New Jersey Resources (NJR) Q1 2025 earnings summary

Executive summary

• Fiscal 2025 began with strong performance, with Q1 net income rising to $131.3M ($1.32/share) from $89.4M ($0.91/share) year-over-year, driven by new base rates at NJNG and a $54.9M gain from the $132.5M sale of CEV's 91MW residential solar portfolio.

• Achieved new rates at NJNG, supporting recovery of $850M in investments and establishing a $3.2B rate base, with regulatory approval for a $157M annual base rate increase.

• Launched the largest energy efficiency program in company history, SAVEGREEN, with $386M in investments through June 2027 and annual recoveries up by $12.3M starting January 2025.

• Clean Energy Ventures advanced its commercial solar strategy, with a robust project pipeline exceeding 1GW and 11MW of new capacity added in Q1.

• Storage and transportation assets delivered stable returns, progressing on Leaf River capacity recovery and Adelphia Gateway rate case.

Financial highlights

• Q1 FY2025 NFEPS was $1.29 per share, up from $0.74 year-over-year; consolidated NFE was $128.9M, up from $72.4M.

• Net income for Q1 FY2025 was $131.3M, up from $89.4M, with operating revenues increasing 4.5% to $488.4M.

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

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

• Cash flows from operating activities were $(9.0)M, down from $46.4M, mainly due to working capital changes.

Outlook and guidance

• Fiscal 2025 NFEPS guidance set at $3.05–$3.20 per share, exceeding the long-term growth rate of 7–9%, reflecting a one-time gain from the solar portfolio sale.

• NJNG expected to contribute 67–73% of FY2025 NFEPS; CEV 20–25%; S&T 3–7%; ES 4–7%; Home Services 0–1%.

• NJNG expects new customer additions to contribute $2.0M in incremental Utility Gross Margin annually.

• Management will monitor financial outlook as the winter season progresses.