Financial Performance - Electric operating revenues for the three months ended September 30, 2024, were $647.162 million, an increase from $569.256 million in the same period of 2025, representing a growth of approximately 13.7%[18] - Net earnings attributable to TXNM for the three months ended September 30, 2024, were $130.710 million, slightly down from $131.202 million in 2025, indicating a decrease of approximately 0.4%[18] - The diluted earnings per share for the three months ended September 30, 2024, was $1.22, compared to $1.45 in the same period of 2025, showing a decline of about 15.9%[18] - Net earnings for the three months ended September 30, 2025, were $136,304, compared to $136,398 for the same period in 2024, reflecting a slight decrease of 0.07%[21] - For the nine months ended September 30, 2025, net earnings were $175,114, down 26.6% from $238,728 in 2024[21] - Comprehensive income attributable to TXNM for the three months ended September 30, 2025, was $132,349, an increase of 3.9% from $127,703 in 2024[21] Operating Expenses - Total operating expenses for the nine months ended September 30, 2024, were $1.284914 billion, compared to $1.116882 billion in 2025, reflecting an increase of about 15.1%[18] - Total operating expenses for Q3 2025 were $328,319,000, up 20.5% from $272,510,000 in Q3 2024[36] - Total operating expenses for the three months ended September 30, 2025, amounted to $444,292 thousand, with significant costs in administrative and general expenses totaling $59,900 thousand[88] Dividends - The company declared dividends of $0.4075 per common share for the three months ended September 30, 2024, up from $0.3875 in 2025, marking an increase of approximately 5.5%[18] - The company declared dividends of $0.4075 per share for the third quarter of 2025, an increase from $0.3875 per share in the same quarter of 2024[75] Interest Charges - Interest charges for the nine months ended September 30, 2024, totaled $205.713 million, compared to $169.254 million in 2025, representing an increase of about 21.5%[18] - Interest Charges for Q3 2025 were $33,805,000, an increase from $27,852,000 in Q3 2024, representing a rise of 21.9%[36] - Interest charges for the nine months ended September 30, 2025, were $66,018,000, up from $43,711,000 in 2024, representing an increase of 51.1%[57] Cash Flow and Assets - Cash flows from operating activities for the nine months ended September 30, 2025, were $426,790, an increase of 22.1% compared to $349,521 in 2024[23] - Total current assets as of September 30, 2025, were $595,436, up 19.4% from $498,836 at the end of 2024[29] - Cash, cash equivalents, and restricted cash at the end of the period were $39,984, up from $16,436 at the end of 2024, representing a growth of 143.5%[26] - Total current assets rose to $454,383,000 as of September 30, 2025, up from $410,908,000 at the end of 2024, reflecting an increase of approximately 10.6%[48] Debt and Liabilities - Long-term borrowings increased significantly to $3,153,600 for the nine months ended September 30, 2025, compared to $1,233,000 in 2024, reflecting a growth of 156.5%[26] - Total liabilities decreased to $8,498,660 as of September 30, 2025, from $8,616,919 at the end of 2024, a reduction of 1.4%[31] - Total liabilities as of September 30, 2025, were $5,468,335,000, compared to $5,211,552,000 at the end of 2024, representing an increase of approximately 4.9%[50] Investments and Modernization - The company is pursuing a grid modernization plan with investments of approximately $344 million over the first six years of an 11-year strategy[14] - TXNM's $1.0 billion unsecured delayed-draw term loan matures on May 18, 2025, indicating a significant financing strategy for future operations[15] Mergers and Agreements - The merger agreement with TXNM and Blackstone Infrastructure Partners is expected to enhance operational efficiencies and market reach[14] - A merger agreement was entered into on May 18, 2025, for TXNM to merge with Merger Sub, a direct, wholly-owned subsidiary of Parent[68] Regulatory and Environmental Compliance - The New Mexico Energy Transition Act mandates that investor-owned electric utilities achieve a renewable portfolio of 40% by 2025, 50% by 2030, 80% by 2040, and 100% zero-carbon energy by 2045[203] - The Clean Air Act requires states to establish goals for improving visibility in national parks and develop long-term strategies for reducing emissions of air pollutants[208] Miscellaneous - The company expects to adopt new accounting standards related to income tax disclosures by the end of 2025[78] - TXNM is currently facing merger-related litigation alleging misrepresentation in its preliminary proxy statement regarding a merger[194]
TXNM Energy, Inc.(TXNM) - 2025 Q3 - Quarterly Report