ONE Gas Q4 Earnings Beat Estimates, Revenues Increase Y/Y

Core Insights - ONE Gas, Inc. (OGS) reported Q4 2025 operating earnings per share (EPS) of $1.48, exceeding the Zacks Consensus Estimate of $1.42 by 4% and up from $1.35 in the same quarter last year [1] - OGS achieved adjusted earnings of $4.48 per share for 2025, reflecting a year-over-year increase of 13.71% compared to $3.94 in 2024 [1] Revenue Performance - OGS recorded revenues of $689.4 million in Q4 2025, surpassing the Zacks Consensus Estimate of $675 million by 2.1% and increasing by 9.31% from $630.7 million in the prior-year quarter [2] - Total revenues for 2025 reached $2.43 billion, a 16.5% increase from $2.08 billion in 2024 [2] Operational Highlights - Total natural gas volumes delivered were 103.7 billion cubic feet, marking a 1.27% year-over-year increase [3] - OGS served 2,290,000 customers, reflecting a 0.57% increase year over year [3] - Total operating expenses amounted to $257.7 million, up 6.22% from $242.7 million in the year-ago quarter, driven by higher operations and maintenance expenses, depreciation, and general taxes [3] Financial Metrics - Operating income totaled $139.7 million, a 12.41% increase from $124.3 million in the previous year [4] - Net interest expenses were $36.5 million, down 8.30% from $39.8 million in the year-ago quarter [4] Cash Flow and Debt - As of December 31, 2025, OGS had cash and cash equivalents of $10.6 million, down from $58 million as of December 31, 2024 [5] - Total long-term debt was $2.36 billion as of December 31, 2025, compared to $2.39 billion a year earlier [5] - Cash provided by operating activities during 2025 was $578.8 million, up from $368.4 million in the previous year [5] - Capital expenditure for the year totaled $707.2 million, slightly up from $703.2 million in 2024 [5] Future Guidance - OGS expects its 2026 adjusted net income to be in the range of $306-$314 million, with adjusted earnings projected between $4.83 and $4.95 per share [6] - The consensus estimate for earnings is pegged at $4.71, which is below the company's guidance range [7] - OGS plans to make capital investments of up to $800 million in 2026 to maintain system integrity and support replacement projects [7]