NatGas logitics provider NJR's Q4 net income drops

Overview

• NJR fiscal Q4 net income falls to $15.1 mln from $91.1 mln yr/yr

• Fiscal 2025 net income rises to $335.6 mln

Outlook

• Company introduces fiscal 2026 NFEPS guidance range of $3.03 to $3.18

• Company maintains 7 to 9 percent long-term NFEPS growth target

• NJR expects NJ Natural Gas to contribute 67 to 72 percent of fiscal 2026 NFE

Result Drivers

• ENERGY SERVICES REVENUE DECLINE - Q4 decline attributed to lower operating revenue from Energy Services compared to prior year

• UTILITY GROSS MARGIN - Higher utility gross margin from recent base rate case settlement improved annual NFE

• RECORD INVESTMENTS - Record investment in SAVEGREEN energy efficiency program and CEV capacity additions positively impacted fiscal 2025 results

Key Details

Analyst Coverage

• The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 5 "strong buy" or "buy", 2 "hold" and no "sell" or "strong sell"

• The average consensus recommendation for the natural gas utilities peer group is "buy"

• Wall Street's median 12-month price target for New Jersey Resources Corp is $51.00, about 9.1% above its November 18 closing price of $46.38

• The stock recently traded at 15 times the next 12-month earnings vs. a P/E of 15 three months ago

Press Release: ID:nBw9k6Jjja

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(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)