New Jersey Resources Corporation (NJR): BCG Matrix [Dec-2025 Updated]

You're looking for a clear-eyed view of New Jersey Resources Corporation's (NJR) business portfolio as of fiscal year 2025, and the BCG Matrix is defintely the right tool to map their capital allocation strategy. Honestly, the picture shows a utility core, New Jersey Natural Gas (NJNG), solidly anchoring the ship with an expected 65% to 68% of Net Financial Earnings (NFEPS), while Clean Energy Ventures (CEV) is clearly the Star, pushing for over 50% capacity growth by 2027. Still, not everything is shining; Energy Services (ES) saw its NFE plummet to $34.9 million and Home Services posted a small loss of $(0.4) million, landing them in the Dog quadrant. The real strategic question lies with Storage and Transportation (S&T), a segment aiming to double its NFE by 2027 but requiring significant investment now. Let's break down where NJR is placing its bets.

Background of New Jersey Resources Corporation (NJR)

You're looking at New Jersey Resources Corporation (NJR), which is a Fortune 1000 company operating as a diversified energy services holding company. Honestly, it's a complex structure, but at its core, it's about delivering natural gas and increasingly, clean energy solutions across the Mid-Atlantic region and beyond. The company is headquartered in Wall, New Jersey, and employs more than 1,300 people.

NJR is organized around five primary business affiliates, which is how they manage their regulated utility side alongside their nonregulated growth areas. The principal subsidiary is New Jersey Natural Gas (NJNG), which is the third-largest natural gas distribution company in the state. As of late 2025, NJNG serves approximately 589,000 customers across key New Jersey counties like Monmouth, Ocean, and Morris.

The other segments show where NJR is placing its bets for future growth and diversification. NJR Clean Energy Ventures (NJRCEV) focuses on clean energy, having invested in and operating solar projects that totaled approximately 479 MW of commercial capacity in service as of September 30, 2025. Then you have NJR Energy Services (NJRES), which handles asset management and physical natural gas services across North America, and Storage & Transportation (S&T), which manages assets like the Adelphia Gateway Pipeline Project.

Looking at the most recent full-year results, fiscal 2025 was strong, showing the value of this complementary structure. New Jersey Resources Corporation reported consolidated Net Financial Earnings (NFE) of $329.6 million, translating to $3.29 per share (NFEPS), which surpassed their initial guidance for the fifth straight year. For that fiscal year, the regulated utility, NJNG, was expected to contribute between 64 to 67 percent of the total NFE.

The company is clearly committed to infrastructure investment to support its regulated base. NJR expects to deploy between $4.8 billion and $5.2 billion in capital expenditures through 2030, with NJNG spending over 60% of that total to maintain and grow its system.

Historically, the roots of New Jersey Resources Corporation go way back to the County Gas Company, which started in 1922 before reorganizing into the holding company structure we see today in 1982.

New Jersey Resources Corporation (NJR) - BCG Matrix: Stars

You're looking at the Clean Energy Ventures (CEV) segment of New Jersey Resources Corporation (NJR) as the primary Star in the portfolio right now. This unit operates in a high-growth market, driven by state-level renewable energy mandates, and it commands a strong market position, making it a leader that still requires significant investment to maintain that edge. Honestly, that's the definition of a Star-high growth, high share, but it consumes cash to fuel that expansion.

The growth trajectory for CEV is aggressive. New Jersey Resources Corporation management has explicitly stated that Clean Energy Ventures is targeting over 50% capacity growth by 2027. To put that growth into perspective for fiscal 2025, CEV placed a record 93.6 MW of commercial solar capacity into service, which was the highest annual installed capacity in its history. This expansion pushed the total installed commercial solar capacity to approximately 479 MW as of September 30, 2025, across states including New Jersey, New York, Connecticut, Pennsylvania, Rhode Island, Indiana, and Michigan.

Here's a quick look at the financial contribution and scale for this high-potential unit based on the fiscal 2025 results:

The strategy here is clearly to invest heavily to secure future market share, which is why it consumes cash even while generating revenue. You need to keep the momentum up in this segment:

• High-growth commercial solar market segment, driven by state-level renewable energy mandates.
• The unit is expected to contribute 19% to 22% of fiscal 2025 Net Financial Earnings (NFEPS).
• Total installed capacity reached approximately 479 MW as of September 30, 2025.
• The company is committing substantial capital to this growth, with planned CapEx between $1.3 billion and $1.6 billion over fiscal years 2025 and 2026 across the portfolio.

If New Jersey Resources Corporation successfully keeps its market share while the high-growth market eventually matures, CEV is positioned to transition into a Cash Cow. The key tenet of the Boston Consulting Group strategy for growth is to continue investing in these Stars now, ensuring that the 93.6 MW added in fiscal 2025 is just the start of securing that future stable cash flow. If onboarding takes 14+ days, churn risk rises, but for CEV, the risk is not executing on the pipeline.

New Jersey Resources Corporation (NJR) - BCG Matrix: Cash Cows

New Jersey Natural Gas (NJNG) is the engine of New Jersey Resources Corporation, representing the core, regulated utility business where market share is high and growth is mature. This segment is designed to be the primary source of stable, predictable returns for the entire corporation.

For fiscal 2025, NJNG is expected to contribute the largest share of NFEPS (net financial earnings per share), between 65% and 68%. This stability is underpinned by regulatory certainty, such as the new $157.0 million annual base rate increase that became effective on November 21, 2024. This rate case settlement helps secure the necessary return on infrastructure investments made to keep the system reliable.

You can see the strong cash generation profile for this unit in the full-year fiscal 2025 results. Cash flows from operations increased to $466.3 million for fiscal 2025, up from $427.4 million in fiscal 2024. This increase is directly attributable, in part, to those new base rates at NJNG.

To maintain this position, NJR continues to invest heavily in the regulated asset base. The Infrastructure Investment Program (IIP), a five-year, $150 million accelerated recovery program that started in fiscal 2021, shows continued support. For instance, during fiscal 2025, NJNG invested $40.0 million under the IIP for distribution system reinforcement projects.

Here's a quick look at the key financial anchors supporting NJNG's Cash Cow status for fiscal 2025:

The regulatory framework provides the necessary structure to 'milk' these gains passively while ensuring infrastructure upkeep. Key elements supporting the regulated revenue stream include:

• Base rate increase of $157.0 million approved by the BPU.
• Return on Equity set at 9.60% with a 54.0% equity ratio.
• Overall rate of return on rate base established at 7.08%.
• Composite depreciation rate set at 3.21%.
• New SAVEGREEN® energy efficiency program valued at $385.6 million.

Finance: Prepare a sensitivity analysis on the impact of a 50 basis point change in the allowed Return on Equity for NJNG by next Tuesday.

New Jersey Resources Corporation (NJR) - BCG Matrix: Dogs

Dogs are units or products with a low market share and low growth rates. They frequently break even, neither earning nor consuming much cash. Dogs are generally considered cash traps because businesses have money tied up in them, even though they bring back almost nothing in return. These business units are prime candidates for divestiture.

The segments categorized as Dogs for New Jersey Resources Corporation (NJR) exhibit characteristics of low relative market share in non-core or mature areas, leading to minimal or negative financial contributions in fiscal 2025.

Home Services and Other Operations reported a net financial loss of $(0.4) million in fiscal 2025. This unit is characterized by low market growth and low relative market share; it is a non-core business line focused on service contracts. The performance suggests this area requires careful management to stop cash consumption.

The financial comparison below highlights the sharp decline in the Energy Services segment, which is heavily influenced by the legacy Asset Management Agreements (AMAs), alongside the minimal contribution from Home Services.

Energy Services (ES) saw a significant Net Financial Earnings (NFE) drop to $34.9 million in fiscal 2025 from $111.5 million in fiscal 2024. This substantial year-over-year decrease signals that the segment's prior high performance, likely driven by favorable market conditions or specific agreements, is receding. For instance, the fourth quarter of fiscal 2025 for ES was a net financial loss of $(4.5) million, compared to NFE of $68.3 million in the fourth quarter of fiscal 2024.

The declining contribution from legacy Asset Management Agreements (AMAs) signed in December 2020 signals a shrinking core revenue base within Energy Services. This decline is explicitly cited as the reason for the lower NFE in both the fourth quarter and the full fiscal year 2025 for ES.

You should note the following specific financial indicators pointing to the Dog classification:

• Home Services and Other Operations fiscal 2025 year-to-date NFE was reported as a loss of $(0.1) million as of March 31, 2025.
• Home Services and Other Operations reported a net financial loss of $(0.7) million for the second quarter of fiscal 2025.
• Energy Services (ES) NFE for the first quarter of fiscal 2025 was $7.8 million, unchanged from the first quarter of fiscal 2024.
• The expected fiscal 2025 net financial earnings contribution from Home Services and Other was projected to be between 0 to 1 percent of the total.

New Jersey Resources Corporation (NJR) - BCG Matrix: Question Marks

You're looking at the Storage and Transportation (S&T) / Midstream segment of New Jersey Resources Corporation, which fits the profile of a Question Mark in the Boston Consulting Group Matrix. This business unit operates in a high-growth market-natural gas infrastructure and storage-but currently holds a relatively smaller share of the overall Net Financial Earnings (NFE) picture, demanding cash for expansion while returns are still developing.

For fiscal 2025, the Storage and Transportation segment is expected to contribute between 4% to 6% of New Jersey Resources Corporation's fiscal 2025 Net Financial Earnings Per Share (NFEPS). To give you a concrete figure, the actual reported NFE for S&T for the full fiscal 2025 year totaled $18.5 million, up from $12.2 million in fiscal 2024, showing clear growth momentum.

This segment is definitely high-risk, high-reward, with management setting an aggressive target to double its Net Financial Earnings by 2027. This ambition requires significant capital deployment now to secure that future market share. The need for investment is evident in major projects like the application submitted to the Federal Energy Regulatory Commission (FERC) on October 31, 2025, to increase Leaf River storage capacity by 17.6 BCF. This filing also represents an effort to increase working gas capacity by over 70%.

The path to realizing the potential returns from these investments is tied directly to regulatory success. For instance, future earnings are highly dependent on the successful resolution of rate cases. You saw a key step when Adelphia Gateway, LLC received the order approving the settlement for its Section 4 rate case from FERC on November 4, 2025. This type of resolution helps solidify the revenue base for the high-growth assets.

Here's a quick look at the key financial and investment data points for this segment:

The strategy here is clear: New Jersey Resources Corporation is investing heavily in this segment-a classic move for a Question Mark-hoping these assets mature quickly into Stars. The segment's current NFE contribution is small relative to the utility, but the growth trajectory is what matters most right now. You need to watch the execution on these capacity expansions and the flow-through of the new rates from the Adelphia Gateway settlement to see if the heavy cash consumption translates into the targeted earnings doubling.

The key actions you should track are:

• Monitoring the timeline for FERC approval of the 17.6 BCF Leaf River expansion.
• Assessing the full-year financial impact of the November 4, 2025 Adelphia Gateway rate case settlement.
• Tracking the segment's NFE growth rate against the doubling by 2027 target.

Finance: draft 13-week cash view by Friday.