TXNM Energy Reports First Quarter 2025 Results
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2025 first quarter GAAP earnings of
$0.10 per diluted share -
2025 first quarter ongoing earnings of
$0.19 per diluted share -
2025 ongoing earnings guidance range of
$2.74 -$2.84 per diluted share affirmed - Lo ng-term earnings per share growth target of 7% to 9%
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Q1 2025 |
Q1 2024 |
GAAP net earnings attributable |
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GAAP diluted EPS |
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Ongoing net earnings |
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Ongoing diluted EPS |
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"Earnings results in the first quarter are on track with full year expectations," said
SEGMENT REPORTING OF 2025 FIRST QUARTER EARNINGS
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PNM – a vertically integrated electric utility in
New Mexico with distribution, transmission and generation assets. -
TNMP – an electric transmission and distribution utility in
Texas . -
Corporate and Other
– reflects the
TXNM Energy holding company and other subsidiaries.
EPS Results by Segment |
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GAAP Diluted EPS |
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Ongoing Diluted EPS |
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Q1 2025 |
Q1 2024 |
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Q1 2025 |
Q1 2024 |
PNM |
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TNMP |
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Corporate and Other |
( |
( |
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( |
( |
Consolidated |
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Net changes to GAAP and ongoing earnings in the first quarter of 2025 compared to the first quarter of 2024 include:
- PNM: Higher retail load, partially offset by lower weather-related usage, was more than offset by lower transmission margins due to market prices, the timing of excess deferred income taxes, increased insurance premiums, the timing of plant outages, higher depreciation, property tax and interest expense associated with new capital investments, and increased demand charges from energy storage agreements added in late 2024.
- TNMP: Rate recovery through and Distribution Cost Recovery Factor (DCRF) and Transmission Cost of Service (TCOS) rate mechanisms and higher retail load including weather-related usage were partially offset by depreciation, property tax and interest expense associated with new capital investments.
- Corporate and Other: Interest expense from holding company debt increased.
GAAP and ongoing earnings per share were reduced in the first quarter of 2025 by additional shares issued in
In addition, GAAP earnings in the first quarter of 2025 included
Additional materials with information on quarterly results are available at
https://www.txnmenergy.com/investors/financial-information/quarterly-reports/2025.aspx.
FIRST QUARTER CONFERENCE CALL:
The conference call will be simultaneously broadcast and archived on our website at https://www.txnmenergy.com/investors/events-and-presentations. Listeners are encouraged to visit the website at least 30 minutes before the event to register, download and install any necessary audio software.
Investors and analysts can participate in the live conference call by pre-registering using the following link: https://dpregister.com/sreg/10198805/feecb0eb77. Telephone participants who are unable to pre-register may participate in the live conference call by dialing (877) 276-8648 or (412) 317-5474 fifteen minutes prior to the event and asking to join the TXNM Energy call.
Background:
CONTACTS: |
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Analysts |
Media |
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Corporate Communications |
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(505) 241-2160 |
(505) 241-2743 |
Safe Harbor Statement under the Private Securities Litigation Reform Act of 1995
Statements made in this news release for
Non-GAAP Financial Measures
GAAP refers to generally accepted accounting principles in the
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PNM |
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TNMP |
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Corporate |
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TXNM |
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(in thousands) |
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Three Months Ended |
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GAAP Net Earnings (Loss) Attributable to TXNM |
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$ 945 |
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$ 22,283 |
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$ (14,305) |
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$ 8,923 |
Adjusting items before income tax effects: |
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Net change in unrealized (gains) and losses on investment securities2a |
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8,233 |
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— |
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— |
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8,233 |
Pension expense related to previously disposed of gas distribution business2c |
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784 |
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— |
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— |
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784 |
Merger related costs2d |
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— |
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— |
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140 |
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140 |
Process improvement initiatives2e |
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216 |
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— |
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1,474 |
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1,690 |
Total adjustments before income tax effects |
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9,233 |
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— |
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1,614 |
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10,847 |
Income tax impact of above adjustments1 |
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(2,345) |
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— |
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(410) |
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(2,755) |
Timing of statutory and effective tax rates on non-recurring items5 |
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1,085 |
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(59) |
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85 |
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1,111 |
Total income tax impacts4 |
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(1,260) |
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(59) |
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(325) |
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(1,644) |
Adjusting items, net of income taxes |
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7,973 |
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(59) |
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1,289 |
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9,203 |
Ongoing Earnings (Loss) |
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$ 8,918 |
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$ 22,224 |
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$ (13,016) |
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$ 18,126 |
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Three Months Ended |
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GAAP Net Earnings (Loss) Attributable to TXNM |
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$ 41,920 |
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$ 14,583 |
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$ (9,313) |
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$ 47,190 |
Adjusting items before income tax effects: |
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Net change in unrealized (gains) and losses on investment securities2a |
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(12,231) |
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— |
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— |
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(12,231) |
Regulatory disallowances2b |
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4,459 |
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— |
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— |
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4,459 |
Pension expense related to previously disposed of gas distribution business2c |
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433 |
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— |
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— |
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433 |
Merger related costs2d |
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3 |
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4 |
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851 |
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858 |
Sale of NMRD3 |
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— |
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— |
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15,097 |
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15,097 |
Total adjustments before income tax effects |
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(7,336) |
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4 |
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15,948 |
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8,616 |
Income tax impact of above adjustments1 |
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1,863 |
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(1) |
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(4,051) |
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(2,189) |
Sale of NMRD3 |
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— |
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— |
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(15,712) |
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(15,712) |
Timing of statutory and effective tax rates on non-recurring items6 |
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(1,625) |
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83 |
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593 |
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(949) |
Total income tax impacts4 |
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238 |
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82 |
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(19,170) |
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(18,850) |
Adjusting items, net of income taxes |
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(7,098) |
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86 |
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(3,222) |
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(10,234) |
Ongoing Earnings (Loss) |
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$ 34,822 |
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$ 14,669 |
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$ (12,535) |
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$ 36,956 |
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1 Tax effects calculated using a tax rate of 21.0% for TNMP and 25.4% for other segments |
2 The pre-tax impacts (in thousands) of adjusting items are reflected on the GAAP Condensed Consolidated Statements of Earnings as |
a Changes in "Gains (losses) on investment securities" reflecting non-cash performance relative to market, not indicative of funding |
b Increase in "Regulatory disallowances" |
c Increases in "Other (deductions)" |
d Increases in "Administrative and general" |
e Increases in "Administrative and general" of |
3 Net gain of |
4 Increases (decreases) in "Income Taxes (Benefits)" |
5 Income tax timing impacts resulting from differences between the statutory rates of 25.4% for PNM, 21.0% for TNMP and the average |
6 Income tax timing impacts resulting from differences between the statutory rates of 25.4% for PNM, 21.0% for TNMP and the average |
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PNM |
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TNMP |
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Corporate |
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TXNM |
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(per diluted share) |
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Three Months Ended |
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GAAP Net Earnings (Loss) Attributable to TXNM |
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$ 0.01 |
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$ 0.24 |
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$ (0.15) |
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$ 0.10 |
Adjusting items, net of income tax effects: |
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Net change in unrealized (gains) and losses on investment securities |
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0.07 |
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— |
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— |
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0.07 |
Process improvement initiatives |
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— |
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— |
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0.01 |
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0.01 |
Timing of statutory and effective tax rates on non-recurring items |
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0.01 |
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— |
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— |
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0.01 |
Total Adjustments |
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0.08 |
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— |
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0.01 |
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0.09 |
Ongoing Earnings (Loss) |
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$ 0.09 |
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$ 0.24 |
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$ (0.14) |
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$ 0.19 |
Average Diluted Shares Outstanding: 93,179,447 |
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Three Months Ended |
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GAAP Net Earnings (Loss) Attributable to TXNM |
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$ 0.46 |
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$ 0.16 |
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$ (0.10) |
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$ 0.52 |
Adjusting items, net of income tax effects: |
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Net change in unrealized (gains) and losses on investment securities |
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(0.10) |
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— |
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— |
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(0.10) |
Sale of NMRD |
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— |
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— |
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(0.05) |
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(0.05) |
Regulatory disallowances |
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0.04 |
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— |
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— |
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0.04 |
Merger related costs |
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— |
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— |
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0.01 |
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0.01 |
Timing of statutory and effective tax rates on non-recurring items |
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(0.02) |
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— |
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0.01 |
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(0.01) |
Total Adjustments |
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(0.08) |
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— |
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(0.03) |
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(0.11) |
Ongoing Earnings (Loss) |
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$ 0.38 |
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$ 0.16 |
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$ (0.13) |
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$ 0.41 |
Average Diluted Shares Outstanding: 90,513,888 |
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Three Months Ended |
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2025 |
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2024 |
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(In thousands, except per |
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Electric Operating Revenues |
$ 482,792 |
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$ 436,877 |
Operating Expenses: |
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Cost of energy |
169,182 |
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132,304 |
Administrative and general |
60,769 |
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55,427 |
Energy production costs |
24,546 |
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22,212 |
Regulatory disallowances |
— |
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4,459 |
Depreciation and amortization |
104,551 |
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93,187 |
Transmission and distribution costs |
25,505 |
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22,764 |
Taxes other than income taxes |
26,350 |
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25,934 |
Total operating expenses |
410,903 |
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356,287 |
Operating income |
71,889 |
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80,590 |
Other Income and Deductions: |
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Interest income |
4,247 |
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4,580 |
Gains (losses) on investment securities |
(1,241) |
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17,998 |
Other income |
4,729 |
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4,911 |
Other (deductions) |
(2,258) |
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(16,522) |
Net other income and deductions |
5,477 |
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10,967 |
Interest Charges |
63,551 |
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53,762 |
Earnings before Income Taxes |
13,815 |
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37,795 |
Income Taxes (Benefits) |
1,018 |
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(12,571) |
Net Earnings |
12,797 |
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50,366 |
(Earnings) Attributable to |
(3,742) |
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(3,044) |
Preferred Stock Dividend Requirements of Subsidiary |
(132) |
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(132) |
Net Earnings Attributable to TXNM |
$ 8,923 |
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$ 47,190 |
Net Earnings Attributable to TXNM per Common Share: |
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Basic |
$ 0.10 |
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$ 0.52 |
Diluted |
$ 0.10 |
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$ 0.52 |
Dividends Declared per Common Share |
$ 0.4075 |
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$ 0.3875 |
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