RGC Resources Inc. Reports Strong Q2 Earnings, Exceeds Estimates

RGC Resources Inc., a company specializing in the distribution and sale of natural gas and propane, has reported a robust second-quarter financial performance for FY2025. The company, which operates primarily in the Roanoke Valley and Bluefield areas of Southwestern Virginia, as well as Southern West Virginia, saw its bottom line advance significantly, surpassing market expectations.

On May 6, 2025, RGC Resources announced consolidated earnings of $7.68 million, or $0.74 per share, for the second quarter. This represents a notable increase from the $6.44 million, or $0.63 per share, reported in the same quarter of the previous fiscal year. The company’s earnings per share (EPS) also exceeded expectations, with a non-GAAP EPS of $0.74, beating estimates by $0.06. Revenue for the quarter was reported at $36.46 million, surpassing projections by $2.46 million.

The improved financial performance was primarily driven by a 12% increase in utility margin, attributed to higher base rates that became effective on July 1, 2024. Additionally, the company benefited from increased volumes due to cooler winter weather, which boosted demand for natural gas and propane.

For the first half of FY2025, RGC Resources reported a net income of $12.95 million, or $1.26 per share, marking a 12.9% increase compared to the same period in the previous year. However, earnings from the company’s MVP pipeline investment saw a decline, dropping to $801,175 in Q2 FY2025 from $1.23 million in the same quarter of the prior year.

As of May 4, 2025, RGC Resources’ stock closed at $21, with a 52-week high of $24.2 and a low of $19.05. The company’s market capitalization stands at approximately $217.27 million, with a price-to-earnings ratio of 17.94. RGC Resources is listed on the Nasdaq under the ticker symbol RGCO.

These strong financial results reflect the company’s ability to capitalize on favorable market conditions and strategic rate adjustments, positioning it well for continued growth in the utilities sector.