New Jersey Resources Corp (NYSE:NJR) reported financial results for its fiscal first quarter ended December 31, 2025, delivering a performance that exceeded analyst expectations on both the top and bottom lines. The company also raised its full-year guidance, a move that appears to be resonating positively with investors in early trading.
Earnings and Revenue vs. Estimates
The energy services and infrastructure company posted net financial earnings (NFE), a key non-GAAP metric it emphasizes, of $1.17 per share. This comfortably surpassed the consensus analyst estimate of $1.07 per share.
On the revenue front, the company reported total operating revenues of $604.9 million for the quarter. This figure significantly exceeded the analyst revenue estimate of $552.4 million, representing a beat of over 9%.
The quarterly performance versus expectations can be summarized as follows:
- Reported NFEPS: $1.17
- Estimated NFEPS: $1.07
- Result: Beat by $0.10 (9.3%)
- Reported Revenue: $604.9 million
- Estimated Revenue: $552.4 million
- Result: Beat by $52.5 million (9.5%)
Market Reaction and Outlook
The market's initial reaction to the earnings beat and guidance increase has been positive. Following the release, the stock has shown gains across multiple timeframes, including a nearly 2% increase in after-market trading. This upward momentum suggests investors are rewarding the strong quarterly performance and the company's increased confidence in its fiscal year.
A significant driver of this optimism is management's decision to raise its fiscal 2026 net financial earnings per share (NFEPS) guidance. The new range is $3.28 to $3.43, a $0.25 increase from the previous guidance of $3.03 to $3.18. CEO Steve Westhoven attributed the raise to "strong performance... in the beginning of our fiscal second quarter," specifically citing benefits from natural gas price volatility in the Energy Services segment.
This new company guidance notably exceeds the current analyst consensus estimate for full-year 2026 NFEPS, which stands at $3.15. The midpoint of NJR's new range, $3.36, is approximately 6.7% higher than the consensus, setting a higher bar for the year ahead.
Key Takeaways from the Quarterly Report
Beyond the headline numbers, the earnings release highlighted several important operational developments:
- Segment Performance: While consolidated NFE of $118.2 million was down year-over-year due to a large one-time gain from a solar asset sale in the prior-year period, underlying business performance was strong. The core New Jersey Natural Gas (NJNG) utility saw NFE jump 25% to $83.8 million, driven by a full quarter's impact of a base rate case settlement. The Energy Services segment more than doubled its NFE to $16.3 million, benefiting from market volatility.
- Growth Investments: The company continues to execute on its capital plan, deploying $163.6 million in capital expenditures during the quarter. NJR reiterated its plan to invest between $4.8 billion and $5.2 billion through 2030, with over 60% focused on utility infrastructure at NJNG.
- Regulatory and Project Progress: The Storage and Transportation segment benefited from a recent rate case settlement at the Adelphia Gateway pipeline. The Clean Energy Ventures segment placed new solar projects into service and continues to expand its portfolio.
Looking Ahead
With the first quarter in the books and guidance raised, investor attention will now turn to the company's ability to execute against its higher targets. The raised outlook, fueled by a strong start to the second quarter, suggests management sees sustained momentum. Analysts will be watching for continued strength in the unregulated Energy Services segment and steady execution in the regulated utility and renewable energy businesses.
For a detailed breakdown of future earnings estimates and historical performance, you can view more on the NJR earnings and estimates page.
Disclaimer: This article is for informational purposes only and does not constitute financial advice, investment recommendation, or an offer to buy or sell any security. Investors should conduct their own research and consult with a qualified financial advisor before making any investment decisions.
