# NEW JERSEY RESOURCES CORP (NJR)

Informational only - not investment advice.

CIK: 0000356309
SIC: 4924 Natural Gas Distribution
SIC breadcrumb: [Transportation, Communications, Electric, Gas, And Sanitary Services](/division/E/) > [Electric, Gas, And Sanitary Services](/major-group/49/) > [SIC 4924 Natural Gas Distribution](/industry/4924/)
Latest 10-K filed: 2025-11-20
SEC page: https://www.sec.gov/edgar/browse/?CIK=356309
Filing source: https://www.sec.gov/Archives/edgar/data/356309/000035630925000093/njr-20250930.htm

## At a glance

FY2025 · period end 2025-09-30 · filed 2025-11-20 · accession 0000356309-25-000093 · source: https://data.sec.gov/api/xbrl/companyfacts/CIK0000356309.json

| Metric | Value | FY | Provenance |
| --- | ---: | ---: | --- |
| Revenue | 2,036,412,000 USD | 2025 | verified |
| Net income | 335,627,000 USD | 2025 | verified |
| Assets | 7,578,775,000 USD | 2025 | verified |
| Net margin | 16.48% | 2025 | computed |
| Operating margin | 24.99% | 2025 | computed |
| Revenue YoY | +13.35% | 2025 | computed |
| ROE | 14.03% | 2025 | computed |

Computed values are grepcent-computed from the verified facts above and may differ from ratios the company itself reports. Net margin = net income ÷ revenue. Operating margin = operating income ÷ revenue. Revenue YoY = FY2025 revenue ÷ FY2024 revenue − 1 (consecutive fiscal years only). ROE = net income ÷ period-end stockholders' equity.

No market price, no rating, no forecast on this site. Not investment advice.

### Peer percentile fingerprint

| Ratio | NJR | Peer median | Percentile | N |
| --- | ---: | ---: | ---: | ---: |
| Net margin | 16.5% | 11.0% | 62 | 9 |
| Operating margin | 25.0% | 21.8% | 62 | 9 |
| Revenue growth | 13.4% | 13.4% | 50 | 9 |
| ROE | 14.0% | 8.0% | 75 | 9 |
| ROA | 4.4% | 3.0% | 75 | 9 |
| Liabilities / equity | 2.17 | 2.17 | 50 | 9 |
| Current ratio | 0.73 | 0.72 | 62 | 9 |

Percentile = share of the N covered peers reporting that ratio whose value is lower (ties counted half); computed among grepcent-covered companies in SIC industry 4924 Natural Gas Distribution, not the whole market. A higher percentile means a higher value of the ratio, not a better company. Ratios with fewer than 8 reporting peers are omitted. Latest reported values per company; fiscal periods may differ. Descriptive arithmetic - not a score, rating, or ranking.

## Selected Fundamentals
| Metric | Value | Unit | FY | Filed |
| --- | ---: | --- | ---: | --- |
| Revenue | 2036412000 | USD | 2025 | 2025-11-20 |
| Net income | 335627000 | USD | 2025 | 2025-11-20 |
| Assets | 7578775000 | USD | 2025 | 2025-11-20 |

## Financials

Annual standardized facts from SEC companyfacts as of latest extracted filing date 2025-11-20. Source: https://data.sec.gov/api/xbrl/companyfacts/CIK0000356309.json. Derived margins, ratios, and free cash flow are computed from the extracted annual SEC facts.

| Metric | 2016 | 2017 | 2018 | 2019 | 2020 | 2021 | 2022 | 2023 | 2024 | 2025 |
| --- | ---: | ---: | ---: | ---: | ---: | ---: | ---: | ---: | ---: | ---: |
| Revenue | 1,880,905,000 | 2,268,617,000 | 2,915,109,000 | 2,592,045,000 | 1,953,668,000 | 2,156,613,000 | 2,905,979,000 | 1,962,994,000 | 1,796,539,000 | 2,036,412,000 |
| Net income | 131,672,000 | 132,065,000 | 233,436,000 | 123,935,000 | 163,007,000 | 117,890,000 | 274,922,000 | 264,724,000 | 289,775,000 | 335,627,000 |
| Operating income | 167,535,000 | 171,224,000 | 199,882,000 | 164,556,000 | 228,909,000 | 288,350,000 | 406,475,000 | 407,000,000 | 458,104,000 | 508,867,000 |
| Diluted EPS | 1.52 | 1.52 | 2.64 | 1.38 | 1.71 | 1.22 | 2.85 | 2.71 | 2.92 | 3.33 |
| Operating cash flow | 142,630,000 | 248,046,000 | 398,286,000 | 194,128,000 | 213,481,000 | 390,954,000 | 323,480,000 | 478,993,000 | 427,407,000 | 466,349,000 |
| Dividends paid | 82,445,000 | 87,988,000 | 95,835,000 | 104,059,000 | 117,804,000 | 116,960,000 | 127,704,000 | 150,973,000 | 165,063,000 | 180,066,000 |
| Assets | 3,718,570,000 | 3,928,507,000 | 4,143,664,000 | 4,157,942,000 | 5,316,477,000 | 5,722,278,000 | 6,261,416,000 | 6,537,496,000 | 6,981,645,000 | 7,578,775,000 |
| Stockholders' equity | 1,166,591,000 | 1,236,643,000 | 1,294,664,000 | 1,381,833,000 | 1,643,896,000 | 1,630,862,000 | 1,817,210,000 | 1,990,735,000 | 2,200,443,000 | 2,391,666,000 |
| Cash and cash equivalents | 37,546,000 | 2,226,000 | 1,458,000 | 2,676,000 | 117,012,000 | 4,749,000 | 1,107,000 | 954,000 | 1,017,000 | 591,000 |

### Ratios

ROE and ROA use period-end equity/assets. Liabilities / equity uses total liabilities divided by stockholders' equity. Current ratio uses current assets divided by current liabilities when both are reported.

| Metric | 2016 | 2017 | 2018 | 2019 | 2020 | 2021 | 2022 | 2023 | 2024 | 2025 |
| --- | ---: | ---: | ---: | ---: | ---: | ---: | ---: | ---: | ---: | ---: |
| Net margin | 7.00% | 5.82% | 8.01% | 4.78% | 8.34% | 5.47% | 9.46% | 13.49% | 16.13% | 16.48% |
| Operating margin | 8.91% | 7.55% | 6.86% | 6.35% | 11.72% | 13.37% | 13.99% | 20.73% | 25.50% | 24.99% |
| Return on equity | 11.29% | 10.68% | 18.03% | 8.97% | 9.92% | 7.23% | 15.13% | 13.30% | 13.17% | 14.03% |
| Return on assets | 3.54% | 3.36% | 5.63% | 2.98% | 3.07% | 2.06% | 4.39% | 4.05% | 4.15% | 4.43% |
| Liabilities / equity | 2.19 | 2.18 | 2.20 | 2.01 | 2.23 | 2.51 | 2.45 | 2.28 | 2.17 | 2.17 |
| Current ratio | 1.06 | 0.72 | 1.03 | 1.15 | 1.17 | 0.60 | 0.68 | 0.66 | 0.62 | 0.73 |

## As-reported value updates

12 tracked differences above grepcent's stated thresholds were found between the earliest XBRL-filed value and the value currently on file for the same fiscal period.

Ledger: /company/NJR/revisions/


## Quarterly

Quarterly standardized facts from SEC companyfacts as of latest extracted filing date 2026-08-04. Source: https://data.sec.gov/api/xbrl/companyfacts/CIK0000356309.json.

Flow metrics use discrete quarter-length periods from 10-Q/10-Q/A filings. Q4 revenue and net income are derived only when annual FY and nine-month YTD facts exist for the same fiscal year; derived Q4 values are labeled. EPS Q4 is not derived.

| Quarter | End date | Revenue | Net income | Diluted EPS | Method |
| --- | --- | ---: | ---: | ---: | --- |
| 2023-Q1 | 2022-12-31 |  |  | 1.19 | reported discrete quarter |
| 2023-Q2 | 2023-03-31 |  |  | 1.13 | reported discrete quarter |
| 2023-Q3 | 2023-06-30 |  |  | 0.02 | reported discrete quarter |
| 2023-Q4 | 2023-09-30 | 331,325,000 | 37,024,000 |  | derived Q4 = FY annual - nine-month YTD |
| 2024-Q1 | 2023-12-31 | 467,210,000 | 89,411,000 | 0.91 | reported discrete quarter |
| 2024-Q2 | 2023-12-31 |  | 89,411,000 |  | reported discrete quarter |
| 2024-Q2 | 2024-03-31 | 657,913,000 |  | 1.22 | reported discrete quarter |
| 2024-Q3 | 2024-03-31 |  | 120,812,000 |  | reported discrete quarter |
| 2024-Q3 | 2024-06-30 | 275,636,000 |  | -0.12 | reported discrete quarter |
| 2024-Q4 | 2024-09-30 | 395,780,000 | 91,126,000 |  | derived Q4 = FY annual - nine-month YTD |
| 2025-Q1 | 2024-12-31 | 488,361,000 | 131,319,000 | 1.31 | reported discrete quarter |
| 2025-Q2 | 2024-12-31 |  | 131,319,000 |  | reported discrete quarter |
| 2025-Q2 | 2025-03-31 | 913,027,000 |  | 2.02 | reported discrete quarter |
| 2025-Q3 | 2025-03-31 |  | 204,287,000 |  | reported discrete quarter |
| 2025-Q3 | 2025-06-30 | 298,946,000 |  | -0.15 | reported discrete quarter |
| 2025-Q4 | 2025-09-30 | 336,078,000 | 15,072,000 |  | derived Q4 = FY annual - nine-month YTD |
| 2026-Q1 | 2025-12-31 | 604,854,000 | 122,490,000 | 1.21 | reported discrete quarter |
| 2026-Q2 | 2025-12-31 |  | 122,490,000 |  | reported discrete quarter |
| 2026-Q2 | 2026-03-31 | 939,401,000 |  | 2.16 | reported discrete quarter |
| 2026-Q3 | 2026-03-31 |  | 218,912,000 |  | reported discrete quarter |
| 2026-Q3 | 2026-06-30 | 349,180,000 |  | 0.10 | reported discrete quarter |

## Filed narrative (10-K & 10-Q)

## Business

Verbatim Item 1 Business section from NJR's latest 10-K: [/company/NJR/business/](/company/NJR/business/).

## Risk Factors

Verbatim Item 1A Risk Factors from NJR's latest 10-K: [/company/NJR/risk-factors/](/company/NJR/risk-factors/).

## Latest quarter (10-Q)

Latest 10-Q source: https://www.sec.gov/Archives/edgar/data/356309/000035630926000037/njr-20260630.htm

Extracted structurally from real Item 2 body heading to real Item 3/4 boundary.
Confidence: high
Filing date: 2026-08-04
Report date: 2026-06-30

ITEM 2. MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF

OPERATIONS (Continued)                                                                                                                                                             

Operating Results

Net income (loss) by reportable segment and other business operations, which are discussed in more detail within the operating results sections of each reportable segment and other business operations, are as follows:

[[GREPCENT_TABLE]]
[["","Three Months Ended","","Nine Months Ended"],["","June 30,","","June 30,"],["(Thousands)","2026","","2025","","2026","","2025"],["Net income (loss)"],["NJNG","$","6,087","","63","%","","$","10,079","","(67)","%","","$","238,429","","68","%","","$","221,518","","69","%"],["CEV","(312)","","(3)","","","(6,857)","","45","","","4,055","","1","","","37,315","","12"],["ES","(5,650)","","(58)","","","(24,983)","","166","","","84,682","","24","","","46,567","","15"],["S&T","8,762","","90","","","5,898","","(39)","","","23,833","","7","","","13,905","","4"],["HSO","579","","6","","","481","","(3)","","","839","","\u2014","","","418","","\u2014"],["Eliminations","223","","2","","","331","","(2)","","","(747)","","\u2014","","","832","","\u2014"],["Total","$","9,689","","100","%","","$","(15,051)","","100","%","","$","351,091","","100","%","","$","320,555","","100","%"]]
[[/GREPCENT_TABLE]]

[[GREPCENT_TABLE]]
[["Consolidated net income (loss) increased approximately $24.7M during the three months ended June 30, 2026, compared with the three months ended June 30, 2025, due primarily to the following factors:"],["\u2022$19.3M increase at ES related to favorable pricing spreads; and"],["\u2022$6.5M increase at CEV due primarily to higher REC sales and the recognition of ITCs associated with the solar sale leaseback financing transactions."],["Consolidated net income increased approximately $30.5M during the nine months ended June 30, 2026, compared with the nine months ended June 30, 2025, due primarily to the following factors:"],["\u2022$38.1M increase at ES due to market volatility and favorable pricing spreads related to colder weather;"],["\u2022$16.9M increase at NJNG due to higher base rates, along with customer growth; and"],["\u2022$9.9M increase at S&T due to higher firm transportation and storage rates at Adelphia and Leaf River; partially offset by"],["\u2022$33.3M decrease at CEV due to the gain on sale of the residential solar portfolio in the prior period."]]
[[/GREPCENT_TABLE]]

The primary drivers of the changes noted above are described in more detail in the individual reportable segment and other business operations discussions.

Assets by reportable segment and operations are as follows:

[[GREPCENT_TABLE]]
[["(Thousands)","June 30, 2026","","September 30, 2025"],["Assets"],["NJNG","$","5,451,315","","68","%","","$","5,198,116","","69","%"],["CEV","1,393,676","","17","","","1,308,969","","17"],["ES","108,655","","1","","","98,429","","\u2014"],["S&T","1,069,195","","13","","","1,033,439","","14"],["HSO","213,726","","3","","","196,198","","3"],["Intercompany assets (1)","(212,109)","","(2)","","","(256,376)","","(3)"],["Total","$","8,024,458","","100","%","","$","7,578,775","","100","%"]]
[[/GREPCENT_TABLE]]

(1)Consists of transactions between subsidiaries that are eliminated in consolidation.

[[GREPCENT_TABLE]]
[["Consolidated assets increased approximately $445.7M as of June 30, 2026, compared with September 30, 2025, due primarily to the following factors:"],["\u2022$246.8M increase in utility plant expenditures, net at NJNG;"],["\u2022$144.2M increase in nonutility plant and equipment, net at CEV due primarily to additional capital expenditures for commercial solar projects; and"],["\u2022$85.2M increase in cash and customer receivables at NJNG, due to seasonality; partially offset by"],["\u2022$62.9M decrease in gas in storage mainly at NJNG, due to seasonality."]]
[[/GREPCENT_TABLE]]

36

New Jersey Resources Corporation

Part I

ITEM 2. MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF

OPERATIONS (Continued)                                                                                                                                                             

Non-GAAP Financial Measures

Our management uses net income and NFE, a non-GAAP financial measure, when evaluating our operating results. ES economically hedges its natural gas inventory with financial derivative instruments. NFE is a measure of the earnings based on eliminating timing differences surrounding the recognition of certain gains or losses, to effectively match the earnings effects of the economic hedges with the physical sale of natural gas and, therefore, eliminates the impact of volatility to GAAP earnings associated with the derivative instruments. To the extent we utilize forwards, futures, or other derivatives to hedge forecasted SREC production, unrealized gains and losses are also eliminated from NFE. Included in the tax effects are current and deferred income tax expense corresponding with the components of NFE.

GAAP requires us, during the interim periods, to estimate our annual effective tax rate and use this rate to calculate the year-to-date tax provision. We also determine an annual estimated effective tax rate for NFE purposes and calculate a quarterly tax adjustment based on the differences between our forecasted net income and our forecasted NFE for the fiscal year. Since the annual estimated effective tax rate is based on certain forecasted assumptions, the rate and resulting NFE are subject to change. No adjustment is needed during the fourth quarter, since the actual effective tax rate is calculated at year end.

Non-GAAP financial measures are not in accordance with, or an alternative to, GAAP and should be considered in addition to, and not as a substitute for or a replacement of, the comparable GAAP measure and should be read in conjunction with those GAAP results. Below is a reconciliation of consolidated net income, the most directly comparable GAAP measure, to NFE:

[[GREPCENT_TABLE]]
[["","Three Months Ended","Nine Months Ended"],["","June 30,","June 30,"],["(Thousands, except per share data)","2026","2025","2026","2025"],["Net income (loss)","$","9,689","","$","(15,051)","","$","351,091","","$","320,555"],["Add:"],["Unrealized loss (gain) on derivative instruments and related transactions","2,749","","10,766","","4,460","","(10,072)"],["Tax effect","(653)","","(2,559)","","(1,060)","","2,394"],["Effects of economic hedging related to natural gas inventory (1)","(654)","","16,924","","(4,657)","","747"],["Tax effect","156","","(4,022)","","1,107","","(178)"],["NFE tax adjustment","17","","140","","(1)","","(58)"],["Net financial earnings","$","11,304","","$","6,198","","$","350,940","","$","313,388"],["Basic earnings (loss) per share","$","0.10","","$","(0.15)","","$","3.48","","$","3.20"],["Add:"],["Unrealized loss (gain) on derivative instruments and related transactions","0.02","","0.11","","0.04","","(0.10)"],["Tax effect","\u2014","","(0.03)","","(0.01)","","0.02"],["Effects of economic hedging related to natural gas inventory (1)","(0.01)","","0.17","","(0.04)","","0.01"],["Tax effect","\u2014","","(0.04)","","0.01","","\u2014"],["Basic net financial earnings per share","$","0.11","","$","0.06","","$","3.48","","$","3.13"]]
[[/GREPCENT_TABLE]]

(1)Effects of hedging natural gas inventory transactions where the economic impact is realized in a future period.

37

New Jersey Resources Corporation

Part I

ITEM 2. MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF

OPERATIONS (Continued)                                                                                                                                                             

NFE by reportable segment and other business operations, which are discussed in more detail within the operating results sections of each reportable segment and other business operations, is summarized as follows:

[[GREPCENT_TABLE]]
[["","Three Months Ended","","Nine Months Ended"],["","June 30,","","June 30,"],["(Thousands)","2026","","2025","","2026","","2025"],["Net financial earnings (loss)"],["NJNG","$","6,087","","54","%","","$","10,079","","163","%","","$","238,429","","68","%","","$","221,518","","71","%"],["CEV","(312)","","(3)","","","(6,857)","","(111)","","","4,055","","1","","","37,315","","12"],["ES","(4,035)","","(36)","","","(3,734)","","(60)","","","84,531","","24","","","39,400","","13"],["S&T","8,762","","78","","","5,898","","95","","","23,833","","7","","","13,905","","4"],["HSO","579","","5","","","481","","8","","","839","","\u2014","","","418","","\u2014"],["Eliminations (1)","223","","2","","","331","","5","","","(747)","","\u2014","","","832","","\u2014"],["Total","$","11,304","","100","%","","$","6,198","","100","%","","$","350,940","","100","%","","$","313,388","","100","%"]]
[[/GREPCENT_TABLE]]

(1)     Consists of transactions between subsidiaries that are eliminated in consolidation.

[[GREPCENT_TABLE]]
[["Consolidated NFE increased approximately $5.1M during the three months ended June 30, 2026, compared with the three months ended June 30, 2025, due primarily to a $6.5M increase at CEV related to higher REC sales and the recognition of ITCs associated with the solar sale leaseback financing transactions."],["Consolidated NFE increased approximately $37.6M during the nine months ended June 30, 2026, compared with the nine months ended June 30, 2025, due primarily to the following factors:"],["\u2022$45.1M increase at ES due to market volatility and favorable pricing spreads related to colder weather;"],["\u2022$16.9M increase at NJNG due to higher base rates, along with customer growth; and"],["\u2022$9.9M increase at S&T, due to higher firm transportation and storage rates at Adelphia and Leaf River; partially offset by"],["\u2022$33.3M decrease at CEV due to the gain on sale of the residential solar portfolio in the prior period."]]
[[/GREPCENT_TABLE]]

Natural Gas Distribution

Overview

Natural Gas Distribution is comprised of NJNG, a natural gas utility that provides regulated natural gas service to residential and commercial customers throughout Burlington, Middlesex, Monmouth, Morris, Ocean, and Sussex counties in New Jersey and also participates in the off-system sales and capacity release markets. The business is subject to various risks, which may include but are not limited to impacts to customer growth and customer usage, customer collections, the timing and costs of capital expenditures and construction of infrastructure projects, operating and financing costs, fluctuations in commodity prices, customer conservation efforts and changes in how customers consume energy. In addition, NJNG may be subject to adverse economic conditions such as inflation and rising natural gas costs, certain regulatory actions, environmental remediation and severe weather conditions. It is often difficult to predict the impact of events or trends associated with these risks.

NJNG’s business is seasonal by nature, as weather conditions directly influence the volume of natural gas delivered to customers on an annual basis. Specifically, customer demand substantially increases during the winter months when natural gas is used for heating purposes. As a result, NJNG generates most of its natural gas distribution revenues during the first and second fiscal quarters and is subject to variations in earnings and working capital during the fiscal year.

As a regulated company, NJNG is required to recognize the impact of regulatory decisions on its financial statements. See Note 4. Regulation in the accompanying Unaudited Condensed Consolidated Financial Statements for a more detailed discussion of regulatory actions, including filings related to programs and associated expenditures, as well as rate requests related to recovery of capi

[Excerpt truncated for page length; source filing is linked above.]

## Latest 10-K MD&A (excerpt)

Latest 10-K Item 7 source: https://www.sec.gov/Archives/edgar/data/356309/000035630925000093/njr-20250930.htm
Complete FY 2025 MD&A: /company/NJR/mda/fy2025/

Extracted structurally from real Item 7 body heading to real Item 7A/8 boundary.
Confidence: high
Filing date: 2025-11-20
Report date: 2025-09-30

ITEM 7. MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF

OPERATIONS                                                                                                                                                                                 

CRITICAL ACCOUNTING ESTIMATES

We prepare our financial statements in accordance with GAAP. Application of these accounting principles requires the use of estimates and assumptions that affect the reported amounts of assets, liabilities, revenues and expenses, and related disclosures of contingencies during the reporting period. We regularly evaluate our estimates, including those related to the calculation of the fair value of derivative instruments, acquisitions, regulatory assets, income taxes, pension and postemployment benefits other than pensions and contingencies related to environmental matters and litigation. We base our estimates on historical experience and on various other assumptions that are believed to be reasonable under the circumstances, the results of which form the basis for making judgments about the carrying value of assets and liabilities that are not readily apparent from other sources. In the normal course of business, estimated amounts are subsequently adjusted to actual results that may differ from estimates.

Regulatory Accounting

NJNG and Adelphia are subject to accounting requirements resulting from the effects of rate regulation. Specifically, NJNG and Adelphia record regulatory assets when it is considered probable that certain operating costs will be recoverable from customers in future periods and record regulatory liabilities when it is probable that future obligations to customers exist.

Regulatory decisions can have an impact on the recovery of costs, the rate of return earned on investment and the timing and amount of assets to be recovered by rates. For NJNG, the BPU’s regulation of rates is premised on the full recovery of prudently incurred costs and a reasonable rate of return on invested capital. Decisions to be made by the BPU in the future will impact the accounting for regulated operations, including decisions about the amount of allowable costs and return on invested capital included in rates and any refunds that may be required. If the BPU indicates that recovery of all or a portion of a regulatory asset is not probable or does not allow for recovery of and a reasonable return on investments in property, plant and equipment, a charge to income would be made in the period of such determination.

Environmental Costs

At the end of each fiscal year, NJNG, with the assistance of an independent consulting firm, updates the environmental review of its MGP sites, including its potential liability for investigation and remedial action. From this review, NJNG estimates expenditures necessary to remediate and monitor these MGP sites. NJNG’s estimate of these liabilities is developed from then-currently available facts, existing technology and current laws and regulations.

In accordance with accounting standards for contingencies, NJNG’s policy is to record a liability when it is probable that the cost will be incurred and can be reasonably estimated. NJNG will determine a range of liabilities and will record the most likely amount. If no point within the range is more likely than any other, NJNG will accrue the lower end of the range. Since we believe that recovery of these expenditures, as well as related litigation costs, is probable through the regulatory process, we record a regulatory asset corresponding to the related accrued liability. Accordingly, NJNG records an MGP remediation liability and a corresponding regulatory asset on the Consolidated Balance Sheets, which is based on the most likely amount.

The actual costs to be incurred by NJNG are dependent upon several factors, including final determination of remedial action, changing technologies and governmental regulations and the ultimate ability of other responsible parties to pay, as well as the potential impact of any litigation and any insurance recoveries. Previously incurred remediation costs, net of recoveries from customers and insurance proceeds received, are included in regulatory assets on the Consolidated Balance Sheets.

If there are changes in the regulatory position surrounding these costs, or should actual expenditures vary significantly from estimates in that these costs are disallowed for recovery by the BPU, such costs would be charged to income in the period of such determination. See the Legal Proceedings section in Note 14. Commitments and Contingent Liabilities for more details.

Page 30

New Jersey Resources Corporation

Part II

ITEM 7. MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF

OPERATIONS (Continued)                                                                                                                                                             

Postemployment Employee Benefits

Our costs of providing postemployment employee benefits are dependent upon numerous factors, including actual plan experience and assumptions of future experience. Postemployment employee benefit costs are affected by actual employee demographics including age, compensation levels and employment periods, the level of contributions made to the plans, changes in long-term interest rates and the return on plan assets. Changes made to the provisions of the plans or healthcare legislation may also impact current and future postemployment employee benefit costs. Postemployment employee benefit costs may also be significantly affected by changes in key actuarial assumptions, including anticipated rates of return on plan assets, changes in mortality tables, health care cost trends and discount rates used in determining the PBO. In determining the PBO and cost amounts, assumptions can change from period to period and could result in material changes to net postemployment employee benefit periodic costs and the related liability recognized.

The remeasurement of plan assets and obligations for a significant event should occur as of the date of the significant event. We may use a practical expedient to remeasure the plan assets and obligations as of the nearest calendar month-end date. When performing interim remeasurements, we obtain new asset values, roll forward the obligation to reflect population changes and review the appropriateness of all assumptions, regardless of the reason for performing the interim remeasurement.

Our postemployment employee benefit plan assets consist primarily of U.S. equity securities, international equity securities, fixed-income investments and other assets. Fluctuations in actual market returns, as well as changes in interest rates, may result in increased or decreased postemployment employee benefit costs in future periods. Postemployment employee benefit expenses are included in O&M and other income, net on the Consolidated Statements of Operations.

The following is a summary of a sensitivity analysis for each actuarial assumption as of and for the fiscal year ended September 30, 2025:

[[GREPCENT_TABLE]]
[["Pension Plans"],["Actuarial Assumptions","Increase/ (Decrease)","EstimatedIncrease/(Decrease) on PBO(Thousands)","EstimatedIncrease/(Decrease) to Expense(Thousands)"],["Discount rate","1.00","","%","","$","(31,175)","","","","$","(590)"],["Discount rate","(1.00)","","%","","$","37,251","","","","$","4,536"],["Rate of return on plan assets","1.00","","%","","n/a","","","$","(3,161)"],["Rate of return on plan assets","(1.00)","","%","","n/a","","","$","3,161"]]
[[/GREPCENT_TABLE]]

[[GREPCENT_TABLE]]
[["Other Postemployment Benefits"],["Actuarial Assumptions","Increase/ (Decrease)","EstimatedIncrease/(Decrease) on PBO(Thousands)","EstimatedIncrease/(Decrease) to Expense(Thousands)"],["Discount rate","1.00","","%","","$","(20,481)","","","","$","(2,160)"],["Discount rate","(1.00)","","%","","$","24,021","","","","$","2,417"],["Rate of return on plan assets","1.00","","%","","n/a","","","$","(1,252)"],["Rate of return on plan assets","(1.00)","","%","","n/a","","","$","1,252"],["Actuarial Assumptions","Increase/ (Decrease)","EstimatedIncrease/(Decrease) on PBO(Thousands)","EstimatedIncrease/(Decrease) to Expense(Thousands)"],["Health care cost trend rate","1.00","","%","","$","20,857","","","","$","3,198"],["Health care cost trend rate","(1.00)","","%","","$","(18,209)","","","","$","(2,789)"]]
[[/GREPCENT_TABLE]]

Page 31

New Jersey Resources Corporation

Part II

ITEM 7. MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF

OPERATIONS (Continued)                                                                                                                                                             

Impairment of Long-lived Assets

Property, plant and equipment and finite-lived intangible assets are reviewed periodically for impairment when changes in facts and circumstances indicate that the carrying amount of an asset may not be fully recoverable in accordance with the appropriate accounting guidance. Factors that the Company analyzes in determining whether an impairment in its long-lived assets exists include determining if a significant decrease in the market price of a long-lived asset is present; a significant adverse change in the extent to which a long-lived asset is being used in its physical condition; legal proceedings or factors; significant business climate changes; accumulations of costs in significant excess of the amounts expected; a current-period operating or cash flow loss coupled with historical negative cash flows or expected future negative cash flows; and current expectations that more likely than not, a long-lived asset will be sold or otherwise disposed of significantly before the end of its estimated useful life. When an impairment indicator is present, the Company determines if the carrying value of the asset is recoverable by comparing it to its expected undiscounted future cash flows. If the carrying value of the asset is greater than the expected undiscounted future cash flows, an impairment charge is recorded in an amount equal to the excess of the carrying value of the asset over its fair value.

Derivative Instruments

We record our derivative instruments held as assets and liabilities at fair value on the Consolidated Balance Sheets. In addition, since we choose not to designate any of our physical and financial natural gas commodity derivatives as accounting hedges, changes in the fair value of ES’s commodity derivatives are recognized in earnings, as they occur, as a component of operating revenues or natural gas purchases on the Consolidated Statements of Operations.

The fair value of derivative instruments is determined by reference to quoted market prices of listed exchange-traded contracts, published price quotations, pipeline tariff information or a combination of those items. ES’s portfolio is valued using the most current and reasonable market information. If the price underlying a physical commodity transaction does not represent a visible and liquid market, ES may utilize additional published pipeline tariff information and/or other services to determine an equivalent market price. As of September 30, 2025, the fair value of its derivative assets and liabilities reported on the Consolidated Balance Sheets that is based on such pricing is considered immaterial.

Should there be a significant change in the underlying market prices or pricing assumptions, ES may experience a significant impact on its financial position, results of operations and cash flows. Refer to Item 7A. Quantitative and Qualitative Disclosures About Market Risks for a sensitivity analysis related to the impact to derivative fair values resulting from changes in commodity prices. The valuation methods we use to determine fair values remained consistent for fiscal 2025, 2024 and 2023. We apply

[Excerpt truncated for page length; the complete text is on the linked full-MD&A page.]

Read the full FY 2025 MD&A: /company/NJR/mda/fy2025/
All MD&A years: /company/NJR/mda/


## MD&A history

Prior-year 10-K MD&A spans are extracted from SEC filings with the same bounded parser used for the latest filing. Each year's full verbatim text is on its own sub-page.

- [FY 2024 MD&A](/company/NJR/mda/fy2024/): filed 2024-11-26; accession 0000356309-24-000083 (https://www.sec.gov/Archives/edgar/data/356309/000035630924000083/njr-20240930.htm)
- [FY 2023 MD&A](/company/NJR/mda/fy2023/): filed 2023-11-21; accession 0000356309-23-000083 (https://www.sec.gov/Archives/edgar/data/356309/000035630923000083/njr-20230930.htm)
- [FY 2022 MD&A](/company/NJR/mda/fy2022/): filed 2022-11-17; accession 0000356309-22-000098 (https://www.sec.gov/Archives/edgar/data/356309/000035630922000098/njr-20220930.htm)
- [FY 2021 MD&A](/company/NJR/mda/fy2021/): filed 2021-11-18; accession 0000356309-21-000095 (https://www.sec.gov/Archives/edgar/data/356309/000035630921000095/njr-20210930.htm)




## Macro cross-references

Indicators mapped to this company's SIC classification (industry 4924 Natural Gas Distribution) by grepcent's deterministic macro-sector crosswalk. A navigational mapping, not a statistical or causal claim.

- [INDPRO](/indicator/INDPRO/): Industrial Production: Total Index
- [TCU](/indicator/TCU/): Capacity Utilization: Total Index
- [DGS10](/indicator/DGS10/): Market Yield on U.S. Treasury Securities at 10-Year Constant Maturity
- [FEDFUNDS](/indicator/FEDFUNDS/): Federal Funds Effective Rate

Macro-to-micro threads including this sector: [Money & trade](/thread/money-trade/), [Trade & external](/thread/trade-external/).

All macro indicators: /indicators/


## For LLMs & downloads

Markdown twin: /company/NJR.md · JSON record: /company/NJR.json · verified financials: /company/NJR/financials.json / /company/NJR/financials.csv · machine TOC for the whole site: /llms.txt