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New Jersey Resources (NYSE:NJR) has raised the lower end of its fiscal 2025 earnings guidance following strong year-to-date performance, according to its third quarter investor presentation released on August 5, 2025. The energy company reported significant year-over-year growth in net financial earnings while continuing to advance its investments in both regulated utility operations and clean energy ventures.
Executive Summary
New Jersey Resources raised the lower end of its fiscal 2025 Net Financial Earnings Per Share (NFEPS) guidance by $0.05, establishing a new range of $3.20 to $3.30. This adjustment follows the company’s strong performance through the first nine months of fiscal 2025, with year-to-date NFEPS reaching $3.13, compared to $2.05 for the same period in fiscal 2024.
As shown in the following chart detailing the company’s earnings guidance progression, NJR continues to target long-term annual growth of 7-9% based on a $2.83 per share foundation:
The company’s business portfolio remains well-balanced between regulated utility operations and growth-oriented clean energy investments. New Jersey Natural Gas (NJNG) continues to be the largest contributor to earnings, representing 64-67% of projected fiscal 2025 NFEPS, while Clean Energy Ventures (CEV) accounts for 20-22%, and Energy Services contributes 10-12%.
Quarterly Performance Highlights
For the third quarter of fiscal 2025, NJR reported consolidated net financial earnings of $6.2 million, compared to a loss of $8.9 million in the third quarter of fiscal 2024. On a year-to-date basis, the company’s performance has been particularly strong, with consolidated NFE reaching $313.4 million, a 55% increase from $202.1 million in the prior year period.
The following chart provides a detailed breakdown of the company’s third quarter and year-to-date financial results:
This quarterly performance builds upon the momentum seen earlier in the year. In the second quarter of fiscal 2025, NJR had reported earnings per share of $1.78, exceeding analysts’ forecasts of $1.55, with revenue of $913 million surpassing expectations of $800.57 million.
Breaking down performance by business segment, the presentation revealed the following year-to-date NFE contributions:
Strategic Initiatives
New Jersey Resources continues to execute on its dual strategy of expanding its regulated utility business while growing its clean energy portfolio. The company’s New Jersey Natural Gas segment serves approximately 588,300 customers across six counties in New Jersey, with a customer base that has grown steadily from 548,000 in 2019.
A key growth driver for NJNG is its SAVEGREEN program, which provides energy efficiency solutions for residential and commercial customers. The company reported that fiscal 2025 SAVEGREEN capital expenditures are growing over 30% to $90-95 million, driven by strong customer demand and operational efficiencies.
Meanwhile, Clean Energy Ventures continues to expand its solar portfolio, with plans to place approximately 63MW into service in fiscal 2025. The company currently owns and operates solar projects with approximately 449MW of commercial solar capacity, positioning it as the largest solar owner-operator in New Jersey.
The following chart illustrates CEV’s strong investment options and pipeline:
Financial Position and Capital Plan
NJR’s capital plan supports its long-term NFEPS growth target of 7-9%. The company plans to invest between $1.3 billion and $1.6 billion over the next two years, with a significant portion allocated to New Jersey Natural Gas and Clean Energy Ventures.
The following chart details the company’s capital expenditure plans:
The company emphasized its strong financial position, noting superior credit metrics with an Adjusted FFO to Adjusted Debt ratio projected at 19-21% for fiscal 2025. Management highlighted that NJR is well-positioned to achieve higher-than-peer growth without the need for block equity issuances.
Cash flow from operations is projected at $900 million to $1 billion over the next two years, providing substantial internal funding for the company’s growth initiatives.
Forward-Looking Statements
Looking ahead, New Jersey Resources remains focused on delivering consistent earnings growth through its diversified business model. The company highlighted several potential growth drivers, including:
1. Record levels of investment in the SAVEGREEN program, with authorization to invest $385.6 million over the 30-month period ending June 30, 2027
2. Continued expansion of its solar portfolio, with 131MW expected to come into service over the next two years
3. Potential expansion opportunities at the Leaf River Energy Center
4. Resolution of the Adelphia Gateway Rate Case expected by the end of 2025
The company also emphasized its commitment to shareholder returns, maintaining its current annual dividend of $1.80 per share, which represents a yield of approximately 3.93% based on the August 1, 2025 share price of $45.76.
Investment Considerations
NJR highlighted several key investment considerations in its presentation, including its industry-leading growth rate, clear regulatory visibility, strong balance sheet, and consistent outperformance. The company noted that it has increased guidance in each of the past five years.
As of August 4, 2025, NJR’s stock closed at $45.76, with a market capitalization of approximately $4.6 billion. Following the earnings announcement, the stock rose 0.98% in regular trading and added another 0.79% in after-hours trading, reflecting positive investor sentiment toward the company’s performance and outlook.
With its balanced portfolio of regulated and non-regulated businesses, strong financial metrics, and clear growth strategy, New Jersey Resources appears well-positioned to continue delivering on its long-term growth targets while maintaining its commitment to shareholder returns.
Full presentation:
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