New Jersey Resources (NJR) Q1 2025 earnings summary

Executive summary

• Fiscal 2025 first-quarter net income rose to $131.3 million ($1.32/share) from $89.4 million ($0.91/share) year-over-year, driven by new base rates at NJNG and a $54.9 million gain from the sale of CEV's residential solar portfolio.

• Net financial earnings (NFE) increased to $128.9 million ($1.29/share) from $72.4 million ($0.74/share) year-over-year, with all business segments contributing favorably.

• NJNG's new $3.2 billion rate base and approval for a $385.6 million SAVEGREEN program support continued regulated growth.

• Clean Energy Ventures sharpened focus on commercial solar, with a 1GW pipeline and 11MW capacity added in Q1.

• Storage & Transportation progressed on Leaf River capacity recovery and Adelphia Gateway's Section 4 rate case.

Financial highlights

• Basic EPS was $1.32, up from $0.91 year-over-year; NFEPS was $1.29, up from $0.74.

• Q1 FY2025 consolidated NFE was $128.9 million, up from $72.4 million in Q1 FY2024.

• Utility gross margin for NJNG rose to $181.3 million from $155.8 million year-over-year.

• Dividend increased to $1.80 per share, a 7.1% rise from $1.68.

• Operating revenues increased 4.5% to $488.4 million compared to the same quarter last year.

Outlook and guidance

• Fiscal 2025 NFEPS guidance maintained at $3.05–$3.20, above the long-term 7–9% NFEPS growth target due to the one-time solar portfolio gain.

• NJNG expected to contribute 67–73% of FY2025 NFEPS; CEV 20–25%; S&T 3–7%; ES 4–7%.

• Capital expenditures for Fiscal 2025 and 2026 planned at $1.3–$1.6 billion, supporting long-term growth targets.

• Cash flow from operations projected at $460–$500 million for Fiscal 2025.

• NJNG's capital expenditures for FY2025 are projected between $365 million and $415 million; CEV's solar-related capex is estimated at $160 million–$265 million.