TXNM Energy (TXNM) Q4 2024 earnings summary

Executive summary

• 2024 ongoing EPS reached $2.74, at the high end of guidance, with GAAP EPS of $2.67, reflecting strong operational and regulatory execution in Texas and New Mexico.

• 2025 ongoing EPS guidance set at $2.74–$2.84, supported by robust Texas growth and phased-in New Mexico rate increases.

• Long-term EPS growth target raised to 7%–9% annually through 2029, supported by expanded grid investments.

• Board approved a 5% dividend increase in December 2024, maintaining a payout ratio target of 50%–60% for 2025.

• Unopposed settlements reached in both PNM's and TNMP's rate cases and system resiliency plan.

Financial highlights

• 2024 ongoing EPS of $2.74 benefited from capital recovery, new retail rates, and improved decommissioning trust performance.

• 2024 GAAP net earnings attributable to TXNM were $242.2M, up from $87.8M in 2023; ongoing net earnings were $247.8M ($2.74/share).

• Dividend payout ratio targeted at 50%–60%; 2025 ongoing EPS guidance midpoint is $2.79.

• Dilution from shares issued in December 2023 lowered per-share earnings.

• 2024 TNMP ongoing EPS was $1.15 (up from $1.11 in 2023); PNM ongoing EPS was $2.16 (down from $2.22 in 2023).

Outlook and guidance

• 2025 ongoing EPS guidance is $2.74–$2.84, with growth weighted to the second half due to phased-in rates.

• Five-year capital investment plan increased to $7.8 billion, a 26% rise, with $4.2 billion for TNMP and $3.4 billion for PNM.

• EPS growth target raised to 7%–9% through 2029, with potential 2029 EPS of $3.86 at the midpoint.

• Regulated rate base projected to grow from $6.7 billion in 2025 to $10.7 billion in 2029 (12.4% CAGR).

• TNMP and PNM expect continued load growth and regulatory support, with major investments in grid modernization, resiliency, and renewable integration.