ONE Gas (OGS) Q2 2025 earnings summary

Executive summary

• Q2 2025 net income was $32.0 million ($0.53 per diluted share), up from $27.2 million ($0.48) year-over-year, with six-month net income at $151.5 million ($2.51), up from $126.6 million ($2.23), driven by new rates and customer growth.

• Full-year 2025 guidance raised: net income now expected between $261 million and $267 million, EPS between $4.32 and $4.42, reflecting robust growth and legislative support in Texas.

• Total Q2 2025 revenues were $423.7 million, a 20% increase from $354.2 million in Q2 2024; six-month revenues rose 22% to $1.36 billion.

• Strong operational execution amid challenging weather, with no material service outages and continued capital project progress.

• Declared a $0.67 per share dividend in August 2025, annualized at $2.68 per share, payable September 3, 2025.

Financial highlights

• Q2 2025 revenues increased by $21.1 million from new rates and $2.1 million from higher sales volumes; year-to-date revenues were $1,359.0 million, up from $1,112.5 million.

• Operating and maintenance expenses rose 7.5% year-over-year, mainly due to higher labor costs and expense timing; Q2 2025 operating costs were $154.6 million, up 10% year-over-year.

• Interest expense (excluding KGSS1) declined $1.3 million year-over-year due to lower average rates on commercial paper.

• Capital expenditures and asset removal costs for Q2 2025 were $190.1 million; year-to-date $367.8 million; full-year 2025 guidance is approximately $750 million.

• Q2 2025 operating income was $71.9 million, up from $69.3 million in Q2 2024.

Outlook and guidance

• 2025 net income and EPS guidance both raised by 2.5% at the midpoint from initial ranges, with midpoint EPS guidance now $4.37.

• Capital expenditures for 2025 expected to remain at approximately $750 million.

• Texas House Bill 4384, enacted in June, extends favorable accounting treatment to all Texas capital expenditures, supporting earnings and reducing regulatory lag.

• Guidance update reflects only half-year impact of the new Texas law for 2025.

• Anticipates continued customer growth and infrastructure investment, supported by regulatory mechanisms that reduce earnings lag.