294,524 | 10,034,475 | 17,505,770 | 16,910,115 | |||||||
| Income tax expense | 2,550,034 | 2,358,267 | 3,878,415 | 3,964,218 | |||||||
| Net income | $ | 8,744,490 | $ | 7,676,208 | $ | 13,627,355 | $ | 12,945,897 | |||
| Net earnings per share of common stock: | |||||||||||
| Basic | $ | 0.85 | $ | 0.74 | $ | 1.34 | $ | 1.26 | |||
| Diluted | $ | 0.84 | $ | 0.74 | $ | 1.31 | $ | 1.26 | |||
| Cash dividends per common share | $ | 0.2175 | $ | 0.2075 | $ | 0.4350 | $ | 0.4150 | |||
| Weighted average number of common shares outstanding: | |||||||||||
| Basic | 10,232,835 | 10,304,222 | 10,177,581 | 10,281,725 | |||||||
| Diluted | 10,404,657 | 10,308,368 | 10,378,996 | 10,285,939 | |||||||
| Condensed Consolidated Balance Sheets | |||||||||||
| (Unaudited) | |||||||||||
| March 31, | |||||||||||
| Assets | 2026 | 2025 | |||||||||
| Current assets | $ | 25,712,684 | $ | 25,777,943 | |||||||
| Utility property, net | 278,879,716 | 267,560,507 | |||||||||
| Other non-current assets | 32,512,418 | 33,082,837 | |||||||||
| Total Assets | $ | 337,104,818 | $ | 326,421,287 | |||||||
| Liabilities and Stockholders' Equity | |||||||||||
| Current liabilities | $ | 37,334,730 | $ | 45,489,019 | |||||||
| Long-term debt, net | 128,925,540 | 115,226,622 | |||||||||
| Deferred credits and other non-current liabilities | 46,760,043 | 47,872,423 | |||||||||
| Total Liabilities | 213,020,313 | 208,588,064 | |||||||||
| Stockholders' Equity | 124,084,505 | 117,833,223 | |||||||||
| Total Liabilities and Stockholders' Equity | $ | 337,104,818 | $ | 326,421,287 | |||||||
| Contact: | Timothy J. Mulvaney Vice President, Treasurer and CFO |
| Telephone: | (540) 777-3997 |
