How did RGCO's revenue and expenses trend in Q1 2025?

**RGC Resources Inc. (RGCO) experienced a notable increase in revenue and a rise in expenses during Q1 2025**, which contributed to a stronger net income. 1. **Revenue Growth**: RGCO's revenue for Q1 2025 was $27.29 million, up from $24.42 million in the same period in 2024. This represents a 11.8% year-over-year increase in revenue, indicating a robust growth in the company's sales and distribution of natural gas. |code|Ticker|Name|Date|Total Revenue YoY|Total Revenue|market_code| |---|---|---|---|---|---|---| |RGCO|RGCO.O|RGC Resources|2024 Q2|-14.121297491586631|3.2659376E7|185| |RGCO|RGCO.O|RGC Resources|2024 Q3|5.841454527352914|1.4458202E7|185| |RGCO|RGCO.O|RGC Resources|2024 Q4|5.107459955173151|1.3104302E7|185| |RGCO|RGCO.O|RGC Resources|2025 Q1|11.753522370290579|2.7289486E7|185| |code|Ticker|Name|Date|Net Income YoY|Net Income|market_code| |---|---|---|---|---|---|---| |RGCO|RGCO.O|RGC Resources|2024 Q2|1.6005333429203867|6443390|185| |RGCO|RGCO.O|RGC Resources|2024 Q3|-77.18573824721614|156692|185| |RGCO|RGCO.O|RGC Resources|2024 Q4|-86.11462518796066|140822|185| |RGCO|RGCO.O|RGC Resources|2025 Q1|4.974051751476895|5269689|185| 2. **Capital Expenditure (CapEx)**: The company's capital expenditure (CapEx) for Q1 2025 was $5.7 million, an 8.4% increase from the $5.2 million spent in the same quarter of 2024. This suggests that RGCO is investing heavily in expanding its utility infrastructure and connecting new services, which is a positive sign for future growth. 3. **Net Income**: RGCO reported a net income of $5.3 million for Q1 2025, compared to $5 million in the previous year. This represents a 6% increase in net income, reflecting the company's operational efficiency and strategic investments. 4. **Equity Earnings from Unconsolidated Affiliates**: There was a decrease in equity earnings from unconsolidated affiliates, dropping to $854,000 pretax from $1.5 million in Q1 2024. This could be a concern, but it is offset by the overall increase in net income. 5. **Interest Expense**: Interest expense increased by $143,000 due to higher average balances on the Roanoke Gas line of credit and higher interest rates. This increase is a result of the company's financing activities to support its capital spending plan. In summary, RGCO's revenue and expenses in Q1 2025 showed a positive trend, with revenue increasing significantly and capital expenditures rising to support future growth. The net income benefited from these developments, despite some increases in interest expenses and a slight decline in equity earnings from unconsolidated affiliates.