New Jersey Resources Corporation (NJR) reported a strong QQ4 2024 performance anchored by resilient utility operations and favorable regulatory outcomes. The year culminated in an EPS of $2.95 for fiscal 2024, at the high end of guided ranges, with the company reaffirming a long-term NFVPS growth target of 7%â9%. Key drivers include New Jersey Natural Gas (NJN) rate-case settlement that provides revenue certainty and a path to continued utility earnings growth, a substantial Solar/CEV opportunity pipeline, and solid storage/transportation activities. Management highlighted a strategic shift with the Sunlight Advantage residential solar portfolio sale, which unlocked capital to accelerate commercial solar investments and strengthen the balance sheet. The company targets 2025 NFVPS of $3.05â$3.20 per share, reflecting a one-time gain from the Sunlight Advantage transaction and ongoing CapEx to support regulated growth, energy efficiency initiatives, and commercial solar deployments.
NJR trades with a diversified mix of regulated utility earnings and fee-based, climate-friendly growth through Clean Energy Ventures and storage assets. However, near-term financials show negative free cash flow for 2024 driven by elevated capital expenditure and a leverage profile that relies on steady regulatory inflation-adjusted returns. Management projects 2025 operating cash flow of $460â$500 million to fund a $1.3â$1.6 billion capex program, including NJN (430â490 million), CEV (160â265 million), and Storage/Transportation (20â35 million). The outlook remains heavily conditioned on regulatory approvals and execution of the capital plan, but the core franchise â regulated gas distribution with a robust Save Green program and a growing solar portfolio â provides multiple levers for growth and downside protection in a volatile macro environment.