New Jersey Resources Reports Fiscal 2026 First-Quarter Results; Increases Net Financial Earnings Guidance for Fiscal 2026

WALL, N.J.--( BUSINESS WIRE)--New Jersey Resources Corporation (NYSE: NJR) today reported financial and operating results for its fiscal 2026 first quarter ended December 31, 2025.

Financial Highlights:

Fiscal 2026 Outlook

Management Commentary

Steve Westhoven, President and CEO of New Jersey Resources, stated, “NJR is off to a strong start in fiscal 2026. Our performance in the beginning of our fiscal second quarter has exceeded our original projections, as Energy Services benefited from natural gas price volatility. As a result, we are raising our fiscal 2026 NFEPS guidance range by $0.25 to $3.28 to $3.43. This represents the sixth consecutive year in which NJR has raised its guidance as a result of the benefits of our diversified energy platform."

Mr. Westhoven continued, "We are focused on delivering reliable, affordable energy to our New Jersey Natural Gas customers, pursuing growth opportunities across our Storage and Transportation business, and expanding capacity at Clean Energy Ventures. As we look ahead, we remain committed to disciplined execution and creating long-term value for our shareowners.”

Fiscal 2026 NFEPS Guidance

NJR is raising its fiscal 2026 NFEPS guidance range by $0.25 to a range of $3.28 to $3.43, 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:

Segment

Expected fiscal 2026

net financial earnings

contribution

New Jersey Natural Gas

62 to 67 percent

Clean Energy Ventures

9 to 14 percent

Storage and Transportation

7 to 12 percent

Energy Services

12 to 17 percent

Home Services and Other

1 to 2 percent

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

Three Months Ended

December 31,

($ in Thousands, except per share data)

2025

2024

Net income

122,490

131,319

Basic EPS

1.22

1.32

Net financial earnings*

118,173

128,894

Basic net financial earnings per share*

1.17

1.29

*A reconciliation of net income to NFE for the three months ended December 31, 2025 and 2024, respectively is provided in the financial statements below.

Net Financial Earnings (Loss) by Business Segment

Three Months Ended

December 31,

(Thousands)

2025

2024

New Jersey Natural Gas

83,829

66,908

Clean Energy Ventures

9,590

48,130

Storage and Transportation

7,363

5,664

Energy Services

16,280

7,833

Home Services and Other

479

615

Subtotal

117,541

129,150

Eliminations

632

(256

)

Total

118,173

128,894

New Jersey Natural Gas (NJNG)

NJNG reported fiscal 2026 first-quarter NFE of $83.8 million, compared to NFE of $66.9 million during the same period in fiscal 2025. The improvement in NFE was primarily driven by NJNG's base rate case settlement fully impacting utility gross margin for the first-quarter of 2026 while only partially affecting it during the first-quarter of last year. This improvement was partially offset by higher depreciation expense.

Customers:

Basic Gas Supply Service (BGSS) Incentive Programs:

For more information on utility gross margin, please see "Non-GAAP Financial Information" below.

Energy-Efficiency Programs:

Clean Energy Ventures (CEV)

CEV reported fiscal 2026 first-quarter NFE of $9.6 million, compared with $48.1 million during the same period in the first quarter of fiscal 2025. The decrease was primarily due to a one-time gain on sale of CEV's residential solar portfolio assets in November 2024.

Solar Investment Update:

* All MWs noted in DC

Storage and Transportation (S&T)

S&T reported fiscal 2026 first-quarter NFE of $7.4 million, compared with NFE of $5.7 million during the same period in fiscal 2025. NFE increased during the period mainly due to higher operating income at Adelphia Gateway (Adelphia) due to the impact of its recent Section 4 rate case settlement.

Energy Services (ES)

ES reported fiscal 2026 first-quarter NFE of $16.3 million, compared with NFE of $7.8 million for the same period in fiscal 2025. The increase in NFE was primarily due to higher natural gas price volatility during the period that allowed ES to capture additional financial margin.

Home Services and Other Operations

Home Services and Other Operations reported fiscal 2026 first-quarter NFE of $0.5 million, compared with NFE of $0.6 million for the same period in fiscal 2025..

Capital Expenditures and Cash Flows:

Conference Call to be Webcast on February 3, 2026

New Jersey Resources will host a live webcast of its fiscal 2026 first quarter financial results on Tuesday, February 3, 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.

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 Energy Services, 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 NJR Energy Services Company.

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.

About New Jersey Resources

New Jersey Resources (NYSE: NJR) is a Fortune 1000 company that, through its subsidiaries, provides safe and reliable natural gas and clean energy services, including transportation, distribution, asset management and home services. NJR is composed of five primary businesses:

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.

“Like” us on facebook.com/NewJerseyNaturalGas.

NEW JERSEY RESOURCES

CONSOLIDATED STATEMENTS OF OPERATIONS

(Unaudited)

Three Months Ended

December 31,

(Thousands, except per share data)

2025

2024

OPERATING REVENUES

Utility

409,901

333,427

Nonutility

194,953

154,934

Total operating revenues

604,854

488,361

OPERATING EXPENSES

Gas purchases

Utility

169,104

127,680

Nonutility

85,854

67,808

Related parties

1,277

1,718

Operation and maintenance

86,681

88,632

Regulatory rider expenses

33,154

22,476

Depreciation and amortization

49,576

45,329

Gain on sale of assets

—

(54,859

)

Total operating expenses

425,646

298,784

OPERATING INCOME

179,208

189,577

Other income, net

11,360

11,617

Interest expense, net of capitalized interest

35,676

33,891

INCOME BEFORE INCOME TAXES AND EQUITY IN EARNINGS OF AFFILIATES

154,892

167,303

Income tax provision

34,225

37,384

Equity in earnings of affiliates

1,823

1,400

NET INCOME

122,490

131,319

EARNINGS PER COMMON SHARE

Basic

1.22

1.32

Diluted

1.21

1.31

WEIGHTED AVERAGE SHARES OUTSTANDING

Basic

100,701

99,855

Diluted

101,229

100,478

RECONCILIATION OF NON-GAAP PERFORMANCE MEASURES

(Unaudited)

Three Months Ended

December 31,

(Thousands)

2025

2024

NEW JERSEY RESOURCES

A reconciliation of net income, the closest GAAP financial measure, to net financial earnings is as follows:

Net income

122,490

131,319

Add:

Unrealized loss on derivative instruments and related transactions

2,996

6,368

Tax effect

(712

)

(1,513

)

Effects of economic hedging related to natural gas inventory

(8,567

)

(9,527

)

Tax effect

2,036

2,264

NFE tax adjustment

(70

)

(17

)

Net financial earnings

118,173

128,894

Weighted Average Shares Outstanding

Basic

100,701

99,855

Diluted

101,229

100,478

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

1.22

1.32

Add:

Unrealized loss on derivative instruments and related transactions

0.03

0.06

Tax effect

(0.01

)

(0.01

)

Effects of economic hedging related to natural gas inventory

(0.09

)

(0.10

)

Tax effect

0.02

Basic net financial earnings per share

1.17

1.29

NFE is a measure of earnings based on the elimination of timing differences to effectively match the earnings effects of the economic hedges with the physical sale of natural gas, SRECs and foreign currency contracts. Consequently, to reconcile net income and NFE, current-period unrealized gains and losses on the derivatives are excluded from NFE as a reconciling item. Realized derivative gains and losses are also included in current-period net income. However, NFE includes only realized gains and losses related to natural gas sold out of inventory, effectively matching the full earnings effects of the derivatives with realized margins on physical natural gas flows. 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.

RECONCILIATION OF NON-GAAP PERFORMANCE MEASURES (continued)

(Unaudited)

Three Months Ended

December 31,

(Thousands)

2025

2024

NATURAL GAS DISTRIBUTION

A reconciliation of gross margin, the closest GAAP financial measure, to utility gross margin is as follows:

Operating revenues

410,138

333,765

Less:

Natural gas purchases

170,724

130,005

Operating and maintenance (1)

25,336

26,009

Regulatory rider expense

33,154

22,476

Depreciation and amortization

36,960

32,084

Gross margin

143,964

123,191

Add:

Operating and maintenance (1)

25,336

26,009

Depreciation and amortization

36,960

32,084

Utility gross margin

206,260

181,284

(1) Excludes selling, general and administrative expenses of $23.7 million and $26.1 million for the three months ended December 31, 2025 and 2024, respectively.

ENERGY SERVICES

A reconciliation of gross margin, the closest GAAP financial measure, to Energy Services' financial margin is as follows:

Operating revenues

119,107

86,308

Less:

Natural Gas purchases

85,774

67,868

Operation and maintenance (1)

2,916

1,597

Depreciation and amortization

Gross margin

30,376

16,796

Add:

Operation and maintenance (1)

2,916

1,597

Depreciation and amortization

Unrealized loss on derivative instruments and related transactions

2,996

6,368

Effects of economic hedging related to natural gas inventory

(8,567

)

(9,527

)

Financial margin

27,762

15,281

(1) Excludes selling, general and administrative expenses of $0.3 million for both the three months ended December 31, 2025 and 2024, respectively.

A reconciliation of net income, the closest GAAP financial measure, to net financial earnings is as follows:

Net income

20,597

10,258

Add:

Unrealized loss on derivative instruments and related transactions

2,996

6,368

Tax effect

(712

)

(1,513

)

Effects of economic hedging related to natural gas

(8,567

)

(9,527

)

Tax effect

2,036

2,264

NFE tax adjustment

(70

)

(17

)

Net financial earnings

16,280

7,833

FINANCIAL STATISTICS BY BUSINESS UNIT

(Unaudited)

Three Months Ended

December 31,

(Thousands, except per share data)

2025

2024

NEW JERSEY RESOURCES

Operating Revenues

Natural Gas Distribution

410,138

333,765

Clean Energy Ventures

31,760

26,406

Energy Services

119,107

86,308

Storage and Transportation

28,080

26,628

Home Services and Other

16,005

15,794

Sub-total

605,090

488,901

Eliminations

(236

)

(540

)

Total

604,854

488,361

Operating Income

Natural Gas Distribution

120,312

97,106

Clean Energy Ventures

15,388

64,274

Energy Services

30,107

16,528

Storage and Transportation

11,975

9,769

Home Services and Other

787

995

Sub-total

178,569

188,672

Eliminations

639

905

Total

179,208

189,577

Equity in Earnings of Affiliates

Storage and Transportation

1,240

961

Eliminations

583

439

Total

1,823

1,400

Net Income

Natural Gas Distribution

83,829

66,908

Clean Energy Ventures

9,590

48,130

Energy Services

20,597

10,258

Storage and Transportation

7,363

5,664

Home Services and Other

479

615

Sub-total

121,858

131,575

Eliminations

632

(256

)

Total

122,490

131,319

Net Financial Earnings

Natural Gas Distribution

83,829

66,908

Clean Energy Ventures

9,590

48,130

Energy Services

16,280

7,833

Storage and Transportation

7,363

5,664

Home Services and Other

479

615

Sub-total

117,541

129,150

Eliminations

632

(256

)

Total

118,173

128,894

Throughput (Bcf)

NJNG, Core Customers

31.7

27.2

NJNG, Off System/Capacity Management

24.7

14.4

Energy Services Fuel Mgmt. and Wholesale Sales

28.4

28.3

Total

84.8

69.9

Common Stock Data

Yield at December 31,

4.2

3.9

Market Price at December 31,

46.12

46.65

Shares Out. at December 31,

100,750

100,191

Market Cap. at December 31,

4,646,595

4,673,918

Three Months Ended

(Unaudited)

December 31,

(Thousands, except customer and weather data)

2025

2024

NATURAL GAS DISTRIBUTION

Utility Gross Margin

Operating revenues

410,138

333,765

Less:

Natural gas purchases

170,724

130,005

Operating and maintenance (1)

25,336

26,009

Regulatory rider expense

33,154

22,476

Depreciation and amortization

36,960

32,084

Gross margin

143,964

123,191

Add:

Operating and maintenance (1)

25,336

26,009

Depreciation and amortization

36,960

32,084

Total Utility Gross Margin

206,260

181,284

(1) Excludes selling, general and administrative expenses of $23.7 million and $26.1 million for the three months ended December 31, 2025 and 2024, respectively.

Utility Gross Margin, Operating Income and Net Income

Residential

145,098

130,018

Commercial, Industrial & Other

27,192

23,869

Firm Transportation

27,365

23,176

Total Firm Margin

199,655

177,063

Interruptible

1,018

974

Total System Margin

200,673

178,037

Basic Gas Supply Service Incentive

5,587

3,247

Total Utility Gross Margin

206,260

181,284

Operation and maintenance expense

48,988

52,094

Depreciation and amortization

36,960

32,084

Operating Income

120,312

97,106

Net Income

83,829

66,908

Net Financial Earnings

83,829

66,908

Throughput (Bcf)

Residential

16.5

14.1

Commercial, Industrial & Other

3.0

2.6

Firm Transportation

3.9

3.4

Total Firm Throughput

23.4

20.1

Interruptible

8.3

7.1

Total System Throughput

31.7

27.2

Off System/Capacity Management

24.7

14.4

Total Throughput

56.4

41.6

Customers

Residential

537,850

530,760

Commercial, Industrial & Other

33,279

33,149

Firm Transportation

21,268

22,068

Total Firm Customers

592,397

585,977

Interruptible

Total System Customers

592,427

586,065

Off System/Capacity Management*

Total Customers

592,455

586,092

*The number of customers represents those active during the last month of the period.

Degree Days

Actual

1,657

1,399

Normal

1,511

1,523

Percent of Normal

109.7

91.9

Three Months Ended

(Unaudited)

December 31,

(Thousands, except customer, RECs and megawatt data)

2025

2024

CLEAN ENERGY VENTURES

Operating Revenues

SREC sales

22,408

17,684

TREC sales

3,222

2,505

SREC II sales

515

391

Merchant Power

2,785

1,736

PPA / Other

2,830

2,219

Residential solar portfolio

—

1,871

Total Operating Revenues

31,760

26,406

Depreciation and Amortization

7,032

6,425

Operating Income

15,388

64,274

Income Tax Provision

2,738

14,141

Net Income

9,590

48,130

Net Financial Earnings

9,590

48,130

Solar Renewable Energy Certificates Generated

72,373

88,707

Solar Renewable Energy Certificates Sold

115,520

85,693

Transition Renewable Energy Certificates Generated

21,487

17,444

Solar Renewable Energy Certificates II Generated

5,409

4,404

ENERGY SERVICES

Operating Income

Operating revenues

119,107

86,308

Less:

Gas purchases

85,774

67,868

Operation and maintenance expense

3,185

1,865

Depreciation and amortization

Operating Income

30,107

16,528

Net Income

20,597

10,258

Financial Margin

27,762

15,281

Net Financial Earnings

16,280

7,833

Gas Sold and Managed (Bcf)

28.4

28.3

STORAGE AND TRANSPORTATION

Operating Revenues

28,080

26,628

Equity in Earnings of Affiliates

1,240

961

Operation and Maintenance Expense

10,466

10,083

Other Income, Net

1,987

2,392

Interest Expense

5,566

5,969

Income Tax Provision

2,273

1,489

Net Income

7,363

5,664

Net Financial Earnings

7,363

5,664

HOME SERVICES AND OTHER

Operating Revenues

16,005

15,794

Operating Income

787

995

Net Income

479

615

Net Financial Earnings

479

615

Total Service Contract Customers at December 31

97,793

99,604