New Jersey Resources (NJR) Q4 2024 earnings summary

Executive summary

• Fiscal 2024 NFEPS reached $2.95 per share, surpassing the high end of raised guidance for the fourth consecutive year, reaffirming a 7%-9% long-term growth target.

• All business segments contributed, with NJNG growing to 583,000 customers and CEV operating at 99% solar portfolio availability.

• NJNG settled its base rate case, securing approval to recover $850M in investments and a new $385.6M SAVEGREEN program.

• Completed the sale of the Sunlight Advantage/91MW residential solar portfolio for $132.5M, sharpening focus on commercial solar and strengthening the balance sheet.

• Announced a 7.1% dividend increase for fiscal 2025 to $1.80 per share.

Financial highlights

• Fiscal 2024 consolidated NFE was $290.8M ($2.95/share), up from $261.8M ($2.70/share) in 2023.

• Utility gross margin for NJNG was $544.9M, up from $536.6M year-over-year.

• Annual revenue increased by $157M from NJNG's rate case settlement, effective November 21.

• Cash flow from operations was $427M in FY2024, with adjusted FFO at $695.4M.

• Market cap at September 30, 2024 was $4.7B, up from $4.0B a year earlier.

Outlook and guidance

• Fiscal 2025 initial NFEPS guidance range set at $3.05-$3.20 per share, above the 7%-9% long-term growth target due to a one-time gain from the Sunlight Advantage sale.

• Long-term NFEPS growth target maintained at 7%-9%, rebased to $2.83 per share.

• Projected cash flow from operations for fiscal 2025 is $460M-$500M.

• Approximately 70%-75% of FY2025 NFEPS expected from regulated utility operations.

• Dividend per share increased 7.1% to $1.80, with a 3.5%-3.8% yield.