New Jersey Resources Q2 2025: Key Contradictions on Tariffs, Customer Growth, and Solar Project Pricing

Tariffs and material costs impact on solar projects, customer growth and demographic factors, Leaf River expansion timing and cost, solar project pricing and impact on financials are the key contradictions discussed in New Jersey Resources' latest 2025Q2 earnings call.



Strong Financial Performance:
- New Jersey Resources (NJR) reported a net financial earnings (NFE) per share of $1.78 for the second quarter of fiscal 2025, compared to $1.41 per share in the same period last year, indicating an increase of 26%.
- This was driven by strong performance in NJR Energy Services and higher utility gross margin at New Jersey Natural Gas following its base rate case settlement.

Outlook and Guidance:

- NJR raised its fiscal 2025 NFEPS guidance range to $3.15 to $3.30 per share, an increase of $0.10 from the prior range.
- The increase reflects strong operating performance in Energy Services and the gain from the sale of residential solar assets at Clean Energy Ventures.

Customer Growth and Affordability Initiatives:
- New Jersey Natural Gas reported consistent customer growth, driven by new construction activity, system expansions, and city conversions.
- This growth is supported by mechanisms like the Base Gas Supply Service (BGSS) program, which helps manage energy affordability and has already saved customers nearly $800 million.

Clean Energy Investments and Project Pipeline:
- Clean Energy Ventures added 31 megawatts of solar capacity into service this fiscal year and has 60 megawatts under construction.
- The company's project pipeline stands at over 1 gigawatt, focused on diversifying investments to avoid over-reliance on a single market or policy regime.