New Jersey Resources 2025 Q4 Earnings Net Income Plummets 83.5% Despite Revenue Beat

New Jersey Resources (NJR) reported fiscal 2025 Q4 earnings that missed EPS expectations but exceeded revenue forecasts. The company’s shares rose post-earnings, reflecting optimism around its capital plan and long-term growth strategy.

Revenue

Total revenue declined 15.1% to $336.08 million in 2025 Q4, down from $395.78 million in 2024 Q4. The drop was attributed to lower contributions from the Energy Services segment, though utility and energy services segments drove strong revenue performance.

Earnings/Net Income

Net income plummeted 83.5% to $15.07 million ($0.15 EPS) in 2025 Q4, compared to $91.13 million ($0.92 EPS) in 2024 Q4. The EPS shortfall was primarily due to reduced Energy Services revenue from Asset Management Agreements signed in 2020. Despite the decline, the company has maintained profitability for over two decades, showcasing operational resilience.

Post-Earnings Price Action Review

Following the earnings release, NJR’s stock price surged 4.02% to $46.15, indicating positive market sentiment despite the EPS miss. The rally was driven by robust revenue performance and confidence in the company’s capital deployment strategy.

CEO Commentary

CEO Stephen D. Westhoven emphasized NJR’s fifth consecutive year of exceeding earnings guidance, driven by strategic capital investments and utility rate base growth. He highlighted a $5 billion CAPEX plan through 2030, with 60% allocated to New Jersey Natural Gas, and projected S&T earnings to double by 2027.

Guidance

NJR guided to fiscal 2026 NFEPS of $3.03–$3.18, aligning with its 7–9% long-term growth target. The company plans $4.8 billion–$5.2 billion in CAPEX through 2030, with Clean Energy Ventures (CEV) targeting 50% capacity growth over two years.

Additional News

1. $5B Capital Plan: NJR announced a $5 billion CAPEX plan through 2030, a 40% increase from prior five years, with 60% allocated to utilities.

2. S&T Expansion: Storage & Transportation (S&T) earnings are expected to double by 2027 via Leaf River capacity upgrades and recontracting.

3. Clean Energy Push: CEV aims for 50% capacity growth in two years, leveraging safe harbor projects and infrastructure repowering.

The company’s focus on utility-anchored diversification and low-dilution capital strategy underscores its alignment with energy affordability and clean energy goals.