One Gas 2025 Q2 Earnings Strong Performance as Net Income Surges 17.6%

One Gas reported robust earnings for its second quarter of fiscal 2025, exceeding expectations with notable revenue and net income growth. The company raised its full-year earnings guidance, reflecting confidence in its operational performance and regulatory progress.

One Gas reported a total revenue of $423.74 million in 2025 Q2, representing a 19.7% increase compared to $354.14 million in the same quarter of the prior year. This growth underscores the company’s strong operational performance and expanding customer base.

Earnings per share (EPS) for One Gas rose by 10.4% to $0.53 in 2025 Q2 from $0.48 in 2024 Q2, while net income increased by 17.6% to $32.03 million from $27.24 million. These figures highlight the company’s continued profitability and effective cost management, with net income growth outpacing EPS gains.

The stock price of One Gas has seen a marginal decline in recent trading sessions, with a 0.91% drop on the latest trading day, a 0.16% decrease over the past full week, and a 0.42% decline month-to-date.

A post-earnings trading strategy of buying OGS following a beat and holding for 30 days yielded a 14.18% return, which significantly underperformed the 83.32% benchmark return. While the strategy demonstrated a moderate Sharpe ratio of 0.23 and no maximum drawdown, its performance was relatively lackluster compared to broader market trends.

Robert S. McAnnally, President and Chief Executive Officer, credited strong operational performance, effective cost management, and progress on regulatory initiatives for the company’s results. He emphasized a continued focus on executing the long-term strategy and maintaining safe, reliable service to communities.

One Gas has raised its 2025 diluted earnings per share guidance to a range of $4.32 to $4.42, up from the previous range of $4.20 to $4.32. This adjustment follows year-to-date net income of $151.5 million, or $2.51 per diluted share, compared to $126.6 million, or $2.23 per diluted share, in the same period last year. The updated guidance factors in the impact of new rates and ongoing net customer growth, partially offset by increased depreciation, employee-related costs, and ad valorem taxes.

Additional News
The company's official announcement of Q2 earnings was accompanied by a disclaimer from its corporate website, noting that the site is partially maintained by a third party, Virtua Research, Inc. The disclaimer outlines limited liability for content and technical issues related to the external site. Additionally, ONE Gas provided a detailed explanation of its non-GAAP financial metric, net margin, which is used to assess performance by excluding fluctuations in the cost of natural gas. The company emphasized that net margin provides a more accurate reflection of its regulated utility business compared to total revenue.

The announcement also reiterated ONE Gas's commitment to regulatory compliance, transparency, and investor communication. It noted that reclassifications of historical financial data may occur due to updated accounting standards, and that all information presented is representative of the data originally filed with the SEC. The company further clarified that it assumes no responsibility for third-party pricing data or analytical results derived from such data.