Sign in

You're signed outSign in or to get full access.

RR

RGC RESOURCES INC (RGCO)·Q4 2025 Earnings Summary

Executive Summary

  • Q4 2025 delivered a seasonal net loss of $0.02 EPS on operating revenues of $14.32M, modestly better than S&P Global consensus of -$0.05 EPS and $14.00M revenue, reflecting a small beat on both metrics.* Actuals: EPS -$0.02 and revenue $14.32M ; Consensus: EPS -$0.05 and revenue $14.00M*.
  • Full-year FY2025 earnings rose to $13.3M ($1.29 EPS) from $11.8M ($1.16 EPS), driven by record gas deliveries and higher operating margins; headwinds included inflationary cost increases and lower equity earnings from MVP versus AFUDC-boosted FY2024 .
  • Operational backdrop remained constructive: SCC finalized and made permanent 2024 negotiated rates (April), supporting margin durability ; MVP Boost application filed in October proposes expanding MVP capacity to 2.6 Bcf/d by mid-2028, with capacity fully subscribed by investment-grade utilities, reinforcing midstream value tailwinds .
  • Potential stock reaction catalysts: confirmation of improved winter volume trends into FY2026, dividend continuity ($0.2075 in Q4), and progress on MVP Boost approvals; Q4 management emphasized record annual delivery volumes and successful refinancing/extension of RGC Midstream debt .

What Went Well and What Went Wrong

What Went Well

  • Record annual gas deliveries and higher operating margins drove FY2025 EPS to $1.29; “We delivered gas effectively and efficiently… resulting in the highest annual volume of gas we have ever delivered,” said CEO Paul Nester .
  • Q4 revenue outperformed consensus ($14.32M vs $14.00M*) and EPS loss was smaller than expected (-$0.02 vs -$0.05*), indicating resilient top line and expense control despite seasonality .*
  • Regulatory stability: SCC issued a final order making permanent negotiated rates from the 2024 rate case, supporting margin visibility .

What Went Wrong

  • Seasonal weakness and higher year-over-year expenses produced a modest Q4 net loss of $204K (-$0.02 EPS) versus Q4 2024 net income of $141K ($0.01 EPS) .
  • Equity earnings from MVP declined year over year on a full-year basis (lack of AFUDC in FY2025), reducing a prior tailwind; Q4 equity earnings were $807K, down from earlier AFUDC-boosted levels in FY2024 .
  • Interest expense remained elevated, with Q4 interest expense of $1.62M and FY2025 interest expense of $6.54M, a headwind to net income growth .

Financial Results

Quarterly Trend vs Prior Quarter (oldest → newest)

MetricQ2 2025Q3 2025Q4 2025
Revenues ($USD)$36.46M $17.26M $14.32M
Net Income ($USD)$7.68M $0.54M -$0.20M
Diluted EPS ($USD)$0.74 $0.05 -$0.02
EBIT ($USD)$10.40M $1.20M -$0.48M
EBIT Margin (%)28.86%*7.64%*-3.33%*
Net Income Margin (%)21.05%*3.12%*-1.43%*

Values marked with * retrieved from S&P Global.

Q4 Year-over-Year Comparison (Q4 2024 → Q4 2025)

MetricQ4 2024Q4 2025
Operating Revenues ($USD)$13.10M $14.32M
Operating Income (Loss) ($USD)$0.24M -$0.48M
Net Income (Loss) ($USD)$0.14M -$0.20M
Diluted EPS ($USD)$0.01 -$0.02
Interest Expense ($USD)$1.73M $1.62M

Components/KPIs

KPIQ2 2025Q3 2025Q4 2025
Equity in Earnings of Unconsolidated Affiliate (MVP) ($USD)$0.80M $0.77M $0.81M
Other Income, net ($USD)$0.46M $0.24M $1.05M
Interest Expense ($USD)$1.63M $1.51M $1.62M
Cash Dividends per Common Share ($)$0.2075 $0.2075 $0.2075

Guidance Changes

MetricPeriodPrevious GuidanceCurrent GuidanceChange
Formal financial guidance (revenue, margins, EPS)FY2026N/AN/ANo formal guidance provided in Q4 materials
Dividend per shareQuarterly$0.2075 (Q3 2025) $0.2075 (Q4 2025) Maintained
Regulatory rates (SCC)OngoingNegotiated rates pending final order Final order issued; negotiated rates made permanent Finalized/Confirmed

Earnings Call Themes & Trends

No Q4 2025 earnings call transcript was available in our document corpus; MarketBeat lists no call details for Q4 and shows “N/A” for transcript resources . We track themes from Q2/Q3 releases and Q4 press release.

TopicPrevious Mentions (Q-2 and Q-1)Current Period (Q4 2025)Trend
Weather-driven demandQ2: “colder January” boosted utility margins; strong industrial utilization Q4: “one of the coldest winters in the last decade” drove record annual delivery volumes Strength maintained
Regulatory/Rate caseQ2: SCC final order made negotiated rates permanent No incremental Q4 guidance; rates stable Stable regulatory support
MVP contributionQ2/Q3: MVP equity earnings lower vs AFUDC in prior year Q4: MVP equity earnings present but lower YoY vs AFUDC-boosted FY2024 Headwind vs prior year
Capital structure/liquidityNot highlighted in Q2/Q3Q4: Successfully refinanced and extended RGC Midstream debt maturity Improved flexibility
MVP Boost expansionNot discussed in Q2/Q3Oct: MVP Boost application filed; increase capacity to 2.6 Bcf/d; fully subscribed by investment-grade utilities Positive medium-term driver

Management Commentary

  • “We delivered gas effectively and efficiently to all of our customers in what turned out to be one of the coldest winters in the last decade, resulting in the highest annual volume of gas we have ever delivered.” — CEO Paul Nester .
  • “We are pleased to have successfully refinanced and extended the maturity of RGC Midstream’s debt in September.” — CEO Paul Nester .
  • “Utility margin increased 12%, enhanced by a colder January and by a large industrial customer who continued strong utilization compared to the same period a year ago.” — CEO Paul Nester (Q2 context) .
  • MVP Boost: “Upsized 600 MDth/d of capacity is fully subscribed by investment-grade utility customers… construction targeted to start winter 2026–2027; in-service mid-2028.” — MVP announcement (RGCO affiliate) .

Q&A Highlights

  • No Q4 2025 earnings call transcript or Q&A was available; MarketBeat shows call/transcript details as N/A for November 19, 2025 .

Estimates Context

RGCO beat conservative Q4 expectations.

MetricConsensus (S&P Global)*ActualBeat/Miss
EPS ($)-$0.05*-$0.02 Beat
Revenue ($USD)$14.00M*$14.32M Beat

Values marked with * retrieved from S&P Global.

Implications: modest beats signal resilience amid seasonality; estimates may lift for winter-heavy quarters given management’s emphasis on colder-weather volumes and stable rate environment .

Key Takeaways for Investors

  • Q4 was seasonally soft but better than expected on both EPS and revenue; full-year EPS rose to $1.29 on record volumes and stronger margins, underpinned by rate case stability .*
  • Expense pressures persisted (inflation, interest), but interest expense moderated modestly YoY in Q4 ($1.62M vs $1.73M), partly cushioning the seasonal loss .
  • MVP equity income remains a smaller contributor than during construction AFUDC periods; however, MVP Boost’s fully subscribed capacity and mid-2028 in-service target enhance medium-term optionality and value visibility .
  • Dividend continuity ($0.2075/qtr) and SCC final order permanence support a defensive income profile and margin visibility through FY2026 .
  • Near-term trading setup: watch for colder-weather demand and industrial utilization into Q1/Q2 fiscal seasonally strong quarters; the recent beats may bolster sentiment in the absence of formal guidance .*
  • Balance sheet update: refinancing and maturity extension at RGC Midstream improves flexibility ahead of MVP Boost development cycle .
  • Estimate trajectories: S&P Global consensus may need to reflect stronger revenue resilience and lower-than-expected Q4 loss; monitor revisions into winter-heavy quarters.*

Values marked with * retrieved from S&P Global.