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NJ

NEW JERSEY RESOURCES CORP (NJR)·Q4 2025 Earnings Summary

Executive Summary

  • Q4 FY2025 revenue beat but EPS underwhelmed: revenue $336.08M vs S&P Global consensus $299.75M (+12% beat), while GAAP EPS $0.15 came in below S&P consensus EPS $0.19; NJR’s non-GAAP NFEPS was $0.16, down sharply YoY due to lower Energy Services AMAs contribution . Estimates marked with * from S&P Global.
  • FY2025 delivered at the high end of guidance: NFEPS $3.29 (raised intra-year) and net income $335.6M; management introduced FY2026 NFEPS guidance of $3.03–$3.18 and reaffirmed 7–9% long-term NFEPS growth from a $2.83 base .
  • Mix shift: Strong utility gross margin post rate case and S&T growth offset weakness at Energy Services; CEV placed a record ~93 MW and benefited YTD from sale of the residential solar portfolio .
  • Potential stock drivers: revenue beat vs estimates, FY2026 guide reset to a lower base, constructive Adelphia settlement approval (Nov 4) and Leaf River expansion filing could underpin medium-term cash flow and de-risk growth .

What Went Well and What Went Wrong

  • What Went Well
    • Utility strength: NJNG utility gross margin rose to $91.2M in Q4 (from $67.7M), driving FY utility NFE to $213.5M vs $133.4M last year, aided by the base rate case settlement .
    • S&T momentum: Q4 NFE increased to $4.6M (from $2.5M); FERC approved Adelphia rate settlement (Nov 4) and Leaf River filed to increase certificated storage capacity by 17.6 Bcf .
    • Management execution/tone: “We delivered NFEPS at the high end of our guidance range… Our fiscal 2026 NFEPS guidance of $3.03 to $3.18 reflects our confidence in achieving our 7 to 9 percent long-term NFEPS growth target.” — CEO Steve Westhoven .
  • What Went Wrong
    • Energy Services drag: Q4 NFE fell to $(4.5)M vs $68.3M prior year; FY NFE dropped to $34.9M vs $111.5M, as expected lower AMA contribution rolled off .
    • YoY quarterly compression: Q4 GAAP EPS fell to $0.15 (from $0.92) and NFEPS to $0.16 (from $0.89) as last year’s Energy Services uplift normalized .
    • Mix headwinds at CEV in the quarter: Q4 CEV NFE declined to $23.8M (from $35.5M) on lower SREC sales and absence of residential solar portfolio contribution (sold Nov 2024), though FY grew on the sale gain .

Financial Results

Quarterly headline results vs prior periods and estimates

MetricQ4 FY2024Q3 FY2025Q4 FY2025Q4 FY2025 Consensus
Revenue ($M)395.78 298.95 336.08 299.75*
GAAP Net Income ($M)91.13 (15.05) 15.07 —
GAAP Basic EPS ($)0.92 (0.15) 0.15 0.19*
Non-GAAP NFE ($M)88.71 6.20 16.23 —
Non-GAAP NFEPS ($)0.89 0.06 0.16 —

Q4 FY2025 vs S&P Global consensus: revenue beat (+12%) and EPS miss (~$0.03). Values with * are from S&P Global.

Margins trend (company-wide)

Margin MetricQ2 FY2025Q3 FY2025Q4 FY2025
EBIT Margin %30.59%*-0.54%*11.39%*
Net Income Margin %22.37%*-5.03%*4.48%*
EBITDA Margin %35.84%*15.18%*25.38%*

Values with * are from S&P Global.

Segment breakdown – Q4 FY2025 vs Q4 FY2024

SegmentQ4 FY2024 NFE ($000)Q4 FY2025 NFE ($000)
New Jersey Natural Gas(19,000) (7,977)
Clean Energy Ventures35,470 23,841
Storage & Transportation2,468 4,636
Energy Services68,284 (4,532)
Home Services & Other(639) (825)
Eliminations2,124 1,086
Total NFE88,707 16,229

Q4 segment revenues (operating)

SegmentQ4 FY2024 Rev ($000)Q4 FY2025 Rev ($000)
Natural Gas Distribution105,091 145,178
Clean Energy Ventures71,295 66,098
Energy Services178,420 81,909
Storage & Transportation24,830 27,349
Home Services & Other16,540 15,799
Eliminations(396) (255)
Total395,780 336,078

KPIs and operating stats

KPIQ4 FY2024Q4 FY2025
NJNG Utility Gross Margin ($000)67,708 91,187
BGSS Incentive – Qtr ($000)1,690 3,892
Total Customers (NJNG)582,916 588,975
Degree Days – % of Normal (Qtr)32.0% 20.0%

Guidance Changes

MetricPeriodPrevious GuidanceCurrent GuidanceChange
NFEPSFY2026—$3.03 – $3.18Introduced
Long-term NFEPS GrowthMulti-year7%–9% 7%–9% (from $2.83 base) Maintained
Segment Mix (of FY26 NFE)FY2026—NJNG 67–72%, CEV 10–15%, S&T 8–12%, ES 5–10%, HS 1–2%Introduced
Capital PlanThrough 2030$4.8–$5.2B$4.8–$5.2BMaintained
FY2025 NFEPSFY2025$3.15–$3.30 (May raise) → $3.20–$3.30 (Aug raise) Actual $3.29Achieved high end
DividendNext pay date—$0.475 per share (payable Jan 2, 2026)Declared

Earnings Call Themes & Trends

Note: The Q4 FY2025 call transcript was not available at publication. Current-period themes sourced from the Q4 press release and investor presentation; prior quarters from Q2/Q3 materials.

TopicPrevious Mentions (Q2 & Q3 FY2025)Current Period (Q4 FY2025)Trend
Regulatory – Adelphia rate caseSettlement in principle; resolution expected by year-end FERC approved settlement Nov 4, 2025 Positive resolution
Leaf River expansionNon-binding open season, expansion options under evaluation; binding OS forthcoming Filed with FERC Oct 31, 2025 to increase certificated capacity by 17.6 Bcf Advancing
Utility growth/SaveGreenRecord SaveGreen investment; near real-time recovery Record $98M FY investment; BGSS incentives $18.4M FY Strengthening
CEV pipeline & hedging~131 MW over next two years; flexible pacing; discuss policy/macro Record ~93 MW in FY2025; ~479 MW in service; hedged SRECs through FY27 Executing
Energy Services/AMAsContribution normalizing as AMAs roll off Q4 NFE down sharply YoY due to lower AMAs vs prior year Headwind persists
Balance sheet & fundingAdjusted FFO/Adjusted Debt ~19–21%; no block equity Target 19–20% through 2030; $825M liquidity; no block equity Stable

Management Commentary

  • “Fiscal 2025 was another strong year… NFEPS at the high end of our guidance… reflects the strength of our complementary businesses… record investments at NJNG… highest annual installed capacity additions by CEV… strategic milestones at Adelphia and Leaf River.” — Steve Westhoven, President & CEO .
  • “Fiscal 2026 NFEPS guidance of $3.03 to $3.18 reflects our confidence in achieving our 7 to 9 percent long-term NFEPS growth target… capital plan through 2030… positions NJR to deliver consistent results.” — Steve Westhoven .

Q&A Highlights

  • Q4 FY2025 Q&A transcript not available at publication. From Q3:
    • Adelphia settlement timing and disclosure approach; constructive outcome anticipated .
    • Leaf River expansion path (binding open season, FEED studies, FERC filing, then construction/operations); CapEx visibility update cadence (typically November) .
    • SaveGreen CapEx drivers (residential HVAC, commercial direct install) and real-time recovery mechanics .
    • Dividend framework remains tied to long-term growth rather than outperformance-driven payout .

Estimates Context

  • Q4 FY2025 vs S&P Global consensus: revenue $336.08M vs $299.75M*; Primary EPS $0.16 vs $0.19*; # of estimates: EPS (4), revenue (2). Values with * are from S&P Global.
  • Implications: Top-line outperformance likely reflects higher utility revenues and S&T contribution; EPS shortfall vs consensus tracked the Energy Services step-down YoY as AMA uplift normalized .
MetricQ4 FY2025 ActualQ4 FY2025 ConsensusSurprise
Revenue ($M)336.08 299.75*+12.1%
Primary EPS ($)0.16*0.19*-$0.03

Values with * are from S&P Global.

Key Takeaways for Investors

  • Quality beat on revenue but with EPS below consensus; mix normalization (Energy Services) is the main drag while the regulated utility and S&T continue to comp well .
  • FY2026 guide reset to $3.03–$3.18 NFEPS frames a cleaner baseline post-AMAs; long-term 7–9% growth and >60% utility-weighted capex plan support durability .
  • Regulatory/capacity catalysts: Adelphia settlement in place and Leaf River expansion filing provide visibility into medium-term fee-based growth .
  • Utility fundamentals remain solid: higher utility gross margin, record SaveGreen investment, and customer growth underpin stable earnings and cash flow .
  • Balance sheet/liquidity are supportive (no block equity; $825M facilities), enabling execution through rate base growth and targeted S&T/CEV investments .
  • Near-term trading: watch for sentiment on guidance “reset” vs constructive infra catalysts; revenue beat may be overshadowed by EPS miss if investors anchor to S&P consensus.
  • Medium-term thesis: regulated growth plus contracted/fee-based expansions (Adelphia/Leaf River) should offset Energy Services normalization and smooth earnings volatility .

Footnotes and disclosures:

  • Values marked with * were retrieved from S&P Global.
  • Q4 FY2025 earnings call transcript could not be located at the time of analysis; current-period qualitative themes sourced from the Q4 press release and investor presentation .