RGC Resources, Inc. Reports Third Quarter Earnings
Rhea-AI Summary
RGC Resources (Nasdaq: RGCO) reported third quarter 2026 consolidated net income of $559,000, or $0.05 per diluted share, slightly above $538,000, or $0.05 per diluted share, in the prior-year quarter. Operating margin rose by $757,000, aided by higher non-gas base rates effective January 1, 2026, but higher operating expenses of a similar magnitude led to a small decline in operating income to $1.17 million from $1.20 million.
For the first nine months of fiscal 2026, net income increased to $14.2 million, or $1.37 per diluted share, compared to $13.5 million, or $1.31 per share, driven by stronger operating margins and lower interest expense. Nine-month operating revenues rose to $92.8 million from $81.0 million. Quarterly cash dividends per share were raised to $0.2175 from $0.2075. According to the company, results reflected improved base-rate margins, SAVE investment, residential growth, offset by inflation and the loss of an industrial customer.
Positive
- Nine-month net income increased to $14.2 million from $13.5 million
- Diluted EPS year-to-date rose to $1.37 from $1.31
- Nine-month operating revenues grew to $92.8 million from $81.0 million
- Operating income year-to-date edged up to $19.0 million from $18.9 million
- Quarterly cash dividend increased to $0.2175 from $0.2075 per share
- Stockholders' equity increased to $122.9 million from $116.3 million
Negative
- Q3 operating income declined slightly to $1.17 million from $1.20 million
- Q3 operating revenues slipped to $17.1 million from $17.3 million
- Inflation and industrial customer closure offset margin gains, per management
- Long-term debt rose to $145.6 million from $139.7 million
- Q3 interest expense increased modestly to $1.55 million from $1.51 million
Key Figures
Previous Earnings Reports
| Date | Event | Sentiment | 24h Move | Catalyst |
|---|---|---|---|---|
| May 06 | Q2 earnings report | Positive | +4.3% | Higher margins and lower interest expense lifted Q2 net income and diluted EPS |
| Apr 24 | Q2 earnings scheduling | Neutral | -1.0% | Scheduled fiscal second-quarter results and webcast, followed by a -1.04% 24-hour reaction |
| Feb 05 | Q1 earnings report | Negative | -2.9% | Flat margins and higher costs accompanied Q1 results, followed by a -2.85% reaction |
| Jan 28 | Q1 earnings scheduling | Neutral | -1.9% | Scheduled fiscal first-quarter results and webcast, followed by a -1.9% 24-hour reaction |
| Nov 20 | Q4 earnings scheduling | Neutral | -0.5% | Scheduled fiscal fourth-quarter results and webcast, followed by a -0.52% reaction |
24h Move is the share-price change in the day after each event; other market factors may also have contributed.
Earnings-tagged events averaged -0.41%, with the prior reported earnings release followed by a 4.28% gain while several scheduling notices had negative reactions.
Key Terms
safe harbor provision regulatory
ratemaking regulatory
interruptible volumes technical
AI-generated analysis. How Rhea-AI works. Not financial advice.
ROANOKE, Va., Aug. 05, 2026 (GLOBE NEWSWIRE) -- RGC Resources, Inc. (Nasdaq: RGCO) announced consolidated earnings of
CEO Paul Nester stated, “This year’s third quarter included improved margins from higher base rates and SAVE investment, as well as continued residential growth, offset by persistent inflation and the effect of an industrial customer ceasing operations. Delivered firm volumes were steady to the prior year, and interruptible volumes to industrial customers increased, albeit at lower-tiered margins.”
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 updated by the Company’s March 31, 2026 Form 10-Q. 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 third quarter and fiscal year to date are as follows:
| RGC Resources, Inc. and Subsidiaries | ||||||||||||
| Condensed Consolidated Statements of Income | ||||||||||||
| (Unaudited) | ||||||||||||
| Three Months Ended | Nine Months Ended | |||||||||||
| June 30, | June 30, | |||||||||||
| 2026 | 2025 | 2026 | 2025 | |||||||||
| Operating revenues | $ | 17,105,393 | $ | 17,264,615 | $ | 92,822,870 | $ | 81,016,198 | ||||
| Operating expenses | 15,933,124 | 16,068,055 | 73,816,314 | 62,091,675 | ||||||||
| Operating income | 1,172,269 | 1,196,560 | 19,006,556 | 18,924,523 | ||||||||
| Equity in earnings of unconsolidated affiliates | 764,178 | 772,082 | 2,495,239 | 2,427,470 | ||||||||
| Other income, net | 328,966 | 244,000 | 1,526,376 | 1,180,969 | ||||||||
| Interest expense | 1,551,750 | 1,512,754 | 4,808,738 | 4,922,959 | ||||||||
| Income before income taxes | 713,663 | 699,888 | 18,219,433 | 17,610,003 | ||||||||
| Income tax expense | 154,763 | 161,476 | 4,033,178 | 4,125,694 | ||||||||
| Net income | $ | 558,900 | $ | 538,412 | $ | 14,186,255 | $ | 13,484,309 | ||||
| Net earnings per share of common stock: | ||||||||||||
| Basic | $ | 0.05 | $ | 0.05 | $ | 1.39 | $ | 1.31 | ||||
| Diluted | $ | 0.05 | $ | 0.05 | $ | 1.37 | $ | 1.31 | ||||
| Cash dividends per common share | $ | 0.2175 | $ | 0.2075 | $ | 0.6525 | $ | 0.6225 | ||||
| Weighted average number of common shares outstanding: | ||||||||||||
| Basic | 10,276,190 | 10,319,232 | 10,210,450 | 10,294,227 | ||||||||
| Diluted | 10,418,876 | 10,324,165 | 10,392,293 | 10,298,688 | ||||||||
| Condensed Consolidated Balance Sheets | ||||||||||||
| (Unaudited) | ||||||||||||
| June 30, | ||||||||||||
| Assets | 2026 | 2025 | ||||||||||
| Current assets | $ | 22,006,819 | $ | 21,595,712 | ||||||||
| Utility property, net | 282,505,823 | 270,538,465 | ||||||||||
| Other non-current assets | 35,146,489 | 32,623,816 | ||||||||||
| Total Assets | $ | 339,659,131 | $ | 324,757,993 | ||||||||
| Liabilities and Stockholders' Equity | ||||||||||||
| Current liabilities | $ | 23,406,692 | $ | 20,695,773 | ||||||||
| Long-term debt, net | 145,607,087 | 139,743,390 | ||||||||||
| Deferred credits and other non-current liabilities | 47,771,173 | 48,057,512 | ||||||||||
| Total Liabilities | 216,784,952 | 208,496,675 | ||||||||||
| Stockholders' Equity | 122,874,179 | 116,261,318 | ||||||||||
| Total Liabilities and Stockholders' Equity | $ | 339,659,131 | $ | 324,757,993 | ||||||||
Contact: Timothy J. Mulvaney
Vice President, Treasurer and CFO
Telephone: (540) 777-3997
