RGC Resources Reports 19% Revenue Growth to $17.3 Million in Q3 2025

RGC Resources, Inc. reported a significant increase in financial performance for the third quarter and nine months ended June 30, 2025, with total operating revenues reaching $17.3 million for the quarter, a 19% increase from $14.5 million in the same period last year. For the nine-month period, revenues rose to $81 million, up 13% from $71.5 million. The company's net income also saw a notable rise, reaching $538,412 for the quarter compared to $156,692 in the prior year, and $13.5 million for the nine months, up from $11.6 million. Basic earnings per share increased to $0.05 for the quarter and $1.31 for the nine months, reflecting a positive trend in profitability.

The company attributed its revenue growth to several factors, including higher gas utility revenues driven by increased customer demand and the implementation of a non-gas base rate increase. The total delivered volumes of natural gas increased by 6% for the quarter and 15% for the nine months, with residential and commercial volumes rising by 9% and transportation and interruptible volumes increasing by 28%. However, the company noted a decline in weather normalization adjustment (WNA) revenues due to warmer-than-normal temperatures, which impacted overall earnings.

Strategically, RGC Resources has continued to invest in infrastructure projects, particularly through its SAVE Plan, which allows for the recovery of costs associated with infrastructure improvements. The company reported an increase in SAVE revenues of approximately $299,000 for the quarter and $855,000 for the nine months. Additionally, the company has been actively involved in the Mountain Valley Pipeline (MVP) project, which began commercial operations in June 2024. The equity earnings from this investment contributed positively to the company's financial results, with equity in earnings from unconsolidated affiliates increasing significantly.

Operationally, RGC Resources serves approximately 62,700 customers in the Roanoke area, and its workforce has expanded to support its growing operations. The company has also made adjustments to its debt structure, including refinancing efforts to manage its long-term obligations effectively. As of June 30, 2025, the company reported total assets of $324.8 million, a slight increase from $320.7 million at the end of the previous fiscal year. The company maintains a strong liquidity position, with cash and cash equivalents increasing to $2.1 million.

Looking ahead, RGC Resources anticipates continued growth driven by its strategic investments and regulatory mechanisms that support revenue stability. The company expects to finalize a new debt arrangement to refinance existing obligations, which will further enhance its financial flexibility. Management remains optimistic about the company's ability to navigate market conditions and deliver value to shareholders while continuing to invest in infrastructure and service improvements.