RGC Resources Reports $4.88 Million Net Income, 11% Revenue Increase in Q4 2025

RGC Resources, Inc. reported a net income of $4.88 million for the three months ending December 31, 2025, a decrease of 7.3% from $5.27 million in the same period the previous year. The company's earnings per share (EPS) also fell to $0.48 from $0.51. Total operating revenues increased by 11% to $30.26 million, up from $27.29 million, primarily driven by higher gas utility revenues, which rose to $30.24 million from $27.26 million. The increase in revenues was attributed to higher gas costs and an increase in residential and commercial delivered volumes, despite a decrease in transportation and interruptible volumes.

Operating expenses for the quarter rose to $23.71 million, compared to $19.96 million in the prior year, largely due to a 25% increase in the cost of gas, which reached $14.58 million. The increase in operating expenses was also influenced by inflationary pressures affecting operations and maintenance costs, which rose by 11% to $5.22 million. The company noted that taxes other than income taxes increased by 15% due to higher property taxes and payroll taxes, while depreciation and amortization expenses also saw an uptick of 8%.

In terms of operational developments, RGC Resources serves approximately 63,700 customers in Roanoke, Virginia, and surrounding areas through its subsidiary, Roanoke Gas. The company has been actively investing in infrastructure, with capital expenditures for the quarter amounting to approximately $5.64 million, slightly down from $5.75 million in the previous year. The company continues to focus on its SAVE infrastructure replacement projects and has filed for an expedited rate application with the Virginia State Corporation Commission (SCC) to increase non-gas base rates by $4.3 million annually, effective January 1, 2026.

The company’s balance sheet as of December 31, 2025, showed total assets of $341.04 million, an increase from $329.84 million at the end of the previous fiscal year. Current liabilities also rose significantly to $40.10 million from $22.54 million, primarily due to an increase in current maturities of long-term debt. RGC Resources has a line of credit of $30 million, with an outstanding balance of $19.29 million as of the end of December 2025. The company anticipates that the ongoing investments and regulatory adjustments will support its financial performance moving forward, despite the challenges posed by inflation and fluctuating natural gas prices.