Financial Analysis

17. DISPOSITIONS On November 25, 2024, CEV completed the sale of its residential solar portfolio to a third party, which primarily included residential solar energy projects and host customer contracts, for a purchase price of $132.5M. The transaction also included a post-closing working capital adjustment and was subject to a transition services agreement. CEV had certain residential solar energy projects under contract and in various stages of development that were transferred to the buyer once the assets became operational. The transfer of these projects commenced in January 2025 and continued throughout fiscal 2025. As of September 30, 2025, CEV received approximately $4.7M related to the transfer of these assets. During fiscal 2025, the Company recognized a pre-tax gain on sale of assets of approximately $58.2M on the Consolidated Statements of Operations. Also, in connection with the sale, CEV entered into an agreement with the buyer to leaseback certain residential solar energy projects that have not yet passed the fifth anniversary of their placed-in-service dates. The assets are subject to leaseback until the fifth anniversary of the applicable placed-in-service date of the project. The impact of these transactions is considered immaterial to the Companys Consolidated Financial Statements. …

BusinessCombinationDisclosureTextBlock · excerpt; the full note is in the filing

14. COMMITMENTS AND CONTINGENT LIABILITIES Cash Commitments NJNG has entered into long-term contracts, expiring at various dates through July 2039, for the supply, transportation and storage of natural gas. These contracts include annual fixed charges of approximately $254.2M at current contract rates and volumes, which are recoverable through BGSS. For the purpose of securing storage and pipeline capacity, ES enters into storage and pipeline capacity contracts, which require the payment of certain demand charges by ES to maintain the ability to access such natural gas storage or pipeline capacity, during a fixed time period, which generally ranges from one to 10 years. Demand charges are established by interstate storage and pipeline operators and are regulated by FERC. These demand charges represent commitments to pay storage providers or pipeline companies for the right to store and/or transport natural gas utilizing their respective assets. Commitments as of September 30, 2025, for natural gas purchases and future demand fees for the next five fiscal year periods, are as follows: (Thousands) 2026 2027 2028 2029 2030 Thereafter ES: Natural gas purchases $ 74,760 $ 3,929 $ $ $ $ Storage demand fees 14,275 9,152 6,382 4,375 4,375 5,788 Pipeline demand fees 16,246 49,507 27,548 11,953 10,487 38,247 Sub-total ES $ 105,281 $ 62,588 $ 33,930 $ 16,328 $ 14,862 $ 44,035 NJNG: Natural gas purchases $ 10,115 $ $ $ $ $ Storage demand fees 43,342 35,497 16,288 5,982 2,457 Pipeline dem …

CommitmentsAndContingenciesDisclosureTextBlock · excerpt; the full note is in the filing

9. DEBT NJNG and NJR finance working capital requirements and capital expenditures through various short-term debt and long-term financing arrangements, including a commercial paper program and committed unsecured credit facilities. Long-term Debt The following table presents the long-term debt of the Company as of September 30: (Thousands) 2025 2024 NJNG First mortgage bonds: Maturity date: Series OO 3.00% August 1, 2041 46,500 46,500 Series PP 3.15% April 15, 2028 50,000 50,000 Series RR 4.61% March 13, 2044 55,000 55,000 Series SS 2.82% April 15, 2025 50,000 Series TT 3.66% April 15, 2045 100,000 100,000 Series UU 3.63% June 21, 2046 125,000 125,000 Series VV 4.01% May 11, 2048 125,000 125,000 Series WW 3.50% April 1, 2042 10,300 10,300 Series XX 3.38% April 1, 2038 10,500 10,500 Series YY 2.45% April 1, 2059 15,000 15,000 Series ZZ 3.76% July 17, 2049 100,000 100,000 Series AAA 3.86% July 17, 2059 85,000 85,000 Series BBB 2.75% August 1, 2039 9,545 9,545 Series CCC 3.00% August 1, 2043 41,000 41,000 Series DDD 3.13% June 30, 2050 50,000 50,000 Series EEE 3.13% July 23, 2050 50,000 50,000 Series FFF 3.33% July 23, 2060 25,000 25,000 Series GGG 2.87% September 1, 2050 25,000 25,000 Series HHH 2.97% September 1, 2060 50,000 50,000 Series III 2.97% October 30, 2051 50,000 50,000 Series JJJ 3.07% October 28, 2061 50,000 50,000 Series LLL 4.37% May 27, 2037 50,000 50,000 Series MMM 4.71% May 27, 2052 50,000 50,000 Series NNN 5.47% October 24, 2052 125,000 125,000 Series OOO 5.5 …

DebtDisclosureTextBlock · excerpt; the full note is in the filing

Disaggregated revenues from contracts with customers by product line and by reportable segment and other business operations during fiscal 2025, 2024 and 2023 are as follows: (Thousands) NJNG CEV ES S&T HSO Total 2025 Natural gas utility sales (1) $ 1,091,000 $ 1,091,000 Natural gas services 47,653 106,413 154,066 Service contracts 37,327 37,327 Installations and maintenance 25,561 25,561 Renewable energy certificates 17,575 17,575 Electricity sales 27,240 27,240 Eliminations (2) (1,121) (41) (302) (1,464) Revenues from contracts with customers 1,089,879 44,815 47,653 106,372 62,586 1,351,305 Alternative revenue programs (3) (28,747) (28,747) Derivative instruments 240,364 67,686 (4) 405,804 713,854 Revenues out of scope 211,617 67,686 405,804 685,107 Total operating revenues $ 1,301,496 112,501 453,457 106,372 62,586 $ 2,036,412 2024 Natural gas utility sales (1) $ 861,882 $ 861,882 Natural gas services 164,165 96,209 260,374 Service contracts 36,231 36,231 Installations and maintenance 26,404 26,404 Renewable energy certificates 15,111 15,111 Electricity sales 32,913 32,913 Eliminations (2) (1,350) (1,358) (258) (2,966) Revenues from contracts with customers 860,532 48,024 164,165 94,851 62,377 1,229,949 Alternative revenue programs (3) 1,087 1,087 Derivative instruments 156,863 82,539 (4) 321,226 560,628 Eliminations (2) 4,875 4,875 Revenues out of scope 157,950 82,539 326,101 566,590 Total operating revenues $ 1,018,482 130,563 490,266 94,851 62,377 $ 1,796,539 (Thous …

DisaggregationOfRevenueTableTextBlock · excerpt; the full note is in the filing

10. STOCK-BASED COMPENSATION NJR issues shares out of its 2017 Stock Award and Incentive Plan, in the form of performance share units, restricted stock units, deferred retention stock units and unrestricted common stock to non-employee directors. As of September 30, 2025, 2,337,295 shares remain available for future issuance. The following table summarizes all stock-based compensation expense recognized during the following fiscal years: (Thousands) 2025 2024 2023 Stock-based compensation expense: Performance share awards $ 6,679 $ 5,437 $ 4,882 Restricted and non-restricted stock 4,174 3,958 3,647 Deferred retention stock 6,926 6,633 6,187 Compensation expense included in operation and maintenance expense 17,779 16,028 14,716 Income tax benefit (1) (4,310) (3,898) (3,563) Total, net of tax $ 13,469 $ 12,130 $ 11,153 (1) Excludes additional tax benefit related to delivered shares of approximately $1.9M, $1.2M and $0.6M as of September 30, 2025, 2024 and 2023, respectively. Performance Share Units In fiscal 2025, the Company granted to certain officers 48,505 performance shares, which are market condition awards that vest on September 30, 2027, subject to the Company meeting certain conditions. In fiscal 2025, the Company also granted to certain officers 83,856 performance shares, of which 46,901 vest on September 30, 2027, and 36,955 vest annually over a three-year period beginning in September 2025, both of which are subject to the Company meeting certain performance conditi …

DisclosureOfCompensationRelatedCostsShareBasedPaymentsTextBlock · excerpt; the full note is in the filing

6. FAIR VALUE Fair Value of Assets and Liabilities The fair value of cash and cash equivalents, accounts receivable, current loans receivable, accounts payable, commercial paper and borrowings under revolving credit facilities are estimated to equal their carrying amounts due to the short maturity of those instruments. Noncurrent loans receivable are recorded based on what the Company expects to receive, which approximates fair value, in other noncurrent assets on the Consolidated Balance Sheets. The Company regularly evaluates the credit quality and collection profile of its customers to approximate fair value. As of September 30, the estimated fair value of long-term debt, including current maturities, excluding natural gas meter sale leasebacks, debt issuance costs and solar asset sale leasebacks, is as follows (1) : (Thousands) 2025 2024 NJNG Carrying value (1) $ 1,797,845 $ 1,647,845 Fair market value $ 1,536,391 $ 1,439,849 NJR Carrying value (1) $ 1,120,000 $ 1,120,000 Fair market value $ 1,095,121 $ 1,085,955 (1) See Note 9. Debt f or a reconciliation to long-term and short-term debt . The Company enters into sale leaseback transactions for certain commercial solar assets and natural gas meters. These transactions are recorded within long-term debt on the Consolidated Balance Sheets. The carrying value of solar sale leasebacks was approximately $471.5M and $283.0M and the estimated fair value was approximately $481.4M and $290.4M as of September 30, 2025 and 2024, res …

FairValueDisclosuresTextBlock · excerpt; the full note is in the filing

12. INCOME TAXES The income tax provision from operations for the fiscal years ended September 30, consists of the following: (Thousands) 2025 2024 2023 Current: Federal $ 17,157 $ 691 $ 13,393 State (874) (682) 7,716 Deferred: Federal 54,449 66,623 36,825 State 26,502 18,531 (8,381) Investment/production tax credits (278) (257) (278) Income tax provision $ 96,956 $ 84,906 $ 49,275 As of September 30, the temporary differences, which give rise to deferred tax assets (liabilities), consist of the following: (Thousands) 2025 2024 Deferred tax assets Investment tax credits (1) $ 150,182 $ 192,238 State net operating losses 28,136 38,762 Deferred revenue 14,085 14,107 Fair value of derivatives 3,020 5,397 Impairment of equity method investment 14,004 14,004 Postemployment benefits 2,841 855 Incentive compensation 7,611 10,142 Amortization of intangibles 5,543 6,248 Overrecovered natural gas costs 2,975 9,072 Allowance for doubtful accounts 4,978 3,744 Other 7,919 7,226 Total deferred tax assets 241,294 301,795 Less: Valuation allowance (5,454) (5,621) Total deferred tax assets net of valuation allowance $ 235,840 $ 296,174 Deferred tax liabilities Property-related items $ (588,101) $ (563,403) Remediation costs (20,953) (21,656) Investments in equity investees (30,044) (28,704) Conservation incentive program (6,344) (14,379) Other (7,989) (6,065) Total deferred tax liabilities $ (653,431) $ (634,207) Total net deferred tax liabilities $ (417,591) $ (338,033) (1) Includes approxim …

IncomeTaxDisclosureTextBlock · excerpt; the full note is in the filing

13. LEASES Lessee Accounting The Company determines if an arrangement is a lease at inception based on whether the Company has the right to control the use of an identified asset, the right to obtain substantially all of the economic benefits from the use of the asset and the right to direct the use of the asset. After the criteria are satisfied, the Company accounts for these arrangements as leases in accordance with ASC 842, Leases . Right-of-use assets represent the Companys right to use the underlying asset for the lease term, and lease liabilities represent the Companys obligation to make lease payments arising from the lease. Right-of-use assets and liabilities are recognized at the lease commencement date based on the present value of lease payments over the lease term, including payments at commencement that depend on an index or rate. Leases in which the Company is the lessee do not have a readily determinable implicit rate, so an incremental borrowing rate, based on the information available at the lease commencement date, is utilized to determine the present value of lease payments. When a secured borrowing rate is not readily available, unsecured borrowing rates are adjusted for the effects of collateral to determine the incremental borrowing rate. The Company uses the implicit rate for agreements in which it is a lessor. The Company has not entered into any material agreements in which it is a lessor. Lease expense and lease income are recognized on a straight-li …

LesseeOperatingLeasesTextBlock · excerpt; the full note is in the filing

Recently Adopted Updates to the Accounting Standards Codification Fair Value Measurement In June 2022, the FASB issued ASU No. 2022-03 , an amendment to ASC 820, Fair Value Measurement . The amendment clarifies the fair value principles when measuring the fair value of an equity security subject to a contractual sale restriction. The guidance became effective for the Company on October 1, 2024, and was applied on a prospective basis. As the Company does not have equity securities subject to contractual sale restrictions, there was no impact on the Companys financial position, results of operations, cash flows, and disclosures upon adoption. Leases In March 2023, the FASB issued ASU No. 2023-01 , an amendment to ASC 842, Leases, which applies to arrangements between related parties under common control. The ASU requires leasehold improvements associated with common control leases to be amortized over the improvements useful life to the common control group, regardless of the lease term. The guidance became effective for the Company on October 1, 2024, and was applied on a prospective basis. As the Company does not have leases that are impacted by this amendment, there was no impact on the Companys financial position, results of operations, cash flows and disclosures upon adoption. Segment Reporting In November 2023, the FASB issued ASU No. 2023-07 , an amendment to ASC 280, Segment Reporting , which improves reportable segment disclosure requirements, primarily through enhance …

NewAccountingPronouncementsPolicyPolicyTextBlock · excerpt; the full note is in the filing

11. EMPLOYEE BENEFIT PLANS Pension and Other Postemployment Benefit Plans The Company has two trusteed, noncontributory defined benefit retirement plans covering eligible regular represented and non-represented employees with more than one year of service. Defined benefit plan benefits are based on years of service and average compensation during the highest 60 consecutive months of employment. The Company also provides postemployment medical and life insurance benefits to employees who meet certain eligibility requirements. All represented employees of NJRHS hired on or after October 1, 2000, non-represented employees hired on or after October 1, 2009 and NJNG represented employees hired on or after January 1, 2012 are covered by an enhanced defined contribution plan instead of the defined benefit plan. Participation in the postemployment medical and life insurance plan was also frozen to new employees as of the same dates, with the exception of new NJRHS represented employees, for which benefits were frozen beginning April 3, 2012. The Company maintains an unfunded nonqualified PEP that was established to provide employees with the full level of benefits as stated in the qualified plan without reductions due to various limitations imposed by the provisions of federal income tax laws and regulations. There are no plan assets in the nonqualified plan due to the nature of the plan. The Companys funding policy for its pension plans is to contribute at least the minimum amount r …

PensionAndOtherPostretirementBenefitsDisclosureTextBlock · excerpt; the full note is in the filing

16. RELATED PARTY TRANSACTIONS In April 2020, NJNG entered into a five-year agreement for 3 Bcf of firm storage capacity with Steckman Ridge, which expired on March 31, 2025. In March 2025, NJNG entered into a new two-year agreement for 3 Bcf of firm storage capacity with Steckman Ridge, which expires on March 31, 2027. Under the terms of the new agreement, NJNG incurs demand fees, at market rates, of approximately $6.5M annually, a portion of which is eliminated in consolidation. These fees are recoverable through NJNGs BGSS mechanism and are included as a component of regulatory assets. ES may periodically enter into storage or park and loan agreements with Steckman Ridge. As of September 30, 2025, ES entered into transactions with Steckman Ridge for varying terms, all of which expire by March 31, 2027. Demand fees, net of eliminations, associated with Steckman Ridge during the fiscal years ended September 30, were as follows: (Thousands) 2025 2024 2023 NJNG $ 5,184 $ 6,319 $ 6,549 ES 768 828 657 Total $ 5,952 $ 7,147 $ 7,206 The following table summarizes demand fees payable to Steckman Ridge as of September 30: (Thousands) 2025 2024 NJNG $ 540 $ 775 ES 101 100 Total $ 641 $ 875 NJNG and ES enter into various AMAs, the effects of which are eliminated in consolidation. Under the terms of these AMAs, NJNG releases certain transportation and storage contracts to ES. NJNG and ES had one AMA, which expired on March 31, 2024, and was not renewed. NJNG entered into two transporta …

RelatedPartyTransactionsDisclosureTextBlock · excerpt; the full note is in the filing

3. REVENUE Revenue is recognized when a performance obligation is satisfied by transferring control of a product or service to a customer. Revenue is measured based on consideration specified in a contract with a customer using the output method of progress. The Company elected to apply the invoice practical expedient for recognizing revenue, whereby the amounts invoiced to customers represent the value to the customer and the Companys performance completion as of the invoice date. Therefore the Company does not disclose related unsatisfied performance obligations. The Company also elected the practical expedient to exclude from the transaction price all sales taxes that are assessed by a governmental authority and therefore presents sales tax net in operating revenues on the Consolidated Statements of Operations. Below is a listing of performance obligations that arise from contracts with customers, along with details on the satisfaction of each performance obligation, the significant payment terms and the nature of the goods and services being transferred, by reportable segment and other business operations: Revenue Recognized Over Time: Segment/ Operations Performance Obligation Description NJNG Natural gas utility sales NJNGs performance obligation is to provide natural gas to residential, commercial and industrial customers as demanded, based on regulated tariff rates, which are established by the BPU. Revenues from the sale of natural gas are recognized in the period th …

RevenueFromContractWithCustomerTextBlock · excerpt; the full note is in the filing

15. REPORTABLE SEGMENT DATA The Company has four reportable segments which are determined based upon a combination of factors, including the nature of business activities, product and service offerings and the regulatory environment in which the businesses operate. NJNG consists of regulated utility operations that provide energy and off-system, capacity and storage management operations primarily to residential and commercial customers; CEV consists of capital investments in clean energy projects, primarily in commercial solar installations; ES consists of unregulated wholesale and retail energy operations and asset management services; S&T consists of the Companys investments in natural gas transportation and storage facilities. The accounting policies of the Company as described in Note 2. Summary of Significant Accounting Policies are the same as those of the reportable segments. Intercompany transactions are eliminated in consolidation. The CODM, the CEO of the Company, uses net income, NFE, as well as various other financial and operational metrics as measures of profitability. Net income is the measure of segment profit or loss that most closely aligns with GAAP. Performance is evaluated based upon profitability and budget and/or forecast-to-actual variances when making decisions about the allocation of resources and capital to segment operations. Information related to the Companys various reportable segments, as of September 30, is detailed below: (Thousands) NJN …

SegmentReportingDisclosureTextBlock · excerpt; the full note is in the filing

2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES Principles of Consolidation The Consolidated Financial Statements include the accounts of the Company and its subsidiaries. All intercompany accounts and transactions have been eliminated. Other financial investments or contractual interests that lack the characteristics of a voting interest entity, which are commonly referred to as variable interest entities, are evaluated by the Company to determine if the entity has the power to direct business activities and, therefore, would be considered a controlling interest that the Company would have to consolidate. Based on those evaluations, NJR has determined that it does not have any investments in variable interest entities as of September 30, 2025, 2024 and 2023. Investments in entities over which the Company does not have a controlling financial interest are accounted for under the equity method. Use of Estimates The preparation of financial statements in conformity with GAAP requires the Company to make estimates that affect the reported amounts of assets, liabilities, revenues, expenses and related disclosure of contingencies during the reporting period. On a quarterly basis, or more frequently whenever events or changes in circumstances indicate a need, the Company evaluates its estimates, including those related to the calculation of equity method investments, lease liabilities, unbilled revenues, allowance for doubtful accounts, provisions for depreciation and amortization, l …

SignificantAccountingPoliciesTextBlock · excerpt; the full note is in the filing

16. DISPOSITIONS In November 2024, CEV completed the sale of its residential solar portfolio to a third party, which primarily included residential solar energy projects and host customer contracts, for a purchase price of $132.5M. The transaction also included a post-closing working capital adjustment and was subject to a transition services agreement. CEV had certain residential solar energy projects under contract and in various stages of development that were transferred to the buyer once the assets became operational. The transfer of these projects commenced in January 2025 and continued throughout fiscal 2025. As of September 30, 2025, CEV received approximately $4.7M related to the transfer of these assets. There were no projects transferred during the three months ended December 31, 2025. During the three months ended December 31, 2024, the Company recognized a pre-tax gain on sale of assets of approximately $54.9M on the Unaudited Condensed Consolidated Statements of Operations. There was no activity during the three months ended December 31, 2025. Also, in connection with the sale, CEV entered into an agreement with the buyer to leaseback certain residential solar energy projects that have not yet passed the fifth anniversary of their placed-in-service dates. The assets are subject to leaseback until the fifth anniversary of the applicable placed-in-service date of the project. The impact of these transactions is considered immaterial to the Companys Unaudited Conde …

BusinessCombinationDisclosureTextBlock · excerpt; the full note is in the filing

13. COMMITMENTS AND CONTINGENT LIABILITIES Cash Commitments NJNG has entered into long-term contracts, expiring at various dates through July 2039, for the supply, transportation and storage of natural gas. These contracts include annual fixed charges of approximately $190.7M at current contract rates and volumes for the remainder of the fiscal year, which are recoverable through BGSS. For the purpose of securing storage and pipeline capacity, ES enters into storage and pipeline capacity contracts, which require the payment of certain demand charges by ES to maintain the ability to access such natural gas storage or pipeline capacity, during a fixed time period, which generally ranges from one to 10 years. Demand charges are established by interstate storage and pipeline operators and are regulated by FERC. These demand charges represent commitments to pay storage providers or pipeline companies for the right to store and/or transport natural gas utilizing their respective assets. Commitments as of December 31, 2025, for natural gas purchases and future demand fees for the next five fiscal year periods are as follows: (Thousands) 2026 2027 2028 2029 2030 Thereafter ES: Natural gas purchases $ 72,429 $ 4,097 $ $ $ $ Storage demand fees 10,351 9,152 6,382 4,375 4,375 5,788 Pipeline demand fees 21,676 50,638 27,640 11,942 10,481 38,192 Sub-total ES $ 104,456 $ 63,887 $ 34,022 $ 16,317 $ 14,856 $ 43,980 NJNG: Natural gas purchases $ 16,591 $ $ $ $ $ Storage demand fees 32,589 35, …

CommitmentsAndContingenciesDisclosureTextBlock · excerpt; the full note is in the filing

9. DEBT NJR and NJNG finance working capital requirements and capital expenditures through various short-term debt and long-term financing arrangements, including a commercial paper program and committed unsecured credit facilities. Credit Facilities and Short-term Debt A summary of NJR's credit facility and NJNG's commercial paper program and credit facility is as follows: At end of period (Thousands) As of date Total borrowing capacity Loans outstanding Weighted average interest rate Remaining borrowing capacity Expiration dates NJR bank revolving credit facility (1) December 31, 2025 $ 575,000 $ 228,700 4.99 % $ 324,776 (2) August 2029 September 30, 2025 $ 575,000 $ 152,600 5.38 % $ 401,018 (2) August 2029 NJNG bank revolving credit facility (3) December 31, 2025 $ 250,000 $ 140,300 3.93 % $ 108,969 (4) August 2029 September 30, 2025 $ 250,000 $ 43,000 4.30 % $ 206,269 (4) August 2029 (1) Committed credit facility, which requires commitment fees of 0.10% on the unused amount. (2) Letters of credit outstanding total approximately $21.5M and $21.4M as of December 31, 2025 and September 30, 2025, respectively, which reduces the amount available by the same amount. (3) Committed credit facility, which requires commitment fees of 0.075% on the unused amount. (4) Letters of credit outstanding total approximately $0.7M as of both December 31, 2025 and September 30, 2025, which reduces the amount available by the same amount. Amounts available under credit facilities are reduced b …

DebtDisclosureTextBlock · excerpt; the full note is in the filing

Disaggregated revenues from contracts with customers by product line and by reportable segment and other business operations during the three months ended December 31, 2025 and 2024, are as follows: (Thousands) NJNG CEV ES S&T HSO Total 2025 Natural gas utility sales (1) $ 374,858 $ 374,858 Natural gas services 12,840 28,080 40,920 Service contracts 9,455 9,455 Installations and maintenance 6,551 6,551 Renewable energy certificates 3,737 3,737 Electricity sales 5,615 5,615 Eliminations (2) (237) (237) Revenues from contracts with customers 374,621 9,352 12,840 28,080 16,006 440,899 Alternative revenue programs (3) (26,256) (26,256) Derivative instruments 61,536 22,408 (4) 106,267 190,211 Revenues out of scope 35,280 22,408 106,267 163,955 Total operating revenues $ 409,901 31,760 119,107 28,080 16,006 $ 604,854 2024 Natural gas utility sales (1) $ 296,402 $ 296,402 Natural gas services 11,947 26,628 38,575 Service contracts 9,232 9,232 Installations and maintenance 6,562 6,562 Renewable energy certificates 2,896 2,896 Electricity sales 5,826 5,826 Eliminations (2) (337) (42) (161) (540) Revenues from contracts with customers 296,065 8,722 11,947 26,586 15,633 358,953 Alternative revenue programs (3) (5,391) (5,391) Derivative instruments 42,754 17,684 (4) 74,361 134,799 Revenues out of scope 37,363 17,684 74,361 129,408 Total operating revenues $ 333,428 26,406 86,308 26,586 15,633 $ 488,361 (1) Includes building rent related to the Wall headquarters, which is eliminated …

DisaggregationOfRevenueTableTextBlock · excerpt; the full note is in the filing

6. FAIR VALUE Fair Value of Assets and Liabilities The fair value of cash and cash equivalents, accounts receivable, current loans receivable, accounts payable, commercial paper and borrowings under revolving credit facilities are estimated to equal their carrying amounts due to the short maturity of those instruments. Notes receivable and noncurrent loans receivable are recorded based on what the Company expects to receive, which approximates fair value. Noncurrent loans receivable are in other noncurrent assets on the Unaudited Condensed Consolidated Balance Sheets. The Company regularly evaluates the credit quality and collection profile of its customers to approximate fair value. The estimated fair value of long-term debt, including current maturities, excluding natural gas meter sale leasebacks, debt issuance costs and solar asset sale leasebacks, is as follows: (Thousands) December 31, 2025 September 30, 2025 Carrying value (1) (2) $ 2,917,845 $ 2,917,845 Fair market value $ 2,613,368 $ 2,631,512 (1) Excludes NJNG's debt issuance costs of approximately $11.1M and $11.3M as of December 31, 2025 and September 30, 2025, respectively. (2) Excludes NJR's debt issuance costs of approximately $2.7M and $2.9M as of December 31, 2025 and September 30, 2025, respectively. The Company enters into sale leaseback transactions for certain commercial solar assets and natural gas meters. These transactions are recorded within long-term debt on the Unaudited Condensed Consolidated Balan …

FairValueDisclosuresTextBlock · excerpt; the full note is in the filing

11. INCOME TAXES ASC Topic 740, Income Taxes requires the use of an estimated annual effective tax rate for purposes of determining the income tax provision during interim reporting periods. In calculating its estimated annual effective tax rate, the Company considers forecasted annual pre-tax income and estimated permanent book versus tax differences. Adjustments to the effective tax rate and management's estimates will occur as information and assumptions change. Changes in tax laws or tax rates are recognized in the financial reporting period that includes the enactment date, the date on which the act is signed into law. Similarly, the tax effect of unusual or infrequent events and transactions are recognized in the financial reporting period in which they occur. These items are excluded from the calculation of the estimated annual effective tax rate and are reported discretely in each interim reporting period. NJR evaluates its tax positions to determine the appropriate accounting and recognition of potential future obligations associated with uncertain tax positions. A tax benefit claimed, or expected to be claimed, on a tax return may be recognized only if it is more likely than not that the tax position will be upheld upon examination by the applicable taxing authority and is measured based on the largest tax benefit that is more than 50% likely to be realized. Interest and penalties related to unrecognized tax benefits, if any, are recognized within income tax expense …

IncomeTaxDisclosureTextBlock · excerpt; the full note is in the filing

12. LEASES Lessee Accounting The Company determines if an arrangement is a lease at inception based on whether the Company has the right to control the use of an identified asset, the right to obtain substantially all of the economic benefits from the use of the asset and the right to direct the use of the asset. After the criteria are satisfied, the Company accounts for these arrangements as leases in accordance with ASC 842, Leases . Right-of-use assets represent the Companys right to use the underlying asset for the lease term and lease liabilities represent the Company's obligation to make lease payments arising from the lease. Right-of-use assets and liabilities are recognized at the lease commencement date based on the present value of lease payments over the lease term, including payments at commencement that depend on an index or rate. Most leases in which the Company is the lessee do not have a readily determinable implicit rate, so an incremental borrowing rate, based on the information available at the lease commencement date, is utilized to determine the present value of lease payments. When a secured borrowing rate is not readily available, unsecured borrowing rates are adjusted for the effects of collateral to determine the incremental borrowing rate. The Company uses the implicit rate for agreements in which it is a lessor. The Company has not entered into any material agreements in which it is a lessor. Lease expense and lease income are recognized on a straig …

LesseeOperatingLeasesTextBlock · excerpt; the full note is in the filing

Recently Adopted Updates to the Accounting Standards Codification Income Taxes In December 2023, the FASB issued ASU No. 2023-09 , an amendment to ASC 740, Income Taxes , which requires disaggregated information about a reporting entitys effective tax rate reconciliation and income taxes paid. It will provide investors more detailed income tax disclosures that would be useful in making capital allocation decisions. The guidance became effective for the Company on October 1, 2025, for the first annual period, and can be applied either prospectively or retrospectively. As the amendments in this update only impact disclosures, there will be no impact on the Companys financial position, results of operations, and cash flows upon adoption. Other Recent Updates to the Accounting Standards Codification Disaggregation of Income Statement Expenses In November 2024, the FASB issued ASU No. 2024-03 , an amendment to ASC 220, Income Statement Reporting , which requires more detailed information about specified categories of expenses included in certain captions presented on the face of the income statement. The guidance becomes effective for the Company on October 1, 2027, for the first annual period and on October 1, 2028, for the interim periods. The Company can elect to apply it either prospectively or retrospectively to all periods presented, with early adoption permitted. The Company is currently evaluating the amendment to understand the impacts on its disclosures upon adoption. In …

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10. EMPLOYEE BENEFIT PLANS Pension and Other Postemployment Benefit Plans In January 2024, the Company announced changes to its postretirement medical benefits plan that replaced the existing retiree medical coverage for certain eligible employees and their dependents with an employer funded Health Reimbursement Arrangement beginning on January 1, 2025. The liability associated with postretirement medical benefits was remeasured as of January 1, 2024. The change in post-retirement medical benefits is being amortized into earnings over approximately eight years, the average remaining service to retirement for all plan participants. The components of the net periodic cost for pension benefits, including the Company's Pension Equalization Plan, and OPEB costs (principally health care and life insurance) for employees and covered dependents were as follows: Pension OPEB Three Months Ended Three Months Ended December 31, December 31, (Thousands) 2025 2024 2025 2024 Service cost $ 1,245 $ 1,381 $ 272 $ 273 Interest cost 3,964 3,858 2,698 2,097 Expected return on plan assets (6,137) (5,925) (2,259) (2,346) Recognized actuarial loss 38 301 2,796 1,793 Prior service cost (credit) amortization (3,270) (3,270) Net periodic benefit (credit) cost $ (890) $ (385) $ 237 $ (1,453) The Company does not expect to make additional contributions to fund the pension plans during fiscal 2026 based on current actuarial assumptions; however, funding requirements are uncertain and can depend significa …

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15. RELATED PARTY TRANSACTIONS In April 2020, NJNG entered into a five-year agreement for 3 Bcf of firm storage capacity with Steckman Ridge, which expired in March 2025. In March 2025, NJNG entered into a two-year agreement for 3 Bcf of firm storage capacity with Steckman Ridge, which expires on March 31, 2027. Under the terms of the new agreement, NJNG incurs demand fees, at market rates, of approximately $6.5M annually, a portion of which is eliminated in consolidation. These fees are recoverable through NJNGs BGSS mechanism and are included as a component of regulatory assets. ES may periodically enter into storage or park and loan agreements with Steckman Ridge. As of December 31, 2025, ES entered into transactions with Steckman Ridge for varying terms, all of which expire by March 31, 2027. Demand fees, net of eliminations, associated with Steckman Ridge were as follows: Three Months Ended December 31, (Thousands) 2025 2024 NJNG $ 1,083 $ 1,524 ES 194 194 Total $ 1,277 $ 1,718 The following table summarizes demand fees payable to Steckman Ridge as of: (Thousands) December 31, 2025 September 30, 2025 NJNG $ 540 $ 540 ES 100 101 Total $ 640 $ 641 NJNG entered into two transportation agreements with Adelphia, each for committed capacity of 130,000 Dths per day. The first is for five years in Zone South with an expiration date of August 8, 2027, and the second is for 15 years in Zone North with an expiration date of October 31, 2038. NJNG and CEV entered into a 15-year subl …

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3. REVENUE Revenue is recognized when a performance obligation is satisfied by transferring control of a product or service to a customer. Revenue is measured based on consideration specified in a contract with a customer using the output method of progress. The Company elected to apply the invoice practical expedient for recognizing revenue, whereby the amounts invoiced to customers represent the value to the customer and the Companys performance completion as of the invoice date. Therefore, the Company does not disclose related unsatisfied performance obligations. The Company also elected the practical expedient to exclude from the transaction price all sales taxes that are assessed by a governmental authority and therefore presents sales tax net in operating revenues on the Unaudited Condensed Consolidated Statements of Operations. Below is a listing of performance obligations that arise from contracts with customers, along with details on the satisfaction of each performance obligation, the significant payment terms and the nature of the goods and services being transferred, by reportable segment and other business operations: Revenue Recognized Over Time: Segment/ Operations Performance Obligation Description NJNG Natural gas utility sales NJNG's performance obligation is to provide natural gas to residential, commercial and industrial customers as demanded, based on regulated tariff rates, which are established by the BPU. Revenues from the sale of natural gas are recog …

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14. REPORTABLE SEGMENT DATA The Company has four reportable segments which are determined based upon a combination of factors, including the nature of business activities, product and service offerings and the regulatory environment in which the businesses operate. NJNG consists of regulated utility operations that provide energy and off-system, capacity and storage management operations primarily to residential and commercial customers; CEV consists of capital investments in clean energy projects, primarily in commercial solar installations; ES consists of unregulated wholesale and retail energy operations and asset management services; S&T consists of the Companys investments in natural gas transportation and storage facilities. The accounting policies of the Company, as described in Note 2. Summary of Significant Accounting Policies , are the same as those of the reportable segments. Intercompany transactions are eliminated in consolidation. The CODM, the Chief Executive Officer of the Company, uses net income and NFE, as well as various other financial and operational metrics as measures of profitability. Net income is the measure of segment profit or loss that most closely aligns with GAAP. Performance is evaluated based upon profitability and budget and/or forecast-to-actual variances when making decisions about the allocation of resources and capital to segment operations. Information related to the Company's various reportable segments during the three months ende …

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2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES The accompanying Unaudited Condensed Consolidated Financial Statements have been prepared by the Company in accordance with the rules and regulations of the U.S. Securities and Exchange Commission and GAAP. The September 30, 2025 Balance Sheet data is derived from the audited financial statements of the Company. These Unaudited Condensed Consolidated Financial Statements should be read in conjunction with the consolidated financial statements and the notes thereto included in the Company's 2025 Annual Report on Form 10-K . The Unaudited Condensed Consolidated Financial Statements include the accounts of NJR and its subsidiaries. In the opinion of management, the accompanying Unaudited Condensed Consolidated Financial Statements reflect all adjustments necessary for a fair presentation of the results of the interim periods presented. These adjustments are of a normal and recurring nature. Because of the seasonal nature of the Company's utility and wholesale energy services operations, in addition to other factors, the financial results for the interim periods presented are not indicative of the results that are to be expected for the fiscal year ending September 30, 2026. Intercompany transactions and accounts have been eliminated. Use of Estimates The preparation of financial statements in conformity with GAAP requires the Company to make estimates that affect the reported amounts of assets, liabilities, revenues, expenses and rel …

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