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TXNM

TXNM Energy, Inc.

TXNM

TXNM Energy, Inc. • NYSE
$58.45 ▲ 0.52% (+0.30)
Market Cap $6.37 B
52w High $58.45
52w Low $45.71
Dividend Yield 1.63%
P/E 32.47
Volume 395.32K
Outstanding Shares 108.92M

Income Statement

Period Revenue Operating Expense Net Income Net Profit Margin Earnings Per Share EBITDA
Q3-2025 $647.162M ▲ $96.63M ▼ $130.842M ▲ 20.218% ▲ $1.41 ▲ $351.252M ▲
Q2-2025 $502.42M ▲ $104.32M ▲ $21.708M ▲ 4.321% ▲ $0.23 ▲ $221.471M ▲
Q1-2025 $482.792M ▲ $87.119M ▼ $9.055M ▼ 1.876% ▼ $0.096 ▼ $192.903M ▲
Q4-2024 $476.964M ▼ $91.864M ▲ $15.845M ▼ 3.322% ▼ $0.17 ▼ $188.314M ▼
Q3-2024 $569.256M $90.806M $131.334M 23.071% $1.45 $327.038M

Balance Statement

Period Cash & Short-term Total Assets Total Liabilities Total Equity
Q3-2025 $32.066M ▼ $11.972B ▲ $8.499B ▲ $3.428B ▲
Q2-2025 $35.78M ▲ $11.675B ▲ $8.447B ▼ $3.182B ▲
Q1-2025 $14.164M ▲ $11.391B ▼ $8.828B ▼ $2.516B ▼
Q4-2024 $4.498M ▼ $11.548B ▲ $8.953B ▲ $2.548B ▲
Q3-2024 $7.235M $10.843B $8.324B $2.472B

Cash Flow Statement

Period Net Income Cash From Operations Cash From Investing Cash From Financing Net Change Free Cash Flow
Q3-2025 $130.842M ▲ $281.995M ▲ $-279.221M ▼ $-314K ▼ $-3.714M ▼ $4.684M ▲
Q2-2025 $20.968M ▲ $3.538M ▼ $-266.29M ▲ $284.383M ▲ $21.616M ▲ $-262.638M ▼
Q1-2025 $12.797M ▼ $141.257M ▼ $-345.009M ▲ $197.56M ▼ $9.666M ▲ $-201.367M ▼
Q4-2024 $19.994M ▼ $158.639M ▼ $-368.514M ▼ $215.524M ▲ $-2.737M ▼ $-182.889M ▼
Q3-2024 $131.334M $179.997M $-326.36M $142.479M $4M $-143.698M

Five-Year Company Overview

Income Statement

Income Statement Over the past five years, revenue has been fairly steady with a temporary dip and a recent recovery. What stands out more than sales is the gradual improvement in profitability from operations: gross profit and operating earnings have generally trended higher, suggesting better cost control and benefits from new investments. That said, net income has been more uneven. Earnings dropped notably a couple of years ago and then bounced back, but they still do not fully match the improvement seen at the operating level. This gap likely reflects higher interest costs from rising debt and heavier depreciation from recent capital projects. Overall, the business looks stable on the revenue side, with underlying operations improving, but bottom‑line profits are still catching up to the bigger balance sheet and investment program.

Balance Sheet

Balance Sheet The balance sheet shows a classic regulated utility profile: a large and steadily growing asset base funded by a mix of debt and equity. Assets have increased each year as the company invests heavily in transmission and distribution infrastructure. Debt has risen faster than equity, which means leverage is creeping up. Equity is growing, but at a slower pace than borrowings. This is common in capital‑intensive utilities, but it does increase sensitivity to interest rates and regulatory decisions about allowed returns. Cash on hand is minimal, implying reliance on credit lines and capital markets rather than large cash reserves. In short, the company is asset‑rich and increasingly leveraged, with financial strength closely tied to constructive regulation and ongoing access to funding.

Cash Flow

Cash Flow Cash generation from operations has been steady and reasonably solid, which is what you would expect from a regulated wires‑and‑poles utility with predictable customer demand. The main story in the cash flows is very heavy capital spending. The company is pouring a lot of cash into the grid, more than it earns from operations each year, which leads to consistently negative free cash flow. This pattern is typical in a build‑out phase for utilities, but it means the business must regularly tap debt (and potentially equity) to fund its investment plans and any dividends. The sustainability of this approach depends on timely cost recovery in rates and continued support from lenders and regulators.

Competitive Edge

Competitive Edge TXNM, through its regulated transmission and distribution operations, effectively holds a natural monopoly in its service territories. It owns the poles and wires that customers must use, even though retail power supply in Texas is competitive. This structure creates a stable customer base and relatively predictable revenue, subject to regulatory oversight. Barriers to entry are very high: building parallel networks is uneconomic, and regulation tightly controls who can operate. Long operating history and local community relationships further strengthen its position. The main competitive risks are not from rivals building new grids, but from regulatory, political, and weather‑related pressures that can affect allowed returns, required investments, and the pace of cost recovery.

Innovation and R&D

Innovation and R&D Innovation is showing up less as traditional research spending and more as large, targeted investments in grid technology and resiliency. The upgraded high‑tech control room, with advanced visualization and control platforms, reflects a push to run the system more safely and efficiently. The multi‑year resiliency plan—including circuit hardening, automation on distribution lines, wildfire and flood mitigation, sophisticated vegetation management, and stronger cyber and physical security—aims to reduce outages and protect assets from extreme weather and other threats. On top of that, TXNM is involved in transmission expansion projects to support fast‑growing regions of Texas and enable more renewable energy connections, while also running energy efficiency and solar interconnection programs. These efforts position the company as more than just a basic wires provider, potentially improving reliability, customer satisfaction, and regulatory goodwill, even though they require heavy upfront capital.

Summary

TXNM looks like a traditional regulated electric utility in a heavy investment phase. On the income side, revenue is stable and operating performance has improved, but net earnings have been choppy, likely weighed down by rising interest and depreciation from an expanding asset base. The balance sheet is strong in terms of physical assets, but leverage is climbing, tying the company more tightly to favorable regulation and credit conditions. Cash flows from operations are steady, yet ongoing, sizable capital projects keep free cash flow negative, forcing continued reliance on external financing. Competitively, the business benefits from a natural monopoly structure and long‑standing local presence, with limited direct competitive threats but meaningful exposure to regulatory and weather risks. Strategically, TXNM is leaning into grid modernization, resiliency, and transmission expansion, supporting long‑term reliability and the broader transition toward cleaner energy. The key watch points are execution on these projects, regulatory treatment of the large investment program, and careful management of rising leverage and funding needs.

NEWS

November 17, 2025 · 6:30 AM UTC

TNMP Files Base Rate Review

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November 14, 2025 · 7:30 PM UTC

Public Service Company of New Mexico Declares Preferred Dividend

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October 31, 2025 · 6:30 AM UTC

TXNM Energy Reports Third Quarter 2025 Results

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September 23, 2025 · 4:15 PM UTC

TXNM Energy Board Declares Quarterly Common Stock Dividend

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