The company demonstrates resilient profitability with a 22.8% operating margin in 2026Q1, effectively utilizing weather-normalization mechanisms to smooth earnings despite significant seasonal revenue volatility.
| Metric | TTM | Dec'25 | Dec'24 | Dec'23 | Dec'22 | Dec'21 | Dec'20 | Dec'19 | Dec'18 | Dec'17 | Dec'16 | Dec'15 | Dec'14 | Dec'13 | Dec'12 | Dec'11 |
|---|
| Revenue | 2.32B | 2.43B | 2.08B | 2.37B | 2.58B | 1.81B | 1.53B | 1.65B | 1.63B | 1.54B | 1.43B | 1.55B | 1.82B | 1.69B | 1.38B | 1.62B |
| Revenue Growth % | 2.81% | 16.5% | -12.16% | -7.99% | 42.54% | 18.19% | -7.41% | 1.16% | 6.11% | 7.88% | -7.78% | -14.91% | 7.63% | 22.75% | -15.09% | - |
| Cost of Revenue | 744.73M | 998.91M | 1.31B | 1.64B | 1.93B | 1.22B | 968.56M | 1.12B | 1.13B | 1.01B | 939.11M | 1.12B | 1.41B | 1.27B | 983.38M | 1.24B |
| Gross Profit | 1.58B | 1.43B | 775.11M | 729.08M | 646.65M | 583.91M | 561.71M | 535.63M | 507.39M | 525.81M | 488.09M | 427.26M | 406.26M | 419.88M | 393.22M | 378.29M |
| Gross Margin % | 67.95% | 58.85% | 37.2% | 30.74% | 25.08% | 32.29% | 36.71% | 32.41% | 31.06% | 34.15% | 34.2% | 27.61% | 22.34% | 24.85% | 28.56% | 23.33% |
| Gross Profit Growth % | - | 84.3% | 6.31% | 12.75% | 10.74% | 3.95% | 4.87% | 5.57% | -3.5% | 7.73% | 14.24% | 5.17% | -3.24% | 6.78% | 3.95% | - |
| Operating Expenses | 1.11B | 971.05M | 376.07M | 351.49M | 296.7M | 273.66M | 258.19M | 240.37M | 218.96M | 209.08M | 199.14M | 188.14M | 180.97M | 199.54M | 177.51M | 178.63M |
| Other Operating Expenses | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - |
| EBITDA | 778.9M | 774.72M | 695.74M | 657.42M | 578.44M | 517.49M | 498.4M | 475.65M | 448.51M | 468.62M | 432.78M | 372.15M | 351.02M | 365.11M | 345.86M | 331.87M |
| EBITDA Margin % | 33.52% | 31.92% | 33.39% | 27.72% | 22.44% | 28.61% | 32.57% | 28.78% | 27.45% | 30.44% | 30.32% | 24.05% | 19.3% | 21.61% | 25.12% | 20.47% |
| EBITDA Growth % | 5.92% | 11.35% | 5.83% | 13.65% | 11.78% | 3.83% | 4.78% | 6.05% | -4.29% | 8.28% | 16.29% | 6.02% | -3.86% | 5.56% | 4.22% | - |
| Depreciation & Amortization | 312.34M | 317.26M | 296.7M | 279.83M | 228.48M | 207.23M | 194.88M | 180.4M | 160.09M | 151.89M | 143.83M | 133.02M | 125.72M | 144.76M | 130.15M | 132.21M |
| D&A / Revenue % | 13.44% | 13.07% | 14.24% | 11.8% | 8.86% | 11.46% | 12.74% | 10.91% | 9.8% | 9.87% | 10.08% | 8.59% | 6.91% | 8.57% | 9.45% | 8.15% |
| Operating Income (EBIT) | 466.56M | 457.47M | 399.04M | 377.59M | 349.96M | 310.26M | 303.52M | 295.26M | 288.43M | 316.73M | 288.95M | 239.13M | 225.29M | 220.35M | 215.71M | 199.66M |
| Operating Margin % | 20.08% | 18.85% | 19.15% | 15.92% | 13.57% | 17.15% | 19.83% | 17.86% | 17.65% | 20.57% | 20.25% | 15.45% | 12.39% | 13.04% | 15.67% | 12.31% |
| Operating Income Growth % | - | 14.64% | 5.68% | 7.9% | 12.8% | 2.22% | 2.8% | 2.37% | -8.93% | 9.61% | 20.83% | 6.14% | 2.24% | 2.15% | 8.04% | - |
| Interest Expense | 4M | 142.81M | 147.24M | 115.34M | 77.51M | 60.3M | 62.51M | 62.68M | 51.3M | 46.06M | 43.74M | 44.57M | 45.84M | 61.37M | 60.79M | 54.12M |
| Interest Coverage | - | 3.25x | 2.76x | 3.36x | 4.46x | 5.09x | 4.81x | 4.66x | 5.40x | 6.56x | 6.15x | 5.31x | 4.89x | 3.63x | 3.57x | 3.64x |
| Interest / Revenue % | 0.17% | 5.88% | 7.07% | 4.86% | 3.01% | 3.33% | 4.08% | 3.79% | 3.14% | 2.99% | 3.06% | 2.88% | 2.52% | 3.63% | 4.42% | 3.34% |
| Non-Operating Income | -4M | -1000K | -1000K | -1000K | -1000K | -1000K | -1000K | -1000K | -1000K | -1000K | -1000K | -1000K | -1000K | -1000K | -1000K | -1000K |
| Pretax Income | 331.28M | 321.46M | 259.24M | 271.73M | 268.27M | 246.75M | 237.99M | 229.6M | 225.76M | 256.14M | 225.34M | 192.01M | 178.13M | 161.47M | 156.36M | 142.76M |
| Pretax Margin % | 14.25% | 13.24% | 12.44% | 11.46% | 10.41% | 13.64% | 15.55% | 13.89% | 13.82% | 16.64% | 15.79% | 12.41% | 9.79% | 9.55% | 11.36% | 8.81% |
| Income Tax | 57.8M | 57.23M | 36.39M | 40.49M | 46.53M | 40.32M | 41.58M | 42.85M | 53.53M | 93.14M | 85.24M | 72.98M | 68.34M | 62.27M | 59.85M | 56M |
| Effective Tax Rate % | 17.45% | 17.8% | 14.04% | 14.9% | 17.34% | 16.34% | 17.47% | 18.66% | 23.71% | 36.36% | 37.83% | 38.01% | 38.36% | 38.57% | 38.28% | 39.23% |
| Net Income | 273.48M | 264.22M | 222.85M | 231.23M | 221.74M | 206.43M | 196.41M | 186.75M | 172.23M | 163M | 140.09M | 119.03M | 109.79M | 99.19M | 96.51M | 86.76M |
| Net Margin % | 11.77% | 10.88% | 10.7% | 9.75% | 8.6% | 11.41% | 12.84% | 11.3% | 10.54% | 10.59% | 9.82% | 7.69% | 6.04% | 5.87% | 7.01% | 5.35% |
| Net Income Growth % | 12.56% | 18.57% | -3.62% | 4.28% | 7.42% | 5.1% | 5.17% | 8.43% | 5.67% | 16.35% | 17.7% | 8.42% | 10.68% | 2.78% | 11.24% | - |
| EPS (Diluted) | 4.33 | 4.37 | 3.90 | 4.14 | 4.08 | 3.85 | 3.68 | 3.51 | 3.25 | 3.08 | 2.65 | 2.24 | 2.07 | 1.92 | 1.84 | 1.66 |
| EPS Growth % | 7% | 12.05% | -5.8% | 1.47% | 5.97% | 4.62% | 4.84% | 8% | 5.52% | 16.23% | 18.3% | 8.21% | 7.81% | 4.35% | 10.84% | - |
| EPS (Basic) | - | 4.39 | 3.92 | 4.16 | 4.09 | 3.85 | 3.70 | 3.53 | 3.27 | 3.10 | 2.67 | 2.26 | 2.10 | 1.92 | 1.87 | 1.69 |
| Diluted Shares Outstanding | 63.2M | 60.51M | 57.03M | 55.86M | 54.34M | 53.67M | 53.37M | 53.24M | 53.03M | 52.98M | 52.96M | 53.25M | 52.95M | 51.6M | 52.35M | 52.35M |
Regulatory lag and inflationary O&M pressure
According to recent financial disclosures, OGS revenue exhibits significant seasonal variance, with 2026Q1 revenue reaching $831.7 million, yet the underlying growth remains tethered to rate base expansion rather than volumetric demand, which appears to be structurally influenced by weather-normalization mechanisms and regional rate case outcomes.
The revenue trajectory is heavily skewed by winter heating demand, making quarter-over-quarter comparisons less indicative of long-term earnings power than year-over-year trends. Investors should monitor whether the company can successfully translate capital-intensive infrastructure investments into higher authorized revenue requirements during upcoming rate case filings. The reliance on seasonal peaks suggests that revenue durability is contingent upon maintaining constructive relationships with state utility commissions in Oklahoma and Kansas.
As reported in quarterly statements, OGS maintained an operating margin of 22.8% in 2026Q1, suggesting that the utility is effectively managing its cost recovery mechanisms despite the inherent friction of regulatory lag that often delays the full realization of authorized returns on new capital investments.
The stability of the operating margin indicates that the company is successfully navigating the regulatory compact, though the gap between authorized and earned ROE warrants further investigation. If margins begin to compress during non-peak quarters, it may signal that inflationary pressures on O&M expenses are outpacing the company's ability to secure timely rate adjustments. This suggests a need for continued focus on the efficiency of the regulatory recovery process.
Based on the company's reported figures, natural gas costs function as a pass-through expense, which preserves the core earnings power of the utility even during periods of commodity price volatility, as evidenced by the consistent gross margin profile observed across the last ten quarters.
Because fuel costs are largely recovered through automatic adjustment mechanisms, the income statement effectively isolates the utility from commodity price risk. However, investors should remain cautious regarding the potential for 'bill shock' to trigger political resistance during rate cases, which could indirectly impact the company's ability to recover non-fuel operating costs. The regulatory construct appears designed to mitigate working capital strain, provided that the recovery mechanisms remain politically palatable.
Financial statements indicate that OGS reported an EPS of $2.04 in 2026Q1, a figure that likely incorporates weather-normalization adjustments intended to provide a clearer view of sustainable regulated earnings power by stripping out the volatility associated with unseasonably warm or cold winter periods.
Reported EPS growth appears to be driven by a combination of rate base growth and the successful securitization of extraordinary costs, rather than organic volumetric expansion. Analysts should distinguish between these non-recurring regulatory gains and the core earnings growth rate to avoid overestimating the company's long-term profitability. The sustainability of current earnings levels may depend on the company's ability to continue securing favorable rate case settlements.
As indicated by the consistent depreciation and amortization levels, OGS is actively deploying capital into its distribution network, which serves as the primary engine for rate base growth and, by extension, the long-term appreciation of the company's regulated earnings potential.
The current CAPEX cycle appears focused on system integrity and modernization, which is essential for maintaining the utility's regulatory standing. While this investment is necessary to preserve the existing earnings base, investors should monitor whether the incremental return on this capital remains sufficient to offset the rising costs of financing. The timing of CWIP conversion into the rate base remains a critical factor in the company's ability to deliver consistent EPS growth.
Based on recent corporate filings, the successful securitization of extraordinary gas costs from the 2021 winter weather events represents a pivotal inflection point that has significantly reduced liquidity risk and stabilized the company's long-term financial profile by converting deferred costs into recoverable assets.
This event has allowed the company to clear its balance sheet of short-term liabilities, providing a more transparent view of its ongoing operational performance. The shift to a more stable capital structure suggests that the company is better positioned to manage future infrastructure investments. Investors should view this as a constructive development that enhances the predictability of future cash flows.
While the income statement shows stable margins, it may obscure the long-term risk of politically unsustainable authorized ROEs in an inflationary environment, as well as the potential for future decommissioning costs that are not yet fully reflected in the current depreciation schedules.
The reliance on regulatory assets to smooth earnings may mask the underlying pressure on the company's ability to earn its authorized return if the regulatory climate becomes more adversarial. Furthermore, the potential for structurally declining demand due to energy efficiency and distributed generation warrants further investigation, as these trends could eventually lead to a compression of the rate base. Investors should monitor the political landscape in Oklahoma and Kansas for signs of shifting regulatory support.
Quick answers to the most common questions about buying OGS stock.
For fiscal year 2025, ONE Gas, Inc. (OGS) reported total revenue of $2.43B. This represents a 49.7% increase compared to $1.62B in 2011.
ONE Gas, Inc. (OGS) is profitable, generating $264.2M in net income for the fiscal year ending 2025 with a net profit margin of 10.9%.
ONE Gas, Inc. (OGS) reported an operating income of $457.5M, resulting in an operating profit margin of 18.8%. This margin reflects the operational efficiency of the business before interest and taxes.
ONE Gas, Inc. (OGS) generated $1.43B in gross profit for the year, representing a gross profit margin of 58.8%. This demonstrates the company's core pricing power and production efficiency.