Is NJR a Buy? What to Consider in 2026
Last updated July 2026
Short answer
The bull case for New Jersey Resources (NJR) rests on Regulated utility rate-base growth: New Jersey Natural Gas anchors earnings and drives the bulk of the capital plan, which totals roughly $4.8 to $5.2 billion through fiscal 2030 with over 60 percent in utility investment. Revenue (TTM) is ~$2.1B. If you believe that thesis holds, the real questions become position sizing and overlap, not timing. The main risk to that view: As a regulated utility, NJR depends on favorable rate-case outcomes from New Jersey regulators, and unfavorable rulings can compress returns on its heavy capital spending. Whether NJR is a buy comes down to whether you believe the thesis. This is informational, not a recommendation, and Walnut is not an investment adviser.
New Jersey Resources is a diversified energy infrastructure company headquartered in Wall, New Jersey. Its core is New Jersey Natural Gas (NJNG), a regulated utility that distributes gas to roughly 5.6 million people across Monmouth, Ocean, Morris, Middlesex, Sussex and Burlington counties. Around it sit three non-utility segments: Clean Energy Ventures (solar generation), Energy Services (a wholesale natural gas trading and asset-optimization business active across North America), and Storage and Transportation (the Adelphia Gateway pipeline, the Leaf River salt-dome storage facility, and a 50% stake in Steckman Ridge). Company guidance points to the regulated utility contributing roughly 62 to 67 percent of net financial earnings, with the remainder split among Energy Services, Clean Energy Ventures and Storage and Transportation. The investment picture is that of a regulated-utility income vehicle with a growth tilt from infrastructure spending. NJR targets 7 to 9 percent long-term net financial earnings per share growth, funded by a large multi-year capital program weighted toward the utility. Fiscal 2025 net income was about $335.6 million (roughly $3.35 per share), and management has raised fiscal 2026 guidance twice, largely on unusually strong Energy Services trading results tied to natural gas price volatility. That trading upside is a double-edged sword: it can lift a given year but is inherently less predictable than regulated utility earnings, so the quality of a strong quarter depends heavily on where it came from.
What's the case for buying NJR?
1. Regulated utility rate-base growth
New Jersey Natural Gas anchors earnings and drives the bulk of the capital plan, which totals roughly $4.8 to $5.2 billion through fiscal 2030 with over 60 percent in utility investment. Spending on infrastructure modernization, safety and system reliability expands the rate base on which the utility earns a regulated return, supporting the 7 to 9 percent long-term NFEPS growth target.
2. Energy Services trading upside
NJR Energy Services optimizes a portfolio of gas transportation and storage capacity across North America. In periods of high natural gas price volatility, as seen in fiscal 2026, this segment can deliver outsized earnings and was the main reason management raised guidance twice. It adds torque to results but is more variable than the regulated core.
3. Storage, transportation and clean energy assets
The Adelphia Gateway pipeline, Leaf River storage, and the Steckman Ridge stake provide fee-based infrastructure income, while Clean Energy Ventures invests in solar generation. Together these diversify the earnings base beyond pure gas distribution and give exposure to both midstream infrastructure and the low-carbon transition.
4. Dividend track record
NJR has a long history of dividend increases, with roughly 7 percent average annual growth over recent years, and cash flow from operations projected around $550 to $590 million for fiscal 2026. The dividend is the primary total-return driver for many holders and is supported by the regulated cash flows.
What are the risks to NJR?
As a regulated utility, NJR depends on favorable rate-case outcomes from New Jersey regulators, and unfavorable rulings can compress returns on its heavy capital spending. Rising interest rates raise financing costs for a capital-intensive balance sheet and can make utility dividend yields less attractive relative to bonds. The Energy Services segment introduces earnings volatility tied to natural gas price swings, so strong years may not repeat and weak commodity environments can pressure results. Weather remains a swing factor for both utility demand and trading margins, as fiscal 2026 illustrated. Longer term, the energy transition and decarbonization policy could weigh on natural gas demand and asset values, and large ongoing capital needs may require continued debt and equity issuance.
How is NJR valued? (as of July 2026)
Snapshot for NJR as of July 2026, sourced from Yahoo Finance and may be delayed. Valuation figures move with price and earnings; verify the current numbers with your broker before deciding.
- Revenue (TTM): ~$2.1B
- Net income (FY2025): ~$336M
- EPS (TTM): ~$3.35
- Market cap: ~$4.7B
- FY2026 NFEPS guidance: ~$3.48 to $3.63
- Dividend yield: ~3.3%
NJR trades at a mid-teens multiple of earnings, roughly in line with regulated gas utility peers, reflecting a stable regulated core plus a variable trading component. Management has raised fiscal 2026 net financial earnings guidance twice, largely on strong Energy Services results, so the quality and repeatability of a given year's earnings depends on how much came from the regulated utility versus commodity trading. The roughly 3.3 percent dividend yield and steady dividend growth are central to the total-return story.
How do you decide if NJR is a buy?
Rather than asking whether NJR is a buy in the abstract, it tends to help to answer four questions:
- Thesis: do you believe the case above, and is it still true today?
- Time horizon: a single stock can be volatile, so a longer horizon absorbs more of the swings.
- Position sizing: a thesis can be right and the sizing still wrong; decide how much of your portfolio one name should be.
- Overlap: check whether you already hold NJR indirectly through an index or sector ETF before adding more.
For the full picture, see the NJR stock guide (what the company does, the ETFs that hold it, similar stocks, and the themes it fits). In Walnut you can ask its AI about NJR against your real portfolio and see your actual exposure before deciding.
The bottom line on NJR
The bottom line: New Jersey Resources's story right now is Regulated utility rate-base growth, with revenue (ttm) at ~$2.1B. If you believe that narrative continues, the call is about sizing NJR sensibly and checking overlap with what you own; if you doubt it (the risk: as a regulated utility, NJR depends on favorable rate-case outcomes from New Jersey regulators, and unfavorable rulings can compress returns on its heavy capital spending.), it is not for you. Decide from the thesis, not the ticker. Walnut is not an investment adviser.
More on NJR
- NJR stock guide (what the company does, ETFs that hold it, similar stocks, and the themes it fits)
- NJR stock forecast (the drivers and risks shaping the outlook)
- Does NJR pay a dividend?
Build a basket around NJR with Walnut
Use New Jersey Resources as one constituent in a thematic basket Walnut's AI helps you assemble. Describe a thesis you believe in, the AI proposes the holdings and weights, and you approve before any broker order.
FAQ
Is NJR a good stock to buy right now?
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The case for New Jersey Resources right now is Regulated utility rate-base growth, with revenue (ttm) at ~$2.1B. If you believe that thesis holds, NJR is a way to own it and the real questions are sizing and overlap, not timing; the main risk to that view is as a regulated utility, NJR depends on favorable rate-case outcomes from New Jersey regulators, and unfavorable rulings can compress returns on its heavy capital spending. So it comes down to whether you believe the thesis. Walnut is not an investment adviser and this is not a recommendation.
What does New Jersey Resources do?
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New Jersey Resources is a diversified energy infrastructure company headquartered in Wall, New Jersey.
What are the main risks of NJR?
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As a regulated utility, NJR depends on favorable rate-case outcomes from New Jersey regulators, and unfavorable rulings can compress returns on its heavy capital spending. Rising interest rates raise financing costs for a capital-intensive balance sheet and can make utility dividend yields less attractive relative to bonds. The Energy Services segment introduces earnings volatility tied to natural gas price swings, so strong years may not repeat and weak commodity environments can pressure results. Weather remains a swing factor for both utility demand and trading margins, as fiscal 2026 illustrated. Longer term, the energy transition and decarbonization policy could weigh on natural gas demand and asset values, and large ongoing capital needs may require continued debt and equity issuance.
What does New Jersey Resources do?
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NJR is an energy infrastructure holding company. Its core is New Jersey Natural Gas, a regulated utility serving several New Jersey counties, complemented by clean energy (solar), an energy trading and asset-optimization business, and gas storage and pipeline assets.
Is NJR a utility stock?
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Largely yes. The regulated utility, New Jersey Natural Gas, is expected to contribute roughly 62 to 67 percent of net financial earnings, so NJR behaves mostly like a regulated gas utility, though its non-utility segments add diversification and some earnings variability.
Does NJR pay a dividend?
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Yes. NJR pays a quarterly dividend, recently around $0.48 per share, for a yield of roughly 3.3 percent as of July 2026. It has a long record of raising the dividend, at roughly 7 percent average annual growth in recent years.
How did NJR perform in fiscal 2025?
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NJR reported fiscal 2025 net income of about $335.6 million, or roughly $3.35 per share, up from the prior year. It hit the high end of its net financial earnings guidance, marking its fifth consecutive year of outperforming initial guidance.
Walnut is informational and is not an investment adviser. This page is educational and not a recommendation to buy or sell NJR; figures are approximate and dated, and your own situation, time horizon, and risk tolerance should drive any decision. Verify current data before investing.