New Jersey Resources (NYSE: NJR) boosts 2026 NFEPS guidance after strong Q2
Filing Impact
Filing Sentiment
Form Type
8-K
Rhea-AI Filing Summary
New Jersey Resources Corporation reported solid fiscal 2026 second-quarter results and raised its full-year net financial earnings per share (NFEPS) guidance. For the quarter ended March 31, 2026, net income was $218.9 million, up from $204.3 million, with basic EPS increasing to $2.17 from $2.04. Net financial earnings rose to $221.5 million from $178.3 million, and basic NFEPS grew to $2.20 from $1.78.
Year-to-date, net income reached $341.4 million versus $335.6 million a year earlier, while basic NFEPS climbed to $3.37 from $3.07. Strong contributions came from New Jersey Natural Gas, Energy Services, and Storage and Transportation, partially offset by weaker results at Clean Energy Ventures after a prior-year asset sale gain. Reflecting continued outperformance at Energy Services, management increased fiscal 2026 NFEPS guidance by $0.20 to a range of $3.48 to $3.63, and expects roughly 58–62% of 2026 net financial earnings to come from its utility segment.
Positive
- Raised 2026 earnings outlook: Fiscal 2026 net financial EPS guidance increased by $0.20 to a range of $3.48 to $3.63, marking the second guidance increase this year and reflecting continued strength at the Energy Services segment.
- Strong Q2 and year-to-date performance: Q2 net financial earnings rose to $221.5 million from $178.3 million and basic NFEPS to $2.20 from $1.78, while year-to-date NFE climbed to $339.6 million from $307.2 million.
- Energy Services and S&T momentum: Energy Services nearly doubled Q2 net financial earnings to $72.3 million, and Storage and Transportation increased Q2 NFE to $7.7 million, supporting diversified earnings growth alongside the core utility.
Negative
- None.
Insights
NJR posts stronger Q2, boosts 2026 earnings outlook on Energy Services strength.
New Jersey Resources delivered higher profitability in fiscal Q2 2026, with net income rising to $218.9M and basic NFEPS up to $2.20 from $1.78. Consolidated net financial earnings grew to $221.5M, driven mainly by regulated utility operations and Energy Services.
Segment data show New Jersey Natural Gas NFE improving to $148.5M, while Energy Services nearly doubled Q2 NFE to $72.3M on greater natural gas price volatility. Storage and Transportation also posted higher NFE, helped by Adelphia Gateway’s Section 4 rate case settlement.
Management raised fiscal 2026 NFEPS guidance by $0.20 to $3.48–$3.63, its second increase this year, citing continued Energy Services outperformance. The company projects 58–62% of fiscal 2026 net financial earnings from its utility, with additional growth supported by a $4.8–$5.2B capital plan through 2030 and no planned block equity issuance.
8-K Event Classification
3 items: 2.02, 7.01, 9.01
3 items
Item 2.02
Results of Operations and Financial Condition
Financial
Disclosure of earnings results, typically an earnings press release or preliminary financials.
Item 7.01
Regulation FD Disclosure
Disclosure
Material non-public information disclosed under Regulation Fair Disclosure, often investor presentations or guidance.
Item 9.01
Financial Statements and Exhibits
Exhibits
Financial statements, pro forma financial information, and exhibit attachments filed with this report.
Key Figures
Q2 2026 net income: $218.9M
Q2 2026 basic EPS: $2.17
Q2 2026 net financial earnings: $221.5M
+5 more
8 metrics
Q2 2026 net income
$218.9M
Three months ended March 31, 2026; up from $204.3M in 2025
Q2 2026 basic EPS
$2.17
Three months ended March 31, 2026; up from $2.04 in 2025
Q2 2026 net financial earnings
$221.5M
Three months ended March 31, 2026; up from $178.3M in 2025
Q2 2026 basic NFEPS
$2.20
Three months ended March 31, 2026; up from $1.78 in 2025
FY 2026 NFEPS guidance
$3.48–$3.63
Raised full-year 2026 net financial EPS range by $0.20
NJNG Q2 2026 NFE
$148.5M
New Jersey Natural Gas net financial earnings, Q2 2026 vs $144.5M in 2025
Energy Services Q2 2026 NFE
$72.3M
Energy Services net financial earnings, Q2 2026 vs $35.3M in 2025
Total operating revenues Q2 2026
$939.4M
Three months ended March 31, 2026; up from $913.0M in 2025
Key Terms
Net financial earnings, Basic Gas Supply Service (BGSS) Incentive Programs, utility gross margin, financial margin, +2 more
6 terms
Net financial earnings financial
"NJR is raising its fiscal 2026 NFEPS guidance range by $0.20"
Net financial earnings are the profit or loss a company records from its financing and investment activities after subtracting related costs—things like interest earned on cash and investments, interest paid on debt, and gains or losses from currency moves or marketable securities. Investors watch this number because it shows how well a company manages its borrowing, cash and short-term investments; like checking the net result of a household’s interest income and loan payments, it affects overall profitability and financial stability.
Basic Gas Supply Service (BGSS) Incentive Programs financial
"Basic Gas Supply Service (BGSS) Incentive Programs1"
utility gross margin financial
"NJNG’s utility gross margin is defined as operating revenues less natural gas purchases, sales tax, and regulatory rider expenses."
financial margin financial
"A reconciliation of gross margin, the closest GAAP financial measure, to Energy Services' financial margin is as follows:"
Adjusted funds from operations financial
"Adjusted funds from operations is cash flows from operating activities, plus components of working capital"
Adjusted funds from operations is a financial measure that shows how much cash a real estate company generates from its property operations, excluding certain non-recurring items and accounting adjustments. It helps investors understand the company’s true cash flow ability to pay dividends or fund growth. This figure offers a clearer picture of ongoing financial performance by removing irregular or one-time factors that can distort regular income.
Adjusted EBITDA financial
"Adjusted EBITDA is earnings, including equity in earnings of affiliates, before interest, income taxes, depreciation and amortization, and Other Income, net"
Adjusted EBITDA is a way companies measure how much money they make from their core operations, like running a business, by removing certain costs or income that aren’t part of regular business activities. It helps investors see how well a company is doing without distractions from unusual expenses or gains, making it easier to compare companies or track performance over time.
Earnings Snapshot
Total operating revenues: $939.4M · Guidance included
Q2 2026
Total operating revenues
$939.4M
up from $913.0M in Q2 2025
Net income
$218.9M
up from $204.3M in Q2 2025
Basic EPS
$2.17
up from $2.04 in Q2 2025
Net financial earnings
$221.5M
up from $178.3M in Q2 2025
Basic NFEPS
$2.20
up from $1.78 in Q2 2025
Guidance
Fiscal 2026 net financial EPS guidance increased by $0.20 to a range of $3.48 to $3.63, reflecting continued outperformance at the Energy Services segment.
UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, DC 20549
FORM 8-K
CURRENT REPORT
PURSUANT TO SECTION 13 OR 15(d) OF THE
SECURITIES EXCHANGE ACT OF 1934
Date of Report (Date of earliest event reported): May 4, 2026
(Exact Name of registrant as specified in its charter)
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(State or Other Jurisdiction of Incorporation)
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(Commission File Number)
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(IRS Employer Identification No.)
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(Address of Principal Executive Offices)
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(Zip Code)
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(732 ) 938-1480
(Registrant’s telephone number, including area code)
Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the
following provisions:
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Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)
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Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)
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Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))
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Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))
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Securities registered pursuant to Section 12(b) of the Act:
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Title of each class
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Trading Symbol(s)
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Name of each exchange on which registered
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Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (§230.405 of this chapter)
or Rule 12b-2 of the Securities Exchange Act of 1934 (§240.12b-2 of this chapter).
Emerging growth company ☐
If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or
revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐
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Results of Operations and Financial Condition.
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On May 4, 2026, New Jersey Resources Corporation (“NJR”) issued a press release reporting financial results for the second fiscal quarter ended March 31,
2026 (the “Press Release”). A copy of the Press Release is attached hereto as Exhibit 99.1 and is incorporated herein by reference.
The information in Item 2.02 of this Current Report on Form 8-K is being furnished and shall not be deemed “filed” for the purposes of Section 18 of the
Securities Exchange Act of 1934, as amended, or otherwise subject to the liabilities of that Section and shall not be deemed to be incorporated by reference into any registration statement or other document pursuant to the Securities Act of 1933, as
amended.
| Item 7.01 |
Regulation FD Disclosure.
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NJR will deliver a presentation via live public webcast on May 5, 2026, at 10 a.m. ET. The slides to be used for the presentation are furnished herewith
as Exhibit 99.2 and are incorporated by reference into Item 7.01 of this Current Report on Form 8-K.
The information in Item 7.01 of this Current Report on Form 8-K is being furnished and shall not be deemed “filed” for the purposes of Section 18 of the
Securities Exchange Act of 1934, as amended, or otherwise subject to the liabilities of that Section and shall not be deemed to be incorporated by reference into any registration statement or other document pursuant to the Securities Act of 1933, as
amended.
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Financial Statements and Exhibits.
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Exhibits.
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Exhibit Number
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Exhibit
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99.1
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Press Release dated May 4, 2026 (furnished, not filed)
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99.2
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Presentation dated May 4, 2026 (furnished, not filed)
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104
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Cover page in Inline XBRL format
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SIGNATURE
Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the
undersigned hereunto duly authorized.
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NEW JERSEY RESOURCES CORPORATION
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Date: May 4, 2026
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By:
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/s/ Roberto F. Bel
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Roberto F. Bel
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Senior Vice President and Chief Financial Officer
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Exhibit 99.1
NEW JERSEY RESOURCES REPORTS FISCAL 2026 SECOND-QUARTER RESULTS
Increases Net Financial Earnings Guidance for Fiscal 2026 Due to Energy Services' Continued Outperformance
WALL, N.J., May 4, 2026 — New Jersey Resources Corporation (NYSE: NJR) today reported financial
and operating results for its fiscal 2026 second quarter ended March 31, 2026.
Financial Highlights:
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Fiscal 2026 second-quarter consolidated net income of $218.9 million, or $2.17
per share, compared with $204.3 million, or $2.04 per share, in the second quarter of fiscal 2025
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Fiscal 2026 second-quarter consolidated net financial earnings (NFE), a non-GAAP financial measure, of $221.5 million, or $2.20 per share, compared with $178.3 million, or $1.78 per share, in the second quarter of fiscal 2025
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Fiscal 2026 year-to-date net income totaled $341.4 million, or $3.39 per share, compared with $335.6 million, or $3.35 per share, for the same period in fiscal
2025
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Fiscal 2026 year-to-date NFE totaled $339.6 million, or $3.37 per share, compared with $307.2 million, or $3.07 per share, for the same period in fiscal 2025
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Fiscal 2026 Outlook
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Increases fiscal 2026 net financial earnings per share (NFEPS) guidance to a range of $3.48 to $3.63, from $3.28 to $3.43, a $0.20 increase, as a result of the continued strong performance of Energy Services. This marks the second increase to fiscal 2026 guidance, following a $0.25
increase announced in February 2026.
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Maintains 7 to 9 percent long-term net financial
earnings per share (NFEPS) growth target, starting from a fiscal 2025 base of $2.83 per share*
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* 7% - 9% growth would imply a NFEPS range of $3.03 - $3.08 in fiscal 2026
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Management Commentary
Steve Westhoven, President and CEO of New Jersey Resources, stated, “Our exceptional operating performance throughout the winter season delivered reliable service, while
New Jersey Natural Gas' strong hedging program helped mitigate costs for our customers. Additionally, as a result of Energy Services' continued outperformance, we were able to increase our fiscal 2026 NFEPS guidance for the second time this year.”
Fiscal 2026 NFEPS Guidance and Expected NFE Contributions by Segment
NJR is raising its fiscal 2026 NFEPS guidance range by $0.20 to a range of $3.48 to $3.63, subject to the risks and uncertainties identified below under "Forward-Looking Statements." The following chart represents NJR’s current expected NFE contributions from its
business segments for fiscal 2026:
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Segment
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Expected fiscal 2026
net financial earnings
contribution
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New Jersey Natural Gas
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58 to 62 percent
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Clean Energy Ventures
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9 to 13 percent
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Storage and Transportation
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8 to 11 percent
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Energy Services
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19 to 23 percent
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Home Services and Other
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0 to 1 percent
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NJR Reports Fiscal 2026 Second-Quarter
Results
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Page 2 of 12
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In providing fiscal 2026 NFE guidance, management is aware that there could be differences between reported GAAP net income and NFE due to matters such as, but not limited
to, the positions of our energy-related derivatives. Management is not able to reasonably estimate the aggregate impact or significance of these items on reported earnings and, therefore, is not able to provide a reconciliation to the corresponding
GAAP equivalent for its operating earnings guidance without unreasonable efforts.
Financial Metrics
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Three Months Ended
March 31,
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Six Months Ended
March 31,
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($ in Thousands, except per share data)
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2026
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2025
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2026
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2025
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Net income
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$
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218,912
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$
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204,287
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$
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341,402
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$
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335,606
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Basic EPS
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$
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2.17
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$
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2.04
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$
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3.39
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$
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3.35
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Net financial earnings*
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$
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221,463
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$
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178,296
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$
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339,636
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$
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307,190
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Basic net financial earnings per share*
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$
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2.20
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$
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1.78
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$
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3.37
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$
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3.07
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*A reconciliation of net income to NFE for the three and six months ended March 31, 2026 and 2025, respectively is provided in the financial statements below.
Net Financial Earnings (Loss) by Business Segment
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Three Months Ended
March 31,
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Six Months Ended
March 31,
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($ in Thousands)
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2026
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2025
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2026
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2025
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New Jersey Natural Gas
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$
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148,513
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$
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144,531
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$
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232,342
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$
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211,439
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Clean Energy Ventures
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(5,223
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)
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(3,958
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)
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4,367
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44,172
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Storage and Transportation
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7,708
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2,343
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15,071
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8,007
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Energy Services
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72,286
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35,301
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88,566
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43,134
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Home Services and Other
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(219
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)
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(678
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)
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260
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(63
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Subtotal
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223,065
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177,539
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340,606
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306,689
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Eliminations
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(1,602
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)
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757
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(970
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501
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Total
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$
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221,463
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$
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178,296
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$
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339,636
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$
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307,190
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New Jersey Natural Gas (NJNG)
NJNG reported fiscal 2026 second-quarter NFE of $148.5 million, compared to NFE of $144.5 million during the same period in fiscal 2025. The increase in NFE for the period was driven primarily by customer growth and higher
BGSS incentives.
Fiscal 2026 year-to-date NFE totaled $232.3 million, compared with NFE of $211.4 million for the same period in fiscal 2025. The increase in NFE for the period was due to higher base rates in October and November of fiscal 2026 compared to the same period of fiscal 2025 (new rates were effective November 21,
2024) as well as continued customer growth and higher Basic Gas Supply Service (BGSS) incentives.
Customers:
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At March 31, 2026, NJNG serviced approximately 594,000 customers in New Jersey’s Monmouth, Ocean, Morris, Middlesex, Sussex and Burlington counties, compared to approximately 589,000 customers as
of September 30, 2025.
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NJR Reports Fiscal 2026 Second-Quarter
Results
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Page 3 of 12
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Basic Gas Supply Service (BGSS) Incentive Programs1:
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BGSS incentive programs generated $93.2 million of gross customer savings during the first six months of fiscal 2026, which helped offset the unhedged portion of gas costs driven by market volatility and colder‑than‑normal weather.
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BGSS incentive programs also contributed $17.3 million to utility gross margin during the first six months of fiscal 2026, compared with $10.6
million for the same period in fiscal 2025. This increase was primarily driven by increased margins from off-system sales and capacity release due to market
volatility as a result of colder weather.
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1 BGSS incentive savings represent value created through supply and capacity optimization and
shared with customers through the BGSS clause.
For more information on utility gross margin, please see "Non-GAAP Financial Information" below.
Energy-Efficiency Programs:
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SAVEGREEN® invested $46.5 million in the first
six months of fiscal 2026 in energy-efficiency upgrades for customers' homes and businesses. Investments in SAVEGREEN® are incremental to rate base and earn near-real time returns through a rider that is updated annually.
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More than 115,000 customers have taken part in SAVEGREEN® to date, with those utilizing our whole home offerings realizing bill savings of up to 30%.
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Clean Energy Ventures (CEV)
CEV reported fiscal 2026 second-quarter
net financial loss of $(5.2) million, compared with $(4.0) million during the same period
in the second quarter of fiscal 2025, reflecting higher depreciation and interest expense associated
with capital invested over the past year, partially offset by higher revenue.
Fiscal 2026 year-to-date NFE totaled $4.4 million, compared with NFE of $44.2 million for the same period in fiscal 2025. The decrease was primarily due to a gain from the sale of CEV's residential solar portfolio assets that was recognized in the prior year
period.
Solar Investment Update:
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During the first six months of fiscal 2026, CEV
placed three commercial projects into service, adding 13.4 megawatts (MW)* to installed
capacity.
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As of March 31, 2026, CEV had approximately 493MW
of commercial solar capacity in service across New Jersey, New York, Connecticut, Pennsylvania, Rhode Island, Indiana, and Michigan.
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Subsequent to quarter end, CEV placed additional projects into service, adding 19.9MW of installed capacity for a total of 512.7MW in service as of May 1, 2026.
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* All MWs noted in DC
Storage and Transportation (S&T)
S&T reported fiscal 2026 second-quarter
NFE of $7.7 million, compared with NFE of $2.3 million during the same period in fiscal 2025. Fiscal 2026 year-to-date NFE totaled $15.1 million, compared with NFE of $8.0 million for the same period in fiscal 2025.
NFE increased during both periods mainly due to higher operating income at Adelphia Gateway (Adelphia) primarily due to the impact of its Section 4 rate case settlement.
Energy Services (ES)
ES reported fiscal 2026 second-quarter
NFE of $72.3 million, compared with NFE of $35.3 million for the same period in fiscal 2025. Fiscal 2026 year-to-date NFE totaled $88.6 million, compared with NFE of $43.1 million for the same period in fiscal 2025.
The increase in NFE was primarily due to higher natural gas price volatility during both periods that allowed ES to capture additional financial margin.
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NJR Reports Fiscal 2026 Second-Quarter
Results
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Page 4 of 12
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Home Services and Other Operations
Home Services and Other Operations reported fiscal 2026 second-quarter net financial loss of $(0.2) million, compared with $(0.7)
million for the same period in fiscal 2025.
Fiscal 2026 year-to-date NFE totaled $0.3 million, compared with a net financial loss of $(0.1) million for the same period in fiscal 2025.
Capital Expenditures and Cash Flows:
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During the first six months of fiscal 2026,
capital expenditures were $353.9 million, including accruals, compared with $287.1 million
during the same period in fiscal 2025. The increase in capital expenditures was primarily due to higher expenditures at NJNG and CEV.
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| • |
NJR expects to deploy between $4.8 billion and $5.2
billion in capital expenditures through 2030, with utility spending at NJNG representing over 60% of the investment, all planned CEV capital expenditures safe-harbored to preserve tax credit eligibility, and strategic growth opportunities at
S&T supporting long-term value creation.
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| • |
During the first six months of fiscal 2026, cash
flows from operations increased to $589.3 million, compared to cash flows from operations of $414.1
million in the same period in fiscal 2025, due primarily to an increase in base
rates at NJNG.
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Conference Call to be Webcast on May 5, 2026
New Jersey Resources will host a live webcast of its fiscal 2026 second
quarter financial results on Tuesday, May 5, 2026, at 10 a.m. ET. A few minutes prior to the webcast, visit www.njresources.com and
select “Investor Relations.” Scroll down and click the webcast link under “Latest Events” on the right side of the page.
About New Jersey Resources
New Jersey Resources (NYSE: NJR) is a diversified
energy infrastructure and energy services company headquartered in Wall, New Jersey.
NJR is composed of five primary businesses:
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New Jersey Natural Gas, NJR’s principal subsidiary, operates and maintains natural gas transportation and distribution infrastructure to serve customers in New Jersey’s Monmouth, Ocean, Morris, Middlesex, Sussex and
Burlington counties.
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Clean Energy Ventures invests in, owns and operates solar
projects, providing customers with low-carbon solutions.
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Energy Services manages a diversified portfolio of natural gas
transportation and storage assets and provides physical natural gas services and customized energy solutions to its customers across North America.
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| • |
Storage and Transportation serves customers from local
distributors and producers to electric generators and wholesale marketers through its ownership of Leaf River and the Adelphia Gateway pipeline, as well as our 50%
equity ownership in the Steckman Ridge natural gas storage facility.
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| • |
Home Services provides service contracts as well as heating,
central air conditioning, water heaters, standby generators and other indoor and outdoor comfort products to residential homes throughout New Jersey.
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NJR and its over 1,300 employees are committed to helping customers save energy and money by promoting conservation and encouraging efficiency through Conserve to Preserve®
and initiatives such as SAVEGREEN®.
For more information about NJR:
www.njresources.com.
Follow us on X.com (Twitter) @NJNaturalGas.
“Like” us on facebook.com/NewJerseyNaturalGas.
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NJR Reports Fiscal 2026 Second-Quarter
Results
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Page 5 of 12
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Forward-Looking Statements:
This earnings release contains forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, Section 21E of
the Securities Exchange Act of 1934, as amended, and the Private Securities Litigation Reform Act of 1995. NJR cautions readers that the assumptions forming the basis for forward-looking statements include many factors that are beyond NJR’s ability
to control or estimate precisely, such as expectations regarding future market conditions and the behavior of other market participants. Words such as “anticipates,” “estimates,” “expects,” “projects,” “may,” “will,” “intends,” “plans,” “believes,”
“should” and similar expressions may identify forward-looking statements and such forward-looking statements are made based upon management’s current expectations, assumptions and beliefs as of this date concerning future developments and their
potential effect upon NJR. There can be no assurance that future developments will be in accordance with management’s expectations, assumptions and beliefs or that the effect of future developments on NJR will be those anticipated by management.
Forward-looking statements in this earnings release include, but are not limited to, statements regarding NJR’s NFEPS guidance for fiscal 2026, projected NFEPS growth rates and our guidance range, forecasted contributions of business segments to
NJR’s NFE for fiscal 2026, our capital plan through 2030, including our capital expenditure projections through 2030, infrastructure programs and investments, future decarbonization opportunities including IIP, Energy Efficiency programs; and other
legal and regulatory expectations, and statements that include other projections, predictions, expectations or beliefs about future events or results or otherwise are not statements of historical fact.
Additional information and factors that could cause actual results to differ materially from NJR’s expectations are contained in NJR’s filings with the
U.S. Securities and Exchange Commission (SEC), including NJR’s Annual Reports on Form 10-K and subsequent Quarterly Reports on Form 10-Q, recent Current Reports on Form 8-K, and other SEC filings, which are available at the SEC’s website,
http://www.sec.gov. Information included in this earnings release is representative as of today only and while NJR periodically reassesses material trends and uncertainties affecting NJR's results of operations and financial condition in connection
with its preparation of management's discussion and analysis of results of operations and financial condition contained in its Quarterly and Annual Reports filed with the SEC, NJR does not, by including this statement, assume any obligation to review
or revise any particular forward-looking statement referenced herein in light of new information, future events or otherwise, except as required by law.
Non-GAAP Financial Information:
This earnings release includes the non-GAAP financial measures NFE/net financial loss, NFE per basic share, financial margin and utility gross margin. A
reconciliation of these non-GAAP financial measures to the most directly comparable financial measures calculated and reported in accordance with GAAP can be found below. As an indicator of NJR’s operating performance, these measures should not be
considered an alternative to, or more meaningful than, net income or operating revenues as determined in accordance with GAAP. This information has been provided pursuant to the requirements of SEC Regulation G.
NFE and financial margin exclude unrealized gains or losses on derivative instruments related to NJR’s unregulated subsidiaries and certain realized
gains and losses on derivative instruments related to natural gas that has been placed into storage at ES, net of applicable tax adjustments as described below. Financial margin also differs from gross margin as defined on a GAAP basis as it excludes
certain operations and maintenance expense and depreciation and amortization expenses as well as the effects of derivatives as discussed above. Volatility associated with the change in value of these financial instruments and physical commodity
reported on the income statement in the current period. In order to manage its business, NJR views its results without the impacts of the unrealized gains and losses, and certain realized gains and losses, caused by changes in value of these
financial instruments and physical commodity contracts prior to the completion of the planned transaction because it shows changes in value currently instead of when the planned transaction ultimately is settled. An annual estimated effective tax
rate is calculated for NFE purposes and any necessary quarterly tax adjustment is applied to ES.
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NJR Reports Fiscal 2026 Second-Quarter
Results
|
|
Page 6 of 12
|
NJNG’s utility gross margin is defined as operating revenues less natural gas purchases, sales tax, and regulatory rider expenses. This measure differs
from gross margin as presented on a GAAP basis as it excludes certain operations and maintenance expense and depreciation and amortization. Utility gross margin may also not be comparable to the definition of gross margin used by others in the
natural gas distribution business and other industries. Management believes that utility gross margin provides a meaningful basis for evaluating utility operations since natural gas costs, sales tax and regulatory rider expenses are included in
operating revenues and passed through to customers and, therefore, have no effect on utility gross margin.
Management uses these non-GAAP financial measures as supplemental measures to other GAAP results to provide a more complete understanding of NJR’s
performance. Management believes these non-GAAP financial measures are more reflective of NJR’s business model, provide transparency to investors and enable period-to-period comparability of financial performance. A reconciliation of all non-GAAP
financial measures to the most directly comparable financial measures calculated and reported in accordance with GAAP can be found below. For a full discussion of NJR’s non-GAAP financial measures, please see NJR’s most recent Annual Report on Form
10-K, Item 7.
|
NJR Reports Fiscal 2026 Second-Quarter
Results
|
|
Page 7 of 12
|
NEW JERSEY RESOURCES
CONSOLIDATED STATEMENTS OF OPERATIONS
(Unaudited)
|
Three Months Ended
March 31,
|
Six Months Ended
March 31,
|
|||||||||||||||
|
(Thousands, except per share data)
|
2026
|
2025
|
2026
|
2025
|
||||||||||||
|
OPERATING REVENUES
|
||||||||||||||||
|
Utility
|
$
|
640,922
|
$
|
618,341
|
$
|
1,050,823
|
$
|
951,768
|
||||||||
|
Nonutility
|
298,479
|
294,686
|
493,432
|
449,620
|
||||||||||||
|
Total operating revenues
|
939,401
|
913,027
|
1,544,255
|
1,401,388
|
||||||||||||
|
OPERATING EXPENSES
|
||||||||||||||||
|
Gas purchases
|
||||||||||||||||
|
Utility
|
274,947
|
272,974
|
444,051
|
400,654
|
||||||||||||
|
Nonutility
|
140,110
|
151,617
|
225,964
|
219,425
|
||||||||||||
|
Related parties
|
1,242
|
1,666
|
2,519
|
3,384
|
||||||||||||
|
Operation and maintenance
|
112,496
|
111,041
|
199,177
|
199,673
|
||||||||||||
|
Regulatory rider expenses
|
59,450
|
48,501
|
92,604
|
70,977
|
||||||||||||
|
Depreciation and amortization
|
50,129
|
47,967
|
99,705
|
93,296
|
||||||||||||
|
Gain on sale of assets
|
—
|
(688
|
)
|
—
|
(55,547
|
)
|
||||||||||
|
Total operating expenses
|
638,374
|
633,078
|
1,064,020
|
931,862
|
||||||||||||
|
OPERATING INCOME
|
301,027
|
279,949
|
480,235
|
469,526
|
||||||||||||
|
Other income, net
|
16,295
|
17,006
|
27,655
|
28,623
|
||||||||||||
|
Interest expense, net of capitalized interest
|
34,975
|
32,527
|
70,651
|
66,418
|
||||||||||||
|
INCOME BEFORE INCOME TAXES AND EQUITY IN EARNINGS OF AFFILIATES
|
282,347
|
264,428
|
437,239
|
431,731
|
||||||||||||
|
Income tax provision
|
66,176
|
61,593
|
100,401
|
98,977
|
||||||||||||
|
Equity in earnings of affiliates
|
2,741
|
1,452
|
4,564
|
2,852
|
||||||||||||
|
NET INCOME
|
$
|
218,912
|
$
|
204,287
|
$
|
341,402
|
$
|
335,606
|
||||||||
|
EARNINGS PER COMMON SHARE
|
||||||||||||||||
|
Basic
|
$
|
2.17
|
$
|
2.04
|
$
|
3.39
|
$
|
3.35
|
||||||||
|
Diluted
|
$
|
2.16
|
$
|
2.02
|
$
|
3.37
|
$
|
3.33
|
||||||||
|
WEIGHTED AVERAGE SHARES OUTSTANDING
|
||||||||||||||||
|
Basic
|
100,849
|
100,291
|
100,775
|
100,073
|
||||||||||||
|
Diluted
|
101,482
|
100,933
|
101,388
|
100,705
|
||||||||||||
|
NJR Reports Fiscal 2026 Second-Quarter
Results
|
|
Page 8 of 12
|
RECONCILIATION OF NON-GAAP PERFORMANCE MEASURES
(Unaudited)
|
Three Months Ended
|
Six Months Ended
|
|||||||||||||||
|
March 31,
|
March 31,
|
|||||||||||||||
|
(Thousands)
|
2026
|
2025
|
2026
|
2025
|
||||||||||||
|
NEW JERSEY RESOURCES
|
||||||||||||||||
|
A reconciliation of net income, the closest GAAP financial measure, to net financial earnings is as follows:
|
||||||||||||||||
|
Net income
|
$
|
218,912
|
$
|
204,287
|
$
|
341,402
|
$
|
335,606
|
||||||||
|
Add:
|
||||||||||||||||
|
Unrealized (gain) loss on derivative instruments and related transactions
|
(1,285
|
)
|
(27,206
|
)
|
1,711
|
(20,838
|
)
|
|||||||||
|
Tax effect
|
305
|
6,466
|
(407
|
)
|
4,953
|
|||||||||||
|
Effects of economic hedging related to natural gas inventory
|
4,564
|
(6,650
|
)
|
(4,003
|
)
|
(16,177
|
)
|
|||||||||
|
Tax effect
|
(1,085
|
)
|
1,580
|
951
|
3,844
|
|||||||||||
|
NFE tax adjustment
|
52
|
(181
|
)
|
(18
|
)
|
(198
|
)
|
|||||||||
|
Net financial earnings
|
$
|
221,463
|
$
|
178,296
|
$
|
339,636
|
$
|
307,190
|
||||||||
|
Weighted Average Shares Outstanding
|
||||||||||||||||
|
Basic
|
100,849
|
100,291
|
100,775
|
100,073
|
||||||||||||
|
Diluted
|
101,482
|
100,933
|
101,388
|
100,705
|
||||||||||||
|
A reconciliation of basic earnings per share, the closest GAAP financial measure, to basic net financial earnings per share is as follows:
|
||||||||||||||||
|
Basic earnings per share
|
$
|
2.17
|
$
|
2.04
|
$
|
3.39
|
$
|
3.35
|
||||||||
|
Add:
|
||||||||||||||||
|
Unrealized (gain) loss on derivative instruments and related transactions
|
$
|
(0.01
|
)
|
$
|
(0.27
|
)
|
$
|
0.02
|
$
|
(0.21
|
)
|
|||||
|
Tax effect
|
$
|
—
|
$
|
0.06
|
$
|
(0.01
|
)
|
$
|
0.05
|
|||||||
|
Effects of economic hedging related to natural gas inventory
|
$
|
0.05
|
$
|
(0.06
|
)
|
$
|
(0.04
|
)
|
$
|
(0.16
|
)
|
|||||
|
Tax effect
|
$
|
(0.01
|
)
|
$
|
0.01
|
$
|
0.01
|
$
|
0.04
|
|||||||
|
Basic net financial earnings per share
|
$
|
2.20
|
$
|
1.78
|
$
|
3.37
|
$
|
3.07
|
||||||||
NFE is a measure of earnings based on the elimination of timing differences surrounding the recognition of certain gains or losses to effectively match the earnings effects
of the economic hedges with the physical sale of natural gas and, therefore, eliminate the impact of volatility to GAAP earnings associated with the derivative instruments. To the extent we utilize forwards, future or other derivatives to hedge
natural gas transactions and forecasted SREC production, the resulting unrealized gains and losses are also eliminated from NFE. ES economically hedges its natural gas inventory with financial derivative instruments and calculates the related tax
effect based on the statutory rate. NFE also excludes certain transactions associated with equity method investments, including impairment charges, which are non-cash charges, and return of capital in excess of the carrying value of our investment.
These are not indicative of the Company's performance for its ongoing operations. Included in the tax effects are current and deferred income tax expense corresponding with the components of NFE.
|
NJR Reports Fiscal 2026 Second-Quarter
Results
|
|
Page 9 of 12
|
RECONCILIATION OF NON-GAAP PERFORMANCE MEASURES (continued)
(Unaudited)
|
Three Months Ended
March 31,
|
Six Months Ended
March 31,
|
|||||||||||||||
|
(Thousands)
|
2026
|
2025
|
2026
|
2025
|
||||||||||||
|
NATURAL GAS DISTRIBUTION
|
||||||||||||||||
|
A reconciliation of gross margin, the closest GAAP financial measure, to utility gross margin is as follows:
|
||||||||||||||||
|
Operating revenues
|
$
|
641,160
|
$
|
618,645
|
$
|
1,051,298
|
$
|
952,410
|
||||||||
|
Less:
|
||||||||||||||||
|
Natural gas purchases
|
276,567
|
275,298
|
447,291
|
405,303
|
||||||||||||
|
Operating and maintenance (1)
|
14,667
|
29,510
|
59,609
|
55,519
|
||||||||||||
|
Regulatory rider expense
|
59,450
|
48,501
|
92,604
|
70,977
|
||||||||||||
|
Depreciation and amortization
|
37,509
|
35,713
|
74,469
|
67,797
|
||||||||||||
|
Gross margin
|
252,967
|
229,623
|
377,325
|
352,814
|
||||||||||||
|
Add:
|
||||||||||||||||
|
Operating and maintenance (1)
|
14,667
|
29,510
|
59,609
|
55,519
|
||||||||||||
|
Depreciation and amortization
|
37,509
|
35,713
|
74,469
|
67,797
|
||||||||||||
|
Utility gross margin
|
$
|
305,143
|
$
|
294,846
|
$
|
511,403
|
$
|
476,130
|
||||||||
|
(1) Excludes selling,
general and administrative expenses of $51.0 million and $31.7 million for the three months ended March 31, 2026 and 2025, respectively, and $55.1 million and $57.8
million for the six months ended March 31, 2026 and 2025, respectively.
|
||||||||||||||||
|
ENERGY SERVICES
|
||||||||||||||||
|
A reconciliation of gross margin, the closest GAAP financial measure, to Energy Services' financial margin is as follows:
|
||||||||||||||||
|
Operating revenues
|
$
|
244,155
|
$
|
246,390
|
$
|
363,262
|
$
|
332,698
|
||||||||
|
Less:
|
||||||||||||||||
|
Natural Gas purchases
|
139,938
|
151,847
|
225,712
|
219,715
|
||||||||||||
|
Operation and maintenance (1)
|
9,560
|
10,866
|
12,475
|
12,463
|
||||||||||||
|
Depreciation and amortization
|
43
|
62
|
84
|
109
|
||||||||||||
|
Gross margin
|
94,614
|
83,615
|
124,991
|
100,411
|
||||||||||||
|
Add:
|
||||||||||||||||
|
Operation and maintenance (1)
|
9,560
|
10,866
|
12,475
|
12,463
|
||||||||||||
|
Depreciation and amortization
|
43
|
62
|
84
|
109
|
||||||||||||
|
Unrealized (gain) loss on derivative instruments and related transactions
|
(1,285
|
)
|
(27,206
|
)
|
1,711
|
(20,838
|
)
|
|||||||||
|
Effects of economic hedging related to natural gas inventory
|
4,564
|
(6,650
|
)
|
(4,003
|
)
|
(16,177
|
)
|
|||||||||
|
Financial margin
|
$
|
107,496
|
$
|
60,687
|
$
|
135,258
|
$
|
75,968
|
||||||||
|
(1) Excludes selling,
general and administrative expenses of $0.2 million and $0.3 million during the three months ended March 31, 2026 and 2025, respectively, and $0.5 million and $0.6 million during the six months ended March 31, 2026 and 2025, respectively.
|
||||||||||||||||
|
A reconciliation of net income, the closest GAAP financial measure, to net financial earnings is as follows:
|
||||||||||||||||
|
Net income
|
$
|
69,735
|
$
|
61,292
|
$
|
90,332
|
$
|
71,550
|
||||||||
|
Add:
|
||||||||||||||||
|
Unrealized (gain) loss on derivative instruments and related transactions
|
(1,285
|
)
|
(27,206
|
)
|
1,711
|
(20,838
|
)
|
|||||||||
|
Tax effect
|
305
|
6,466
|
(407
|
)
|
4,953
|
|||||||||||
|
Effects of economic hedging related to natural gas
|
4,564
|
(6,650
|
)
|
(4,003
|
)
|
(16,177
|
)
|
|||||||||
|
Tax effect
|
(1,085
|
)
|
1,580
|
951
|
3,844
|
|||||||||||
|
NFE tax adjustment
|
52
|
(181
|
)
|
(18
|
)
|
(198
|
)
|
|||||||||
|
Net financial earnings
|
$
|
72,286
|
$
|
35,301
|
$
|
88,566
|
$
|
43,134
|
||||||||
|
NJR Reports Fiscal 2026 Second-Quarter
Results
|
|
Page 10 of 12
|
FINANCIAL STATISTICS BY BUSINESS UNIT
(Unaudited)
|
Three Months Ended
March 31,
|
Six Months Ended
March 31,
|
|||||||||||||||
|
(Thousands, except per share data)
|
2026
|
2025
|
2026
|
2025
|
||||||||||||
|
NEW JERSEY RESOURCES
|
||||||||||||||||
|
Operating Revenues
|
||||||||||||||||
|
Natural Gas Distribution
|
$
|
641,160
|
$
|
618,645
|
$
|
1,051,298
|
$
|
952,410
|
||||||||
|
Clean Energy Ventures
|
9,932
|
7,967
|
41,692
|
34,373
|
||||||||||||
|
Energy Services
|
244,155
|
246,390
|
363,262
|
332,698
|
||||||||||||
|
Storage and Transportation
|
29,434
|
25,307
|
57,514
|
51,935
|
||||||||||||
|
Home Services and Other
|
14,958
|
15,118
|
30,964
|
30,912
|
||||||||||||
|
Sub-total
|
939,639
|
913,427
|
1,544,730
|
1,402,328
|
||||||||||||
|
Eliminations
|
(238
|
)
|
(400
|
)
|
(475
|
)
|
(940
|
)
|
||||||||
|
Total
|
$
|
939,401
|
$
|
913,027
|
$
|
1,544,255
|
$
|
1,401,388
|
||||||||
|
Operating Income (Loss)
|
||||||||||||||||
|
Natural Gas Distribution
|
$
|
201,919
|
$
|
197,876
|
$
|
322,231
|
$
|
294,982
|
||||||||
|
Clean Energy Ventures
|
(7,738
|
)
|
(7,553
|
)
|
7,650
|
56,721
|
||||||||||
|
Energy Services
|
94,404
|
83,273
|
124,511
|
99,801
|
||||||||||||
|
Storage and Transportation
|
11,582
|
5,800
|
23,557
|
15,569
|
||||||||||||
|
Home Services and Other
|
192
|
(393
|
)
|
979
|
602
|
|||||||||||
|
Sub-total
|
300,359
|
279,003
|
478,928
|
467,675
|
||||||||||||
|
Eliminations
|
668
|
946
|
1,307
|
1,851
|
||||||||||||
|
Total
|
$
|
301,027
|
$
|
279,949
|
$
|
480,235
|
$
|
469,526
|
||||||||
|
Equity in Earnings of Affiliates
|
||||||||||||||||
|
Storage and Transportation
|
$
|
2,282
|
$
|
1,161
|
$
|
3,522
|
$
|
2,122
|
||||||||
|
Eliminations
|
459
|
291
|
1,042
|
730
|
||||||||||||
|
Total
|
$
|
2,741
|
$
|
1,452
|
$
|
4,564
|
$
|
2,852
|
||||||||
|
Net Income (Loss)
|
||||||||||||||||
|
Natural Gas Distribution
|
$
|
148,513
|
$
|
144,531
|
$
|
232,342
|
$
|
211,439
|
||||||||
|
Clean Energy Ventures
|
(5,223
|
)
|
(3,958
|
)
|
4,367
|
44,172
|
||||||||||
|
Energy Services
|
69,735
|
61,292
|
90,332
|
71,550
|
||||||||||||
|
Storage and Transportation
|
7,708
|
2,343
|
15,071
|
8,007
|
||||||||||||
|
Home Services and Other
|
(219
|
)
|
(678
|
)
|
260
|
(63
|
)
|
|||||||||
|
Sub-total
|
220,514
|
203,530
|
342,372
|
335,105
|
||||||||||||
|
Eliminations
|
(1,602
|
)
|
757
|
(970
|
)
|
501
|
||||||||||
|
Total
|
$
|
218,912
|
$
|
204,287
|
$
|
341,402
|
$
|
335,606
|
||||||||
|
Net Financial Earnings (Loss)
|
||||||||||||||||
|
Natural Gas Distribution
|
$
|
148,513
|
$
|
144,531
|
$
|
232,342
|
$
|
211,439
|
||||||||
|
Clean Energy Ventures
|
(5,223
|
)
|
(3,958
|
)
|
4,367
|
44,172
|
||||||||||
|
Energy Services
|
72,286
|
35,301
|
88,566
|
43,134
|
||||||||||||
|
Storage and Transportation
|
7,708
|
2,343
|
15,071
|
8,007
|
||||||||||||
|
Home Services and Other
|
(219
|
)
|
(678
|
)
|
260
|
(63
|
)
|
|||||||||
|
Sub-total
|
223,065
|
177,539
|
340,606
|
306,689
|
||||||||||||
|
Eliminations
|
(1,602
|
)
|
757
|
(970
|
)
|
501
|
||||||||||
|
Total
|
$
|
221,463
|
$
|
178,296
|
$
|
339,636
|
$
|
307,190
|
||||||||
|
Throughput (Bcf)
|
||||||||||||||||
|
NJNG, Core Customers
|
39.8
|
35.7
|
71.5
|
62.9
|
||||||||||||
|
NJNG, Off System/Capacity Management
|
24.9
|
22.1
|
49.6
|
36.5
|
||||||||||||
|
Energy Services Fuel Mgmt. and Wholesale Sales
|
28.6
|
35.2
|
57.0
|
63.5
|
||||||||||||
|
Total
|
93.3
|
93.0
|
178.1
|
162.9
|
||||||||||||
|
Common Stock Data
|
||||||||||||||||
|
Yield at March 31,
|
3.5
|
%
|
3.7
|
%
|
3.5
|
%
|
3.7
|
%
|
||||||||
|
Market Price at March 31,
|
$
|
54.92
|
$
|
49.06
|
$
|
54.92
|
$
|
49.06
|
||||||||
|
Shares Out. at March 31,
|
100,862
|
100,303
|
100,862
|
100,303
|
||||||||||||
|
Market Cap. at March 31,
|
$
|
5,539,336
|
$
|
4,920,847
|
$
|
5,539,336
|
$
|
4,920,847
|
||||||||
|
NJR Reports Fiscal 2026 Second-Quarter
Results
|
|
Page 11 of 12
|
|
(Unaudited)
|
Three Months Ended
March 31,
|
Six Months Ended
March 31,
|
||||||||||||||
|
(Thousands, except customer and weather data)
|
2026
|
2025
|
2026
|
2025
|
||||||||||||
|
NATURAL GAS DISTRIBUTION
|
||||||||||||||||
|
Utility Gross Margin
|
||||||||||||||||
|
Operating revenues
|
$
|
641,160
|
$
|
618,645
|
$
|
1,051,298
|
$
|
952,410
|
||||||||
|
Less:
|
||||||||||||||||
|
Natural gas purchases
|
276,567
|
275,298
|
447,291
|
405,303
|
||||||||||||
|
Operating and maintenance (1)
|
14,667
|
29,510
|
59,609
|
55,519
|
||||||||||||
|
Regulatory rider expense
|
59,450
|
48,501
|
92,604
|
70,977
|
||||||||||||
|
Depreciation and amortization
|
37,509
|
35,713
|
74,469
|
67,797
|
||||||||||||
|
Gross margin
|
252,967
|
229,623
|
377,325
|
352,814
|
||||||||||||
|
Add:
|
||||||||||||||||
|
Operating and maintenance (1)
|
14,667
|
29,510
|
59,609
|
55,519
|
||||||||||||
|
Depreciation and amortization
|
37,509
|
35,713
|
74,469
|
67,797
|
||||||||||||
|
Total Utility Gross Margin
|
$
|
305,143
|
$
|
294,846
|
$
|
511,403
|
$
|
476,130
|
||||||||
|
(1) Excludes selling,
general and administrative expenses of $51.0 million and $31.7 million for the three months ended March 31, 2026 and 2025, respectively, and $55.1 million and $57.8
million for the six months ended March 31, 2026 and 2025, respectively.
|
||||||||||||||||
|
Utility Gross Margin, Operating Income and Net Income
|
||||||||||||||||
|
Residential
|
$
|
220,575
|
$
|
215,668
|
$
|
365,673
|
$
|
345,686
|
||||||||
|
Commercial, Industrial & Other
|
38,007
|
37,108
|
65,199
|
60,977
|
||||||||||||
|
Firm Transportation
|
34,226
|
33,908
|
61,591
|
57,084
|
||||||||||||
|
Total Firm Margin
|
292,808
|
286,684
|
492,463
|
463,747
|
||||||||||||
|
Interruptible
|
643
|
800
|
1,661
|
1,774
|
||||||||||||
|
Total System Margin
|
293,451
|
287,484
|
494,124
|
465,521
|
||||||||||||
|
Basic Gas Supply Service Incentive
|
11,692
|
7,362
|
17,279
|
10,609
|
||||||||||||
|
Total Utility Gross Margin
|
305,143
|
294,846
|
511,403
|
476,130
|
||||||||||||
|
Operation and maintenance expense
|
65,715
|
61,257
|
114,703
|
113,351
|
||||||||||||
|
Depreciation and amortization
|
37,509
|
35,713
|
74,469
|
67,797
|
||||||||||||
|
Operating Income
|
$
|
201,919
|
$
|
197,876
|
$
|
322,231
|
$
|
294,982
|
||||||||
|
Net Income
|
$
|
148,513
|
$
|
144,531
|
$
|
232,342
|
$
|
211,439
|
||||||||
|
Net Financial Earnings
|
$
|
148,513
|
$
|
144,531
|
$
|
232,342
|
$
|
211,439
|
||||||||
|
Throughput (Bcf)
|
||||||||||||||||
|
Residential
|
26.0
|
24.0
|
42.5
|
38.1
|
||||||||||||
|
Commercial, Industrial & Other
|
4.8
|
4.5
|
7.8
|
7.1
|
||||||||||||
|
Firm Transportation
|
5.2
|
5.0
|
9.1
|
8.4
|
||||||||||||
|
Total Firm Throughput
|
36.0
|
33.5
|
59.4
|
53.6
|
||||||||||||
|
Interruptible
|
3.8
|
2.2
|
12.1
|
9.3
|
||||||||||||
|
Total System Throughput
|
39.8
|
35.7
|
71.5
|
62.9
|
||||||||||||
|
Off System/Capacity Management
|
24.9
|
22.1
|
49.6
|
36.5
|
||||||||||||
|
Total Throughput
|
64.7
|
57.8
|
121.1
|
99.4
|
||||||||||||
|
Customers
|
||||||||||||||||
|
Residential
|
539,413
|
532,699
|
539,413
|
532,699
|
||||||||||||
|
Commercial, Industrial & Other
|
33,712
|
33,291
|
33,712
|
33,291
|
||||||||||||
|
Firm Transportation
|
21,047
|
22,060
|
21,047
|
22,060
|
||||||||||||
|
Total Firm Customers
|
594,172
|
588,050
|
594,172
|
588,050
|
||||||||||||
|
Interruptible
|
30
|
88
|
30
|
88
|
||||||||||||
|
Total System Customers
|
594,202
|
588,138
|
594,202
|
588,138
|
||||||||||||
|
Off System/Capacity Management*
|
25
|
26
|
25
|
26
|
||||||||||||
|
Total Customers
|
594,227
|
588,164
|
594,227
|
588,164
|
||||||||||||
|
*The number of customers represents those active during the last month of the period.
|
||||||||||||||||
|
Degree Days
|
||||||||||||||||
|
Actual
|
2,493
|
2,375
|
4,150
|
3,774
|
||||||||||||
|
Normal
|
2,384
|
2,384
|
3,895
|
3,907
|
||||||||||||
|
Percent of Normal
|
104.6
|
%
|
99.6
|
%
|
106.5
|
%
|
96.6
|
%
|
||||||||
|
NJR Reports Fiscal 2026 Second-Quarter
Results
|
|
Page 12 of 12
|
|
(Unaudited)
|
Three Months Ended
March 31,
|
Six Months Ended
March 31,
|
||||||||||||||
|
(Thousands, except customer, RECs and megawatt data)
|
2026
|
2025
|
2026
|
2025
|
||||||||||||
|
CLEAN ENERGY VENTURES
|
||||||||||||||||
|
Operating Revenues
|
||||||||||||||||
|
SREC sales
|
$
|
1,049
|
$
|
134
|
$
|
23,457
|
$
|
17,818
|
||||||||
|
TREC sales
|
2,907
|
2,554
|
6,129
|
5,059
|
||||||||||||
|
SREC II sales
|
473
|
312
|
988
|
703
|
||||||||||||
|
Merchant Power
|
2,424
|
2,613
|
5,209
|
4,349
|
||||||||||||
|
PPA / Other
|
3,079
|
2,355
|
5,909
|
4,574
|
||||||||||||
|
Residential solar portfolio
|
—
|
(1
|
)
|
—
|
1,870
|
|||||||||||
|
Total Operating Revenues
|
$
|
9,932
|
$
|
7,967
|
$
|
41,692
|
$
|
34,373
|
||||||||
|
Depreciation and Amortization
|
$
|
7,121
|
$
|
5,504
|
$
|
14,153
|
$
|
11,929
|
||||||||
|
Operating (Loss) Income
|
$
|
(7,738
|
)
|
$
|
(7,553
|
)
|
$
|
7,650
|
$
|
56,721
|
||||||
|
Income Tax (Benefit) Provision
|
$
|
(1,828
|
)
|
$
|
(1,079
|
)
|
$
|
910
|
$
|
13,062
|
||||||
|
Net (Loss) Income
|
$
|
(5,223
|
)
|
$
|
(3,958
|
)
|
$
|
4,367
|
$
|
44,172
|
||||||
|
Net Financial (Loss) Earnings
|
$
|
(5,223
|
)
|
$
|
(3,958
|
)
|
$
|
4,367
|
$
|
44,172
|
||||||
|
Solar Renewable Energy Certificates Generated
|
36,949
|
50,662
|
109,322
|
139,369
|
||||||||||||
|
Solar Renewable Energy Certificates Sold
|
5,603
|
809
|
121,123
|
86,502
|
||||||||||||
|
Transition Renewable Energy Certificates Generated
|
19,335
|
17,244
|
40,822
|
34,688
|
||||||||||||
|
Solar Renewable Energy Certificates II Generated
|
5,700
|
3,372
|
11,109
|
7,776
|
||||||||||||
|
ENERGY SERVICES
|
||||||||||||||||
|
Operating Income
|
||||||||||||||||
|
Operating revenues
|
$
|
244,155
|
$
|
246,390
|
$
|
363,262
|
$
|
332,698
|
||||||||
|
Less:
|
||||||||||||||||
|
Gas purchases
|
139,938
|
151,847
|
225,712
|
219,715
|
||||||||||||
|
Operation and maintenance expense
|
9,770
|
11,208
|
12,955
|
13,073
|
||||||||||||
|
Depreciation and amortization
|
43
|
62
|
84
|
109
|
||||||||||||
|
Operating Income
|
$
|
94,404
|
$
|
83,273
|
$
|
124,511
|
$
|
99,801
|
||||||||
|
Net Income
|
$
|
69,735
|
$
|
61,292
|
$
|
90,332
|
$
|
71,550
|
||||||||
|
Financial Margin
|
$
|
107,496
|
$
|
60,687
|
$
|
135,258
|
$
|
75,968
|
||||||||
|
Net Financial Earnings
|
$
|
72,286
|
$
|
35,301
|
$
|
88,566
|
$
|
43,134
|
||||||||
|
Gas Sold and Managed (Bcf)
|
28.6
|
35.2
|
57.0
|
63.5
|
||||||||||||
|
STORAGE AND TRANSPORTATION
|
||||||||||||||||
|
Operating Revenues
|
$
|
29,434
|
$
|
25,307
|
$
|
57,514
|
$
|
51,935
|
||||||||
|
Equity in Earnings of Affiliates
|
$
|
2,282
|
$
|
1,161
|
$
|
3,522
|
$
|
2,122
|
||||||||
|
Operation and Maintenance Expense
|
$
|
12,222
|
$
|
12,910
|
$
|
22,688
|
$
|
22,993
|
||||||||
|
Other Income, Net
|
$
|
1,863
|
$
|
1,933
|
$
|
3,850
|
$
|
4,325
|
||||||||
|
Interest Expense
|
$
|
5,448
|
$
|
5,817
|
$
|
11,014
|
$
|
11,786
|
||||||||
|
Income Tax Provision
|
$
|
2,571
|
$
|
734
|
$
|
4,844
|
$
|
2,223
|
||||||||
|
Net Income
|
$
|
7,708
|
$
|
2,343
|
$
|
15,071
|
$
|
8,007
|
||||||||
|
Net Financial Earnings
|
$
|
7,708
|
$
|
2,343
|
$
|
15,071
|
$
|
8,007
|
||||||||
|
HOME SERVICES AND OTHER
|
||||||||||||||||
|
Operating Revenues
|
$
|
14,958
|
$
|
15,118
|
$
|
30,964
|
$
|
30,912
|
||||||||
|
Operating Income (Loss)
|
$
|
192
|
$
|
(393
|
)
|
$
|
979
|
$
|
602
|
|||||||
|
Net (Loss) Income
|
$
|
(219
|
)
|
$
|
(678
|
)
|
$
|
260
|
$
|
(63
|
)
|
|||||
|
Net Financial (Loss) Earnings
|
$
|
(219
|
)
|
$
|
(678
|
)
|
$
|
260
|
$
|
(63
|
)
|
|||||
|
Total Service Contract Customers at March 31
|
97,634
|
99,121
|
97,634
|
99,121
|
||||||||||||
Exhibit 99.2
FAQ
How did New Jersey Resources (NJR) perform in fiscal Q2 2026?
New Jersey Resources reported stronger fiscal Q2 2026 results, with net income of $218.9 million versus $204.3 million a year earlier. Basic EPS rose to $2.17 from $2.04, and net financial earnings increased to $221.5 million, highlighting broad-based operational strength.
What is New Jersey Resources’ updated fiscal 2026 NFEPS guidance?
New Jersey Resources raised its fiscal 2026 net financial EPS guidance by $0.20 to a range of $3.48 to $3.63. Management attributed the higher outlook primarily to Energy Services’ continued outperformance, while reiterating segment contribution expectations for the full year.
Which segments drove NJR’s earnings growth in Q2 2026?
Earnings growth in Q2 2026 was led by New Jersey Natural Gas, Energy Services, and Storage and Transportation. NJNG’s NFE rose to $148.5 million, Energy Services’ NFE jumped to $72.3 million, and Storage and Transportation’s NFE improved to $7.7 million compared with the prior-year quarter.
What role did Energy Services play in NJR’s upgraded 2026 outlook?
Energy Services was a key driver of the upgraded outlook, with Q2 2026 net financial earnings rising to $72.3 million from $35.3 million. Management cited this continued outperformance, supported by higher natural gas price volatility, as the primary reason for increasing full-year NFEPS guidance.
How much of NJR’s 2026 earnings is expected from its utility segment?
For fiscal 2026, New Jersey Resources expects its utility segment, New Jersey Natural Gas, to contribute approximately 58% to 62% of total net financial earnings. This underscores the continuing importance of regulated utility operations within the company’s diversified energy portfolio.