RGC Resources posts higher Q2 2026 earnings

RGC Resources, Inc. reported stronger results for the second quarter ended March 31, 2026.

Accepted by SEC EDGAR 05/06/2026 - 05:03 PM EDT Learn about SEC filing dates

Rhea-AI Filing Summary

RGC Resources, Inc. reported stronger results for the second quarter ended March 31, 2026. Net income rose to $8.7 million, or $0.84 per diluted share, compared with $7.7 million, or $0.74 per diluted share, a year earlier. Operating revenues increased to $45.5 million from $36.5 million, driven by higher operating margins, including the positive effect of interim base rates under a pending rate case, partially offset by higher operating expenses and depreciation.

Additional contributions came from higher earnings from the Company’s investment in Mountain Valley Pipeline, LLC and lower interest expense. For the first six months of fiscal 2026, net income was $13.6 million, or $1.31 per diluted share, up from $12.9 million, or $1.26 per diluted share, reflecting stronger second-quarter margins and reduced interest expense.

Positive

• Meaningful earnings growth: Q2 2026 net income increased to $8.7 million (diluted EPS $0.84) from $7.7 million (diluted EPS $0.74), supported by higher operating margins, contributions from Mountain Valley Pipeline earnings, and lower interest expense.

Negative

• None.

Insights

Utility sector equity analyst

RGC Resources delivered solid Q2 earnings growth from stronger margins and lower interest costs.

RGC Resources reported Q2 2026 net income of $8.7 million versus $7.7 million a year earlier, with diluted EPS at $0.84 versus $0.74. Operating revenue grew to $45.5 million, supported by higher operating margins and interim base rates under a pending rate case.

Management highlights contributions from its investment in Mountain Valley Pipeline, LLC and lower interest expense, which also aided results. For the first six months of fiscal 2026, net income of $13.6 million and diluted EPS of $1.31 exceeded the prior-year period, indicating broader earnings improvement beyond a single quarter.

The interim rates effective from January 1, 2026 are subject to refund as the State Corporation Commission reviews the expedited rate case, so final outcomes depend on that decision. Future company filings may clarify the long-term impact of the rate case and inflation pressures mentioned by management.

8-K Event Classification

3 items: 2.02, 8.01, 9.01

3 items

Item 2.02 Results of Operations and Financial Condition Financial

Disclosure of earnings results, typically an earnings press release or preliminary financials.

Item 8.01 Other Events Other

Voluntary disclosure of events the company deems important to shareholders but not covered by other items.

Item 9.01 Financial Statements and Exhibits Exhibits

Financial statements, pro forma financial information, or exhibit attachments filed with this report.

Key Figures

Q2 2026 operating revenue: $45,457,009 Q2 2025 operating revenue: $36,462,097 Q2 2026 net income: $8,744,490 +5 more

8 metrics

Q2 2026 operating revenue $45,457,009 Three months ended March 31, 2026

Q2 2025 operating revenue $36,462,097 Three months ended March 31, 2025

Q2 2026 net income $8,744,490 Three months ended March 31, 2026

Q2 2026 diluted EPS $0.84 per share Three months ended March 31, 2026

First half 2026 net income $13,627,355 Six months ended March 31, 2026

Total assets $337,104,818 Balance sheet as of March 31, 2026

Total liabilities $213,020,313 Balance sheet as of March 31, 2026

Q2 2026 cash dividend per share $0.2175 Three months ended March 31, 2026

Key Terms

interim base rates, rate case, Mountain Valley Pipeline, LLC, equity in earnings of unconsolidated affiliates, +1 more

5 terms

interim base rates regulatory

"higher operating margins which included the positive effect of the Company’s interim base rates under the pending rate case"

rate case regulatory

"the Company has an expedited rate case which is currently being reviewed by the State Corporation Commission"

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.

Mountain Valley Pipeline, LLC financial

"higher earnings from the Company’s investment in the Mountain Valley Pipeline, LLC (“MVP”)"

equity in earnings of unconsolidated affiliates financial

"Equity in earnings of unconsolidated affiliates | | | 903,991"

forward-looking statements regulatory

"The statements in this release that are not historical facts constitute “forward-looking statements” made pursuant to the safe harbor provision"

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.

Offering Details

earnings_snapshot

Offering

Offering Type earnings_snapshot

FAQ

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

How did RGC Resources (RGCO) perform in Q2 2026?

RGC Resources reported higher Q2 2026 net income of $8.7 million, up from $7.7 million a year earlier. Diluted EPS rose to $0.84 from $0.74, driven by stronger operating margins, interim base rates, higher pipeline earnings, and lower interest expense.

What were RGC Resources’ Q2 2026 revenues and margins?

Operating revenues for Q2 2026 reached $45.5 million, compared with $36.5 million in Q2 2025. Management attributes the earnings improvement mainly to higher operating margins, supported by interim base rates, though partially offset by higher operating expenses and depreciation.

How did RGC Resources’ first half of fiscal 2026 results compare to last year?

For the first six months of fiscal 2026, RGC Resources generated net income of $13.6 million, or $1.31 per diluted share. This compares with $12.9 million, or $1.26 per diluted share, in the prior year, reflecting stronger second-quarter margins and lower interest expense.

What role did the Mountain Valley Pipeline play in RGCO’s Q2 2026 results?

Higher earnings from RGC Resources’ investment in Mountain Valley Pipeline, LLC contributed positively to Q2 2026 performance. Alongside stronger operating margins and lower interest expense, this investment helped lift consolidated net income and supported the year-over-year earnings increase.

What is the status of RGC Resources’ rate case and interim base rates?

RGC Resources is pursuing an expedited rate case currently under review by the State Corporation Commission. Interim base rates became effective on January 1, 2026 and are subject to refund, meaning final customer rates may change depending on the Commission’s ultimate decision.

How much did RGC Resources pay in dividends during the first half of 2026?

RGC Resources paid cash dividends per common share totaling $0.4350 in the first six months of fiscal 2026, up from $0.4150 in the prior-year period. The quarterly dividend for Q2 2026 was $0.2175 per common share, slightly above last year’s $0.2075.

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

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false 0001069533 0001069533 2026-05-06 2026-05-06

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): May 6, 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 May 6, 2026, RGC Resources, Inc. issued a press release announcing the results for the second quarter ending March 31, 2026.  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	Second Quarter Earnings Press Release dated May 6, 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: May 6, 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:	May 6, 2026
Contact:	Timothy J. Mulvaney
	Vice President, Treasurer and CFO
Telephone:	(540) 777-3997

RGC RESOURCES, INC. REPORTS

SECOND QUARTER EARNINGS

ROANOKE, Va.  (May 6, 2026)--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 March 31,								Six Months Ended 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

Filing Exhibits & Attachments

5 documents

Press Releases

• EX-99.1 EXHIBIT 99.1 88.9 KB

Other Documents

• EX-101 XBRL TAXONOMY EXTENSION SCHEMA 3.5 KB
• EX-101 XBRL TAXONOMY EXTENSION DEFINITION LINKBASE 11.2 KB
• EX-101 XBRL TAXONOMY EXTENSION LABEL LINKBASE 15.0 KB
• EX-101 XBRL TAXONOMY EXTENSION PRESENTATION LINKBASE 11.3 KB