New Jersey Resources Reports 24% Revenue Increase to $604.9 Million, Net Income Declines

New Jersey Resources Corporation (NJR) reported a total operating revenue of $604.9 million for the three months ended December 31, 2025, a 24% increase from $488.4 million in the same period of the previous year. The utility segment, NJNG, contributed $409.9 million, up from $333.4 million, while the nonutility segment generated $194.9 million, compared to $154.9 million in the prior year. However, net income decreased to $122.5 million, or $1.22 per share, from $131.3 million, or $1.32 per share, in the previous year, primarily due to a significant gain on the sale of assets recorded in the prior period.

The company experienced notable changes in its financial performance, with operating expenses rising to $425.6 million from $298.8 million, largely driven by increased natural gas purchases and regulatory rider expenses. The utility segment's natural gas purchases increased to $169.1 million from $127.7 million, while nonutility purchases rose to $85.9 million from $67.8 million. The increase in operating expenses was partially offset by a rise in operating income for the utility segment, which increased to $120.3 million from $97.1 million, attributed to higher base rates approved by the New Jersey Board of Public Utilities (BPU).

Strategically, NJR has been active in expanding its clean energy initiatives, with its Clean Energy Ventures (CEV) segment placing two commercial solar projects in service totaling 9.7 MW during the quarter, with expenditures of approximately $20.9 million. The company also reported a significant increase in customer accounts, with NJNG serving 592,455 customers as of December 31, 2025, compared to 586,092 a year earlier. This growth reflects the company's ongoing efforts to enhance its service offerings and customer base.

Operationally, NJR's total assets increased to $7.9 billion as of December 31, 2025, up from $7.6 billion at the end of the previous fiscal year. This growth was driven by a $278.5 million increase in customer receivables and a $72.2 million rise in utility plant expenditures. The company also reported a significant increase in cash flows from operating activities, totaling $26.7 million, compared to a negative cash flow of $9.0 million in the prior year, indicating improved operational efficiency and cash management.

Looking ahead, NJR anticipates continued growth in its utility and clean energy segments, supported by regulatory approvals and strategic investments. The company plans to focus on expanding its clean energy portfolio and enhancing its natural gas distribution capabilities while managing operational costs and regulatory compliance. The outlook remains positive, with expectations for increased revenues driven by customer growth and higher energy demand, particularly during the winter months.