New Jersey Resources Raises Fiscal 2026 EPS Guidance to $3.28–$3.43
NJR reported Q1 net financial earnings per share of $1.17, down from $1.29 year-over-year, due to the absence of a prior-year gain. The company raised its full-year 2026 NFEPS guidance by $0.25 to $3.28–$3.43, marking its sixth consecutive guidance increase.
1. Fiscal 2026 First-Quarter Results Exceed Expectations
New Jersey Resources reported consolidated net income of $122.5 million, or $1.22 per share, for the quarter ended December 31, 2025, compared with $131.3 million, or $1.32 per share, in the prior-year period. Non-GAAP net financial earnings (NFE) came in at $118.2 million, or $1.17 per share, beating consensus forecasts. The modest year-over-year decline in NFE—against $128.9 million, or $1.29 per share, last year—reflects the absence of a one-time gain on the sale of residential solar assets recognized in Q1 2025, while core utility and services businesses delivered solid contributions.
2. Segment Performance Drives Diversified Growth
The utility arm, New Jersey Natural Gas (NJNG), generated $83.8 million of NFE, up from $66.9 million a year ago, reflecting full impact of a recent base-rate settlement. Energy Services posted $16.3 million of NFE, more than double last year’s quarter, benefiting from higher gas-price volatility. Storage & Transportation earnings rose to $7.4 million, driven by a favorable FERC rate case outcome at Adelphia Gateway. Clean Energy Ventures contributed $9.6 million, down from $48.1 million in the year-ago period due to the prior gain on solar portfolio sales. Capital spending totaled $163.6 million, up 9%, led by infrastructure investments at NJNG and project development at CEV.
3. Raised Guidance and Long-Term Growth Targets
Management increased fiscal 2026 NFE guidance by $0.25 to a range of $3.28–$3.43 per share, marking the sixth consecutive year of upward revisions. This revision reflects strong Energy Services performance in early Q2 and stable utility margins. The company reaffirmed its 7–9% long-term NFE per-share growth goal, starting from last year’s base of $2.83. Expected contributions for fiscal 2026 are weighted 62–67% from NJNG, 12–17% from Energy Services, 9–14% from Clean Energy Ventures, 7–12% from Storage & Transportation, and 1–2% from Home Services and other operations.
4. Strategic Investments and Value Creation
Through 2030, NJR plans $4.8–$5.2 billion in capital deployment, with over 60% targeted at its regulated utility. Investments in energy-efficiency programs continue, with $26.7 million committed in Q1 to SAVEGREEN® upgrades. CEV’s commercial solar portfolio reached 489 MW in service across seven states, and two projects (9.7 MW) were energized during the quarter. Storage expansions include a 17.6 Bcf cavern addition at Leaf River. Management emphasized disciplined execution and a focus on delivering reliable, affordable energy while pursuing disciplined growth and shareholder value.