PUBLIC SERVICE CO OF NEW MEXICO (PNMXO)·Q1 2025 Earnings Summary

Executive Summary

• Q1 2025 delivered modest profitability with consolidated GAAP EPS of $0.10 and ongoing EPS of $0.19; management affirmed full-year ongoing EPS guidance of $2.74–$2.84 and the long-term EPS growth target of 7%–9% .
• Revenue grew year-over-year to $482.8M (+10.5% y/y), but EPS declined versus Q1 2024 due to lower transmission margins, higher D&A, property taxes and interest tied to capital investments, adverse mark-to-market on investment securities, and timing-related tax effects .
• Segment mix remained favorable at TNMP (ongoing EPS +50% y/y), offset by significantly lower PNM ongoing EPS as regulatory/timing and storage demand charges weighed; share count from a Dec-2024 issuance diluted both GAAP and ongoing EPS .
• Near-term catalyst: progress on PNM’s unopposed New Mexico retail rate-case stipulation and continued Texas rate recovery (TCOS/DCRF) underpinning the maintained 2025 outlook .

What Went Well and What Went Wrong

What Went Well

• TNMP execution: Ongoing EPS rose to $0.24 from $0.16 (+50% y/y) on rate recovery via DCRF/TCOS and higher retail load, partially offset by higher D&A, property tax, and interest from new investments .
• Revenue growth: Consolidated Electric Operating Revenues increased to $482.8M from $436.9M (+10.5% y/y), reflecting load and rate dynamics across the portfolio .
• Management confidence: “Earnings results in the first quarter are on track with full year expectations… TNMP reflects another quarter of strong growth… and PNM’s unopposed rate case stipulation continues to move through the regulatory approval process” — Chair/CEO Pat Collawn .

What Went Wrong

• PNM headwinds: Ongoing EPS fell to $0.09 from $0.38 as higher retail load was more than offset by lower transmission margins, timing of excess deferred taxes, higher insurance, timing of plant outages, and higher D&A, property taxes, interest, plus increased demand charges from late-2024 storage agreements .
• Investment securities drag: GAAP earnings included $8.2M net unrealized losses on investment securities vs $12.2M gains a year ago, compressing GAAP EPS to $0.10 (vs $0.52) .
• Dilution: Additional shares issued in December 2024 reduced both GAAP and ongoing EPS per share, adding pressure to per-share metrics despite revenue growth .

Financial Results

Consolidated – Year over Year (Q1)

EPS – Sequential (Consolidated)

Segment Results – EPS (Per Diluted Share)

Segment Results – Ongoing Net Earnings ($USD Thousands)

Selected KPIs (Consolidated – Income Statement)

Guidance Changes

Earnings Call Themes & Trends

Note: A Q1 2025 earnings call was scheduled, but a transcript was not available in our corpus; themes below reflect management disclosures across recent press releases.

Management Commentary

• “Earnings results in the first quarter are on track with full year expectations… TNMP reflects another quarter of strong growth and capital recovery, and PNM's unopposed rate case stipulation continues to move through the regulatory approval process” — Pat Collawn, Chair & CEO .
• Non-GAAP framework: Ongoing EPS excludes unrealized MTM on hedges, changes in unrealized gains/losses on investment securities, certain pension expense and other non-recurring items; reconciliations provided in schedules .

Q&A Highlights

• No Q1 2025 earnings call transcript was available in our document set; therefore, specific Q&A themes, tone shifts, or guidance clarifications from the call could not be analyzed .

Estimates Context

• Wall Street consensus (S&P Global) for Q1 2025 EPS and revenue for Public Service Co. of New Mexico (PNMXO) was not available in the retrieved dataset; as a result, we benchmark results versus prior periods and disclosed guidance. Values retrieved from S&P Global.

Key Takeaways for Investors

• 2025 outlook intact: Full-year ongoing EPS guidance of $2.74–$2.84 and 7%–9% LT EPS growth reaffirm confidence despite near-term PNM headwinds .
• TNMP remains the growth engine: Strong DCRF/TCOS recovery and load growth drove y/y EPS acceleration; expect continued contribution as Texas capex programs proceed .
• PNM headwinds are identifiable and largely timing/market driven: Lower transmission margins, timing of taxes, higher D&A/taxes/interest and storage demand charges pressured Q1; rate-case stipulation progress is the key mitigant to watch .
• Quality of earnings: Unrealized losses on investment securities materially affected GAAP; ongoing EPS better reflects underlying utility operations, but dilution from Dec-2024 equity remains a headwind to per-share growth .
• Revenue growth but margin compression: Revenues rose 10.5% y/y; operating income declined y/y amid higher operating costs and interest burden, highlighting the importance of regulatory recovery and throughput growth .
• Near-term catalyst path: Finalization of PNM’s NM rate outcome and continued Texas filings should underpin earnings trajectory and support the affirmed FY guide .
• Dividend trajectory steady: Quarterly dividend moved to $0.4075 (from $0.3875 y/y), consistent with a regulated utility profile and outlook stability .

Supporting Citations

• Q1 2025 8‑K/Press release: consolidated and segment results, guidance affirmation, CEO quote, reconciliations .
• Q4 2024 8‑K/Press release: 2025 guidance introduction, LT growth target, capex plan increase .
• Q3 2024 8‑K/Press release: Grid Modernization plan, sequential/seasonal comps, segment context .