TXNM Energy Reports 2025 Results, Transaction and Regulatory Updates

Financial Performance - TXNM Energy reported GAAP net earnings of $151.4 million for 2025, a decrease from $242.2 million in 2024, resulting in a GAAP diluted EPS of $1.48 compared to $2.67 in the previous year [1][9] - Ongoing net earnings for 2025 were $238.9 million, down from $247.8 million in 2024, with ongoing diluted EPS at $2.33, down from $2.74 [1][9] - The decrease in earnings was attributed to shares issued as part of forward sales agreements and other costs related to the planned transaction with Blackstone Infrastructure [11][12] Transaction with Blackstone Infrastructure - TXNM Energy announced an agreement on May 19, 2025, for Blackstone Infrastructure to acquire its outstanding common stock at $61.25 per share [3] - Shareholders approved the transaction on August 28, 2025, and regulatory approvals have been received from the Federal Energy Regulatory Commission and the Public Utility Commission of Texas [4] - The acquisition is expected to close in the second half of 2026, pending additional regulatory approvals [5] Regulatory Updates - Texas New Mexico Power (TNMP) filed a general rate proceeding with the PUCT, requesting recovery of $2.8 billion of rate base and a return on equity of 10.4% [6] - Public Service Company of New Mexico (PNM) filed applications for two economic development projects and a new transmission line, with estimated costs of $165.5 million and $247 million, respectively [7][8] Segment Reporting - In 2025, PNM's GAAP diluted EPS was $0.85, down from $2.12 in 2024, while TNMP's GAAP diluted EPS increased to $1.21 from $1.14 [11] - Corporate and Other segment reported a GAAP loss of $0.58 per share, slightly improved from a loss of $0.59 in 2024 [11] Future Outlook - TXNM Energy's CEO emphasized the importance of the proposed transaction with Blackstone Infrastructure for supporting growth and transitioning to clean energy in New Mexico [2] - PNM initiated its 2026 Integrated Resource Plan process, which will cover a 20-year planning period from 2026 to 2046 [10]