RGC Resources 2025 Q4 Earnings Sharp Earnings Decline Amid Strong Annual Performance

RGC Resources (RGCO) reported a net loss of $0.02 per share in Q4 2025, missing expectations of continued profitability, though its fiscal 2025 net income rose 15% to $13.3 million. The company maintained its 2026 guidance, including a $4.3 million annual revenue increase and a 5% dividend hike, despite acknowledging inflationary and volume-related headwinds.

Revenue

The company’s total revenue rose 9.3% year-over-year to $14.32 million in Q4 2025, reflecting sustained operational resilience.

Earnings/Net Income

RGC Resources swung to a loss of $0.02 per share in Q4 2025, a 244.5% deterioration from $0.01 per share in Q4 2024. The net loss of $204,339 marked a 245.1% decline from $140,822 net income the prior year, despite over two decades of quarterly profitability. This downturn underscores near-term challenges, though long-term operational resilience remains evident.

Price Action

The stock edged down 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

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

CEO Commentary

CEO Paul Nester highlighted record gas deliveries and strategic investments in the Mountain Valley Pipeline (MVP) projects, while acknowledging inflationary pressures and non-recurring income gaps. The Board approved a $0.04 dividend increase to $0.87 per share, reflecting cautious optimism for 2026.

Guidance

RGC Resources outlined a $22 million 2026 capital budget, a $4.3 million revenue increase via its December 2025 rate case, and $4–$5 million in MVP project investments. The dividend hike to $0.87 per share and operational efficiency measures aim to offset anticipated 2026 headwinds.

Additional News

COO C. James Shockley Jr. acquired 4,500 shares of RGCO via a stock option exercise on December 2, 2025, valued at $63,662. The Q4 2025 earnings call emphasized a $13.3 million annual net income increase and 14% higher gas volumes, though Q4 losses were attributed to inflation and volume uncertainties. Additionally, the Board’s dividend hike to $0.87 per share, effective 2026, signals confidence in navigating near-term challenges.