TXNM Energy, Inc. (NYSE: TXNM) reported full‑year 2025 results that showed GAAP net earnings attributable to the company of $151.4 million, down from $242.2 million in 2024. GAAP diluted earnings per share fell to $1.48 from $2.67, while ongoing diluted EPS remained robust at $2.33, a slight decline from $2.74 in 2024.
The GAAP decline was driven by higher operating expenses, increased depreciation, a $43.1 million cost related to the pending Blackstone Infrastructure transaction, a $58.8 million pension settlement charge, and a $3.4 million net unrealized loss on investment securities—one‑time items that did not affect ongoing performance.
Despite the GAAP dip, TXNM reiterated its ongoing 2025 EPS guidance of $2.74 to $2.84 per share, signaling confidence that the company’s regulated utilities will continue to generate stable earnings. The guidance remains unchanged from the previous quarter, underscoring management’s belief that the acquisition and growth initiatives will support the target range.
The company’s strategic transaction with Blackstone Infrastructure, announced on May 19 2025 and approved by shareholders on August 28 2025, has received FERC and PUCT approvals in February 2026 and is expected to close in the second half of 2026. The deal values TXNM at an enterprise value of $11.5 billion, including net debt, and is expected to provide capital that will accelerate the company’s clean‑energy transition in New Mexico and infrastructure upgrades in Texas.
Segment performance highlights continued growth in TXNM’s regulated utilities. Don Tarry said, "PNM and TNMP continue to grow and we remain focused on meeting our customer needs across New Mexico and Texas, with TNMP supporting a 28% increase in system peak demand and PNM delivering 80% carbon free energy in 2025." PNM delivered 80 % carbon‑free energy in 2025, while TNMP supported a 28 % increase in system peak demand, reflecting strong load growth in Texas. The company’s $7.8 billion, 5‑year capital investment plan focuses on expanding transmission capacity and accelerating renewable projects, positioning TXNM to capture demand growth while maintaining regulatory compliance.
Analysts noted that the acquisition’s premium and the company’s stable regulated revenue base have tempered concerns about the earnings miss, but they also highlighted ongoing headwinds such as cost inflation, pension settlement charges, and the need for additional equity issuance. The market’s focus remains on whether the acquisition will deliver the projected capital infusion and whether the company can sustain its ongoing EPS trajectory amid rising operating costs.
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