New Jersey Resources(NJR) - 2025 Q3 - Quarterly Results

Executive Summary & Highlights This section summarizes NJR's fiscal 2025 performance, outlook, and key financial metrics, emphasizing strategic execution Fiscal 2025 Outlook & Management Commentary 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] - 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] - Management remains confident in long-term growth targets and the ability to deliver consistent performance for shareowners[4] Consolidated Performance Metrics 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] - 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] - 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] - 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] Fiscal 2025 NFEPS Guidance 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][8] - The raised guidance is due to a gain from the sale of NJR's residential solar portfolio and strong performance from Energy Services[8] - NJR maintains a 7 to 9 percent long-term NFEPS growth target, based off a target of $2.83 per share for fiscal 2025[6] Expected NFE Contributions by Segment New Jersey Natural Gas is projected to be the largest NFE contributor in fiscal 2025, followed by Clean Energy Ventures and Energy Services Expected Fiscal 2025 Net Financial Earnings Contribution by Segment | Segment | Expected fiscal 2025 net financial earnings contribution | | :-------------------------- | :----------------------------------------------------- | | New Jersey Natural Gas | 64 to 67 percent | | Clean Energy Ventures | 20 to 22 percent | | Storage and Transportation | 4 to 6 percent | | Energy Services | 10 to 12 percent | | Home Services and Other | 0 to 1 percent | Business Segment Performance This section details the financial and operational performance of NJR's individual business segments for fiscal 2025 New Jersey Natural Gas (NJNG) NJNG reported increased NFE for Q3 and YTD FY2025, driven by higher utility gross margin from a base rate case settlement and customer growth New Jersey Natural Gas (NJNG) Net Financial Earnings | Period | FY2025 NFE ($ 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] - NJNG serviced approximately 588,000 customers at June 30, 2025, an increase from 583,000 customers at September 30, 2024[12] - 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] - 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] - SAVEGREEN® invested $72.9 million year-to-date in fiscal 2025 in energy-efficiency upgrades, recovering $13.0 million through its energy efficiency rate[13] Clean Energy Ventures (CEV) CEV reported a consistent Q3 net financial loss but a significant YTD NFE increase, driven by a residential solar portfolio sale Clean Energy Ventures (CEV) Net Financial Earnings | Period | FY2025 NFE ($ 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) | +$39,123 | - The increase in fiscal 2025 year-to-date NFE was largely due to the gain on sale of its residential solar portfolio, partially offset by lower SREC sales[15] - As of June 30, 2025, CEV had approximately 418 MW of commercial solar capacity in service across multiple states, with an additional 31.3 MW placed into service subsequent to quarter end, totaling approximately 449 MW[20] Storage and Transportation Storage and Transportation saw NFE growth in Q3 and YTD FY2025, primarily from increased operating revenues at Leaf River Energy Center Storage and Transportation Net Financial Earnings | Period | FY2025 NFE ($ 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 | +$4,144 | - NFE increased due to an increase in operating revenues at Leaf River Energy Center[16] - Adelphia reached a settlement in principle with customers in its Section 4 rate case and plans to file an offer of settlement with the FERC during the fourth quarter of fiscal 2025[16] Energy Services Energy Services reported a net financial loss for Q3 and a decrease in YTD NFE in fiscal 2025, primarily due to lower contributions from Asset Management Agreements Energy Services Net Financial Earnings | Period | FY2025 NFE ($ Thousands) | FY2024 NFE ($ Thousands) | Change (YoY) | | :----------------------------------- | :----------------------- | :----------------------- | :----------- | | Three Months Ended June 30 | $ (3,734) | $ (2,24