RGC Resources Reports 13% Revenue Growth to $95.3 Million for Fiscal Year Ending September 30, 2025

RGC Resources, Inc. reported a significant increase in its financial performance for the fiscal year ending September 30, 2025, with total operating revenues reaching $95.3 million, a 13% increase from $84.6 million in the previous year. The company's net income also rose to $13.3 million, up from $11.8 million, resulting in earnings per share of $1.29 compared to $1.16 in 2024. This growth was primarily driven by a combination of higher non-gas base rates, increased natural gas deliveries, and improved operational efficiencies.

The company experienced notable changes in its customer base and operational metrics. As of September 30, 2025, RGC Resources served approximately 62,527 customers, a slight increase from 62,510 in the previous year. The total volume of natural gas delivered increased by 14% to 11.5 million DTH, with residential and commercial volumes rising by 9% and transportation volumes increasing by 24%. The increase in delivered volumes was attributed to a colder winter, which resulted in an 18% rise in heating degree days compared to the prior year.

Strategically, RGC Resources has made significant investments in infrastructure and renewable energy initiatives. The company began operations at its renewable natural gas (RNG) facility in March 2023, which produced approximately $1.76 million in revenue for the fiscal year. Additionally, the company has been actively involved in the Mountain Valley Pipeline (MVP) project, which commenced commercial operations in June 2024. RGC Resources holds a less than 1% interest in the MVP and has received approximately $3.6 million in cash distributions from the project during fiscal 2025.

Operationally, RGC Resources has focused on enhancing its infrastructure through the SAVE Plan, which allows for the recovery of costs associated with infrastructure investments. The company reported an increase in SAVE-related revenues to approximately $1.6 million in fiscal 2025, up from $461,000 in the previous year. The company also filed for a non-gas base rate increase of $4.3 million in December 2025, reflecting ongoing inflationary pressures and the need for continued investment in its infrastructure.

Looking ahead, RGC Resources anticipates continued growth driven by its strategic investments and regulatory mechanisms that support revenue stability. The company plans to maintain its focus on expanding its customer base and enhancing service delivery while managing operational costs effectively. The management remains optimistic about the future, citing the potential for increased revenues from both traditional and renewable energy sources as key drivers for the company's growth trajectory.