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)

Argus May 7 session

+4.28% close to close Open Argus

Details

News Market Reaction – RGCO

On May 7, the first trading day after this news, RGCO closed 4.28% above the previous close.

Data tracked by StockTitan Argus for the May 7 session.

Key Figures

Q2 2026 net income: $8.74M Q2 2026 diluted EPS: $0.84 H1 2026 net income: $13.63M +5 more

Q2 2026 net income

$8.74M

Three months ended March 31, 2026 vs $7.68M in Q2 2025

Q2 2026 diluted EPS

$0.84

Three months ended March 31, 2026 vs $0.74 in Q2 2025

H1 2026 net income

$13.63M

Six months ended March 31, 2026 vs $12.95M in prior-year period

H1 2026 diluted EPS

$1.31

Six months ended March 31, 2026 vs $1.26 in prior-year period

Q2 2026 operating revenues

$45.46M

Three months ended March 31, 2026 vs $36.46M in Q2 2025

Cash dividend per share

$0.2175

Quarterly cash dividend vs $0.2075 in prior-year quarter

Total assets

$337.10M

Condensed consolidated balance sheet at March 31, 2026

Total liabilities

$213.02M

Condensed consolidated balance sheet at March 31, 2026

Previous Earnings Reports

5 past events · Latest: Apr 24

Same Type 5 events

1. Apr 24

   Earnings call schedule

   24h Move

   -1.0%

   Announced date and access details for upcoming Q2 2026 earnings call.

2. Feb 05

   Quarterly earnings

   24h Move

   -2.9%

   Reported Q1 2026 results with flat margins and higher operating costs.

3. Jan 28

   Earnings call schedule

   24h Move

   -1.9%

   Scheduled Q1 2026 earnings call with webcast and dial-in details.

4. Nov 20

   Earnings call schedule

   24h Move

   -0.5%

   Planned call to review Q4 2025 results and provided access information.

5. Aug 11

   Quarterly earnings

   24h Move

   +6.2%

   Reported strong Q3 2025 earnings driven by MVP investment performance.

24h Move is the share-price change in the day after each event; other market factors may also have contributed.

Key Terms

rate case, Dividend Reinvestment and Stock Purchase Plan, Restricted Stock Plan, forward-looking statements

4 terms

rate case regulatory

"the Company has an expedited rate case which is currently being reviewed"

A rate case is a formal process where a company, like a utility, asks regulators to approve higher or lower prices for its services. It matters because the decision affects how much consumers pay and how much the company can earn, impacting everyone's financial interests.

Dividend Reinvestment and Stock Purchase Plan financial

"optional cash contributions under the company’s Dividend Reinvestment and Stock Purchase Plan"

A dividend reinvestment and stock purchase plan lets investors automatically use cash dividends to buy additional shares and often make extra share purchases directly from the company, usually at low or no commission. Think of it as an automatic savings plan for stock: dividends and optional contributions are turned into more shares, helping ownership grow through compounding and making regular investing simple and low-cost—key for long-term investors.

Restricted Stock Plan financial

"restricted shares acquired through dividends reinvested in the Restricted Stock Plan"

A restricted stock plan is a program where a company grants employees or executives shares that are held back until certain conditions are met, such as staying with the company for a set period or hitting performance goals. Think of it like a reward that unlocks over time; for investors it matters because these grants can dilute existing ownership when they vest and signal management’s incentives and confidence in future performance.

forward-looking statements regulatory

"statements in this release that are not historical facts constitute “forward-looking statements”"

Forward-looking statements are predictions or plans that companies share about what they expect to happen in the future, like estimating sales or profits. They matter because they help investors understand a company's outlook, but since they are based on guesses and assumptions, they can sometimes be wrong.

AI-generated analysis. How Rhea-AI works. Not financial advice.

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ROANOKE, Va., May 06, 2026 (GLOBE NEWSWIRE) -- RGC Resources, Inc. (Nasdaq: RGCO) announced consolidated Company earnings of $8.7 million, or $0.84 per diluted share, for the second quarter ended March 31, 2026, compared to $7.7 million, or $0.74 per diluted share, for the second quarter ended March 31, 2025. The increase was the result of higher operating margins which included the positive effect of the Company’s interim base rates under the pending rate case partially offset by increased operating expenses and depreciation. Additionally, higher earnings from the Company’s investment in the Mountain Valley Pipeline, LLC (“MVP”) and lower interest expense contributed to the performance.

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 $13.6 million, or $1.31 per diluted share, was up 5.3% from $12.9 million, or $1.26 per diluted share, in the first six months of the prior year due to stronger operating margins in the second quarter and lower interest expense over the first half of the fiscal year.

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

FAQ

AI-generated questions and answers. How Rhea-AI works. Not financial advice.

What were RGC Resources (RGCO) Q2 2026 earnings per share and net income?

RGC Resources reported Q2 2026 diluted EPS of $0.84 and net income of $8.74 million. According to the company, higher operating margins, MVP earnings, and lower interest expense supported the result.

Why did RGCO revenues rise in the quarter ended March 31, 2026?

Operating revenues rose to $45.46 million in Q2 2026 from $36.46 million a year earlier. According to the company, interim base rates effective Jan 1, 2026 and stronger gas volumes contributed.

How did RGC Resources' involvement in the Mountain Valley Pipeline affect results?

Equity earnings from MVP increased to $0.904 million in Q2 2026, aiding net income. According to the company, MVP delivered benefits to customers and contributed positively to earnings.

What material cost pressures did RGCO report for Q2 2026?

Operating expenses rose to $34.17 million in Q2 2026 from $26.06 million a year earlier. According to the company, higher operating expenses and depreciation partially offset margin gains.

Did RGC Resources change its capital structure in fiscal 2026 to date?

Long-term debt increased to $128.93 million as of March 31, 2026, versus $115.23 million a year earlier. According to the company, total liabilities and assets reflect recent financing and investments.