New Jersey Resources (NJR) investor relations material

Executive summary

• Fiscal 2026 Q2 consolidated net income rose to $218.9M ($2.17/share) from $204.3M ($2.04/share) year-over-year, driven by higher BGSS incentives, customer growth, and increased base rates in the Natural Gas Distribution segment.

• Net financial earnings (NFE) for Q2 were $221.5M ($2.20/share), up from $178.3M ($1.78/share) year-over-year, with year-to-date NFE at $339.6M ($3.37/share).

• Raised fiscal 2026 NFEPS guidance to $3.48–$3.63, the second increase this year, driven by Energy Services outperformance.

• Clean Energy Ventures (CEV) surpassed 500 MW of in-service capacity, with plans for over 50% growth by fiscal 2027 and a robust project pipeline.

• Continued disciplined investment in infrastructure, safety, and reliability, supporting customer and franchise growth in core New Jersey territories.

Financial highlights

• Q2 operating revenues were $1.54B, up from $1.40B year-over-year; utility gross margin for the quarter increased to $305.1M from $294.8M.

• Year-to-date consolidated NFE was $339.6M, compared to $307.2M year-over-year.

• Cash flows from operations for the first six months increased to $589.3M from $414.1M year-over-year.

• Capital expenditures for the first six months were $373.7M, with $212.9M in Natural Gas Distribution and $131.4M in CEV.

• Consolidated assets grew to $7.94B as of March 31, 2026, from $7.58B at September 30, 2025.

Outlook and guidance

• Fiscal 2026 NFEPS guidance raised to $3.48–$3.63, with a long-term NFEPS growth target of 7–9% from a fiscal 2025 base of $2.83/share.

• Over 60% of capital investment through 2030 expected in utility operations, with planned CAPEX of $4.8–$5.2B.

• NJNG expects new customer additions to contribute $4.0M of incremental Utility Gross Margin annually.

• Management expects sufficient liquidity for at least the next 12 months, supported by strong cash flows and available credit.

• Expected 2026 NFE contributions: Natural Gas 58–62%, Energy Services 19–23%, Clean Energy Ventures 9–13%, Storage & Transportation 8–11%, Home Services 0–1%.