RGC Resources 2025 Q4 Earnings Sharp EPS Drop Amid 9.3% Revenue Growth

RGC Resources reported a net loss of $0.02 per share in Q4 2025, marking a dramatic shift from a $0.01 profit in the prior-year period. The company provided 2026 guidance aligned with its strategic priorities, including capital investments in MVP projects and rate case initiatives, while acknowledging potential headwinds from inflation and non-recurring gains.

Revenue

RGC Resources’ total revenue rose 9.3% year-over-year to $14.32 million in Q4 2025, reflecting sustained operational resilience despite broader economic challenges.

Earnings/Net Income

The company reported a net loss of $204,339, or $0.02 per share, in Q4 2025, compared to a $140,822 profit, or $0.01 per share, in Q4 2024. This represents a 245.1% deterioration in net income and a 244.5% negative change in EPS, underscoring the impact of elevated expenses and inflationary pressures. Despite the quarterly loss, RGC has maintained profitability for over two decades in this fiscal period.

Price Action

RGCO’s stock declined 0.27% in the latest trading day and 0.90% for the week, but gained 5.84% month-to-date, showing mixed short-term investor sentiment.

Post-Earnings Price Action Review

The strategy of purchasing RGCO when revenues miss expectations and holding for 30 days yielded a -5.18% return, far underperforming the benchmark’s 85.89% gain. This approach exhibited a maximum drawdown of 0.00% and a Sharpe ratio of -0.03, indicating minimal risk exposure but poor absolute returns.

CEO Commentary

CEO Paul Nester highlighted 1% annual customer growth and strategic investments in MVP projects, while cautioning about 2026 challenges such as inflation and the non-renewal of prior-year housing authority gains. A 5% dividend increase to $0.87 per share reflects confidence in long-term stability.

Guidance

RGC outlined a $22 million 2026 capital budget for system renewal, a $4.3 million annual revenue increase via rate cases, and EPS guidance of $1.16–$1.30 (excluding one-time gains). Leadership emphasized flexibility in capital allocation and the potential for colder winter weather to boost gas demand.

Additional News

COO C. James Shockley Jr. purchased 4,500 shares of RGCO at $14.15 apiece on December 2, 2025, exercising vested options ahead of expiration. Meanwhile, the Q4 earnings call revealed a $0.04 annualized dividend hike (to $0.87 per share) and $4–$5 million in planned investments for MVP’s Southgate and Boost projects. RGC also refinanced debt supporting the Mountain Valley Pipeline to extend maturities through 2032, reinforcing its balance sheet flexibility.