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.

• NFE for the quarter was $118.2 million ($1.17 per share), compared to $128.9 million ($1.29 per share) in the prior year.

• Fiscal 2026 NFEPS guidance was raised by $0.25 to $3.28–$3.43 per share, marking the sixth consecutive year of increased guidance, driven by Energy Services outperformance during Winter Storm Fern.

• Utility, storage & transportation, and clean energy segments all contributed to growth, with Energy Services and Natural Gas Distribution posting strong results due to market volatility and higher base rates.

• Dividend raised for the 30th consecutive year, with FY2026 annual dividend at $1.90 per share.

Financial highlights

• Operating revenues rose to $604.9 million from $488.4 million year-over-year, driven by higher natural gas prices and increased base rates.

• 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.

• Energy Services NFE nearly doubled year-over-year, from $7.8 million to $16.3 million.

Outlook and guidance

• Fiscal 2026 NFEPS guidance raised to $3.28–$3.43 per share, reflecting strong Energy Services performance.

• Long-term NFEPS growth target remains at 7–9% annually through 2030, 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.

• Management expects to fund obligations through cash flows, available credit, and new debt issuances.