RGC Resources (NASDAQ: RGCO) Q1 2026 earnings slip despite revenue growth

Rhea-AI Filing Summary

RGC Resources, Inc. reported first quarter 2026 earnings of $4.9 million, or $0.47 per diluted share, for the quarter ended December 31, 2025, down from $5.3 million, or $0.51, a year earlier. Operating revenues rose to $30.3 million from $27.3 million, but higher personnel, IT, property tax and depreciation costs more than offset this growth, partly mitigated by lower interest expense.

The company filed a rate case in early December seeking $4.3 million in additional annualized revenue, with interim rates effective January 1, 2026 subject to refund after State Corporation Commission review. The quarterly cash dividend increased to $0.2175 per share from $0.2075. Utility property, net, was $277.0 million and total assets were $341.0 million as of December 31, 2025, with stockholders’ equity of $116.4 million.

Insights

Utility sector earnings analyst

Revenue grew but higher operating costs reduced quarterly earnings.

RGC Resources posted first quarter 2026 net income of $4.9 million versus $5.3 million a year earlier, while operating revenues increased to $30.3 million from $27.3 million. Operating income declined to $6.6 million from $7.3 million, showing cost pressure despite top-line growth.

Management attributes the earnings decline to flat margins and higher personnel, IT, property tax and depreciation expenses, partially offset by lower interest expense. The company has responded with a rate case seeking $4.3 million in additional annualized revenue, and interim rates became effective on January 1, 2026, subject to regulatory review and possible refund.

The balance sheet shows total assets of $341.0 million and stockholders’ equity of $116.4 million at December 31, 2025, with long-term debt of $138.0 million. Future results will depend on regulatory outcomes, customer growth and the cost environment described in the company’s forward-looking statements.

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UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

FORM 8-K

CURRENT REPORT

PURSUANT TO SECTION 13 OR 15(D) OF

THE SECURITIES EXCHANGE ACT OF 1934

Date of Report (Date of Earliest Event Reported): February 5, 2026

RGC RESOURCES, INC.

(Exact name of Registrant as specified in its charter)

Virginia	000-26591	54-1909697
(State or other jurisdiction of incorporation)	(Commission File Number)	(IRS Employer Identification No.)

519 Kimball Ave., N.E. Roanoke, Virginia	24016
(Address of principal executive offices)	(Zip Code)

Registrant’s telephone number, including area code: 540-777-4427

(Former name or former address, if changed since last report)

Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:

☐ Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)

☐ Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)

☐ Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))

☐ Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))

Securities registered pursuant to Section 12(b) of the Act:

Title of Each Class	Trading Symbol	Name of Each Exchange on Which Registered
Common Stock, $5 Par Value	RGCO	NASDAQ Global Market

Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 or Rule 12b-2 if the Securities Exchange Act of 1934.

Emerging growth company             ☐

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act.  ☐

ITEM 2.02. RESULTS OF OPERATIONS AND FINANCIAL CONDITION

On February 5, 2026, RGC Resources, Inc. issued a press release announcing the results for the first quarter ending December 31, 2025.  A copy of this press release is attached hereto as Exhibit 99.1 and is hereby incorporated by reference.

ITEM 8.01. OTHER EVENTS

The press release attached hereto as Exhibit 99.1 is also incorporated into this Item 8.01 by reference and therefore deemed "filed" for purposes of the Securities Exchange Act of 1934, as amended.

ITEM 9.01. FINANCIAL STATEMENTS AND EXHIBITS

	99.1	First Quarter Earnings Press Release dated February 5, 2026.
	104	Cover Page Interactive Data File (embedded within the Inline XBRL document)

SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.

	RGC RESOURCES, INC.
Date: February 5, 2026	By:	/s/ Timothy J. Mulvaney
		Timothy J. Mulvaney
		Vice President, Treasurer and Chief Financial Officer

Exhibit 99.1

NEWS RELEASE

RGC RESOURCES, INC.

Release Date:	February 5, 2026
Contact:	Timothy J. Mulvaney
	Vice President, Treasurer and CFO
Telephone:	(540) 777-3997

RGC RESOURCES, INC.

REPORTS FIRST QUARTER 2026 EARNINGS

ROANOKE, Va.  (February 5, 2026)--RGC Resources, Inc. (Nasdaq:  RGCO) announced consolidated Company earnings of $4.9 million, or $0.47 per share, for the first quarter ended December 31, 2025, compared to $5.3 million, or $0.51 per share, for the first quarter ended December 31, 2024.  The decrease reflected flat margins and higher costs for personnel, IT, property taxes and depreciation, which were partially offset by lower interest expense.  The Company filed a rate case in early December seeking $4.3 million in additional annualized revenue primarily to address these and other higher costs.  Interim rates went into effect January 1, 2026, subject to refund based on review by the State Corporation Commission.

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

FAQ

How did RGC Resources (RGCO) perform in its first quarter 2026?

RGC Resources reported net income of $4.9 million, or $0.47 diluted EPS, for the quarter ended December 31, 2025. This compares to $5.3 million, or $0.51, in the prior-year quarter, reflecting higher operating costs despite revenue growth.

What were RGC Resources (RGCO) first quarter 2026 revenues and operating income?

Operating revenues were $30.3 million for the first quarter 2026, up from $27.3 million a year earlier. Operating income declined to $6.6 million from $7.3 million, as increased personnel, IT, property tax and depreciation expenses outpaced revenue gains.

Why did RGC Resources’ first quarter 2026 earnings decline versus 2025?

Earnings declined mainly because margins were flat while costs rose. Higher personnel, IT, property tax and depreciation expenses more than offset revenue growth, though lower interest expense provided some relief. Net income fell to $4.9 million from $5.3 million year over year.

What rate relief is RGC Resources (RGCO) seeking from regulators?

The company filed a rate case in early December seeking $4.3 million in additional annualized revenue. Interim rates became effective on January 1, 2026, subject to refund pending review by the State Corporation Commission, primarily to address higher operating and infrastructure costs.

What dividend did RGC Resources pay in the first quarter 2026?

RGC Resources paid a cash dividend of $0.2175 per common share in the first quarter 2026. This was higher than the $0.2075 per share dividend in the prior-year quarter, indicating a modest increase in shareholder distributions despite the earnings decline.

What does RGC Resources’ balance sheet look like as of December 31, 2025?

As of December 31, 2025, RGC Resources reported $341.0 million in total assets and $224.6 million in total liabilities. Utility property, net, was $277.0 million, long-term debt was $138.0 million, and stockholders’ equity stood at $116.4 million.

What strategic focus did RGC Resources highlight in its first quarter 2026 update?

The company emphasized continued customer growth, enhanced system reliability, and ongoing utility infrastructure investment. Management noted steady customer additions, new housing connections, and a higher-than-normal number of reconnections, alongside strong performance of the gas distribution system during variable winter temperatures.