TXNM Energy Q3 ongoing EPS rises on rate relief, higher demand

Overview

• US regulated utility's Q3 ongoing EPS rose yr/yr to $1.62

• GAAP diluted EPS for Q3 increased to $1.50 from $1.22 last year

• Company expects Blackstone Infrastructure acquisition to close in first half of 2027

Outlook

• TXNM Energy does not plan to issue earnings guidance during pendency of proposed Blackstone transaction

Result Drivers

• RATE RELIEF - Co said Q3 results benefited from approved rate increases at both PNM and TNMP

• HIGHER RETAIL LOAD - Co said record-breaking summer heat led to increased energy demand and new system peaks

• NEW CAPITAL INVESTMENTS - Co said higher depreciation, property tax and interest expense from new capital investments partially offset earnings gains

Company press release:

Key Details

Analyst Coverage

• The current average analyst rating on the shares is "hold" and the breakdown of recommendations is 1 "strong buy" or "buy", 3 "hold" and no "sell" or "strong sell"

• The average consensus recommendation for the electric utilities peer group is "buy."

• Wall Street's median 12-month price target for TXNM Energy Inc is $61.00, about 4% above its October 29 closing price of $58.65

• The stock recently traded at 18 times the next 12-month earnings vs. a P/E of 18 three months ago

Reuters Recommended Reads

• Oct 28 - American Electric Power Q3 revenue rises 13.7%, beats estimates

• Oct 27 - CenterPoint Energy Q3 adjusted EPS beats estimates, raises 2026 outlook

• Oct 29 - Xcel Energy Q3 profit rises on electric infrastructure recovery, narrows outlook

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(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)