Shares fell 4.6% as investors reacted negatively to increased capital spending and cautious execution, which pressured near-term financial metrics despite management’s positive framing.
- Fiscal Q3 net financial earnings (NFE) rose to $11.3 million ($0.11 per share), up from $6.2 million ($0.06) in the same quarter last year, supported by higher Clean Energy Ventures (CEV) earnings and favorable Storage & Transportation (S&T) recontracting.
- Guidance was narrowed and midpoint increased to $3.52-$3.62 per share for fiscal 2026, reflecting greater full-year visibility, though underlying caution remains.
- Capital expenditures were raised to a new range of $815 million to $950 million, up from $775 million to $930 million, driven by safety, reliability, and infrastructure investments at New Jersey Natural Gas (NJNG).
- While S&T received a key FERC certificate ahead of schedule for Leaf River expansion, the benefits are longer-term and do not offset near-term margin pressures.
- The market appeared concerned about margin compression risk and the elevated spending profile weighing on near-term returns despite ongoing project progress.
Community Discussion