On November 1, 2024, TXNM Energy Inc (TXNM, Financial) released its 8-K filing detailing its third quarter 2024 financial results. TXNM Energy Inc, a holding company that owns regulated utility companies, provides energy to homes and businesses across Texas and New Mexico through its subsidiaries, PNM and TNMP.
Performance Overview
TXNM Energy Inc reported GAAP earnings of $1.45 per diluted share for the third quarter of 2024, surpassing the analyst estimate of $1.40. The company also reported ongoing earnings of $1.43 per diluted share, slightly below the previous year's $1.54. Despite challenges such as lower transmission margins and increased depreciation expenses, the company managed to achieve a significant increase in GAAP net earnings, reaching $131.2 million compared to $37.7 million in the same quarter last year.
Financial Achievements and Industry Impact
The company's financial achievements are noteworthy in the regulated utilities sector, where stable and predictable earnings are crucial. The approval of PNM’s Grid Modernization Plan and TNMP’s System Resiliency Plan underscores TXNM Energy's commitment to enhancing grid reliability and resilience, which is vital for meeting customer energy needs in Texas and New Mexico.
Key Financial Metrics
TXNM Energy's income statement reveals a robust performance with GAAP net earnings attributable to the company increasing significantly year-over-year. The balance sheet reflects strategic capital investments, although these have led to higher depreciation and interest expenses. The cash flow statement indicates a solid financial position, supporting ongoing and future infrastructure investments.
| Metric | Q3 2024 | Q3 2023 |
|---|---|---|
| GAAP Net Earnings (in millions) | $131.2 | $37.7 |
| GAAP Diluted EPS | $1.45 | $0.44 |
| Ongoing Net Earnings (in millions) | $129.3 | $132.9 |
| Ongoing Diluted EPS | $1.43 | $1.54 |
Segment Performance
Segment-wise, PNM reported a GAAP diluted EPS of $1.20, a significant increase from $0.09 in Q3 2023, driven by new retail rates and improved trust performance. TNMP, however, saw a decrease in GAAP diluted EPS from $0.46 to $0.39, impacted by lower weather-related demand and increased expenses. The Corporate and Other segment reported a loss, reflecting higher interest rates and reduced income from the sale of NMRD.
Management Commentary
“We’re pleased with our third quarter results,” said Pat Vincent-Collawn, TXNM Energy Chairman and CEO. “The recent approval of PNM’s Grid Modernization Plan moves New Mexico forward with a focus on strategic investments benefiting customers. These new tools, combined with those in TNMP’s filed System Resiliency Plan, demonstrate our commitment to a reliable and resilient grid to meet our customers’ energy needs across New Mexico and Texas.”
Analysis and Outlook
TXNM Energy's performance in the third quarter of 2024 highlights its ability to navigate market challenges while maintaining a focus on strategic investments. The narrowing of the 2024 ongoing earnings guidance to $2.70 - $2.75 per diluted share reflects management's confidence in sustaining financial stability. However, the company must continue to address challenges such as weather impacts and regulatory changes to ensure long-term growth and profitability.
For more detailed financial information, investors can access additional materials on TXNM Energy's website.
Explore the complete 8-K earnings release (here) from TXNM Energy Inc for further details.
