RGC Resources 2025 Q4 Earnings Q4 Net Loss Swings to $0.02 per Share, 244.5% Deterioration

RGC Resources (RGCO) reported Q4 2025 earnings marked by a net loss of $0.02 per share, a stark reversal from Q4 2024’s $0.01 profit. The results fell short of expectations amid inflationary pressures and operational headwinds. CEO Paul Nester acknowledged 2026 challenges but highlighted a $22 million capital budget and a 5% dividend hike as mitigants.

Revenue

The company’s total revenue rose 9.3% year-over-year to $14.32 million in Q4 2025, driven by higher gas delivery volumes and customer growth.

Earnings/Net Income

RGC Resources posted a net loss of $204,339 ($0.02 per share) in Q4 2025, a 245.1% decline from Q4 2024’s net income of $140,822 ($0.01 per share). Despite this quarterly setback, the company maintained profitability for over 20 years during the same fiscal quarter, underscoring long-term operational resilience. The EPS decline reflects elevated expenses and non-recurring income from prior periods.

Price Action

RGCO’s stock price fell 0.27% on the latest trading day and 0.90% for the week, but gained 5.84% month-to-date.

Post-Earnings Price Action Review

The strategy of buying RGCO when revenues miss expectations and holding for 30 days yielded a -5.18% return, significantly underperforming the benchmark’s 85.89% gain. The approach’s maximum drawdown was 0.00%, and its Sharpe ratio of -0.03 highlighted poor absolute performance despite low risk.

CEO Commentary

Paul Nester emphasized steady customer growth, strategic investments in the Mountain Valley Pipeline (MVP) and Google’s regional data center, and a $22 million 2026 capital budget. He noted challenges from non-recurring income and lower gas delivery volumes but expressed cautious optimism about regulatory rate case filings and a 5% dividend increase to $0.87 per share.

Guidance

The company expects 2026 challenges, including inflationary pressures and reduced gas delivery volumes. However, it plans to file for a $4.3 million annual revenue increase and prioritize safety, reliability, and economic development partnerships.

Additional News

On December 4, 2025, COO C. James Shockley Jr. acquired 4,500 shares of RGCO at $14.15, exercising stock options vested 9.5 years prior. The transaction, disclosed via a Form 4 filing, brought his direct holdings to 43,889 shares. Separately, RGC Resources announced a $22 million 2026 capital budget for system renewals and a 5% dividend hike. The company also extended debt maturity to 2032 for MVP-related obligations, strengthening its balance sheet ahead of 2026.

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