TXNM Energy reported third‑quarter 2025 financial results, posting GAAP net earnings of $130.7 million and diluted earnings per share of $1.22, compared with $131.2 million and $1.45 in the same quarter of 2024. Ongoing earnings rose to $142.8 million, with ongoing EPS of $1.33, up from $129.3 million and $1.43 in the prior year, driven by the first phase of approved rates in New Mexico and newly approved transmission recovery in Texas.
The company declined to reaffirm its 2025 earnings guidance and will not issue revised guidance while the transaction with Blackstone Infrastructure is pending. The acquisition, announced on May 19 2025 and approved by shareholders on August 28 2025, values TXNM Energy at an enterprise value of $11.5 billion and includes a $400 million investment in newly issued common stock at $50 per share.
Regulatory filings for the quarter included an $87 million transmission cost‑of‑service recovery and a $28 million distribution cost‑recovery factor. An application for a $78 million investment in 30 megawatts of storage was approved by the New Mexico Public Regulation Commission on August 6 2025. Adjusting items included a $2.1 million net unrealized loss on investment securities and $14 million in acquisition‑related costs, offset by a $9.5 million unrealized gain recorded in the prior year.
GAAP earnings missed analyst estimates of $1.51 per share, while ongoing EPS fell short of the $1.52 consensus. The decline in GAAP EPS was attributed to lower weather‑related usage, higher operating and maintenance costs, increased depreciation, and higher interest and property‑tax expenses associated with new capital investments. The reduction in EPS was also driven by the issuance of shares under 2024 forward‑sales agreements ($150 million) and additional shares issued in June and August 2025 ($800 million).
Segment performance showed PNM contributing $70 million in earnings and TNMP contributing $60 million, reflecting the impact of the new rate approvals and storage investment. The company’s regulatory approvals and the pending acquisition are expected to support long‑term growth and stability in its regulated utility operations.
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