RGC Resources, Inc. — Third Quarter 2026 Earnings Summary

Financial Performance

• Consolidated net income for the third quarter ended June 30, 2026, was $559,000 ($0.05 per diluted share), compared to $538,000 ($0.05 per diluted share) in the same period of 2025.
• Net income for the first nine months of fiscal 2026 was $14.2 million ($1.37 per diluted share), a 5.2% increase from $13.5 million ($1.31 per diluted share) in the prior year period.
• Operating revenues for the quarter were $17.1 million, down from $17.3 million in the prior year; for the nine-month period, revenues were $92.8 million, up from $81.0 million.
• Operating expenses for the quarter were $15.9 million, compared to $16.1 million in the prior year; for the nine-month period, expenses were $73.8 million, up from $62.1 million.
• Operating income for the quarter was $1.17 million, slightly down from $1.20 million in the prior year, though operating margins were $757,000 higher year-over-year.
• Interest expense for the quarter was $1.55 million, compared to $1.51 million in the prior year; for the nine-month period, it was $4.81 million, down from $4.92 million.
• Cash dividends per common share were $0.2175 for the quarter, up from $0.2075 in the prior year; year-to-date dividends were $0.6525, up from $0.6225.
• Total assets as of June 30, 2026, were $339.7 million, compared to $324.8 million in 2025.
• Long-term debt, net, increased to $145.6 million as of June 30, 2026, from $139.7 million in 2025.
• Stockholders' equity was $122.9 million as of June 30, 2026, compared to $116.3 million in 2025.

Business Segments and Product Lines

• The company operates through subsidiaries Roanoke Gas Company and RGC Midstream, LLC, providing energy and related products in Virginia.
• Improved margins were driven by higher non-gas base rates effective January 1, 2026, and SAVE investment.
• Residential growth continued during the period.
• Delivered firm volumes remained steady compared to the prior year.
• Interruptible volumes to industrial customers increased, though at lower-tiered margins.
• An industrial customer ceasing operations negatively impacted results.

Management Commentary and Tone

• CEO Paul Nester noted that the quarter included improved margins from higher base rates and SAVE investment, offset by persistent inflation and the loss of an industrial customer.
• Management highlighted that the year-to-date net income increase was due to stronger operating margins and lower interest expense, particularly early in the year.

Risks and Challenges

• Forward-looking statements involve risks including inflation, customer growth, ratemaking, infrastructure investment, and margins.
• Specific risks include gas prices and supply, geopolitical considerations, and expectations regarding the MVP and the Company's rate application.
• Actual results may differ materially from expectations due to factors outlined in the Company's fiscal 2025 Form 10-K and March 31, 2026 Form 10-Q.

Other Key Points

• The release includes condensed consolidated statements of income and balance sheets for the three and nine months ended June 30, 2026, and 2025.
• The company is listed on Nasdaq under the ticker symbol RGCO.
• Timothy J. Mulvaney serves as Vice President, Treasurer, and CFO.