Segment Results Show Strength in Utility and Energy Services
New Jersey Natural Gas (NJNG)
NJNG reported NFE of $83.8 million, up from $66.9 million in the prior-year period. Utility gross margin increased to $206.3 million from $181.3 million, reflecting the impact of a base rate case settlement. The utility added approximately 3,000 customers during the quarter, bringing its total customer base to about 592,455.
Clean Energy Ventures (CEV)
CEV recorded NFE of $9.6 million, compared with $48.1 million in the first quarter of fiscal 2025. The year-over-year decline reflected the absence of a prior-period gain from residential solar asset sales. During the quarter, the segment placed two commercial solar projects into service, adding 9.7 megawatts (MW) of capacity. Total solar capacity in service reached 489 MW as of December 31, 2025.
Storage and Transportation (S&T)
S&T posted NFE of $7.4 million, up from $5.7 million a year earlier, driven by higher operating income at Adelphia Gateway following the completion of a rate case settlement.
Energy Services (ES)
ES reported NFE of $16.3 million, compared with $7.8 million in the prior-year period. Results benefited from natural gas price volatility, which supported higher financial margins.
Home Services and Other
This segment generated NFE of $0.5 million, compared with $0.6 million in the first quarter of fiscal 2025.
Regulatory and Operational Developments
Adelphia Gateway completed its Section 4 rate case with the Federal Energy Regulatory Commission (FERC) on November 4, 2025, receiving approval for its settlement. Separately, Leaf River Energy Center filed an application with FERC on October 31, 2025, seeking approval to expand natural gas storage capacity by 17.6 billion cubic feet.
During the quarter, NJR also released its 2025 Sustainability Report, highlighting $98 million in energy efficiency investments through its SAVEGREEN program.
Guidance Raised Following Strong January Performance
NJR increased its fiscal 2026 NFE per share (NFEPS) guidance to a range of $3.28 to $3.43, up from its prior outlook of $3.03 to $3.18. The $0.25 increase reflects operating performance in January 2026. The company reaffirmed its long-term NFEPS growth target of 7% to 9%.
Regulatory developments to monitor include two executive orders issued by Governor Sherrill on January 20, 2026, focused on electric bill affordability and accelerating in-state energy supply, including solar and storage projects.
Capital Plan and Performance Snapshot
NJR expects total capital expenditures of $4.8 billion to $5.2 billion through 2030, with more than 60% allocated to New Jersey Natural Gas.
For the quarter, the company reported a 23.9% increase in revenue alongside a 6.7% decline in net income. Guidance for fiscal 2026 was raised, supported by stronger contributions from the Utility and Energy Services segments, while Clean Energy Ventures reflected the absence of prior-year asset sale gains.