Financial Performance & Guidance - NJR raises the lower end of its fiscal year 2025 NFEPS guidance by $0.05, setting a new range of $3.20 to $3.30[5, 14] - The guidance range is above the 7%-9% long-term projected NFEPS growth[14] - Approximately 65% of fiscal year 2025 NFEPS is expected from utility operations[17] Capital Investments & Growth - NJNG's SAVEGREEN CAPEX is projected to grow over 30% to $90 million - $95 million in fiscal year 2025[24] - NJNG is authorized to invest $385.6 million in SAVEGREEN over a 30-month period ending June 30, 2027[24] - NJNG's year-to-date fiscal year 2025 capital expenditures total approximately $383 million, with about 47% earning a near real-time return[28] Clean Energy Ventures (CEV) - CEV has approximately 449 MW of commercial solar capacity in service as of July 31, 2025[30] - CEV has a solar pipeline of approximately 1.0 GW of investment options for future solar growth[31] - CEV expects approximately 131 MW of solar projects to be in service over the next two years, representing over $350 million in investment[31] Business Segments Performance - For the third quarter of fiscal year 2025, NJNG's NFE was $16.2 million, while the consolidated NFE was $6.2 million[41] - For the year-to-date fiscal year 2025, NJNG's NFE was $69.1 million, while the consolidated NFE was $313.4 million[42] Customer Growth - NJNG serves approximately 588,300 customers in New Jersey[79, 83]

Core Viewpoint - New Jersey Resources reported a significant beat on non-GAAP earnings per share (EPS) for Q3 FY2025, but GAAP net income was negative and worse than the previous year, indicating mixed performance across its business segments [1][2]. Financial Performance - Non-GAAP EPS for Q3 FY2025 was $0.06, exceeding the consensus estimate of ($0.05) and improving from ($0.09) in Q3 FY2024, reflecting a year-over-year change of $0.15 [2]. - GAAP net income for Q3 FY2025 was ($15.1 million), a decline of 30.2% from ($11.6 million) in Q3 FY2024 [2]. - Revenue for Q3 FY2025 was $298.9 million, an increase of 8.4% from $275.6 million in Q3 FY2024, but below the estimate of $306.9 million [2]. Business Segment Developments - The utility segment's net financial earnings (non-GAAP) rose to $10.1 million in Q3 FY2025 from a loss of $6.1 million in Q3 FY2024, with a gross margin increase of 24.8% year-over-year [5]. - Clean Energy Ventures faced challenges, recording a net financial loss of $6.9 million (non-GAAP) for Q3 FY2025, unchanged from the prior year, despite adding 32.1 MW of capacity from five new solar projects [6]. - The Energy Services segment experienced a net financial loss of $3.7 million (non-GAAP) in Q3 FY2025, worsening from a loss of $2.2 million in Q3 FY2024, with total throughput declining to 18.6 billion cubic feet from 23.6 billion cubic feet [7]. - Storage and transportation operations improved, with net financial earnings (non-GAAP) increasing to $5.9 million in Q3 FY2025 from $4.1 million in Q3 FY2024 [8]. Strategic Focus and Future Outlook - The company aims to secure supportive regulatory decisions, expand its utility customer base, and invest in clean energy projects, with a focus on managing commodity price swings and infrastructure buildouts [4]. - Management raised the lower end of its FY2025 non-GAAP EPS guidance to $3.20 to $3.30, reflecting strong performance from Energy Services and gains from the sale of its residential solar portfolio [10]. - The utility segment is expected to contribute 64% to 67% of annual net financial earnings (non-GAAP) for FY2025, while Clean Energy Ventures is projected to account for about one-fifth [10].

分组1 - New Jersey Resources (NJR) reported quarterly earnings of $0.06 per share, surpassing the Zacks Consensus Estimate of a loss of $0.06 per share, and improving from a loss of $0.09 per share a year ago, resulting in an earnings surprise of +200.00% [1] - The company posted revenues of $298.95 million for the quarter ended June 2025, which was 3.07% below the Zacks Consensus Estimate, but an increase from $275.64 million in the same quarter last year [2] - Over the last four quarters, New Jersey Resources has exceeded consensus EPS estimates three times and topped consensus revenue estimates two times [2] 分组2 - The stock has underperformed the market, losing about 1.9% since the beginning of the year, while the S&P 500 has gained 6.1% [3] - The current consensus EPS estimate for the upcoming quarter is $0.24 on revenues of $308.44 million, and for the current fiscal year, it is $3.24 on revenues of $1.98 billion [7] - The Utility - Gas Distribution industry, to which New Jersey Resources belongs, is currently ranked in the top 23% of over 250 Zacks industries, indicating a favorable outlook compared to the bottom 50% [8]

Executive Summary & Highlights This section summarizes NJR's fiscal 2025 performance, outlook, and key financial metrics, emphasizing strategic execution [Fiscal 2025 Outlook & Management Commentary](index=1&type=section&id=Fiscal%202025%20Outlook%20%26%20Management%20Commentary) NJR reported strong Q3 FY2025 results, reaffirming its diversified strategy and raising NFEPS guidance - NJR continued to execute on its strategy to drive stable growth through a diversified business model, with third-quarter results reaffirming the critical role of physical infrastructure[4](index=4&type=chunk) - The improvement in net financial earnings and the decision to raise the lower end of fiscal 2025 NFEPS guidance reflect the strength and resilience of operations[4](index=4&type=chunk) - Management remains confident in long-term growth targets and the ability to deliver consistent performance for shareowners[4](index=4&type=chunk) [Consolidated Performance Metrics](index=1&type=section&id=Consolidated%20Performance%20Metrics) NJR reported a Q3 FY2025 consolidated net loss of **$(15.1) million** but significant year-to-date improvements in net income and NFE Consolidated Performance Metrics | Metric ($ in Thousands, except per share data) | Three Months Ended June 30, 2025 | Three Months Ended June 30, 2024 | Nine Months Ended June 30, 2025 | Nine Months Ended June 30, 2024 | | :--------------------------------------------- | :------------------------------- | :------------------------------- | :------------------------------ | :------------------------------ | | Net (loss) income | $ (15,051) | $ (11,574) | $ 320,555 | $ 198,649 | | Basic EPS | $ (0.15) | $ (0.12) | $ 3.20 | $ 2.02 | | Net financial (loss) earnings* | $ 6,198 | $ (8,899) | $ 313,388 | $ 202,121 | | Basic net financial earnings (loss) per share* | $ 0.06 | $ (0.09) | $ 3.13 | $ 2.05 | - Fiscal 2025 third-quarter consolidated net loss increased to **$(15.1) million** from **$(11.6) million** YoY[6](index=6&type=chunk) - Consolidated net financial earnings (NFE) improved significantly to **$6.2 million** (**$0.06 per share**) in Q3 FY2025, from a net financial loss of **$(8.9) million** (**$(0.09) per share**) in Q3 FY2024[6](index=6&type=chunk) - Fiscal 2025 year-to-date net income increased to **$320.6 million** (**$3.20 per share**) from **$198.6 million** (**$2.02 per share**) YoY[6](index=6&type=chunk) - Fiscal 2025 year-to-date NFE increased to **$313.4 million** (**$3.13 per share**) from **$202.1 million** (**$2.05 per share**) YoY[6](index=6&type=chunk) [Fiscal 2025 NFEPS Guidance](index=2&type=section&id=Fiscal%202025%20NFEPS%20Guidance) NJR raised the lower end of its fiscal 2025 NFEPS guidance range to **$3.20 to $3.30**, driven by solar portfolio sale and strong Energy Services performance - NJR raised the lower end of its fiscal 2025 NFEPS guidance range by **$0.05**, from **$3.15 - $3.30** to **$3.20 - $3.30**[6](index=6&type=chunk)[8](index=8&type=chunk) - The raised guidance is due to a gain from the sale of NJR's residential solar portfolio and strong performance from Energy Services[8](index=8&type=chunk) - NJR maintains a **7 to 9 percent** long-term NFEPS growth target, based off a target of **$2.83 per share** for fiscal 2025[6](index=6&type=chunk) [Expected NFE Contributions by Segment](index=2&type=section&id=Expected%20NFE%20Contributions%20by%20Segment) New Jersey Natural Gas is projected to be the largest NFE contributor in fiscal 2025, followed by Clean Energy Ventures and Energy Services Expected Fiscal 2025 Net Financial Earnings Contribution by Segment | Segment | Expected fiscal 2025 net financial earnings contribution | | :-------------------------- | :----------------------------------------------------- | | New Jersey Natural Gas | 64 to 67 percent | | Clean Energy Ventures | 20 to 22 percent | | Storage and Transportation | 4 to 6 percent | | Energy Services | 10 to 12 percent | | Home Services and Other | 0 to 1 percent | Business Segment Performance This section details the financial and operational performance of NJR's individual business segments for fiscal 2025 [New Jersey Natural Gas (NJNG)](index=3&type=section&id=New%20Jersey%20Natural%20Gas%20(NJNG)) NJNG reported increased NFE for Q3 and YTD FY2025, driven by higher utility gross margin from a base rate case settlement and customer growth New Jersey Natural Gas (NJNG) Net Financial Earnings | Period | FY2025 NFE ($ Thousands) | FY2024 NFE ($ Thousands) | Change (YoY) | | :----------------------------------- | :----------------------- | :----------------------- | :----------- | | Three Months Ended June 30 | $ 10,079 | $ (6,139) | +$16,218 | | Nine Months Ended June 30 (Year-to-Date) | $ 221,518 | $ 152,400 | +$69,118 | - The increase in NFE was primarily due to higher utility gross margin resulting from NJNG's recent base rate case settlement, partially offset by higher depreciation expense[11](index=11&type=chunk) - NJNG serviced approximately **588,000 customers** at June 30, 2025, an increase from **583,000 customers** at September 30, 2024[12](index=12&type=chunk) - NJNG spent **$24.0 million** in the first nine months of fiscal 2025 on its Infrastructure Investment Program (IIP) for distribution system reinforcement projects[12](index=12&type=chunk) - BGSS incentive programs contributed **$14.5 million** to utility gross margin year-to-date fiscal 2025, down from **$16.2 million** in the same period fiscal 2024, largely due to decreased margins from storage incentives[12](index=12&type=chunk) - SAVEGREEN® invested **$72.9 million** year-to-date in fiscal 2025 in energy-efficiency upgrades, recovering **$13.0 million** through its energy efficiency rate[13](index=13&type=chunk) [Clean Energy Ventures (CEV)](index=3&type=section&id=Clean%20Energy%20Ventures%20(CEV)) CEV reported a consistent Q3 net financial loss but a significant YTD NFE increase, driven by a residential solar portfolio sale Clean Energy Ventures (CEV) Net Financial Earnings | Period | FY2025 NFE ($ Thousands) | FY2024 NFE ($ Thousands) | Change (YoY) | | :----------------------------------- | :----------------------- | :----------------------- | :----------- | | Three Months Ended June 30 | $ (6,857) | $ (6,714) | -$143 | | Nine Months Ended June 30 (Year-to-Date) | $ 37,315 | $ (1,808) | +$39,123 | - The increase in fiscal 2025 year-to-date NFE was largely due to the gain on sale of its residential solar portfolio, partially offset by lower SREC sales[15](index=15&type=chunk) - As of June 30, 2025, CEV had approximately **418 MW** of commercial solar capacity in service across multiple states, with an additional **31.3 MW** placed into service subsequent to quarter end, totaling approximately **449 MW**[20](index=20&type=chunk) [Storage and Transportation](index=4&type=section&id=Storage%20and%20Transportation) Storage and Transportation saw NFE growth in Q3 and YTD FY2025, primarily from increased operating revenues at Leaf River Energy Center Storage and Transportation Net Financial Earnings | Period | FY2025 NFE ($ Thousands) | FY2024 NFE ($ Thousands) | Change (YoY) | | :----------------------------------- | :----------------------- | :----------------------- | :----------- | | Three Months Ended June 30 | $ 5,898 | $ 4,140 | +$1,758 | | Nine Months Ended June 30 (Year-to-Date) | $ 13,905 | $ 9,761 | +$4,144 | - NFE increased due to an increase in operating revenues at Leaf River Energy Center[16](index=16&type=chunk) - Adelphia reached a settlement in principle with customers in its Section 4 rate case and plans to file an offer of settlement with the FERC during the fourth quarter of fiscal 2025[16](index=16&type=chunk) [Energy Services](index=4&type=section&id=Energy%20Services) Energy Services reported a net financial loss for Q3 and a decrease in YTD NFE in fiscal 2025, primarily due to lower contributions from Asset Management Agreements Energy Services Net Financial Earnings | Period | FY2025 NFE ($ Thousands) | FY2024 NFE ($ Thousands) | Change (YoY) | | :----------------------------------- | :----------------------- | :----------------------- | :----------- | | Three Months Ended June 30 | $ (3,734) | $ (2,24

Core Viewpoint - New Jersey Resources (NJR) is positioned to potentially continue its earnings-beat streak, supported by a positive earnings surprise history and favorable earnings estimates [1][5]. Earnings Performance - For the most recent quarter, NJR reported earnings of $1.65 per share, missing the expected $1.76 per share, resulting in a surprise of 6.67% [2]. - In the previous quarter, NJR exceeded expectations by reporting $1.29 per share against a consensus estimate of $1.14 per share, achieving a surprise of 13.16% [2]. Earnings Estimates and Predictions - There has been a favorable change in earnings estimates for NJR, with a positive Earnings ESP (Expected Surprise Prediction) indicating a strong likelihood of an earnings beat [5][8]. - NJR currently has an Earnings ESP of +11.77%, suggesting analysts have recently become more optimistic about the company's earnings prospects [8]. Zacks Rank and Success Rate - The combination of a positive Earnings ESP and a Zacks Rank of 3 (Hold) suggests that NJR has a high probability of beating earnings estimates, with historical data indicating nearly 70% success in such cases [6][8].

Group 1 - New Jersey Resources Corporation (NYSE: NJR) is highlighted as a strong player among mid-cap regulated utilities due to its balanced portfolio and expanding core utility franchise [1] - The management of New Jersey Resources Corporation has a clear strategy for further earnings growth, indicating a positive outlook for the company's financial performance [1] Group 2 - The company benefits from a well-defined utility franchise that is positioned for growth, which is crucial for attracting potential investors [1]

Core Viewpoint - Growth stocks are appealing due to their potential for above-average financial growth, but identifying strong candidates involves navigating inherent risks and volatility [1] Group 1: Company Overview - New Jersey Resources (NJR) is currently highlighted as a promising growth stock, supported by a favorable Growth Score and a top Zacks Rank [2] - The company has a historical EPS growth rate of 9.6%, with projected EPS growth of 9.9% this year, surpassing the industry average of 9.2% [4] Group 2: Financial Metrics - NJR's year-over-year cash flow growth stands at 10.3%, significantly higher than the industry average of -0.1% [5] - The historical annualized cash flow growth rate for NJR over the past 3-5 years is 12.3%, compared to the industry average of 7.2% [6] Group 3: Earnings Estimates - There is a positive trend in earnings estimate revisions for NJR, with the current-year earnings estimates increasing by 0.8% over the past month [7] - NJR has achieved a Zacks Rank of 2 (Buy) due to favorable earnings estimate revisions and a Growth Score of B [8] Group 4: Investment Potential - The combination of strong growth metrics and positive earnings revisions positions NJR well for potential outperformance, making it an attractive option for growth investors [9]

Industry Overview - The U.S. utilities sector has seen a significant rise in 2025, driven by macroeconomic, regulatory, and market-specific dynamics that have renewed investor interest [2] - The S&P 500 Utilities Select Sector SPDR (XLU) has advanced by 9% as of May 2025, indicating strong performance in the sector [2] - Falling treasury yields have enhanced the attractiveness of dividend-paying stocks, including utilities, as government bond yields become less competitive [3] Market Dynamics - The appeal of defensive stocks has increased due to ongoing concerns about inflation, potential Federal Reserve rate adjustments, and geopolitical instability [2] - The imposition of 25% tariffs on steel and aluminum imports has raised costs for essential materials in utility infrastructure, impacting supply chains and project expenses [4] - Despite tariff-related market uncertainties, investors continue to seek refuge in utility stocks, which are perceived as defensive havens [4] Company Highlights - Southwest Gas Holdings, Inc. (SWX) is a natural gas distributor with an expected earnings growth rate of 17.7% for the current year, and its earnings estimate has improved by 4.8% over the past 60 days [7] - New Jersey Resources Corporation (NJR) is also a natural gas distributor, with an expected earnings growth rate of 9.9% and a 2.9% improvement in earnings estimates over the past 60 days [8] - Telenor ASA (TELNY), a global telecommunications company, has an expected earnings growth rate of 17.1% and a 3.8% improvement in earnings estimates over the past 60 days [9] Investment Considerations - Utility stocks are generally viewed as long-term buy-and-hold options due to their regular dividend declarations and higher dividend yields compared to other equities [5] - The stocks of SWX, NJR, and TELNY benefit from investor rotation into stable, dividend-paying utility stocks, with strong growth and value indicators reflected in their VGM Scores and Zacks Ranks [10]

Core Viewpoint - Investors are seeking growth stocks that can deliver above-average growth and exceptional returns, but identifying such stocks can be challenging due to inherent volatility and risks [1] Group 1: Growth Stock Identification - The Zacks Growth Style Score system helps identify promising growth stocks by analyzing real growth prospects beyond traditional metrics [2] - New Jersey Resources (NJR) is currently recommended due to its favorable Growth Score and top Zacks Rank [2] Group 2: Earnings Growth - Earnings growth is a critical factor for attracting investor attention, with double-digit growth being particularly desirable [3] - New Jersey Resources has a historical EPS growth rate of 9.6%, with projected growth of 9.9% this year, surpassing the industry average of 9.2% [4] Group 3: Cash Flow Growth - Higher-than-average cash flow growth is essential for growth-oriented companies, enabling them to expand without relying on external funding [5] - New Jersey Resources has a year-over-year cash flow growth of 10.3%, significantly higher than the industry average of 3.3% [5] - The company's annualized cash flow growth rate over the past 3-5 years is 12.3%, compared to the industry average of 7.2% [6] Group 4: Earnings Estimate Revisions - Positive trends in earnings estimate revisions correlate strongly with near-term stock price movements [7] - The current-year earnings estimates for New Jersey Resources have increased by 2.4% over the past month [7] Group 5: Overall Positioning - New Jersey Resources has achieved a Growth Score of B and a Zacks Rank 2 due to positive earnings estimate revisions, positioning it well for potential outperformance [9]

Core Viewpoint - New Jersey Resources (NJR) is positioned as a strong investment option in the utility sector due to its infrastructure investments, earnings growth opportunities, and strong return on equity (ROE) [1] NJR's Growth Projections - The Zacks Consensus Estimate for fiscal 2025 earnings per share (EPS) has increased by 1.6% to $3.19 [2] - The Zacks Consensus Estimate for fiscal 2025 sales is projected at $1.87 billion, reflecting a year-over-year growth of 4.1% [2] Debt Position of NJR - NJR's total debt-to-capital ratio stands at 56.69%, which is better than the sector average of 59.9% [3] - The time-to-interest earned ratio is 5, indicating the company's strong ability to meet future interest obligations [3] NJR's Dividend Growth - NJR has consistently paid quarterly dividends since 1952 and has raised its dividend for 29 consecutive years [4] - The current quarterly dividend is 45 cents per share, leading to an annualized dividend of $1.80, up from $1.68 [4] - The current dividend yield is 3.86%, significantly higher than the Zacks S&P 500 composite's yield of 1.52% [4] NJR's Return on Equity - NJR's ROE is currently at 16.95%, surpassing the industry average of 9.27%, indicating effective utilization of funds [5] NJR's Systematic Investments & Customer Growth - NJR is focused on upgrading and maintaining its infrastructure, with planned capital expenditures of $600-$700 million for fiscal 2025 and $650-$750 million for fiscal 2026 [6] - In the first half of fiscal 2025, NJR added 3,945 new customers, which is expected to contribute approximately $4.4 million in incremental utility gross margin annually [7] NJR's Stock Price Performance - Over the past three months, NJR's shares have increased by 0.3%, contrasting with a 2.8% decline in the industry [8] Other Stocks to Consider - Other top-ranked stocks in the industry include Southwest Gas (SWX) with a Zacks Rank 1, and UGI Corporation (UGI) and Atmos Energy (ATO), both holding a Zacks Rank 2 [9] - SWX has a long-term earnings growth rate of 9.5% and a Zacks Consensus Estimate for 2025 EPS indicating an 18.4% year-over-year increase [9] - UGI's long-term earnings growth rate is 5.2%, with a fiscal 2025 sales estimate implying 8% year-over-year growth [10] - ATO has a long-term earnings growth rate of 7.19% and an average earnings surprise of 2.6% over the last four quarters [10]