NewJersey Resources NYSE: NJR tightened its fiscal 2026 net financial earnings per share guidance after reporting higher third-quarter earnings, citing improved contributions from its Clean Energy Ventures and Storage and Transportation businesses.
The company now expects fiscal 2026 net financial earnings per share of $3.52 to $3.62, narrowing its prior range while raising its midpoint. Chief Financial Officer Roberto Bel said the update reflects increased visibility into full-year results and benefits from the company’s diversified business model.
Third-quarter consolidated net financial earnings totaled $11.3 million, or $0.11 per share, compared with $6.2 million, or $0.06 per share, in the corresponding fiscal 2025 period. Bel attributed the improvement to additional Clean Energy Ventures projects entering service and favorable recontracting activity at Storage and Transportation.
For the year-to-date period, Bel noted that a higher net loss at Clean Energy Ventures reflected a comparison with the prior year, when the company recorded a one-time gain from the sale of its residential solar business.
Capital plan rises on utility investment
NJR deployed approximately $630 million in capital across its businesses through the first nine months of fiscal 2026. About two-thirds of that spending went to New Jersey Natural Gas, with investments concentrated on core infrastructure, system safety, reliability and resiliency, according to management.
The company increased its fiscal 2026 capital-investment outlook to $815 million to $950 million, from a prior range of $775 million to $930 million. The higher forecast is primarily tied to additional utility investments focused on safety and reliability initiatives.
Management maintained its investment range for Clean Energy Ventures. Bel said the company is confident it can reach the lower end of that range based on projects already underway, while retaining the option to move toward the upper end as it evaluates its project pipeline.
NJR did not change its fiscal 2027 estimates and reaffirmed a five-year capital-expenditure outlook of $4.8 billion to $5.2 billion through fiscal 2030. The company said the plan supports its long-term target of 7% to 9% growth in net financial earnings per share while remaining consistent with its credit objectives.
Bel also said NJR expects its adjusted funds from operations-to-adjusted debt ratio to exceed 20% in fiscal 2026. He cited cash generation from the company’s businesses, available liquidity and a well-laddered debt-maturity schedule as support for its capital plan.
Utility rate filings target customer affordability
President and Chief Executive Officer Stephen Westhoven said New Jersey Natural Gas filed a package of proposals with the New Jersey Board of Public Utilities on June 1 that combines changes to gas supply, conservation and energy-efficiency programs with a base-rate case.
The objective is to give customers bill relief before the coming winter while continuing to fund long-term system investments, Westhoven said. Once the filing elements are implemented, customer bills are expected to remain “nearly flat,” according to the company.
During the question-and-answer session, Westhoven characterized the proceeding as a “normal kind of plain vanilla rate case” and said management had not seen meaningful differences from previous rate cases. He said the company remains focused on affordability and noted that natural gas is the lowest-cost way to heat homes and businesses, according to management.
Westhoven said the state’s executive-order-related utility review has primarily focused on electric companies so far. NJR is monitoring the process for potential opportunities, including changes that could make regulatory processes smoother, but has not been closely involved, he said.
Storage expansion and clean-energy opportunities
NJR’s Storage and Transportation business received a Federal Energy Regulatory Commission certificate for its Adelphia Gateway expansion ahead of schedule, a milestone Westhoven said supports the project’s expected development timeline.
The business continues to benefit from favorable recontracting, and management expects that uplift to support a doubling of Storage and Transportation earnings from fiscal 2025 to fiscal 2027. Westhoven said demand remains strong for the company’s midstream services and indicated that potential future expansions could include further Adelphia Gateway development, compression additions and other investments.
Those potential projects are not included in the current capital plan. NJR said it expects to provide additional detail when it updates its fiscal 2027 outlook and capital plan in November.
At Clean Energy Ventures, the company continues to place capacity into service while pursuing development and optimization opportunities across its existing portfolio. Westhoven said NJR sees potential to use existing interconnections and infrastructure in New Jersey and the Northeast to add capacity to power markets.
He said any such investment would be additive to the current plan and would require an appropriate structure, return profile and risk profile before the company commits capital. Management did not provide a timetable for when it may disclose further details.
About NewJersey Resources (NYSE:NJR)
New Jersey Resources Corporation is a publicly traded energy services holding company headquartered in Wall Township, New Jersey. The firm's primary focus is on the safe and reliable distribution of natural gas, along with complementary energy services and renewable energy investments. Its operations center on delivering cost-effective solutions to residential, commercial and industrial customers throughout the state.
The company's principal subsidiary, New Jersey Natural Gas, owns and operates an extensive pipeline network that spans northern, central and southern New Jersey.
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