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RGC Resources (RGCO) investor relations material
RGC Resources Q1 2026 earnings summary
Complete event summary combining all related documents: earnings call transcript, report, and slide presentation.Executive summary
Net income for Q1 2026 was $4.9 million, down from $5.3 million in Q1 2025, with EPS of $0.47 compared to $0.51 year-over-year, as higher costs offset revenue gains.
Operating revenues for the quarter rose 11% year-over-year to $30.3 million, driven by higher gas costs, increased residential and commercial volumes, and higher SAVE and RNG revenues.
The SAVE program renewed 117 services, an 80% increase year-over-year.
The company serves approximately 63,700 customers in Virginia, with nearly all revenues from regulated natural gas sales.
Interim rate increases were implemented January 1, 2026, pending regulatory review.
Financial highlights
Gas utility revenues rose to $30.24 million from $27.26 million year-over-year; total operating revenues reached $30.26 million.
Net income was $4.8–$4.9 million ($0.47 per share), down from $5.3 million ($0.51 per share) in Q1 2025.
Operating income declined to $6.55–$6.6 million from $7.3 million year-over-year.
Gas margins increased slightly, and interest expense declined due to lower Fed rates, but higher personnel, IT, property taxes, and depreciation costs offset these gains.
A $15 million note maturing in August is now in current liabilities, with refinancing underway.
Outlook and guidance
Capital forecast for fiscal 2026 remains at $22 million, unchanged from December.
Earnings per share forecast for fiscal 2026 remains at $1.27–$1.35, with the rate case and economic variables as key factors.
New non-gas base rates went into effect January 1, 2026, subject to refund, with a final SCC hearing scheduled for July 2026 and resolution expected in Q1 fiscal 2027.
The updated SAVE Rider is expected to generate $2.61 million in annualized revenues for fiscal 2026.
Q2 construction will be weaker due to winter weather, with two weeks of lost work (17% of working days), but efforts will be made to recover in spring and summer.
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