TXNM Energy, Inc.

TXNM Energy reported ongoing earnings per share of $0.19 for Q1 2025. Management said the result was consistent with expectations and reflected the fact that new PNM rate recovery does not begin until the second half of the year. They reaffirmed full-year 2025 guidance at $2.74 to $2.84 per share and maintained the long-term EPS growth target of 7% to 9%. The company also said the capital plan was unchanged from February, with TNMP’s system resiliency plan approved for $540 million of capital investments through 2027, and that it expects a commission decision on the PNM rate case in May or June ahead of a July 1 implementation date.

Pat Vincent-Collawn emphasized that the company is still executing on a multi-year growth and infrastructure buildout in both Texas and New Mexico. She highlighted regulatory wins, especially the approval of TNMP’s resiliency plan and progress on PNM’s unopposed stipulation, and framed recent state legislation as supportive of future utility investment and wildfire preparedness. Her tone was upbeat and confident, with repeated emphasis on customer service, reliability, and long-term growth.

Lisa Eden said first-quarter ongoing EPS of $0.19 was consistent with expectations and reflected no new PNM rate recovery yet in the quarter. She said earnings benefited from TCOS and DCRF recovery at TNMP and retail load growth at both utilities, while offsets included new demand charges from energy storage agreements at PNM, lower transmission margins, higher insurance, and outage timing. She reaffirmed full-year guidance of $2.74 to $2.84, said third quarter should account for more than half of annual EPS, and noted tariffs are expected to have about a 2% impact as the company updates capital allocation and prioritization.

Analysts focused on how Texas legislation could affect TNMP, and management said House Bill 5247 would be beneficial because it reduces regulatory lag by allowing costs to be deferred and earned on more like the system resiliency recovery mechanism. They also said TNMP qualifies under the bill’s 300% above depreciation requirement. Other questions centered on the upcoming TNMP base rate case, with management saying the case is primarily about rate design and capital structure, and on parent-level debt, where Lisa Eden said the company has time because most of the term loan does not mature until mid next year.