New Jersey Resources returns to profit as energy services surge
The company reported third-quarter consolidated net income of $9.7 million, reversing a loss from the prior year.
New Jersey Resources (NJR) returned to profitability in the third quarter of fiscal 2026.
The recovery followed a period of volatility in its non-utility segments and significant capital investment in its infrastructure. While the utility core faced headwinds from depreciation, the company benefited from increased natural gas price volatility and higher base rates.
Consolidated net income for the third quarter was $9.7 million, or $0.10 a share, compared to a net loss of $(15.1) million, or $(0.15) a share, in the third quarter of fiscal 2025. Net financial earnings (NFE) for the period rose to $11.3 million, or $0.11 a share, from $6.2 million, or $0.06 a share, in the prior-year period.
Performance within the New Jersey Natural Gas segment was mixed. Third-quarter NFE decreased to $6.1 million from $10.1 million as higher depreciation from new utility plants offset gains in gross margin. However, year-to-date NFE for the utility rose to $238.4 million from $221.5 million, supported by customer growth to approximately 595,000 and higher BGSS incentives, which contributed $20.4 million in the first nine months.
Other segments provided varying contributions to the bottom line. Storage and Transportation third-quarter NFE increased to $8.8 million from $5.9 million. Energy Services reported a third-quarter loss of $(4.0) million, nearly flat with the prior year, but its year-to-date NFE rose to $84.5 million from $39.4 million due to price volatility. Clean Energy Ventures narrowed its third-quarter loss to $(0.3) million from $(6.9) million, though its year-to-date NFE fell to $4.1 million from $37.3 million following a prior-year gain from asset sales.
New Jersey Resources tightened its fiscal 2026 NFEPS guidance to a range of $3.52 to $3.62, raising the lower end from the previous range of $3.48 to $3.63.
The company increased capital expenditures to $553.0 million for the first nine months of the year, up from $456.8 million. Cash flows from operations rose to $577.8 million from $385.2 million in the same period. New Jersey Natural Gas filed a base rate case on June 1, 2026, seeking a $157.6 million increase based on a 10.10 percent return on common equity.