On May 5, 2025, New Jersey Resources Corp (NJR, Financial) released its 8-K filing detailing the financial results for its fiscal 2025 second quarter, ending March 31, 2025. New Jersey Resources, an energy services holding company, operates both regulated and nonregulated businesses, including New Jersey Natural Gas, which serves nearly 600,000 customers, and various solar and midstream natural gas projects.
Performance Overview
New Jersey Resources Corp (NJR, Financial) reported a consolidated net income of $204.3 million, or $2.04 per share, for the second quarter of fiscal 2025. This marks a significant increase from the $120.8 million, or $1.23 per share, reported in the same quarter of fiscal 2024. The company's net financial earnings (NFE), a non-GAAP measure, also rose to $178.3 million, or $1.78 per share, compared to $138.6 million, or $1.41 per share, in the previous year. These results surpass the analyst estimates of $1.35 earnings per share. However, the article does not mention the actual revenue figure to compare against the $732.00 million revenue estimate.
Key Financial Achievements
The company's fiscal 2025 year-to-date net income reached $335.6 million, or $3.35 per share, compared to $210.2 million, or $2.14 per share, for the same period in fiscal 2024. Year-to-date NFE totaled $307.2 million, or $3.07 per share, up from $211.0 million, or $2.15 per share, in fiscal 2024. These achievements underscore NJR's ability to leverage its diversified business model to deliver stable growth.
Segment Performance
New Jersey Natural Gas (NJNG) reported a second-quarter fiscal 2025 NFE of $144.5 million, up from $107.1 million in fiscal 2024, driven by a higher utility gross margin following a base rate case settlement. Clean Energy Ventures (CEV) reduced its net financial loss to $(4.0) million from $(5.6) million, aided by increased solar electricity sales. Storage and Transportation saw an increase in NFE to $2.3 million from $2.0 million. Energy Services reported a slight decline in NFE to $35.3 million from $37.6 million, attributed to lower revenues from Asset Management Agreements.
Financial Metrics and Analysis
The company's fiscal 2025 outlook has been revised, with NFEPS guidance increased to a range of $3.15 to $3.30, reflecting strong performance from Energy Services during the winter period. This adjustment highlights NJR's ability to capitalize on natural gas price volatility, enhancing its financial margins.
Steve Westhoven, President and CEO of New Jersey Resources, stated, “We continued to execute our strategy to deliver stable growth through our diversified business model. Our second-quarter performance exceeded expectations, largely driven by natural gas price volatility that benefited Energy Services during the winter period. Overall, we believe these results highlight the strength of our complementary portfolio and the value of our physical infrastructure.”
Conclusion
New Jersey Resources Corp (NJR, Financial) has demonstrated robust financial performance in the second quarter of fiscal 2025, surpassing analyst expectations and showcasing the effectiveness of its diversified business strategy. The company's ability to adapt to market conditions and optimize its operations positions it well for continued growth in the utilities sector.
Explore the complete 8-K earnings release (here) from New Jersey Resources Corp for further details.
