RGC Resources (RGCO) Q2 2026 Earnings Transcript

Motley Fool Transcribing, The Motley Fool

Fri, May 8, 2026 astatine 9:39 AM CDT 10 min read

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DATE

Friday, May 8, 2026 astatine 9 a.m. ET

CALL PARTICIPANTS

• Chairman — Tommy Oliver

• Chief Financial Officer — Timothy J. Mulvaney

• President and Chief Executive Officer — Paul W. Nester

Full Conference Call Transcript

Tommy Oliver: Well, convey you, Kelsie, and bully morning, everyone. Turning present to operations connected descent three. Main extensions and renewal enactment for 2026 were steady. We installed 2.7 main miles, a akin full to the main miles installed successful 2025. In addition, we connected 340 caller services successful 2026, which was adjacent to the 359 connections from 2025, grounds that residential improvement continued crossed the portion successful the archetypal fractional of the fiscal year. As shown connected the close broadside of the slide, we renewed 1.5 miles of main and 190 services during the 2026 fiscal year.

While the main miles renewed were down, successful portion owed to weather, compared to the aforesaid play past year, the work renewals accrued by astir 25%. Let america determination to descent four, wherever we amusement our delivered state volumes for the quarter. Despite an utmost acold spell successful precocious January and aboriginal February, the 4th arsenic a full was warmer compared to the aforesaid 4th successful the 2025 fiscal year. Total volumes were down 5% compared to 2025. Residential and commercialized volumes were some down 5%, and heating grade days were down 2% compared to 2025. Let america determination to descent five. The communicative of delivered state volumes was a small antithetic successful the archetypal six months of fiscal 2026.

Despite the larger fig of heating grade days, full volumes were down 3% compared to 2025, with the diminution successful concern usage, chiefly attributable to 1 customer, being the main reason. Unlike the quarter, heating grade days for the six months accrued 3%, arsenic the archetypal six months of the fiscal twelvemonth were colder than the anterior year. Let america determination to descent six, wherever we speech astir CapEx. CapEx for 2026 compared to 2025. Total spending was 9.8 cardinal dollars successful the existent year, down astir 8% implicit the aforesaid play a twelvemonth ago. Weather related to a wintertime tempest successful precocious January and aboriginal February affected our spending.

We picked backmost up successful March and volition sermon plans for the remainder of the twelvemonth aboriginal successful the presentation. I americium going to present crook it implicit to our CFO, Timothy J. Mulvaney, to reappraisal our fiscal results for the quarter. Tim?

Timothy J. Mulvaney: Thank you, Tommy. Moving to descent seven, this shows some our 2nd 4th and archetypal fractional results for fiscal 2026. We had a robust quarter, with accrued Roanoke Gas margins owed to the rates that went into effect January 1 combined with higher net from our unconsolidated affiliate, MVP, and little involvement expense, which overcame higher expenses related to concern successful our state strategy and inflationary pressures that stay higher than the Fed’s 2% target. Net income of 8.7 cardinal dollars, oregon $0.84 per diluted share, compared to nett income successful the aforesaid 4th a twelvemonth agone of 7.4 cardinal dollars, oregon $0.74 per diluted share, a 14% increase. The year-to-date results are besides shown connected descent eight.