National Fuel Gas 2025 Q3 Earnings Strong Performance with Net Income Surging 376.6%

National Fuel Gas (NFG) reported its fiscal 2025 Q3 earnings on July 31st, 2025. The company exceeded expectations with earnings per share of $1.66, surpassing analysts' estimate of $1.44. Revenue came in slightly below expectations at $531.83 million compared to the anticipated $596.12 million. National Fuel Gas revised its fiscal 2025 adjusted EPS guidance to a range of $6.80-$6.95, indicating a slight decrease from prior guidance. Looking ahead to fiscal 2026, the company projects a promising 20% earnings increase, attributing it to strong production growth and improved capital efficiency.

Revenue

The total revenue of National Fuel Gas rose by 27.4%, reaching $531.83 million in 2025 Q3, marking a significant increase from $417.44 million in 2024 Q3.

Earnings/Net Income

National Fuel Gas achieved a remarkable turnaround in 2025 Q3, posting EPS of $1.66, a significant improvement from the previous year's $0.59 loss per share. The company reported net income of $149.82 million, a substantial positive swing from the $54.16 million loss in 2024 Q3. This performance signals a strong recovery in profitability.

Post-Earnings Price Action Review

The investment strategy of purchasing National Fuel Gas (NFG) shares 30 days following quarterly financial report releases has yielded impressive returns over the past three years. This approach achieved a total return of 113.32%, outperforming the benchmark return of 85.57% by 27.75%. The strategy experienced a maximum drawdown of 0.00% and maintained a Sharpe ratio of 0.71, reflecting robust risk management. These metrics underscore the strategy’s reliability for investors seeking growth and stability, demonstrating effective balance between risk and reward.

CEO Commentary

David P. Bauer, President and Chief Executive Officer of National Fuel Gas Company, highlighted the company's exceptional third-quarter performance, driven by success across its integrated upstream and gathering operations, achieving record production and throughput. He emphasized improved capital efficiency and noted the positive earnings impact in the regulated Utility and Pipeline & Storage segments due to recent ratemaking activities. Bauer expressed optimism for fiscal 2026, anticipating significant earnings growth supported by strong well results and a positive long-term outlook for natural gas. He underscored National Fuel's potential to deliver meaningful shareholder value through mid-single-digit production growth and expansion in regulated business.

Guidance

National Fuel Gas adjusted its fiscal 2025 EPS guidance to a range of $6.80 to $6.95, reflecting third-quarter results and anticipated lower natural gas prices, counterbalanced by higher production and reduced unit costs. For fiscal 2026, preliminary guidance indicates a 20% earnings increase from fiscal 2025, based on a NYMEX price of $4.00 per MMBtu, supported by production growth and improved capital efficiency.

Additional News

National Fuel Gas recently increased its quarterly dividend by 4% to $0.535 per share, marking the 55th consecutive year of dividend increases. This reflects the company's ongoing commitment to returning cash to shareholders. In terms of share repurchases, National Fuel Gas has paused its buyback program to evaluate growth opportunities, maintaining balance sheet flexibility. Institutional investors have shown interest, with significant holdings from entities like Goldman Sachs Group Inc., which increased its stake by 30% in the first quarter. Additionally, Bank of America upgraded National Fuel Gas from "underperform" to "buy," raising its target price from $85 to $107, indicating positive sentiment in the market.