RGC Resources (RGCO) investor relations material

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.