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TXNM Energy First Quarter 2025 Results

On May 9, 2025, TXNM Energy (NYSE: TXNM) disclosed its earnings results for the first quarter of 2025. The company reported a GAAP net earning of $8.9 million, equating to $0.10 per diluted share, alongside $18.1 million in ongoing net earnings, translating to $0.19 per diluted share. These results reflect a substantial decrease compared to the same period last year, when GAAP earnings reached $47.2 million and ongoing earnings were $37 million.

Detailed Financial Overview

In the detailed earnings report, TXNM Energy noted specific challenges impacting its financials. The reported figures for Q1 2025 show a marked decline from Q1 2024, which is largely attributed to various operational factors. For instance, the company's operations in New Mexico through Public Service Company of New Mexico (PNM) experienced a reduction in profitability due to an increase in retail load offset by decreased transmission margins and higher operational costs. Consequently, PNM's GAAP diluted earnings per share fell from $0.46 in Q1 2024 to just $0.01 in Q1 2025, despite higher ongoing earnings per share moving from $0.38 to $0.09.

Conversely, Texas-New Mexico Power Company (TNMP) demonstrated more resilience in its financial performance. TNMP reported an increase in both GAAP and ongoing diluted earnings per share from $0.16 to $0.24 year-over-year, consolidating the robust demand for electric transmission in Texas. This growth stemmed from effective cost recovery mechanisms alongside rising retail load, including seasonal weather factors.

In the holding company and other segments, TXNM Energy did witness a dip, with a GAAP loss of $0.15 per share for the corporate division due to growing interest expenses. This area reported losses persistently attributed to holding company debt management.

Operational Insights and Future Guidance

TXNM Energy has affirmed its ongoing earnings guidance for 2025, estimating a range between $2.74 to $2.84 per diluted share, and substantiated its commitment to achieving long-term earnings growth of 7% to 9%. CEO Pat Collawn characterized the first quarter performances as progressing well according to the company's broader strategy.

"Earnings results in the first quarter are on track with full year expectations," he stated, emphasizing a focus on meeting customer needs while diligently managing capital investments. The strategic emphasis remains on operational excellence while navigating the regulatory landscape to optimize performance in its regulated utility segments, TNMP and PNM.

Conference Call Details

The company plans to elucidate these financial results and subsequent strategies during its conference call on May 9, 2025, at 11 a.m. Eastern Time. This session will host key executives, including CEO Pat Collawn, COO Don Tarry, and CFO Lisa Eden. Stakeholders are encouraged to join the call for real-time insights into TXNM's operational performance and strategic direction going forward.

A detailed link for conference call participation is available on TXNM's investor relations webpage. Investors and analysts wishing to dial in can register in advance or join using the provided contact numbers.

Overall, while TXNM Energy's Q1 2025 earnings display a challenging landscape, the company's long-term strategic plan and operational adjustments aim to stabilize and improve performance in the upcoming quarters, thus reinforcing its commitment to stakeholders and operational integrity in the energy market.