Revenue growth accelerated to 24.7% in 2026Q2, with operating margins recovering to 24.8% as the company successfully integrated infrastructure investments into its regulated rate base.
| Metric | TTM | Sep'25 | Sep'24 | Sep'23 | Sep'22 | Sep'21 | Sep'20 | Sep'19 | Sep'18 | Sep'17 | Sep'16 | Sep'15 | Sep'14 | Sep'13 | Sep'12 | Sep'11 | Sep'10 | Sep'09 | Sep'08 | Sep'07 | Sep'06 | Sep'05 | Sep'04 | Sep'03 | Sep'02 | Sep'01 | Sep'00 | Sep'99 | Sep'98 | Sep'97 | Sep'96 |
|---|
| Revenue | 107.3M | 95.33M | 84.64M | 97.44M | 84.17M | 75.17M | 68.62M | 68.03M | 65.53M | 62.3M | 59.06M | 68.19M | 75.02M | 63.21M | 58.8M | 70.8M | 73.82M | 82.18M | 94.64M | 89.9M | 107.8M | 121.65M | 103.15M | 104.36M | 80.23M | 117.44M | 77.75M | 57.1M | 59.4M | 65M | 65.8M |
| Revenue Growth % | 17.51% | 12.63% | -13.13% | 15.77% | 11.96% | 9.55% | 0.88% | 3.8% | 5.2% | 5.47% | -13.38% | -9.1% | 18.69% | 7.49% | -16.95% | -4.1% | -10.17% | -13.16% | 5.27% | -16.6% | -11.39% | 17.94% | -1.16% | 30.09% | -31.69% | 51.05% | 36.16% | -3.87% | -8.62% | -1.22% | 35.39% |
| Cost of Revenue | 76.81M | 62.48M | 54.35M | 67.67M | 58.01M | 49.68M | 40.47M | 46.91M | 45.11M | 29.49M | 27.5M | 37.98M | 45.68M | 35.6M | 31.87M | 43.53M | 47.38M | 55.11M | 0 | 0 | 81.2M | 74.93M | 60.87M | 74.64M | 55.39M | 89.27M | 35.83M | 33.5M | 36.1M | 42.6M | 43.7M |
| Gross Profit | 30.49M | 32.85M | 30.29M | 29.77M | 26.15M | 25.49M | 28.15M | 21.12M | 20.43M | 32.81M | 31.56M | 30.21M | 29.34M | 27.6M | 26.93M | 27.27M | 26.44M | 27.08M | 94.64M | 89.9M | 26.6M | 46.71M | 42.28M | 29.72M | 24.83M | 28.17M | 41.92M | 23.6M | 23.3M | 22.4M | 22.1M |
| Gross Margin % | 28.41% | 34.46% | 35.79% | 30.55% | 31.07% | 33.91% | 41.02% | 31.04% | 31.17% | 52.67% | 53.44% | 44.3% | 39.11% | 43.67% | 45.8% | 38.52% | 35.82% | 32.95% | 100% | 100% | 24.67% | 38.4% | 40.99% | 28.48% | 30.95% | 23.99% | 53.91% | 41.33% | 39.23% | 34.46% | 33.59% |
| Gross Profit Growth % | - | 8.44% | 1.77% | 13.83% | 2.58% | -9.44% | 33.31% | 3.37% | -37.74% | 3.94% | 4.5% | 2.96% | 6.28% | 2.49% | -1.23% | 3.14% | -2.35% | -71.39% | 5.27% | 238.01% | -43.06% | 10.5% | 42.23% | 19.71% | -11.86% | -32.79% | 77.61% | 1.29% | 4.02% | 1.36% | 13.92% |
| Operating Expenses | 11.94M | 14.4M | 13.21M | 12.09M | 11.23M | 10.71M | 55.51M | 56.43M | 53.94M | 21.28M | 20.61M | 20.43M | 19.86M | 18.87M | 18.17M | 17.96M | 17.46M | 17.23M | 85.8M | 81.94M | 18.89M | 39.2M | 37.08M | 21.66M | 18.69M | 21.44M | 35M | 17.5M | 17.5M | 17.1M | 17.1M |
| Other Operating Expenses | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - |
| EBITDA | 30.26M | 29.92M | 27.6M | 27.67M | 24.1M | 23.45M | 21.24M | 14.97M | 18.68M | 18.04M | 16.92M | 15.23M | 14.52M | 13.45M | 13.17M | 13.48M | 12.94M | 13.66M | 13.36M | 12.26M | 12.19M | 11.79M | 9.32M | 13.49M | 11.43M | 11.7M | 11.45M | 10M | 9.3M | 8.4M | 7.7M |
| EBITDA Margin % | 28.2% | 31.38% | 32.61% | 28.4% | 28.63% | 31.19% | 30.96% | 22% | 28.51% | 28.97% | 28.65% | 22.33% | 19.36% | 21.28% | 22.4% | 19.04% | 17.53% | 16.62% | 14.12% | 13.64% | 11.31% | 9.69% | 9.04% | 12.92% | 14.25% | 9.96% | 14.73% | 17.51% | 15.66% | 12.92% | 11.7% |
| EBITDA Growth % | 0.13% | 8.4% | -0.26% | 14.82% | 2.78% | 10.38% | 41.93% | -19.89% | 3.54% | 6.64% | 11.14% | 4.86% | 7.94% | 2.11% | -2.25% | 4.14% | -5.25% | 2.21% | 9.02% | 0.6% | 3.33% | 26.5% | -30.87% | 17.95% | -2.24% | 2.11% | 14.54% | 7.53% | 10.71% | 9.09% | 16.67% |
| Depreciation & Amortization | 11.71M | 11.47M | 10.52M | 9.99M | 9.18M | 8.67M | 8.13M | 7.6M | 7.09M | 6.38M | 5.71M | 5.22M | 4.84M | 4.66M | 4.39M | 4.16M | 3.96M | 3.82M | 4.53M | 4.3M | 4.48M | 4.28M | 4.13M | 5.42M | 5.3M | 4.97M | 4.54M | 3.9M | 3.5M | 3.1M | 2.7M |
| D&A / Revenue % | 10.91% | 12.03% | 12.43% | 10.26% | 10.91% | 11.53% | 11.84% | 11.17% | 10.82% | 10.24% | 9.67% | 7.65% | 6.45% | 7.37% | 7.46% | 5.88% | 5.36% | 4.64% | 4.78% | 4.78% | 4.16% | 3.52% | 4% | 5.2% | 6.6% | 4.23% | 5.84% | 6.83% | 5.89% | 4.77% | 4.1% |
| Operating Income (EBIT) | 18.55M | 18.45M | 17.08M | 17.68M | 14.92M | 14.78M | 13.12M | 7.37M | 11.59M | 11.67M | 11.21M | 10.01M | 9.68M | 8.8M | 8.79M | 9.31M | 8.98M | 9.84M | 8.84M | 7.96M | 7.71M | 7.51M | 5.19M | 8.06M | 6.14M | 6.73M | 6.92M | 6.1M | 5.8M | 5.3M | 5M |
| Operating Margin % | 17.29% | 19.35% | 20.18% | 18.14% | 17.72% | 19.66% | 19.12% | 10.83% | 17.69% | 18.73% | 18.98% | 14.67% | 12.91% | 13.91% | 14.94% | 13.15% | 12.17% | 11.98% | 9.34% | 8.85% | 7.15% | 6.18% | 5.04% | 7.73% | 7.65% | 5.73% | 8.89% | 10.68% | 9.76% | 8.15% | 7.6% |
| Operating Income Growth % | - | 8% | -3.38% | 18.51% | 0.94% | 12.66% | 78.06% | -36.45% | -0.63% | 4.05% | 12.05% | 3.35% | 10.08% | 0.1% | -5.65% | 3.68% | -8.76% | 11.39% | 11.05% | 3.28% | 2.56% | 44.65% | -35.59% | 31.41% | -8.8% | -2.7% | 13.36% | 5.17% | 9.43% | 6% | 19.05% |
| Interest Expense | 4M | 6.54M | 6.5M | 5.62M | 4.5M | 4.05M | 4M | 3.62M | 2.46M | 1.92M | 1.64M | 1.51M | 1.83M | 1.83M | 1.83M | 1.83M | 1.84M | 1.92M | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Interest Coverage | - | 3.65x | 3.38x | 3.63x | -8.59x | 4.42x | 3.15x | 4.14x | 5.14x | 6.24x | 6.79x | 6.46x | 5.19x | 4.78x | 4.79x | 5.09x | 4.89x | 5.10x | - | - | - | - | - | - | - | - | - | - | - | - | - |
| Interest / Revenue % | 3.73% | 6.86% | 7.69% | 5.77% | 5.34% | 5.39% | 5.83% | 5.32% | 3.76% | 3.08% | 2.77% | 2.22% | 2.44% | 2.89% | 3.11% | 2.59% | 2.49% | 2.33% | 0% | 0% | 0% | 0% | 0% | 0% | 0% | 0% | 0% | 0% | 0% | 0% | 0% |
| Non-Operating Income | -586.66K | -1000K | -1000K | -1000K | -1000K | -1000K | 1000K | -246.32K | -1000K | -1000K | -1000K | -1000K | -1000K | -1000K | -1000K | -1000K | -1000K | -1000K | -1000K | -1000K | -1000K | -967.84K | -1000K | -1000K | -997.3K | -1000K | -1000K | -1000K | -1000K | -1000K | -1000K |
| Pretax Income | 17.97M | 17.37M | 15.46M | 14.79M | -43.14M | 13.31M | 13.78M | 11.35M | 10.19M | 10.04M | 9.47M | 8.26M | 7.65M | 6.91M | 6.94M | 7.5M | 7.14M | 7.86M | 6.84M | 6M | 5.21M | 5.43M | 3.29M | 5.67M | 3.98M | 3.87M | 4.39M | 4.2M | 3.8M | 3.3M | 3.2M |
| Pretax Margin % | 16.74% | 18.22% | 18.26% | 15.18% | -51.26% | 17.7% | 20.08% | 16.68% | 15.55% | 16.11% | 16.04% | 12.12% | 10.2% | 10.93% | 11.8% | 10.59% | 9.67% | 9.56% | 7.23% | 6.68% | 4.84% | 4.46% | 3.19% | 5.43% | 4.96% | 3.29% | 5.64% | 7.36% | 6.4% | 5.08% | 4.86% |
| Income Tax | 4.01M | 4.09M | 3.7M | 3.49M | -11.41M | 3.2M | 3.41M | 2.65M | 2.9M | 3.81M | 3.67M | 3.17M | 2.94M | 2.64M | 2.64M | 2.85M | 2.69M | 2.99M | 2.58M | 2.24M | 1.94M | 2.04M | 1.22M | 2.14M | 1.49M | 1.56M | 1.51M | 1.3M | 1.1M | 1M | 1M |
| Effective Tax Rate % | 22.29% | 23.55% | 23.91% | 23.61% | 26.45% | 24.08% | 24.75% | 23.36% | 28.41% | 37.91% | 38.7% | 38.36% | 38.44% | 38.29% | 38.05% | 37.96% | 37.71% | 38.02% | 37.75% | 37.26% | 37.2% | 37.58% | 37.19% | 37.75% | 37.53% | 40.35% | 34.51% | 30.95% | 28.95% | 30.3% | 31.25% |
| Net Income | 13.96M | 13.28M | 11.76M | 11.3M | -31.73M | 10.1M | 10.37M | 8.7M | 7.3M | 6.23M | 5.81M | 5.09M | 4.71M | 4.26M | 4.3M | 4.65M | 4.45M | 4.87M | 4.22M | 3.81M | 3.51M | 3.51M | 12.93M | 3.53M | 2.49M | 2.24M | 2.87M | 2.9M | 2.7M | 2.3M | 2.2M |
| Net Margin % | 13.01% | 13.93% | 13.89% | 11.6% | -37.7% | 13.44% | 15.11% | 12.79% | 11.13% | 10.01% | 9.83% | 7.47% | 6.28% | 6.74% | 7.31% | 6.57% | 6.02% | 5.92% | 4.46% | 4.23% | 3.26% | 2.88% | 12.54% | 3.38% | 3.1% | 1.91% | 3.7% | 5.08% | 4.55% | 3.54% | 3.34% |
| Net Income Growth % | 5.42% | 12.92% | 4.09% | 135.61% | -414.12% | -2.57% | 19.19% | 19.2% | 17.08% | 7.34% | 13.98% | 8.2% | 10.47% | -0.81% | -7.67% | 4.68% | -8.7% | 15.35% | 10.9% | 8.39% | 0.13% | -72.89% | 266.57% | 41.88% | 11.13% | -22.13% | -0.91% | 7.41% | 17.39% | 4.55% | 22.22% |
| EPS (Diluted) | 1.35 | 1.29 | 1.16 | 1.14 | -3.48 | 1.22 | 1.30 | 1.08 | 0.95 | 0.86 | 0.81 | 0.72 | 0.67 | 0.61 | 0.61 | 0.67 | 0.65 | 0.73 | 0.64 | 0.58 | 0.55 | 0.56 | 2.11 | 0.59 | 0.43 | 0.40 | 0.51 | 0.53 | 0.53 | 0.51 | 0.50 |
| EPS Growth % | 4.93% | 11.21% | 1.75% | 132.76% | -385.25% | -6.15% | 20.37% | 13.68% | 10.47% | 6.17% | 12.5% | 7.46% | 9.84% | 0% | -8.96% | 3.08% | -10.96% | 14.06% | 10.34% | 5.45% | -1.79% | -73.46% | 257.63% | 37.21% | 7.5% | -21.57% | -3.77% | 0% | 3.92% | 2% | 19.05% |
| EPS (Basic) | - | 1.29 | 1.16 | 1.14 | -3.48 | 1.22 | 1.30 | 1.08 | 0.95 | 0.86 | 0.81 | 0.72 | 0.67 | 0.61 | 0.61 | 0.67 | 0.65 | 0.73 | 0.64 | 0.59 | 0.55 | 0.56 | 2.13 | 0.59 | 0.43 | 0.40 | 0.51 | 0.53 | 0.53 | 0.51 | 0.50 |
| Diluted Shares Outstanding | 10.38M | 10.31M | 10.16M | 9.93M | 9.12M | 8.26M | 8.15M | 8.08M | 7.7M | 7.26M | 7.16M | 7.1M | 7.07M | 7.05M | 6.98M | 6.9M | 6.79M | 6.69M | 6.63M | 6.52M | 6.39M | 6.26M | 6.13M | 5.95M | 5.82M | 5.7M | 5.59M | 5.46M | 5.12M | 4.48M | 4.37M |
Moderate
According to recent financial disclosures, RGCO achieved a 24.7% year-over-year revenue increase in 2026Q2, reflecting the inherent seasonality of the Roanoke gas distribution market and the successful integration of infrastructure investments into the rate base, which remains the primary driver of the company's top-line expansion.
The revenue trajectory appears heavily influenced by the cyclical nature of heating demand, yet the recent acceleration suggests that the company is successfully capturing returns on its capital expenditure programs. Investors should monitor whether this growth is sustainable or if it remains tethered to weather-normalized volumetric fluctuations that can obscure the underlying rate base performance.
As reported in quarterly filings, the company's operating margin reached 24.8% in 2026Q2, indicating a recovery from the negative margins observed in late 2025 and suggesting that the Virginia State Corporation Commission's regulatory framework is effectively facilitating the recovery of operational costs and capital investments.
The volatility in operating margins suggests that regulatory lag or seasonal cost mismatches can temporarily compress profitability. The recent improvement appears to validate the effectiveness of the SAVE infrastructure program in stabilizing margins, though the gap between authorized and earned returns warrants further investigation to confirm long-term regulatory alignment.
Based on the company's reported income statements, the cost structure remains dominated by commodity pass-throughs, which allow RGCO to insulate its earnings power from natural gas price volatility, provided that the regulatory mechanisms for timely recovery of these costs remain functional and free from significant administrative delays.
The reliance on automatic adjustment mechanisms is critical for maintaining earnings stability in a fluctuating commodity environment. While these costs inflate the top line, they do not represent a structural threat to profitability, provided the regulatory environment remains constructive regarding the timely recovery of fuel and purchased power expenses.
As indicated by the 13.5% EPS growth in 2026Q2, reported earnings appear to be recovering, yet investors should note that these figures may be influenced by equity in earnings from the Mountain Valley Pipeline, which may not reflect the cash-generative capacity of the core regulated utility operations.
The inclusion of unconsolidated affiliate earnings can create a disconnect between GAAP net income and the actual cash flow available for dividends. Analysts should adjust for these non-cash contributions to determine the true regulated earnings power of the Roanoke gas distribution franchise.
Based on the company's reported figures, the ongoing capital expenditure cycle, particularly through the SAVE program, appears to be the primary engine for rate base growth, which is essential for justifying future rate increases and maintaining the company's long-term earnings trajectory within the Virginia regulatory jurisdiction.
Incremental CAPEX is translating into earnings growth, but the timing of these investments entering the rate base remains a key variable for valuation. The current cycle appears to be a strategic effort to modernize the network, which may provide a durable foundation for future earnings growth beyond simple maintenance.
As reported in recent financial statements, the completion of the Mountain Valley Pipeline represents a significant inflection point, potentially transitioning the company from a period of capital-intensive development to one of realized cash flow contribution from its midstream investment portfolio, altering the risk-reward profile for shareholders.
This shift may reduce the uncertainty that has historically weighed on the company's valuation. Investors should monitor whether this transition leads to a more predictable earnings stream or if the regulatory treatment of these midstream assets introduces new complexities to the consolidated income statement.
Based on an analysis of the reported figures, the income statement may mask long-term risks such as the potential for politically unsustainable authorized ROEs or future environmental remediation costs associated with legacy infrastructure that are not yet fully reflected in the current operating expense line items.
The reliance on a single geographic market and the potential for shifting regulatory attitudes toward natural gas present structural challenges that are not immediately apparent in the quarterly P&L. These factors warrant further investigation to ensure that the current earnings power is not being overstated by a temporary regulatory environment.
Quick answers to the most common questions about buying RGCO stock.
For fiscal year 2025, RGC Resources, Inc. (RGCO) reported total revenue of $95.3M. This represents a 44.9% increase compared to $65.8M in 1996.
RGC Resources, Inc. (RGCO) is profitable, generating $13.3M in net income for the fiscal year ending 2025 with a net profit margin of 13.9%.
RGC Resources, Inc. (RGCO) reported an operating income of $18.4M, resulting in an operating profit margin of 19.4%. This margin reflects the operational efficiency of the business before interest and taxes.
RGC Resources, Inc. (RGCO) generated $32.9M in gross profit for the year, representing a gross profit margin of 34.5%. This demonstrates the company's core pricing power and production efficiency.