New Jersey Resources Corporation (NJR) Income Statement

Revenue growth is primarily attributable to the Infrastructure Investment Program (IIP), which allows recovery of capital investments between rate cases. The 23.3% revenue surge in 2026Q1 versus the prior year suggests accelerated rate base deployment. However, the -14.1% decline in 2025Q4 indicates seasonality and potential weather normalization effects, which investors should monitor for durability.

The consistently high operating margins in winter quarters (32.0% in 2026Q2, 29.8% in 2026Q1) versus summer quarters (9.1% in 2026Q3) reflect the seasonal nature of gas distribution. The gap between earned and authorized returns appears to be narrowing, as evidenced by the 2025Q4 margin of 10.9%, which may signal regulatory lag or increased operating costs. Investors should monitor whether this trend persists.

The negative net margin in 2025Q3 (-4.6%) and 2024Q3 (-4.3%) indicates that summer quarters typically incur higher operating costs relative to revenue, possibly due to storage and maintenance expenses. The interest coverage ratio of 0.31 in 2025Q3 highlights temporary cash flow strain, but the recovery in subsequent quarters suggests the regulatory construct provides timely recovery. The absence of interest expense data limits deeper analysis of working capital impacts.

The consistent increase in D&A indicates ongoing investment in infrastructure, which should generate returns once placed in rate base. The revenue growth of 13.9% YoY aligns with this CAPEX cycle, but the EPS growth of 163.5% in 2026Q3 is partly due to a low base. The IIP's ability to earn returns on CWIP reduces regulatory lag, but the eventual conversion to financing costs may pressure future earnings.