RGC Resources, Inc. Reports Third Quarter Earnings

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.

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

Argus Aug 6 session 1 alert

+1.11% close to close 0.3x rel. volume Open Argus

Details

News Market Reaction – RGCO

$214.27M Market Cap

In the Aug 6 session, RGCO gained 1.11%, reflecting a mild positive market reaction.

Data tracked by StockTitan Argus on the day of publication.

Market Context

Insider context recorded Net Buying, with 46 shares bought and 0 sold across 6 transactions. This ad...

Analysis

Insider context recorded Net Buying, with 46 shares bought and 0 sold across 6 transactions. This adds ownership-activity context to the earnings report, while lower-tiered industrial margins and persistent inflation remain risks to monitor.

Key Figures

Q3 net income: $559,000 Q3 diluted EPS: $0.05 Operating margin increase: $757,000 +5 more

Q3 net income

$559,000

Three months ended June 30, 2026, versus $538,000 in 2025

Q3 diluted EPS

$0.05

Three months ended June 30, 2026, versus $0.05 in 2025

Operating margin increase

$757,000

Third quarter compared with the equivalent period a year earlier

Q3 operating income

$1,172,269

Three months ended June 30, 2026, versus $1,196,560 in 2025

Nine-month net income

$14.2 million

First nine months of fiscal 2026, up 5.2% year over year

Nine-month diluted EPS

$1.37

First nine months of fiscal 2026, versus $1.31 a year earlier

Nine-month net income growth

5.2%

Fiscal 2026 first nine months versus a year earlier

Q3 operating revenues

$17,105,393

Three months ended June 30, 2026, versus $17,264,615 in 2025

Previous Earnings Reports

5 past events · Latest: May 06

Same Type 5 events

1. May 06

   Q2 earnings report

   24h Move

   +4.3%

   Higher margins and lower interest expense lifted Q2 net income and diluted EPS

2. Apr 24

   Q2 earnings scheduling

   24h Move

   -1.0%

   Scheduled fiscal second-quarter results and webcast, followed by a -1.04% 24-hour reaction

3. Feb 05

   Q1 earnings report

   24h Move

   -2.9%

   Flat margins and higher costs accompanied Q1 results, followed by a -2.85% reaction

4. Jan 28

   Q1 earnings scheduling

   24h Move

   -1.9%

   Scheduled fiscal first-quarter results and webcast, followed by a -1.9% 24-hour reaction

5. Nov 20

   Q4 earnings scheduling

   24h Move

   -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.

Key Terms

safe harbor provision, ratemaking, interruptible volumes

3 terms

safe harbor provision regulatory

"safe harbor provision of the Private Securities Litigation Reform Act of 1995"

A safe harbor provision is a legal clause that shields a party from liability when it follows specified rules or makes certain kinds of statements, such as forecasts or plans, accompanied by required warnings and facts. For investors it matters because it encourages companies to share projections and explanations without fear of automatic lawsuits, much like a seatbelt lets you drive knowing there’s some protection if something goes wrong while still requiring careful behavior.

ratemaking regulatory

"regarding inflation, customer growth, ratemaking, infrastructure investment and margins"

The process regulators and insurance companies use to set the prices (premiums) charged for insurance policies. It combines estimates of future claims, expenses, profit margins and risk factors, and often requires regulatory approval; like a business choosing menu prices based on cost and likely demand, ratemaking determines how much revenue an insurer can collect and how pricing may affect competitiveness and financial results.

interruptible volumes technical

"and interruptible volumes to industrial customers increased"

Interruptible volumes are amounts of a commodity or service—most often natural gas or electricity—sold under contracts that allow the supplier to reduce or cut deliveries when system demand is high or supply is constrained. Like a back-up phone plan that can be paused during busy times, these volumes usually cost less but carry the risk of interruption, so they affect a buyer’s operational reliability and a seller’s revenue predictability.

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

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ROANOKE, Va., Aug. 05, 2026 (GLOBE NEWSWIRE) -- RGC Resources, Inc. (Nasdaq: RGCO) announced consolidated earnings of $559,000, or $0.05 per diluted share, for the third quarter ended June 30, 2026, compared to $538,000, or $0.05 per diluted share, for the third quarter ended June 30, 2025. Operating margin for the third quarter was $757,000 higher than the equivalent period a year earlier aided by higher non-gas base rates that became effective January 1, 2026. Operating expenses were higher by a similar amount resulting in a nominal decline in operating earnings.

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 $14.2 million, or $1.37 per diluted share, in the first nine months of fiscal 2026 was up 5.2% from $13.5 million, or $1.31 per diluted share, a year earlier due to stronger operating margins and lower interest expense, particularly early in the 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 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

FAQ

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

How did RGC Resources (RGCO) perform in the third quarter of 2026?

RGC Resources reported third quarter 2026 net income of $559,000, or $0.05 per diluted share, slightly above the prior year. According to the company, higher base-rate margins and SAVE investment were offset by inflation and the shutdown of an industrial customer.

What were RGC Resources (RGCO) year-to-date 2026 earnings and EPS?

For the first nine months of fiscal 2026, RGC Resources earned $14.2 million, or $1.37 per diluted share, up from $13.5 million, or $1.31, a year earlier. According to the company, the improvement came from stronger operating margins and lower interest expense.

How did RGC Resources (RGCO) revenues change in the first nine months of 2026?

Nine-month fiscal 2026 operating revenues increased to $92.8 million from $81.0 million a year earlier. According to the company, higher non-gas base rates effective January 1, 2026 and residential customer growth contributed to stronger operating margins despite inflationary pressures.

Did RGC Resources (RGCO) increase its dividend in the third quarter of 2026?

Yes. RGC Resources paid a third quarter 2026 cash dividend of $0.2175 per share, up from $0.2075 a year earlier. According to the company, year-to-date dividends totaled $0.6525 per share versus $0.6225 in the prior-year period.

What factors affected RGC Resources (RGCO) margins and volumes in Q3 2026?

According to RGC Resources, third quarter 2026 margins benefited from higher base rates, SAVE investment and continued residential growth. These were offset by persistent inflation and an industrial customer ceasing operations, with firm volumes steady and interruptible industrial volumes higher but at lower-tiered margins.

How did RGC Resources (RGCO) interest expense trend in fiscal 2026 to date?

For the first nine months of fiscal 2026, interest expense was $4.81 million, slightly below $4.92 million a year earlier. According to the company, lower interest expense, particularly early in the year, contributed to the improvement in year-to-date net income and diluted EPS.

What does the 2026 balance sheet show for RGC Resources (RGCO) assets and equity?

At June 30, 2026, RGC Resources reported $339.7 million in total assets and $122.9 million in stockholders’ equity, both higher than a year earlier. According to the company, utility property, net, increased to $282.5 million from $270.5 million over the same period.