PUBLIC SERVICE CO OF NEW MEXICO (PNMXO)·Q3 2025 Earnings Summary

Executive Summary

• Q3 2025 PNM segment earnings were solid but below prior-year on a per‑share basis due to dilution: PNM GAAP EPS $0.95 (vs $1.20) and ongoing EPS $0.98 (vs $1.18), while consolidated GAAP EPS was $1.22 and ongoing EPS $1.33 .
• Consolidated electric operating revenues rose 13.7% y/y to $647.2M, but GAAP EPS declined y/y (to $1.22 from $1.45) as higher O&M, depreciation, property taxes, interest expense, and share issuance offset rate relief; ongoing EPS was $1.33 (vs $1.43) .
• Management is not affirming prior 2025 earnings guidance during the pending Blackstone Infrastructure acquisition; shareholders approved the $61.25 cash deal, with regulatory filings submitted and closing anticipated 2H26, subject to approvals .
• Regulatory tailwinds continue: PNM’s New Mexico rate phase‑in began, TNMP’s 2025 TCOS approval added $87M of recoverable rate base, and a $28M DCRF request was filed; PNM also filed a CCN for 30 MW of storage (~$78M) .
• Key stock catalysts center on regulatory milestones for the Blackstone deal, progression of rate mechanisms in NM/TX, and clarity on 2025/2026 earnings trajectory once guidance resumes .

What Went Well and What Went Wrong

What Went Well

• Rate relief and regulatory execution: Implementation of the first phase of approved PNM rates and newly approved TNMP transmission recovery supported results in Q3 .
• TNMP momentum: Segment ongoing EPS improved to $0.46 (vs $0.39 y/y), reflecting DCRF/TCOS recovery and higher retail load .
• Strategic/transaction progress: Shareholders approved the $61.25 per share Blackstone Infrastructure acquisition; applications were filed with NMPRC, PUCT, and FERC with closing anticipated in 2H26, subject to approvals .

What Went Wrong

• Dilution weighed on per‑share results: EPS was reduced by shares issued from a $150M 2024 forward sale and $800M equity in June/August 2025, contributing to y/y EPS decline despite revenue growth .
• Cost pressure and weather: PNM cited lower weather-driven usage and higher O&M, depreciation, property tax, interest expense, and increased demand charges from storage agreements added in late 2024 .
• Non‑GAAP adjustments: GAAP Q3 included $2.1M net unrealized losses on investment securities (vs $9.5M gains y/y) and $14.0M merger‑related costs, while Q3 2024 included $6.1M regulatory disallowances .

Financial Results

Consolidated (TXNM Energy) Year-over-Year

Notes: Consolidated results provide context for PNM segment performance. Management is not affirming 2025 guidance during the pending transaction .

PNM Segment EPS (per diluted share)

PNM Segment KPI Trend (Quarterly)

Values marked with * retrieved from S&P Global.

Segment Breakdown – EPS Contribution

Guidance Changes

Earnings Call Themes & Trends

(Transcript unavailable in our source set for Q3 and Q2; themes below reflect press releases.)

Management Commentary

• “Third quarter results incorporate the implementation of the first phase of approved rates in New Mexico and newly approved transmission recovery in Texas, along with additional equity issued during the quarter.” – Don Tarry, President & CEO .
• “We have initiated the regulatory approval process for our transaction with Blackstone Infrastructure… We look forward to continued conversations through the regulatory process and achieving the best path forward to invest in positive outcomes for our customers and communities across New Mexico and Texas.” – Don Tarry .
• Management reiterated it will not affirm prior 2025 guidance and does not plan to issue revised guidance during the pending transaction .

Q&A Highlights

• Earnings call transcript for Q3 2025 was not available in our source set; no Q&A details to report [Search attempted; no transcript found].

Estimates Context

• Wall Street consensus (S&P Global) for PNMXO Q3 2025 EPS and revenue was unavailable in our dataset; therefore, formal beat/miss versus consensus cannot be determined. Where segment financials are shown (e.g., PNM revenues, EBIT), those values are from S&P Global and marked with an asterisk above (Values retrieved from S&P Global).
• Consolidated results show y/y revenue growth but y/y EPS pressure due to dilution and cost headwinds, which may prompt the Street to reassess 2025 run‑rate pending guidance resumption and regulatory developments .

Key Takeaways for Investors

• PNM’s per‑share results declined y/y on dilution and cost pressures despite regulatory rate relief; consolidated ongoing EPS was $1.33 vs $1.43 y/y as higher O&M, D&A, taxes, interest, and lower weather usage weighed on margins .
• Regulatory momentum is favorable: PNM rate phase‑in began; TNMP secured 2025 TCOS approval (+$87M rate base) with a 7/31 DCRF filing (+$28M), supporting forward earnings resiliency .
• Capital deployment continues with a 30 MW storage CCN (~$78M), aligning with grid flexibility and summer peak needs in New Mexico .
• Guidance uncertainty is the near‑term overhang; management is not affirming 2025 guidance during the Blackstone process, raising the importance of regulatory milestones and interim run‑rate signals .
• The Blackstone $61.25/share cash deal remains the central medium‑term catalyst; filings at NMPRC/PUCT/FERC are in, with closing anticipated in 2H26 subject to approvals—each docket step could drive spread volatility .
• Weather normalization and ongoing demand charges from storage agreements (added late 2024) are cost/usage variables to monitor into 2026 .
• Dividend progression continues (Q3 2025 declared $0.4075 vs $0.3875 y/y), offering some income support while the strategic process unfolds .

---

Sources:

• Q3 2025 8‑K (Item 2.02) and Exhibit 99.1 press release, including segment EPS and consolidated financials .
• Q1 2025 8‑K (Item 2.02) for prior‑period context and guidance posture .
• Q4/FY 2024 8‑K for historical context .
• S&P Global data used where marked with an asterisk in KPI trend table (Values retrieved from S&P Global).