TXNM Energy Reports Second Quarter 2025 Results

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August 1, 2025 6:30 AM EDT
  • 2025 second quarter GAAP earnings of $0.22 per diluted share
  • 2025 second quarter ongoing earnings of $0.25 per diluted share
  • Proposed transaction with Blackstone Infrastructure expected to close in the second half of 2026

TXNM Energy (In millions, except EPS)


Q2 2025

Q2 2024

YTD 2025

YTD 2024

GAAP net earnings attributable
to TXNM Energy

$21.6

$48.0

$30.5

$95.2

GAAP diluted EPS

$0.22

$0.53

$0.32

$1.05

Ongoing net earnings

$24.5

$54.3

$42.6

$91.3

Ongoing diluted EPS

$0.25

$0.60

$0.45

$1.01

ALBUQUERQUE, N.M., Aug. 1, 2025 /PRNewswire/ -- TXNM Energy (NYSE: TXNM) today released its 2025 second quarter results. Earnings results in the second quarter reflect the issuance of $600 million of equity, including $400 million issued to affiliates of Blackstone Infrastructure Partners L.P. ("Blackstone Infrastructure"), and debt refinancing resulting from the proposed transaction with Blackstone Infrastructure. As previously announced, TXNM Energy is not affirming previously issued earnings guidance for 2025 and does not plan to issue revised earnings guidance during the pending transaction.

"During the second quarter, we achieved constructive regulatory outcomes with significant benefits for our customers, including an unopposed rate stipulation at PNM," said Don Tarry, President and CEO of TXNM Energy. "We are excited about the potential opportunities through our partnership with Blackstone Infrastructure, and we look forward to working through the regulatory processes in New Mexico and Texas to bring those benefits to our customers and communities."

TRANSACTION UPDATE
On May 19, 2025, TXNM announced an agreement under which affiliates of Blackstone Infrastructure will acquire the outstanding common stock of TXNM Energy for $61.25 per share in cash upon closing, reflecting a total enterprise value of $11.5 billion, including net debt (excluding securitization debt) and preferred stock.

The transaction is subject to shareholder approval, along with federal and state-level approvals, and is expected to close in the second half of 2026.

REGULATORY UPDATE
TNMP's first Distribution Cost Recovery Factor ("DCRF") filing for 2025 was approved and implemented in the second quarter, providing recovery for $176 million of rate base. TNMP's second Transmission Cost of Service and DCRF filings for the year were filed in July 2025, seeking recovery for an additional $115 million of combined rate base.

At PNM, the first phase of PNM's previously approved $105 million rate increase was implemented July 1, 2025, with the second phase to be implemented April 1, 2026. Additionally, PNM's unopposed stipulation in its 2028 Resource Application was approved, adding 450 megawatts of new solar and battery storage capacity in 2028.

SEGMENT REPORTING OF 2025 SECOND QUARTER EARNINGS

  • PNM – a vertically integrated electric utility in New Mexico with distribution, transmission and generation assets.

  • TNMP – an electric transmission and distribution utility in Texas.

  • Corporate and Other – reflects the TXNM Energy holding company and other subsidiaries.

EPS Results by Segment


GAAP Diluted EPS


Ongoing Diluted EPS


Q2 2025

Q2 2024


Q2 2025

Q2 2024

PNM

$0.25

$0.34


$0.12

$0.41

TNMP

$0.22

$0.33


$0.27

$0.33

Corporate and Other

($0.25)

($0.14)


($0.14)

($0.14)







Consolidated TXNM Energy

$0.22

$0.53


$0.25

$0.60

Net changes to GAAP and ongoing earnings in the second quarter of 2025 compared to the second quarter of 2024 include:

  • PNM: Higher retail load and the timing of plant outages was more than offset by lower weather-related usage, increased insurance premiums, the timing of excess deferred income taxes, higher depreciation, property tax and interest expense associated with new capital investments and increased demand charges from energy storage agreements added in late 2024.

  • TNMP: Rate recovery through the Distribution Cost Recovery Factor (DCRF) rate mechanism and higher retail load were partially offset by lower weather-related usage and depreciation and interest expense associated with new capital investments.

GAAP and ongoing earnings per share were reduced in the second quarter of 2025 by additional shares issued in December 2024 and the second quarter of 2025.

In addition, GAAP earnings in the second quarter of 2025 included $16.6 million of net unrealized gains on investment securities compared to $5.6 million of net unrealized losses in the second quarter of 2024. GAAP earnings in the second quarter of 2025 included $19.5 million of costs related to the planned acquisition, including interest expense impacts at TNMP related to the prepayment of bonds and the backstop credit facility.

Background:
TXNM Energy (NYSE: TXNM), an energy holding company based in Albuquerque, New Mexico, delivers energy to more than 800,000 homes and businesses across Texas and New Mexico through its regulated utilities, TNMP and PNM. For more information, visit the company's website at www.TXNMEnergy.com.

CONTACTS:



Analysts                                     


Media


Lisa Goodman                                        


Corporate Communications


(505) 241-2160                                          


(505) 241-2743

Safe Harbor Statement under the Private Securities Litigation Reform Act of 1995
Statements made in this press release that relate to future events or expectations, projections, estimates, intentions, goals, targets, and strategies are made pursuant to the Private Securities Litigation Reform Act of 1995.  These forward-looking statements generally include statements regarding the potential transaction between TXNM Energy and Blackstone Infrastructure, including any statements regarding the expected timetable for completing the potential transaction, the ability to complete the potential transaction, the expected benefits of the potential transaction, projected financial information, future opportunities, and any other statements regarding TXNM Energy's and Blackstone Infrastructure's future expectations, beliefs, plans, objectives, results of operations, financial condition and cash flows, or future events or performance. Readers are cautioned that all forward-looking statements are based upon current expectations and estimates. Neither Blackstone Infrastructure nor TXNM Energy assumes any obligation to update this information. Because actual results may differ materially from those expressed or implied by these forward-looking statements, TXNM Energy caution readers not to place undue reliance on these statements. TXNM Energy's business, financial condition, cash flow, and operating results are influenced by many factors, which are often beyond its control, that can cause actual results to differ from those expressed or implied by the forward-looking statements. For a discussion of risk factors and other important factors affecting forward-looking statements, please see TXNM Energy's Form 10-K and Form 10-Q filings and the information filed on TXNM Energy's Forms 8-K with the Securities and Exchange Commission (the "SEC"), which factors are specifically incorporated by reference herein and the risks and uncertainties related to the proposed transaction with Blackstone Infrastructure, including, but not limited to: the expected timing and likelihood of completion of the pending transaction, including the timing, receipt and terms and conditions of any required governmental and regulatory approvals of the pending transaction that could reduce anticipated benefits or cause the parties to abandon the transaction, the occurrence of any event, change or other circumstances that could give rise to the termination of the transaction agreement, including in circumstances requiring the Company to pay a termination fee, the possibility that TXNM Energy's shareholders may not approve the transaction agreement, the risk that the parties may not be able to satisfy the conditions to the proposed transaction in a timely manner or at all, the outcome of legal proceedings that may be instituted against TXNM Energy, its directors and others related to the proposed transaction, risks related to disruption of management time from ongoing business operations due to the proposed transaction, the risk that the proposed transaction and its announcement could have an adverse effect on the ability of TXNM Energy to retain and hire key personnel and maintain relationships with its customers and suppliers, and on its operating results and businesses generally, the amount of costs, fees, charges or expenses resulting from the proposed transaction, and the risk that the price of TXNM Energy's common stock may fluctuate during the pendency of the proposed transaction and may decline significantly if the proposed transaction is not completed. Other unpredictable or unknown factors not discussed in this communication could also have material adverse effects on forward-looking statements. Readers are cautioned not to place undue reliance on these forward-looking statements that speak only as of the date hereof.

Non-GAAP Financial Measures
GAAP refers to generally accepted accounting principles in the U.S. Ongoing earnings is a non-GAAP financial measure that excludes the impact of net unrealized mark-to-market gains and losses on economic hedges, the net change in unrealized gains and losses on investment securities, pension expense related to previously disposed of gas distribution business, and certain non-recurring, infrequent, and other items that are not indicative of fundamental changes in the earnings capacity of the Company's operations. The Company uses ongoing earnings and ongoing earnings per diluted share to evaluate the operations of the Company and to establish goals, including those used for certain aspects of incentive compensation, for management and employees. While the Company believes these financial measures are appropriate and useful for investors, they are not measures presented in accordance with GAAP. The Company does not intend for these measures, or any piece of these measures, to represent any financial measure as defined by GAAP. Furthermore, the Company's calculations of these measures as presented may or may not be comparable to similarly titled measures used by other companies. Reconciliations between GAAP and ongoing earnings are contained in schedules 1-4.

 

TXNM Energy, Inc. and Subsidiaries

Schedule 1

Reconciliation of GAAP to Ongoing Earnings

(Unaudited)




PNM


TNMP


Corporate
and Other


TXNM
Consolidated



(in thousands)

Three Months Ended June 30, 2025









GAAP Net Earnings (Loss) Attributable to TXNM


$     24,362


$     20,968


$   (23,754)


$          21,576

Adjusting items before income tax effects:









Net change in unrealized (gains) losses on investment securities2a


(16,617)


—


—


(16,617)

Rate Request settlement2b


1,500


—


—


1,500

Pension expense related to previously disposed of gas distribution business2c


784


—


—


784

Process improvement initiatives2d


227


—


155


382

Merger related costs2e


17


6,771


12,751


19,539

Total adjustments before income tax effects


(14,089)


6,771


12,906


5,588

Income tax impact of above adjustments1


3,578


(1,422)


(3,278)


(1,122)

 Timing of statutory and effective tax rates on non-recurring items4


(2,753)


84


1,129


(1,540)

Total income tax impacts3


825


(1,338)


(2,149)


(2,662)

Adjusting items, net of income taxes


(13,264)


5,433


10,757


2,926

Ongoing Earnings (Loss)


$     11,098


$     26,401


$   (12,997)


$          24,502










Six Months Ended June 30, 2025









GAAP Net Earnings (Loss) Attributable to TXNM


$     25,307


$     43,251


$   (38,059)


$          30,499

Adjusting items before income tax effects:









Net change in unrealized (gains) losses on investment securities2a


(8,383)


—


—


(8,383)

Rate Request settlement2b


1,500


—


—


1,500

Pension expense related to previously disposed of gas distribution business2c


1,568


—


—


1,568

Process improvement initiatives2d


443


—


155


598

Merger related costs2e


17


6,771


14,364


21,152

Total adjustments before income tax effects


(4,855)


6,771


14,519


16,435

Income tax impact of above adjustments1


1,233


(1,422)


(3,689)


(3,878)

 Timing of statutory and effective tax rates on non-recurring items4


(1,668)


25


1,215


(428)

Total income tax impacts3


(435)


(1,397)


(2,474)


(4,306)

Adjusting items, net of income taxes


(5,290)


5,374


12,045


12,129

Ongoing Earnings (Loss)


$     20,017


$     48,625


$   (26,014)


$          42,628


1 Tax effects calculated using a tax rate of 21.0% for TNMP and 25.4% for other segments

2 The pre-tax impacts (in thousands) of adjusting items are reflected on the GAAP Condensed Consolidated Statements of Earnings as follows:

a Changes in "Gains on investment securities" reflecting non-cash performance relative to market, not indicative of funding requirements

b Increases in "Administrative and general"

c Increases in "Other (deductions)" 

d Increases in "Energy production costs" of less than $0.1 million and $0.2 million, in "Transmission and distribution costs" of less than
     $0.1 million and $0.1 million, and in "Administrative and general" of $0.1 million and $0.1 million for the three and six months ended
     June 30, 2025 at PNM and increase of $0.2 million in "Administrative and general" at Corporate and Other for the three and six
     months ended June 30, 2025

e Increases in "Administrative and general" of $0.1 million and in "Interest charges" of $6.7 million at TNMP for the three and six months
     ended June 20 2025; Increases in "Administrative and general" at Corporate and Other of $12.8 million and $14.4 million for the
     three and six months ended June 20, 2025. Amounts for the six months ended June 30, 2025 have been adjusted by $1.5 million for
     Merger related costs that were previously reported as process improvement initiatives at March 31, 2025

3 Increases (decreases) in "Income Taxes (Benefits)"

4 Income tax timing impacts resulting from differences between the statutory rates of 25.4% for PNM, 21.0% for TNMP and the average
     expected statutory tax rate of 22.7% for TXNM, and the GAAP anticipated effective tax rates of 9.4% for PNM, 20.5% for TNMP, and
     13.4% for TXNM, which will reverse by year end

 

TXNM Energy, Inc. and Subsidiaries

Schedule 2

Reconciliation of GAAP to Ongoing Earnings

(Unaudited)




PNM


TNMP


Corporate
and Other


TXNM
Consolidated



(in thousands)

Three Months Ended June 30, 2024









GAAP Net Earnings (Loss) Attributable to TXNM


$     30,787


$     29,925


$   (12,663)


$          48,049

Adjusting items before income tax effects:









Net change in unrealized (gains) losses on investment securities2a


5,573


—


—


5,573

Regulatory disallowances2b


246


—


—


246

Pension expense related to previously disposed of gas distribution business2c


433


—


—


433

Merger related costs2d


131


(26)


800


905

Total adjustments before income tax effects


6,383


(26)


800


7,157

Income tax impact of above adjustments1


(1,621)


5


(203)


(1,819)

 Timing of statutory and effective tax rates on non-recurring items5


1,626


(83)


(593)


950

Total income tax impacts4


5


(78)


(796)


(869)

Adjusting items, net of income taxes


6,388


(104)


4


6,288

Ongoing Earnings (Loss)


$     37,175


$     29,821


$   (12,659)


$          54,337










Six Months Ended June 30, 2024









GAAP Net Earnings (Loss) Attributable to TXNM


$     72,707


$     44,508


$   (21,976)


$          95,239

Adjusting items before income tax effects:









Net change in unrealized (gains) losses on investment securities2a


(6,658)


—


—


(6,658)

Regulatory disallowances2b


4,705


—


—


4,705

Pension expense related to previously disposed of gas distribution business2c


866


—


—


866

Merger related costs2d


134


(22)


1,650


1,762

Sale of NMRD3


—


—


15,097


15,097

Total adjustments before income tax effects


(953)


(22)


16,747


15,772

Income tax impact of above adjustments1


243


4


(4,254)


(4,007)

Sale of NMRD3


—


—


(15,712)


(15,712)

Total income tax impacts4


243


4


(19,966)


(19,719)

Adjusting items, net of income taxes


(710)


(18)


(3,219)


(3,947)

Ongoing Earnings (Loss)


$     71,997


$     44,490


$   (25,195)


$          91,292


1Tax effects calculated using a tax rate of 21.0% for TNMP and 25.4% for other segments

2 The pre-tax impacts (in thousands) of adjusting items are reflected on the GAAP Condensed Consolidated Statement of Earnings as follows:

a Changes in "Gains on investment securities" reflecting non-cash performance relative to market, not indicative of funding requirements

b Decreases in "Electric Operating Revenue" of $0.2 million for the three and six months ended June 30, 2024 and an increase in
     "Regulatory disallowances" of zero and $4.5 million for the three and six months ended June 30, 2024

c Increases in "Other (deductions)"









d Increases (decreases) in "Administrative and general"









3 Net gain of $4.4 million on the sale of NMRD: Increase in "Other (deductions)" of $15.1 million, decrease in "Income Taxes (Benefits)"
     of $3.8 million for federal income tax and a decrease in "Income Taxes (Benefits)" of $15.7 million for investment tax credits

4 Increases (decreases) in "Income Taxes (Benefits)"

5 Income tax timing impacts resulting from differences between the statutory rates of 25.4% for PNM, 21.0% for TNMP and the average
     expected statutory tax rate of 23.4% for PNMR, and the GAAP anticipated effective tax rates of 14.3% for PNM, 20.7% for TNMP, and
     15.3% for PNMR, which have reversed

 

TXNM Energy, Inc. and Subsidiaries

Schedule 3

Reconciliation of GAAP to Ongoing Earnings Per Diluted Share

(Unaudited)




PNM


TNMP


Corporate
and Other


TXNM
Consolidated



(per diluted share)

Three Months Ended June 31, 2025









GAAP Net Earnings (Loss) Attributable to TXNM


$         0.25


$         0.22


$       (0.25)


$              0.22

Adjusting items, net of income tax effects:









Net change in unrealized (gains) losses on investment securities


(0.13)


—


—


(0.13)

Rate Request settlement


0.01


—


—


0.01

Pension expense related to previously disposed of gas distribution business


0.01


—


—


0.01

Merger related costs


—


0.05


0.10


0.15

 Timing of statutory and effective tax rates on non-recurring items


(0.02)


—


0.01


(0.01)

Total Adjustments


(0.13)


0.05


0.11


0.03

Ongoing Earnings (Loss)


$         0.12


$         0.27


$       (0.14)


$              0.25

Average Diluted Shares Outstanding: 96,196,269


















Six Months Ended June 30, 2025









GAAP Net Earnings (Loss) Attributable to TXNM


$         0.27


$         0.46


$       (0.41)


$              0.32

Adjusting items, net of income tax effects:









Net change in unrealized (gains) losses on investment securities


(0.07)


—


—


(0.07)

Rate Request settlement


0.01


—


—


0.01

Pension expense related to previously disposed of gas distribution business


0.01


—


—


0.01

Process improvement initiatives


—


—


0.01


0.01

Merger related costs


—


0.05


0.12


0.17

Timing of statutory and effective tax rates on non-recurring items


(0.01)


—


0.01


—

Total Adjustments


(0.06)


0.05


0.14


0.13

Ongoing Earnings (Loss)


$         0.21


$         0.51


$       (0.27)


$              0.45

Average Diluted Shares Outstanding: 94,637,324






 

TXNM Energy, Inc. and Subsidiaries

Schedule 4

Reconciliation of GAAP to Ongoing Earnings Per Diluted Share

(Unaudited)




PNM


TNMP


Corporate
and Other


TXNM
Consolidated



(per diluted share)

Three Months Ended June 30, 2024









GAAP Net Earnings (Loss) Attributable to TXNM


$         0.34


$         0.33


$       (0.14)


$              0.53

Adjusting items, net of income tax effects:









Net change in unrealized (gains) losses on investment securities


0.05


—


—


0.05

Merger related costs


—


—


0.01


0.01

 Timing of statutory and effective tax rates on non-recurring items


0.02


—


(0.01)


0.01

Total Adjustments


0.07


—


—


0.07

Ongoing Earnings (Loss)


$         0.41


$         0.33


$       (0.14)


$              0.60

Average Diluted Shares Outstanding: 90,552,082















Six Months Ended June 30, 2024









GAAP Net Earnings (Loss) Attributable to TXNM


$         0.80


$         0.49


$       (0.24)


$              1.05

Adjusting items, net of income tax effects:









Net change in unrealized (gains) losses on investment securities


(0.05)


—


—


(0.05)

Sale of NMRD


—


—


(0.05)


(0.05)

Regulatory disallowances


0.04


—


—


0.04

Pension expense related to previously disposed of gas distribution business


0.01


—


—


0.01

Merger related costs


—


—


0.01


0.01

Total Adjustments


—


—


(0.04)


(0.04)

Ongoing Earnings (Loss)


$         0.80


$         0.49


$       (0.28)


$              1.01

Average Diluted Shares Outstanding: 90,532,986






 

TXNM Energy, Inc. and Subsidiaries

Schedule 5

Condensed Consolidated Statements of Earnings

(Unaudited)



Three Months Ended
June 30,


Six Months Ended
June 30,


2025


2024


2025


2024


(In thousands, except per share amounts)









Electric Operating Revenues

$   502,420


$   488,102


$   985,212


$  924,979

Operating Expenses:








Cost of energy

167,622


154,706


336,804


287,010

Administrative and general

75,991


59,581


136,760


115,008

Energy production costs

26,081


24,584


50,627


46,796

Regulatory disallowances

—


—


—


4,459

Depreciation and amortization

105,235


94,413


209,786


187,600

Transmission and distribution costs

26,461


25,051


51,966


47,815

Taxes other than income taxes

28,329


24,084


54,679


50,018

  Total operating expenses

429,719


382,419


840,622


738,706

  Operating income

72,701


105,683


144,590


186,273

Other Income and Deductions:








Interest income

3,872


4,470


8,119


9,050

Gains on investment securities

23,556


558


22,315


18,556

Other income

5,704


7,688


10,433


12,599

Other (deductions)

(6,481)


(1,636)


(8,739)


(18,158)

  Net other income and deductions

26,651


11,080


32,128


22,047

Interest Charges

72,013


55,828


135,564


109,590

Earnings before Income Taxes

27,339


60,935


41,154


98,730

Income Taxes (Benefits)

1,326


8,971


2,344


(3,600)

Net Earnings

26,013


51,964


38,810


102,330

(Earnings) Attributable to Valencia Non-controlling Interest

(4,305)


(3,783)


(8,047)


(6,827)

Preferred Stock Dividend Requirements of Subsidiary

(132)


(132)


(264)


(264)

Net Earnings Attributable to TXNM

$     21,576


$     48,049


$     30,499


$    95,239

Net Earnings Attributable to TXNM per Common Share:








Basic

$         0.22


$         0.53


$         0.32


$        1.05

Diluted

$         0.22


$         0.53


$         0.32


$        1.05

Dividends Declared per Common Share

$     0.4075


$     0.3875


$     0.8150


$    0.7750

 

 

Cision View original content to download multimedia:https://www.prnewswire.com/news-releases/txnm-energy-reports-second-quarter-2025-results-302519323.html

SOURCE TXNM Energy, Inc.


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