NewJersey Resources (NYSE:NJR) used its fiscal 2026 first-quarter earnings call to highlight strong performance during an “extraordinary” cold-weather event and to raise its full-year guidance after outsized results in its Energy Services business.
Management also reaffirmed the company’s long-term growth framework, emphasizing a utility-anchored capital plan, accelerated earnings expectations in its Storage and Transportation segment, and continued capacity additions at Clean Energy Ventures. The company noted at the start of the call that it mistakenly began by reading prepared remarks from a prior quarter before turning to first-quarter results.
Guidance raised after Energy Services outperformance
As a result, NJR increased its fiscal 2026 net financial earnings per share (NFEPS) guidance by $0.25 to a range of $3.28 to $3.43 per share. CFO Roberto Bel said the raise reflects Energy Services outperformance “during the winter to date” and noted the company is also revising expected segment contribution percentages, with Energy Services’ share rising due to additional financial margin captured amid volatility.
In response to analyst questions, management said the updated guidance is based on results to date through an estimate of the end of January and does not incorporate future weather events that have not yet occurred.
First-quarter NFE results and segment dynamics
Bel reported first-quarter net financial earnings of $118.2 million, or $1.17 per share. He said utility contributions were higher versus the prior period largely because new base rates were in place for a full quarter in fiscal 2026. That was offset by a lower Clean Energy Ventures (CEV) contribution, reflecting that the prior-year period included a gain on the sale of existing solar assets.
Customer affordability, hedging strategy, and demand during extreme cold
Westhoven said New Jersey Natural Gas delivered the highest “send-outs” in company history over a seven-day stretch, underscoring the importance of natural gas service during extreme conditions. He acknowledged that sustained low temperatures likely will increase customer usage and bills, and he outlined steps the utility takes to help mitigate price impacts.
Management emphasized a supply strategy of purchasing gas well in advance of the heating season. Westhoven said that, as a matter of policy, the utility secures a minimum of 75% of projected winter gas needs in advance. He added that New Jersey Natural Gas entered the winter more than 87% hedged, with an average hedged price of approximately $2.20 per dekatherm for gas, storage, and LNG, compared with Citygate pricing that traded above $135 per dekatherm during the weather event.
Westhoven also highlighted the company’s Save Green energy efficiency programs, saying more than 110,000 customers have participated to date and that customers using whole-home offerings can realize bill savings of roughly 30%. He added that NJR’s outreach connects customers with more than $16.5 million in energy assistance funding.
On the regulatory front, management said affordability has long been a focus and indicated it does not have a near-term need to pursue another utility rate case, noting its last rate case went into effect roughly 14 to 15 months ago. Westhoven said NJR expects to work with the new state administration on shared goals, including capacity needs in New Jersey.
Capital plan reaffirmed; Leaf River expansion advances
NJR reaffirmed its five-year capital outlook of $4.8 billion to $5.2 billion through fiscal 2030. Bel said the company deployed approximately $119 million in capital during the quarter, with New Jersey Natural Gas representing about 70% of quarterly CapEx. Management reiterated that more than 60% of planned CapEx is expected to be dedicated to the utility, with CEV and Storage and Transportation (S&T) representing the balance.
Bel also reiterated balance sheet targets, saying strong cash generation supports an adjusted funds-from-operations (FFO) to adjusted debt ratio projected to remain around 20% for the next five years. He added that Energy Services outperformance provides additional cash flow and reinforces that NJR does not foresee a need for block equity issuance. Management also cited ample liquidity and a well-laddered debt maturity profile as factors that limit near-term refinancing risk.
Within S&T, management reiterated expectations for net financial earnings to more than double over the next two years, driven by recontracting at Adelphia and Leaf River under fixed-price agreements with credit-worthy counterparties. Westhoven said the company filed a FERC application to increase Leaf River’s working gas capacity by more than 70% over the next few years and announced it has already secured a long-term contract covering the initial capacity expansion at existing caverns.
On the call, management clarified that the contracted portion relates to compression expansion and existing cavern expansion; the additional fourth cavern, which would increase total working capacity from about 43 Bcf to 55 Bcf, does not yet have contracts in place. Westhoven said open seasons have been constructive and that the company intends to “back-to-back” investments with signed contracts. He said the company expects a likely FERC authorization decision by the end of the fiscal year and described a timeline that would bring existing cavern expansion capacity to market around 2028, with the fourth cavern potentially progressing on a later timeline as contracting develops.
Asked about capital spending for the contracted compression and expansion work, management said those investments are already included in the company’s current CapEx plan, including spending across fiscal 2026 and 2027.
Clean Energy Ventures adds capacity and cites “speed-to-market” advantage
Westhoven said CEV added approximately 10 MW of capacity during the quarter and continues to expect in-service capacity to grow by more than 50% over the next two years. Management said proactive “safe-harboring” is intended to preserve federal tax incentives and support growth.
Westhoven described New Jersey and the broader PJM region as facing affordability pressures tied to supply shortages and said CEV’s ability to bring projects to market quickly is a competitive advantage. He said the company is advancing wholesale PJM solar assets and expects operating assets to increase in value as PJM demand trends upward.
In response to questions about geographic diversification, Westhoven said roughly half of the company’s forward-looking solar projects are outside New Jersey and half are inside the state, and that NJR continues to pursue projects that meet return targets in regulatory-friendly jurisdictions. He also discussed potential “technology opportunities” tied to optimizing existing interconnections—such as distributed generation and battery power—to increase utilization and bring incremental capacity to the grid more quickly, characterizing such initiatives as potential upside outside the company’s stated plan.
In closing remarks, management pointed to NJR’s fiscal 2025 sustainability report—focused on affordability—and said it looks forward to continued dialogue with New Jersey’s new administration on energy supply and cost challenges while executing on its utility-anchored growth strategy.
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.
