New Jersey Resources Corp (NJR, Financial) released its 8-K filing on February 3, 2025, reporting impressive financial results for the first quarter of fiscal 2025, which ended on December 31, 2024. The company, an energy services holding entity, operates both regulated and nonregulated businesses, including New Jersey Natural Gas (NJNG) and Clean Energy Ventures (CEV).
Financial Performance Exceeds Expectations
New Jersey Resources Corp (NJR, Financial) reported a consolidated net income of $131.3 million, or $1.32 per share, for the first quarter of fiscal 2025. This result significantly exceeded the analyst estimate of $0.90 per share. The company's revenue details were not explicitly mentioned, but the strong earnings per share indicate a robust financial performance.
Consolidated net financial earnings (NFE), a non-GAAP measure, reached $128.9 million, or $1.29 per share, compared to $72.4 million, or $0.74 per share, in the same quarter of the previous year. This increase was driven by favorable contributions from all business segments, particularly due to new base rates at NJNG and a gain from the sale of CEV's residential solar portfolio.
Regulatory and Operational Milestones
During the quarter, NJNG received approval from the New Jersey Board of Public Utilities for a $157.0 million annual increase in its base rates, effective November 21, 2024. Additionally, NJNG launched the next generation of its SAVEGREEN energy efficiency program, valued at $385.6 million, which commenced on January 1, 2025.
CEV completed the sale of its 91 megawatt residential solar portfolio for $132.5 million, contributing significantly to the quarter's financial results.
Segment Performance and Strategic Insights
NJNG reported first-quarter NFE of $66.9 million, up from $51.4 million in the previous year, primarily due to higher utility gross margins from the base rate increase. However, BGSS incentive programs saw a decline in contributions to utility gross margin, attributed to decreased margins from storage incentives and lower off-system sales.
CEV's NFE surged to $48.1 million from $10.5 million, largely due to the gain on the solar portfolio sale. Storage and Transportation also saw an increase in NFE to $5.7 million, driven by higher operating revenues and reduced expenses.
Management Commentary and Future Outlook
Steve Westhoven, President and CEO of New Jersey Resources, stated, “NJR is off to a good start in fiscal 2025 with new base rates at NJNG and solid financial performance across all business segments. Overall, these results reflect the strength of our complementary portfolio of businesses and the value of our physical infrastructure. We remain well-positioned to deliver on our fiscal 2025 net financial earnings guidance.”
NJR maintains its fiscal 2025 NFEPS guidance range of $3.05 to $3.20, which is higher than the long-term growth target due to the one-time gain from the solar portfolio sale. This guidance underscores the company's strategic positioning and operational efficiency.
Conclusion
New Jersey Resources Corp (NJR, Financial) has demonstrated a strong start to fiscal 2025, surpassing analyst expectations and achieving significant financial milestones. The company's strategic initiatives, regulatory approvals, and asset sales have positioned it well for continued growth and stability in the utilities sector. Investors and stakeholders will be keenly observing NJR's performance as it progresses through the fiscal year.
Explore the complete 8-K earnings release (here) from New Jersey Resources Corp for further details.
