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TXNM Energy Reports Third Quarter 2025 Results

On October 31, 2025, TXNM Energy (NYSE: TXNM) released its financial results for the third quarter of 2025, showcasing notable metrics amidst their ongoing efforts to secure a strategic acquisition with Blackstone Infrastructure. This transaction is set to be pivotal as TXNM Energy aims to enhance its operational capacity and customer satisfaction across Texas and New Mexico.

Financial Highlights

For the third quarter of 2025, TXNM Energy reported:

• - GAAP Earnings: $130.7 million
• - GAAP Earnings per Share (EPS): $1.22, down from the previous year's $1.45
• - Ongoing Earnings: $142.8 million
• - Ongoing EPS: $1.33, slightly below $1.43 from Q3 2024

The company noted that the earnings reflect the first phase of the rate increases approved in New Mexico, as well as newly initiated transmission recoveries in Texas. President and CEO Don Tarry remarked on the significance of these results, stating, "We have initiated the regulatory approval process for our transaction with Blackstone Infrastructure with filings that address the key issues raised during our conversations with local stakeholders and community groups."

Acquisition Update

In an essential development for TXNM, shareholders approved the acquisition by Blackstone Infrastructure on August 28, 2025, which will see Blackstone acquire the common stock of TXNM Energy for $61.25 per share. This acquisition is still subject to various regulatory approvals, including those from the New Mexico Public Regulation Commission, the Public Utility Commission of Texas, and other federal agencies. The closing is anticipated in the latter half of 2026, pending the fulfillment of necessary conditions.

Regulatory Approval Process

Throughout Q3 2025, TXNM Energy made significant regulatory strides. One of the major highlights was the approval of TNMP's second Transmission Cost of Service (TCOS) filing, allowing for the recovery of $87 million of rate base. Additionally, a new Distribution Cost Recovery Factor (DCRF) application was filed to seek recovery for an additional $28 million aimed at bolstering distribution infrastructure.

The momentum does not stop there. PNM will construct energy storage systems totaling 30 megawatts at existing solar facilities. This initiative is backed by a PNM application filed on August 6, 2025, estimated at a cost of $78 million, aimed at enhancing grid flexibility and aiding in summer peak demands.

Segment Performance Overview

The financial results from the different segments of TXNM Energy for Q3 2025 are as follows:

• - PNM (New Mexico):

- GAAP EPS: $0.95 (down from $1.20 in Q3 2024)
- Ongoing EPS: $0.98 (previously $1.18)

• - TNMP (Texas):

- GAAP EPS: $0.38
- Ongoing EPS: $0.46, slightly better than prior year Q3

• - Corporate and Other:

- Notably, the segment reflected lower interest expense owing to reduced debt balances, facilitating improved earnings.

Looking Ahead

The strategic acquisition alongside regulatory advancements is aimed not only at bolstering TXNM's operational capabilities but also improving overall shareholder value. As the company pushes forward, it remains focused on constructive dialogues with regulators and community representatives to ensure a beneficial outcome for all stakeholders involved.

In conclusion, TXNM Energy continues to navigate the complexities of the energy market while delivering solid financial results in Q3 2025. The collaborative efforts with Blackstone Infrastructure and focus on regulatory compliance and community engagement are pillars for future growth.

For more detailed insights on TXNM Energy's operations, visit their official website at www.TXNMEnergy.com.