TXNM Energy (TXNM) Q3 2024 earnings summary

Executive summary

• Q3 2024 GAAP net earnings were $131.2 million ($1.45 per share), up from $37.7 million ($0.44 per share) in Q3 2023; ongoing EPS was $1.43, down from $1.54.

• 2024 ongoing EPS guidance narrowed to $2.70–$2.75, with a 6%–7% annual growth target through 2028.

• Major investments in grid modernization, resiliency, and renewable integration are underway, supported by DOE funding and regulatory approvals.

• TNMP's $600 million system resiliency plan and PNM's $174.3 million 2025 rate request support infrastructure and wildfire mitigation.

• The company is committed to a carbon-free generation portfolio by 2040 and continues to invest in customer-focused programs.

Financial highlights

• YTD 2024 GAAP net earnings were $226.4 million ($2.50 per share), up from $138.0 million ($1.60 per share) YTD 2023; ongoing YTD EPS was $2.44, down from $2.65.

• Q3 2024 electric operating revenues were $569.3 million, up from $505.9 million in Q3 2023.

• $100 million in equity raised YTD via ATM; $550 million in term loans refinanced with junior subordinated convertible bonds.

• Capital plan updated to include $600 million for TNMP’s System Resiliency Plan and $344 million for PNM’s grid modernization.

• Cash flows from operating activities for the nine months ended September 30, 2024, were $349.5 million.

Outlook and guidance

• 2024 ongoing EPS guidance narrowed to $2.70–$2.75, with 6%–7% annual EPS growth targeted through 2028.

• Consolidated capital requirements projected at $6.9 billion for 2024–2028, including construction and dividends.

• Average $100 million equity issuance per year planned to fund capital investments through 2028.

• Incremental CapEx from ERCOT projects ($600–$900 million) expected to be additive starting 2026–2027.

• PNM's 2025 rate request seeks phased implementation of base rate increases and recovery of investments.