New Jersey Resources (NJR) Q1 2026 earnings summary

Executive summary

• Fiscal 2026 first-quarter net income was $122.5 million ($1.22 per share), down from $131.3 million ($1.32 per share) year-over-year, mainly due to a prior-year gain on the sale of solar assets.

• Operating revenues increased 23.9% to $604.9 million, driven by higher natural gas prices and increased base rates in the Natural Gas Distribution segment.

• Fiscal 2026 NFEPS guidance was raised by $0.25 to $3.28–$3.43 per share, reflecting strong Energy Services performance during Winter Storm Fern and market volatility.

• Utility segment maintained uninterrupted service and protected customers from price spikes through proactive hedging and efficiency programs.

• Customer base continues to expand, with 7,000–9,000 new customers added annually.

Financial highlights

• Q1 NFE was $118.2 million ($1.17 per share), down from $128.9 million ($1.29 per share) year-over-year, reflecting disciplined execution and higher utility contributions.

• Operating revenues rose to $604.9 million from $488.4 million year-over-year.

• Utility gross margin increased to $206.3 million from $181.3 million, reflecting higher base rates and customer growth.

• Cash flows from operations improved to $26.7 million from $(9.0) million, mainly due to higher base rates.

• Capital expenditures for the quarter were $163.6 million, up from $149.6 million year-over-year.

Outlook and guidance

• Fiscal 2026 NFEPS guidance increased to $3.28–$3.43 per share, supported by strong Energy Services performance.

• Long-term NFEPS growth target of 7–9% maintained, based on a fiscal 2025 base of $2.83 per share.

• Five-year CapEx outlook reaffirmed at $4.8–$5.2 billion through 2030, with over 60% dedicated to the utility.

• Capital expenditures for fiscal 2026 projected at $430M–$480M for Natural Gas Distribution and $210M–$290M for Clean Energy Ventures.

• No block equity issuance required to fund the capital plan.