New Jersey Resources (NJR 1.37%), a regulated utility and energy infrastructure provider serving New Jersey, reported Q3 FY2025 earnings on August 4, 2025. The main headline was a marked beat on non-GAAP earnings per share (EPS), which came in at $0.06 versus a ($0.05) consensus for Q3 FY2025. Despite this, reported GAAP net income for Q3 FY2025 was negative and deeper than the prior year. The period showcased both improvement on key business lines and ongoing headwinds in certain segments, most notably clean energy and nonutility operations.
| Metric | Q3 2025 | Q3 2025 Estimate | Q3 2024 | Y/Y Change |
|---|---|---|---|---|
| EPS (Non-GAAP) | $0.06 | ($0.05) | ($0.09) | $0.15 |
| EPS (GAAP) | ($0.15) | ($0.12) | (25.0%) | |
| Revenue | $298.9 million | $306.9 million | $275.6 million | 8.4% |
| Net Financial Earnings (Non-GAAP) | $6.2 million | N/A | ($8.9 million) | n/a |
| Net Income | ($15.1 million) | ($11.6 million) | (30.2%) |
Source: Analyst estimates provided by FactSet. Management expectations based on management's guidance, as provided in Q2 2025 earnings report.
About New Jersey Resources and Its Focus
New Jersey Resources operates a mix of regulated and unregulated energy businesses. Its largest business, New Jersey Natural Gas, delivers natural gas to about 588,000 customers, mostly in affluent and fast-growing New Jersey counties. Other operations include Energy Services (wholesale and retail gas marketing), Clean Energy Ventures (solar power projects), and natural gas storage and transportation assets.
The company’s long-term success relies on securing supportive regulatory decisions, maintaining and expanding its utility customer base, and investing in clean energy projects. Key focus areas include managing commodity price swings, executing on infrastructure buildouts such as new pipelines and storage, and adapting to evolving clean energy regulations. The company’s exposure to regulatory frameworks and policy changes at both state and federal levels remains central to its prospects.
Quarterly Highlights and Business Segment Developments
Net financial earnings (non-GAAP) for the utility arm climbed to $10.1 million in Q3 FY2025 from a $6.1 million loss in Q3 FY2024. Utility gross margin (non-GAAP) increased 24.8% year over year for the first nine months of FY2025, and The customer count rose to 588,305 as of Q3 FY2025, up 5,305 from the end of FY2024. The utility segment benefited from a series of allowed rate increases, continued investment recovery under regulatory riders, and ongoing energy efficiency investments, including $72.9 million invested in the first nine months of FY2025 in its SAVEGREEN program aimed at lowering energy use for customers.
In Clean Energy Ventures, which develops and manages solar power projects, the business remained challenged on a quarterly basis. The segment recorded a net financial loss of $6.9 million (non-GAAP) for Q3 FY2025, unchanged from the prior year’s Q3. Clean Energy Ventures brought five commercial solar projects online during the first nine months of FY2025, adding 32.1 megawatts (MW) of capacity, Recurring operating revenue declined to $12.0 million in Q3 FY2025 from $14.6 million in Q3 FY2024. Year-to-date profits in this business reflected gains from selling a residential solar portfolio—a nonrecurring event that skews results positively. This refers to Clean Energy Ventures’ net financial earnings (non-GAAP) for the first nine months of FY2025, which were largely due to the gain on sale of its residential solar portfolio.
The Energy Services segment, which buys and sells wholesale and retail natural gas, continued to feel the effects of commodity price swings. Net financial loss (non-GAAP) grew to $3.7 million in Q3 FY2025 versus $2.2 million in Q3 FY2024, and Operating revenue (GAAP) of $38.9 million in Q3 FY2025 was down sharply. Volumes also declined, with total throughput dropping to 18.6 billion cubic feet in Q3 FY2025 from 23.6 billion cubic feet in Q3 FY2024. The decline was tied to reduced contributions under older asset management agreements, meaning the business is generating less margin from managing pipeline and storage contracts than in the prior year, as reflected in lower net financial earnings (non-GAAP) for Energy Services in Q3 FY2025 and the first nine months of FY2025 compared to the prior year periods.
Storage and transportation operations improved moderately, as reflected by an increase in net financial earnings (non-GAAP) to $5.9 million in Q3 FY2025 from $4.1 million in Q3 FY2024, thanks to higher operating revenues from facilities such as the Leaf River Energy Center. The company also invested $456.8 million in capital expenditures during the first nine months of FY2025, primarily to support utility and clean energy growth. It is also in the process of advancing customer settlements in pipeline rate cases and evaluating expansion opportunities for its storage assets. All these infrastructure developments come amid increased depreciation and amortization expenses—non-cash charges associated with the rising asset base—which totaled $47.0 million in Q3 FY2025, up $6.1 million from a year earlier.
Looking Ahead: Guidance and Investor Watchpoints
Management raised the lower end of its expected non-GAAP earnings per share guidance for FY2025. The target is now $3.20 to $3.30 for FY2025 net financial earnings per share (NFEPS, non-GAAP), an increase of $0.05 and above the 7 to 9% annual long-term NFEPS growth target. This revision was attributed to strong performance from Energy Services earlier in the year and gains from the sale of its residential solar portfolio, as reflected in the updated non-GAAP net financial earnings per share (NFEPS) guidance for FY2025. The utility segment (New Jersey Natural Gas) is expected to contribute 64% to 67% of annual net financial earnings (non-GAAP) for FY2025. Clean Energy Ventures is expected to comprise about one-fifth of net financial earnings (non-GAAP) for FY2025, and the remainder split between storage, transportation, and energy services.
The updated guidance for FY2025 partly reflects nonrecurring sources, particularly the gain from portfolio asset sales in clean energy, and refers to net financial earnings per share (NFEPS), a non-GAAP financial measure. Management did not signal any changes to its long-term strategy or the structure of its dividend. The dividend yield was 4.0% as of Q3 FY2025.
Revenue and net income presented using U.S. generally accepted accounting principles (GAAP) unless otherwise noted.
