RGC Resources reported consolidated net income of $13.3 million, or $1.29 per share, for the fiscal year ended September 30, 2025, up 13% from $11.8 million ($1.16 per share) in 2024. The increase was driven by record gas deliveries and higher operating margins, while inflationary cost pressures and lower equity earnings from the Mountain Valley Pipeline (MVP) investment partially offset the gains.
The fourth‑quarter results showed a net loss of $204 k ($0.02 per share), compared with a Q4 2024 net income of $141 k ($0.01 per share). Management attributed the loss to higher expense levels and the seasonal weakness of the quarter, noting that the cold winter of 2024 had already boosted demand in the prior year’s Q4. The loss is a one‑off seasonal effect rather than a sign of underlying weakness.
Segment performance highlights that the utility operations delivered a record volume of gas, while the MVP, now fully operational, has begun to contribute positively to cash flow. Equity earnings from the MVP were lower in the first three quarters of FY 2024 due to significant allowance for funds used during construction, but the pipeline’s completion has removed that drag and is expected to generate stable returns moving forward.
RGC also confirmed a successful refinancing and extension of its midstream debt in September, aligning debt service with MVP’s long‑term contracts and improving balance‑sheet flexibility. The refinancing reduces interest expense and extends maturities, giving the company more room to invest in future infrastructure projects.
CEO Paul Nester emphasized that the company’s performance reflects both operational efficiency and strategic positioning. He noted that the cold winter of 2024 had driven the highest annual volume of gas delivered, and that the debt refinancing and MVP’s operational status position RGC for continued growth and financial strength.
The earnings beat the prior‑year results by $0.13 per share, an 11% increase, and the Q4 loss of $0.02 per share was better than analysts’ consensus estimate of a $0.05 per share loss, indicating stronger cost control than expected.
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