New Jersey Resources Corporation (NJR) delivered a mixed Q3 2024 print characterized by a modest operating performance on a year-over-year basis and a net income decline driven by higher depreciation and interest costs, alongside a continued, disciplined investment program. Revenue for the quarter was $275.6 million, up 4.4% year over year, but net income fell to a negative $11.6 million and earnings per share were negative $0.12. EBITDA stood at $56.1 million with a margin of about 20.3%, while operating income was a modest $5.9 million. The company also reported a net financial loss (NFE) of $8.9 million for the quarter, versus a similar level of loss in the prior-year period, highlighting continued non-GAAP cash flow constructs that investors should monitor alongside GAAP results.
Management reaffirmed FY2024 NFEPS guidance of $2.85 to $3.00 per share and emphasized ongoing progress on NJNG’s base rate case, which is expected to finalize in the first fiscal quarter of 2025. The non-regulated segments—Clean Energy Ventures (CEV) and Storage & Transportation (S&T)—reported solid revenue momentum relative to prior year, supported by an expanding project pipeline (CEV now with over 870 MW of potential capacity and 51 MW under construction). The company projects total CapEx of roughly $1.2–$1.5 billion over the next two years and expects cash flow from operations in 2024 of $420–$450 million, with NJR’s adjusted FFO-to-debt target in the 17%–18% range.
In sum, NJR remains defensively positioned as a utility-led franchise with optionality from its growth platforms. The near-term earnings trajectory hinges on the rate-case outcome and project execution, but management’s long-term growth framework remains anchored to mid-to-high single-digit NFEPS growth and an attractive total return opportunity via dividends and select asset monetization.