Quarterly and Full-year Results

For the fourth quarter ended Dec. 31, 2025, ONE Gas reported net income of $86.3 million, or $1.42 per diluted share, compared with $74.5 million, or $1.31 per diluted share, in the same period of 2024. On an adjusted non-GAAP basis, which accounts for regulatory accounting impacts from Texas House Bill 4384, the company earned $1.48 per share.

Quarterly revenues reached $689.4 million, a 9.3% increase from $630.7 million in the prior-year quarter. Growth was primarily driven by new rate outcomes and a residential customer base expansion of approximately 23,000 annually. Total natural gas volumes delivered rose 1.27% year-over-year to 103.7 billion cubic feet.

Full-year 2025 net income totaled $264 million, or $4.37 per diluted share, up from $223 million in 2024. Adjusted full-year earnings were $4.48 per share. Operating income for the year climbed to $457.5 million, supported by $116 million in revenue increases from new rates across its service territories in Oklahoma, Kansas, and Texas.

2026 Guidance

Management introduced 2026 adjusted net income guidance in the range of $306 million to $314 million, with adjusted earnings per share projected between $4.83 and $4.95. The company expects a long-term adjusted EPS compound annual growth rate (CAGR) of 5% to 7% through 2030.

Capital expenditures for 2026 are planned at $800 million, an increase from the $760 million invested in 2025. The company also raised its quarterly dividend by 1.5% to $0.68 per share, effective for shareholders of record on Feb. 20.

Sector Context

While tech-heavy indices and SaaS stocks have faced pressure from shifting interest rate expectations and high valuation multiples, regulated utilities like ONE Gas have seen increased interest. The sector remains a focal point for capital preservation, though utility firms face ongoing macro pressure from rising operations and maintenance (O&M) costs, which rose 5% for ONE Gas in 2025.