TXNM Energy (TXNM) Q2 2024 earnings summary

Executive summary

• Q2 2024 ongoing EPS reached $0.60, up from $0.55 year-over-year, exceeding expectations; GAAP EPS was $0.53.

• 2024 EPS guidance reaffirmed at $2.65–$2.75, with long-term 6%-7% annual EPS growth targeted through 2028.

• Name change to TXNM Energy and new ticker TXNM effective August 5, 2024, reflecting TNMP's growing importance.

• Major weather events, including Hurricane Beryl and wildfires, tested system resiliency and restoration efforts.

• PNMR serves over 800,000 customers in New Mexico and Texas, focusing on reliable, affordable, and environmentally responsible power.

Financial highlights

• Q2 2024 ongoing EPS was $0.60, GAAP EPS $0.53; ongoing net earnings were $54.3M, GAAP net earnings $48.0M.

• YTD 2024 ongoing EPS was $1.01, GAAP EPS $1.05; net earnings were $95.2M, down from $100.3M in 2023.

• Electric operating revenues for Q2 2024 were $488.1M, up from $477.2M in Q2 2023; six-month revenues were $924.98M.

• Dividend declared per share was $0.3875 for Q2 2024, up from $0.3675; six-month dividend was $0.7750.

• TNMP and PNM segments saw EPS growth from rate relief, load growth, and improved trust performance, offset by higher depreciation and interest expense.

Outlook and guidance

• 2024 ongoing EPS guidance range reaffirmed at $2.65–$2.75 per diluted share.

• Long-term target of 10% rate base growth and 6%-7% EPS growth through 2028 maintained.

• PNM's 2025 rate request seeks phased base rate increases starting July 2025, with a proposed ROE of 10.45%.

• TNMP plans further transmission and distribution rate increases and additional revenue filings.

• PNMR projects $6.8B in consolidated capital requirements for 2024–2028, including construction and dividends.