New Jersey Resources 2025 Q2 Earnings Strong Performance with Net Income Growth of 69.1%

New Jersey Resources (NJR) reported its fiscal 2025 Q2 earnings on May 6th, 2025. The earnings surpassed expectations, driven by a significant increase in net income. njr raised its fiscal 2025 net financial earnings per share guidance, indicating strong future performance. The company's diversified business model and strategic execution were key factors in achieving these results, reflecting its ability to adapt to market conditions. NJR's guidance adjustment further supports the outlook for continued growth and stability. The company remains focused on leveraging its resources to maximize shareholder value.

Revenue
New Jersey Resources saw its total revenue rise by 38.8% to $913.03 million in Q2 2025, compared to $657.91 million in Q2 2024. The Natural Gas Distribution segment was the highest contributor, generating $618.64 million, followed by energy services, which accounted for $246.39 million. Storage and Transportation provided $25.31 million, while Clean Energy Ventures contributed $7.97 million. Home Services and Other segments added $15.12 million, with eliminations of $400,000.

Earnings/Net Income
New Jersey Resources' earnings per share (EPS) increased by 65.9%, climbing to $2.04 in Q2 2025 from $1.23 in Q2 2024. This growth signifies strong earnings momentum, with net income surging by 69.1% to $204.29 million compared to $120.81 million in the prior year. The EPS performance remains robust, reflecting the company's strategic success.

Price Action
The stock price of new jersey resources has dropped 3.10% during the latest trading day, edged down 0.67% during the most recent full trading week, and declined 2.03% month-to-date.

Post-Earnings Price Action Review
Over the past five years, the strategy of purchasing New Jersey Resources shares following a quarter-over-quarter revenue increase and holding for 30 days has yielded poor results. This approach resulted in a return of -7.89%, considerably underperforming the benchmark return of 83.12%. The excess return was -91.01%, and the strategy's compound annual growth rate (CAGR) was -1.65%. The Sharpe ratio stood at -0.17, indicating unfavorable risk-adjusted returns, with a maximum drawdown of -17.82% and volatility of 9.71%. This demonstrates the strategy's failure to capitalize on market gains, leading to significant underperformance and heightened risk exposure.

CEO Commentary
Steve Westhoven, President and CEO of New Jersey Resources, emphasized that the company continues to execute its strategy to deliver stable growth through a diversified business model. He noted that the second-quarter performance exceeded expectations, primarily due to natural gas price volatility that positively impacted Energy Services during the winter. Westhoven highlighted that these results reflect the strength of the company's complementary portfolio and the value of its physical infrastructure.

Guidance
New Jersey Resources has raised its fiscal 2025 net financial earnings per share (NFEPS) guidance to a range of $3.15 to $3.30, increased by $0.10 from the previous range of $3.05 to $3.20, driven by strong performance in Energy Services and a gain from the sale of the residential solar portfolio. The company maintains a long-term NFEPS growth target of 7 to 9 percent, with expected NFE contributions from segments including New Jersey Natural Gas (65-68 percent) and Clean Energy Ventures (19-22 percent).

Additional News
In recent developments, New Jersey Resources highlighted the success of its Coastal Climate Initiative in celebration of Earth Day on April 22, 2025. The initiative focuses on sustainable practices and environmental preservation along the coastline. Additionally, William T. Yardley was elected to the Board of Directors on April 16, 2025, bringing valuable expertise to the company. On the same day, the Board of Directors declared a quarterly dividend, demonstrating NJR's commitment to returning value to shareholders. These actions align with the company's ongoing efforts to enhance its sustainable footprint and strengthen its governance structure.