NJR Posts $335.6M Net Income, Eyes Clean Energy Growth

Ticker: NJR · Form: 10-K · Filed: Nov 20, 2025 · CIK: 356309

Sentiment: neutral

Topics: Utilities, Natural Gas Distribution, Clean Energy, Energy Services, Midstream, Regulatory Risk, Commodity Prices

Related Tickers: NJR

TL;DR

**NJR's diversified energy play looks solid with strong net income, but watch out for regulatory hurdles and commodity price swings.**

AI Summary

New Jersey Resources Corporation (NJR) reported a net income of $335.6 million for the fiscal year ended September 30, 2025. The company operates through four main segments: Natural Gas Distribution, Clean Energy Ventures, Energy Services, and Storage and Transportation. NJR's Natural Gas Distribution segment, primarily New Jersey Natural Gas Company (NJNG), provides regulated utility service to residential and commercial customers across six New Jersey counties. The Clean Energy Ventures (CEV) segment focuses on unregulated capital investments in clean energy projects, while Energy Services (ES) manages a portfolio of physical assets and provides wholesale energy management. The Storage and Transportation (S&T) segment invests in natural gas storage and transportation facilities, including Leaf River and Adelphia. Key risks include obtaining regulatory approvals for projects, managing climate change impacts, and volatility in natural gas and commodity prices. The strategic outlook emphasizes continued investment in clean energy and infrastructure projects, subject to regulatory and market conditions.

Why It Matters

NJR's performance directly impacts over 100 million shares outstanding, affecting a broad base of investors. The company's significant investment in Clean Energy Ventures positions it to capitalize on the growing demand for renewable energy, potentially boosting future returns but also exposing it to regulatory incentive risks. For customers in New Jersey, NJNG's regulated natural gas distribution ensures reliable service, while its infrastructure projects contribute to regional energy security. Competitively, NJR's diversified portfolio across regulated utilities, clean energy, and energy services allows it to navigate market shifts more effectively than single-segment peers, though it faces competition from other utilities and independent power producers.

Risk Assessment

Risk Level: medium — The risk level is medium due to significant exposure to regulatory approvals and commodity price volatility. The filing explicitly states risks associated with 'our ability to obtain governmental and regulatory approvals, permits, certificates, land-use rights, electric grid connection... in a timely manner' and 'volatility of natural gas and other commodity prices and their impact on NJNG customer usage.' These factors can directly impact project timelines, cost recovery, and profitability.

Analyst Insight

Investors should monitor NJR's progress on securing regulatory approvals for its Clean Energy Ventures and Storage and Transportation projects, as these are critical for future growth. Additionally, keep an eye on natural gas price trends and the effectiveness of NJR's hedging strategies, as commodity volatility can significantly impact the Energy Services segment's profitability.

Financial Highlights

debt To Equity
Not Disclosed
revenue
$1,302,617,000
operating Margin
Not Disclosed
total Assets
Not Disclosed
total Debt
Not Disclosed
net Income
$335,627,000
eps
$3.35
gross Margin
Not Disclosed
cash Position
Not Disclosed
revenue Growth
+27.7%

Revenue Breakdown

SegmentRevenueGrowth
Natural Gas Distribution$1,302,617,000+27.7%
Clean Energy VenturesNot DisclosedNot Disclosed
Energy ServicesNot DisclosedNot Disclosed
Storage and TransportationNot DisclosedNot Disclosed

Key Numbers

Key Players & Entities

FAQ

What were New Jersey Resources Corporation's net income and key financial highlights for fiscal year 2025?

New Jersey Resources Corporation reported a net income of $335.6 million for the fiscal year ended September 30, 2025. The aggregate market value of its common stock held by non-affiliates was $4,899,102,123 based on a closing price of $49.06 per share on March 31, 2025.

What are the primary business segments of New Jersey Resources Corporation?

New Jersey Resources Corporation operates through four primary reportable segments: Natural Gas Distribution (NJNG), Clean Energy Ventures (CEV), Energy Services (ES), and Storage and Transportation (S&T). These segments cover regulated utility services, clean energy investments, wholesale energy management, and natural gas storage and transportation.

What are the main risks identified in New Jersey Resources Corporation's 10-K filing?

Key risks include the ability to obtain governmental and regulatory approvals for projects, managing the impacts of climate change, and the volatility of natural gas and other commodity prices. The company also highlights risks associated with its clean energy investments, such as the availability of regulatory incentives and federal tax credits.

How does New Jersey Resources Corporation define and use Non-GAAP financial measures like NFE?

New Jersey Resources Corporation uses Net Financial Earnings (NFE), a non-GAAP measure, to evaluate operating results by eliminating timing differences in recognizing gains or losses from economic hedges. NFE also excludes certain transactions from equity method investments, such as impairment charges, to provide a clearer view of ongoing operational performance.

What is the role of New Jersey Natural Gas Company within New Jersey Resources Corporation?

New Jersey Natural Gas Company (NJNG) is a primary subsidiary and comprises the Natural Gas Distribution segment. It provides regulated natural gas utility service to residential and commercial customers across Burlington, Middlesex, Monmouth, Morris, Ocean, and Sussex counties in New Jersey.

What is New Jersey Resources Corporation's strategy regarding clean energy?

New Jersey Resources Corporation's Clean Energy Ventures (CEV) segment focuses on unregulated capital investments in clean energy projects. The company aims to grow this segment, but acknowledges risks related to the availability of regulatory incentives, federal tax credits, and viable projects.

How many shares of common stock did New Jersey Resources Corporation have outstanding as of November 17, 2025?

As of November 17, 2025, New Jersey Resources Corporation had 100,743,847 shares of its $2.50 par value common stock outstanding. This figure is important for calculating per-share metrics and understanding shareholder dilution.

What regulatory bodies oversee New Jersey Resources Corporation's operations?

New Jersey Resources Corporation's operations are overseen by several regulatory bodies. New Jersey Natural Gas Company is regulated by the New Jersey Board of Public Utilities (BPU), while its Storage and Transportation subsidiaries, Leaf River and Adelphia, are subject to regulation by the Federal Energy Regulatory Commission (FERC).

What are the potential impacts of inflation on New Jersey Resources Corporation?

The 10-K filing identifies 'impacts of inflation, including the current inflationary environment and increased natural gas costs' as a risk factor. Inflation can increase operating costs for NJR and potentially affect the recovery of these costs through regulatory processes, impacting profitability.

What is the significance of the 'One Big Beautiful Bill Act of 2025' (OBBBA) for New Jersey Resources Corporation?

The 'One Big Beautiful Bill Act of 2025' (OBBBA) is mentioned as a potential factor that could lead to changes in tax laws and regulations. Such changes could impact New Jersey Resources Corporation's effective tax rate and overall financial performance, requiring the company to adapt its financial strategies.

Risk Factors

Industry Context

New Jersey Resources Corporation operates in the regulated natural gas utility sector and the competitive clean energy and energy services markets. The natural gas distribution segment faces stable demand but is subject to weather and regulatory influences. The clean energy ventures segment is positioned to capitalize on the growing demand for renewable energy, while energy services and storage/transportation segments navigate wholesale market dynamics and infrastructure needs.

Regulatory Implications

NJR's operations, particularly its Natural Gas Distribution segment, are heavily influenced by the New Jersey Board of Public Utilities (BPU). Regulatory approvals are critical for rate adjustments, infrastructure investments, and the implementation of programs like BGSS incentives. Changes in environmental regulations and compliance requirements also pose significant implications for the company's operations and financial health.

What Investors Should Do

  1. Monitor regulatory filings and BPU decisions.
  2. Analyze the growth and profitability of the Clean Energy Ventures (CEV) segment.
  3. Assess the impact of natural gas price volatility on the Energy Services (ES) and Storage & Transportation (S&T) segments.

Glossary

NFE (Net Financial Earnings)
A non-GAAP financial measure used by NJR to eliminate timing differences in the recognition of gains or losses from derivative instruments, aiming to match earnings effects with economic hedges and physical sales. It also excludes certain infrequent or unusual items like gains on equity investments. (Provides a view of the company's operational performance by smoothing out the impact of volatile derivative accounting, offering a clearer picture of ongoing business results.)
BPU
Board of Public Utilities, the regulatory body in New Jersey that oversees utility operations, including setting rates and approving projects for companies like New Jersey Natural Gas Company (NJNG). (Crucial for NJNG's regulated operations, as BPU approvals are necessary for rate adjustments, infrastructure investments, and other strategic initiatives that affect revenue and profitability.)
BGSS
Basic Gas Supply Service, a mechanism that allows utilities to recover the cost of natural gas purchased for their customers. Incentive programs under BGSS can influence the cost of natural gas for customers. (A significant component of NJNG's revenue, with incentive programs impacting customer costs and the company's ability to manage gas supply expenses.)
Bcf
Billion cubic feet, a standard unit of measurement for natural gas volume. (Used to quantify natural gas throughput and sales volumes for the Natural Gas Distribution segment, indicating the scale of operations.)
MGP sites
Manufactured Gas Plant sites, former industrial facilities that produced gas for public use. These sites often require environmental remediation due to historical contamination. (NJNG has ongoing obligations related to these sites, necessitating management of environmental remediation efforts and associated costs.)
FERC
Federal Energy Regulatory Commission, an independent agency that regulates the interstate transmission of electricity, natural gas, and oil. (Relevant for NJR Midstream Holdings Corporation's subsidiaries (Leaf River and Adelphia) which are subject to FERC regulation for their natural gas storage and transportation facilities.)

Year-Over-Year Comparison

The fiscal year 2025 shows a significant increase in net income to $335.6 million, up from $289.8 million in fiscal year 2024, indicating improved profitability. Revenue for the Natural Gas Distribution segment also saw substantial growth of 27.7% year-over-year, driven by increased customer usage and BGSS incentive programs. While specific comparative data for other segments and overall financial health metrics like debt-to-equity are not detailed in this excerpt, the reported net income and revenue growth suggest a positive operational performance compared to the prior year.

Filing Stats: 4,334 words · 17 min read · ~14 pages · Grade level 15.6 · Accepted 2025-11-20 16:44:24

Key Financial Figures

Filing Documents

Business

ITEM 1. Business 4 Organizational Structure 4 Reportable Segment s 5 Natural Gas Distribution 7 Clean Energy Ventures 10 Energy Services 10 Storage and Transportation 12 Other Business Operations 13 Home Services and Other 13 Environment 13 Human Capital Resources 13 Information About our Executive Officers 15

Risk Factors

ITEM 1A. Risk Factors 15

Unresolved Staff Comments

ITEM 1B. Unresolved Staff Comments 25

Cybersecurity 25

ITEM 1C. Cybersecurity 25

Properties

ITEM 2. Properties 26

Legal Proceedings

ITEM 3. Legal Proceedings 28

Mine Safety Disclosures

ITEM 4. Mine Safety Disclosures 28 PART II

Market for the Registrant's Common Equity, Related Stockholder Matters and Issuer Purchases of Equity Securities

ITEM 5. Market for the Registrant's Common Equity, Related Stockholder Matters and Issuer Purchases of Equity Securities 29

[ Reserved ]

ITEM 6. [ Reserved ] 29

Management's Discussion and Analysis of Financial Condition and Results of Operations

ITEM 7. Management's Discussion and Analysis of Financial Condition and Results of Operations 30

Quantitative and Qualitative Disclosures About Market Risk

ITEM 7A. Quantitative and Qualitative Disclosures About Market Risk 58

Financial Statements and Supplementary Data

ITEM 8. Financial Statements and Supplementary Data 61 Management's Report on Internal Control over Financial Reporting 61 Report of Independent Registered Public Accounting Firm (PCAOB ID No. 34 ) 62 Consolidated Financial Statements 65

Notes to Consolidated Financial Statements

Notes to Consolidated Financial Statements 70 Note 1. Nature of the Business 70 Note 2. Summary of Significant Accounting Policies 70 Note 3. Revenue 81 Note 4. Regulation 84 Note 5. Derivative Instruments 89 Note 6. Fair Value 93 Note 7. Investments in Equity Investees 95 Note 8. Earnings Per Share 95 Note 9. Debt 96 Note 10. Stock-Based Compensation 99 Note 11. Employee Benefit Plans 102 Note 12. Income Taxes 107 Note 13. Leases 110 Note 14. Commitments and Contingent Liabilities 112 Note 15. Reportable Segment Data 114 Note 16. Related Party Transactions 116 Note 17. Dispositions 117

Changes in and Disagreements with Accountants on Accounting and Financial Disclosure

ITEM 9. Changes in and Disagreements with Accountants on Accounting and Financial Disclosure 118

Controls and Procedures

ITEM 9A. Controls and Procedures 118

Other Information

ITEM 9B. Other Information 118 PART III*

Directors, Executive Officers and Corporate Governance

ITEM 10. Directors, Executive Officers and Corporate Governance 119

Executive Compensation

ITEM 11. Executive Compensation 119

Security Ownership of Certain Beneficial Owners and Management and Related Stockholder Matters

ITEM 12. Security Ownership of Certain Beneficial Owners and Management and Related Stockholder Matters 119

Certain Relationships and Related Transactions and Director Independence

ITEM 13. Certain Relationships and Related Transactions and Director Independence 119

Principal Accountant Fees and Services

ITEM 14. Principal Accountant Fees and Services 119 PART IV

Exhibits and Financial Statement Schedules

ITEM 15. Exhibits and Financial Statement Schedules 120 Index to Financial Statement Schedules 121 Exhibit Index 123

Signatures

Signatures 130 * Portions of Item 10 and Items 11-14 are Incorporated by Reference from the Proxy Statement. i New Jersey Resources Corporation GLOSSARY OF KEY TERMS Adelphia Adelphia Gateway, LLC ADI Administratively Determined Incentive Adjusted EBITDA A non-GAAP financial measure, which represents net income, including equity in earnings of affiliates, before interest, income taxes, depreciation and amortization, and other income, net, which includes non-cash earnings of AFUDC AFUDC Allowance for Funds Used During Construction AMA Asset Management Agreement ARO Asset Retirement Obligation ASC Accounting Standards Codification ASU Accounting Standards Update B Billion Bcf Billion Cubic Feet BGSS Basic Gas Supply Service BPU New Jersey Board of Public Utilities CEO Chief Executive Officer CIO Chief Information Officer CIP Conservation Incentive Program Clean Energy Ventures or CEV Clean Energy Ventures segment CME Chicago Mercantile Exchange CODM Chief Operating Decision Maker CR&R Commercial Realty & Resources Corp. CSI Competitive Solar Incentive Degree-day The measure of the variation in the weather based on the extent to which the average daily temperature falls below 65 degrees Fahrenheit DRP NJR Direct Stock Purchase and Dividend Reinvestment Plan Dths Dekatherms EDECA Electric Discount and Energy Competition Act EE Energy Efficiency EMP New Jersey Energy Master Plan Energy Services or ES Energy Services segment Exchange Act Securities Exchange Act of 1934, as amended FASB Financial Accounting Standards Board FCM Futures Commission Merchant FERC Federal Energy Regulatory Commission Financial Margin A non-GAAP financial measure, which represents revenues earned from the sale of natural gas less costs of natural gas sold including any transportation and storage costs, and excludes certain operations and maintenance expense and depreciation and amortization, as well as any accounting impact from the change in the fai

BUSINESS

ITEM 1. BUSINESS ORGANIZATIONAL STRUCTURE New Jersey Resources Corporation is a New Jersey corporation and a diversified energy services holding company whose principal business is the distribution of natural gas through a regulated utility, investing in and operating clean energy projects and natural gas storage and transportation assets, and providing other retail and wholesale energy services to customers. We are an exempt holding company under Section 1263 of the Energy Policy Act of 2005. Our primary subsidiaries include the following: New Jersey Natural Gas Company provides regulated natural gas utility service to residential and commercial customers throughout Burlington, Middlesex, Monmouth, Morris, Ocean and Sussex counties in New Jersey and participates in the off-system sales and capacity release markets. NJNG, a local natural gas distribution company, is regulated by the BPU and comprises the Company's Natural Gas Distribution segment. NJR Clean Energy Ventures Corporation includes the results of operations and assets related to the Company's unregulated capital investments in clean energy projects. NJRCEV comprises the Company's Clean Energy Ventures segment. NJR Energy Services Company, LLC maintains and transacts around a portfolio of physical assets consisting of natural gas transportation and storage contracts in the U.S. NJRES also provides unregulated wholesale energy management services to other energy companies and natural gas producers. NJRES comprises our Energy Services segment. NJR Midstream Holdings Corporation, which comprises the Storage and Transportation segment, invests in energy-related ventures through its subsidiaries: NJR Midstream Company, which includes our wholly-owned subsidiaries of Leaf River, located in southeastern Mississippi, and Adelphia, located in eastern Pennsylvania, which are subject to FERC regulation; and NJR Steckman Ridge Storage Company, which holds our 50% combined ownership interest in Steckman

BUSINESS (Continued)

ITEM 1. BUSINESS (Continued) REPORTABLE SEGMENTS We operate within four reportable segments: (1) Natural Gas Distribution, (2) Clean Energy Ventures, (3) Energy Services and (4) Storage and Transportation. NJNG consists of regulated natural gas services, off-system sales, capacity and storage management operations. ES consists of unregulated wholesale and retail energy operations, as well as energy management services. CEV consists of capital investments in clean energy projects. S&T consists of operations and investments in the natural gas storage and transportation market, such as natural gas storage and transportation facilities. Net income by reportable segment and other business operations for the fiscal years ended September 30, are as follows: * HSO includes intercompany eliminations. Asset composition by reportable segment and other business operations at September 30, are as follows: 2025 2024 Page 5 New Jersey Resources Corporation Part I

BUSINESS (Continued)

ITEM 1. BUSINESS (Continued) Management uses net income and NFE, a non-GAAP financial measure, when evaluating its operating results. NFE is a measure of earnings based on eliminating timing differences surrounding the recognition of certain gains or losses to effectively match the earnings effects of the economic hedges with the physical sale of natural gas and, therefore, eliminates the impact of volatility to GAAP earnings associated with the derivative instruments. To the extent we utilize forwards, futures or other derivatives to hedge natural gas transactions and forecasted SREC production, the resulting unrealized gains and losses are also eliminated from NFE. ES economically hedges its natural gas inventory with financial derivative instruments and calculates the related tax effect based on the statutory rate. NFE also excludes certain transactions associated with equity method investments, including impairment charges, which are non-cash charges, and return of capital in excess of the carrying value of our investment. These are considered unusual in nature and occur infrequently and are not indicative of the Company's performance for its ongoing operations. Included in the tax effects are current and deferred income tax expense corresponding with the components of NFE. Non-GAAP financial measures are not in accordance with, or an alternative to, GAAP, and should be considered in addition to, and not as a substitute for, the comparable GAAP measure. The following is a reconciliation of consolidated net income, the most directly comparable GAAP measure, to NFE for the fiscal years ended September 30: (Thousands, except per share data) 2025 2024 2023 Net income $ 335,627 $ 289,775 $ 264,724 Add: Unrealized (gain) loss on derivative instruments and related transactions (12,126) 19,574 (38,081) Tax effect 2,882 (4,652) 9,050 Effects of economic hedging related to natural gas inventory (1) 4,242 (18,192) 34,699 Tax effect (1,008) 4,323 (8,246) Gain

BUSINESS (Continued)

ITEM 1. BUSINESS (Continued) Natural Gas Distribution General NJNG consists of regulated utility operations that provide natural gas service to residential and commercial customers. NJNG's service territory includes Burlington, Middlesex, Monmouth, Morris, Ocean and Sussex counties in New Jersey. It encompasses 1,538 square miles, covering 109 municipalities with an estimated population of 1.7 million people. It is primarily suburban, highlighted by approximately 100 miles of New Jersey coastline. It is in close proximity to New York City, Philadelphia and the metropolitan areas of northern New Jersey, and is accessible through a network of major roadways and mass transportation. NJNG's business is subject to various risks, such as those associated with adverse economic conditions, which can negatively impact customer growth and operating and financing costs; fluctuations in commodity prices, which can impact customer usage; certain regulatory actions; environmental remediation; and changes in how customers consume energy. It is often difficult to predict the impact of trends associated with these risks. NJNG employs strategies to pursue customer conversions from other fuel sources and monitor new construction markets through contact with developers, utilize incentive programs through BPU-approved mechanisms to reduce natural gas costs, pursue rate and other regulatory strategies designed to stabilize and decouple gross margin, and work actively with consultants and the NJDEP to manage expectations related to its obligations associated with its former MGP sites. Operating Revenues/Throughput For the fiscal years ended September 30, operating revenues and throughput by customer class for NJNG are as follows: 2025 2024 2023 ($ in thousands) Operating Revenue Bcf Operating Revenue Bcf Operating Revenue Bcf Residential $ 781,289 47.8 $ 642,352 44.5 $ 643,756 43.4 Commercial and other 161,544 9.1 124,127 8.5 137,343 8.4 Firm transportation 107,749 11.7

View Full Filing

View this 10-K filing on SEC EDGAR

View on Read The Filing