"This transaction not only strengthens our balance sheet but also sharpens our focus on commercial solar growth."
— Steve Westhoven
03Detailed Report
NJR
Company NJR
Period
Q4 2024
CurrencyUSD
Report TypeQuarterly Earnings
GeneratedJun 27, 2026
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Executive Summary
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%–9%. 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 $3.05–$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 $460–$500 million to fund a $1.3–$1.6 billion capex program, including NJN (430–490 million), CEV (160–265 million), and Storage/Transportation (20–35 million). The outlook remains heavily conditioned on regulatory approvals and execution of the capital plan, but the core franchise — regulated gas distribution with a robust Save Green program and a growing solar portfolio — provides multiple levers for growth and downside protection in a volatile macro environment.
Key Performance Indicators
Revenue
Increasing
395.78M
QoQ: 43.59% | YoY: 19.45%
Gross Profit
Increasing
198.25M
50.09% margin
QoQ: 259.24% | YoY: 85.97%
Operating Income
Increasing
146.13M
QoQ: 2 361.71% | YoY: 127.28%
Net Income
Increasing
91.13M
QoQ: 887.33% | YoY: 146.13%
EPS
Increasing
0.92
QoQ: 866.67% | YoY: 142.11%
Revenue Trend
Margin Analysis
Financial Highlights
Revenue and Profitability Highlights
- QQ4 2024 Revenue: $395.78 million; YoY revenue growth 19.45% and QoQ growth 43.59% (from earnings data).
- Gross Profit: $198.248 million; Gross margin ~50.1% (0.501).
- Operating Income: $146.127 million; Operating margin ~37.0%.
- Net Income: $91.126 million; Net margin ~23.0%.
- Earnings per Share (EPS): $0.92 (diluted $0.92). Weighted average shares: ~98.8 million.
Year-to-Date and Margin Dynamics
- FY2024 EPS: $2.95, up from $2.70 in FY2023, finishing at the high end of updated guidance.
- EBITDA: $202.963 million; EBITDA margin about 51.3%. EBITDAR around 0.513x.
- Net debt position: Total debt $3.524 billion; net debt $3.523 billion; Cash and cash equivalents $1.018 million at period end.
Cash Flow and Capital Allocation
- Net cash provided by operating activities: $64.5 million; Operating cash flow yield supported by depreciation and working capital dynamics.
- Free cash flow (FCF): negative $111.02 million driven by capex intensity.
- Capital expenditures (CapEx): $175.533 million in QQ4 period; full-year 2024 capex remained elevated as NJR advances utility infrastructure, solar deployment, and storage assets.
- Cash flows by activity (FY2024): Investing cash flow $(176.489) million; Financing cash flow $90.454 million; Net change in cash $(21.522) million; Cash at end of period $1.612 million.
Balance Sheet Health and Credit Metrics
- Total assets: $6.9816 billion; Total liabilities: $4.7812 billion; Total equity: $2.2004 billion.
- Debt metrics: Long-term debt $3.0388 billion; Total debt $3.5245 billion; Debt to capitalization ~61.6%; Debt to equity ~1.60x.
- Liquidity: $825 million in available credit facilities through 2029; Adjusted FFO to debt ratio ~20.6% in 2024; Projected 18–20% in 2025.
- Liquidity and coverage: Current ratio 0.63x; Quick ratio 0.36x; Interest coverage ~4.06x.
Valuation and Relative Positioning
- Price to book ~2.12x; Price to earnings ~12.8x; Dividend yield ~0.89%. Enterprise value multiple ~40.3x. These multiples place NJR broadly in line with regulated utility peers, trading at a defensively positioned multiple with modest income growth embedded in the current price.
Income Statement
Metric
Value
YoY Change
QoQ Change
Revenue
395.78M
19.45%
43.59%
Gross Profit
198.25M
85.97%
259.24%
Operating Income
146.13M
127.28%
2 361.71%
Net Income
91.13M
146.13%
887.33%
EPS
0.92
142.11%
866.67%
Key Financial Ratios
Gross Profit Margin
Good
50.10%
Gross profit margin is healthy and competitive within industry standards
Operating Profit Margin
Excellent
36.90%
Operating margin is exceptional, indicating strong pricing power and operational efficiency
Net Profit Margin
Excellent
23.00%
Net profit margin is exceptional, indicating strong pricing power and operational efficiency
Return on Assets
Weak
1.31%
Return on assets suggests inefficient capital allocation
Return on Equity
Weak
4.14%
Return on equity suggests inefficient capital allocation
Current Ratio
Concern
0.63
Current ratio below safe levels, potential liquidity risk
Debt to Equity
High Risk
1.60
Debt-to-equity indicates high leverage and elevated financial risk
P/E Ratio
Value
12.79x
P/E ratio suggests potential undervaluation or stable earnings
Price to Book
Fair Value
2.12x
Price-to-book ratio reasonable for profitable companies
Management Insights Available for Members
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