TXNM ENERGY INC (TXNM): Results of Operations and Financial Condition
TXNM ENERGY INC (TXNM) filed an SEC Form 8-K — Results of Operations and Financial Condition. Exhibit 99.1 ALBUQUERQUE, N.M. July 31, 2026 TXNM Energy Reports Second Quarter 2026 Results • 2026 second quarter GAAP earnings of $0.64 per diluted share • 2026 second quarter ongoing earnings of $0.58 per diluted share • Acquisition agreement extended; TNMP rate increase appro
How this was made
The 30-second read
Why it matters
Q2 results show higher earnings year over year, while the acquisition agreement has been extended to May 31, 2027 to allow additional regulatory approvals. Separately, PNM’s 2029-2032 resource portfolio filing and TNMP’s PUCT-approved base rate settlement provide context for future rate recovery.
Market read
This 8-K combines a fresh earnings datapoint with a concrete extension of the pending acquisition timeline, which can shift both fundamental expectations and deal-spread pricing.
What to watch
The filing notes planned acquisition costs and GAAP impacts from share issuance; traders may underweight how interim rates and depreciation/property tax/interest expense trends affect forward earnings quality.
TXNM Energy Reports Second Quarter 2026 Results
Second-quarter GAAP diluted EPS was $0.64 versus $0.22 in Q2 2025, while ongoing diluted EPS was $0.58 versus $0.25. PNM and TNMP both reported higher GAAP and ongoing EPS, supported by retail-load growth and rate-recovery mechanisms. The company is not issuing earnings guidance during the pending Blackstone Infrastructure transaction.
Key metrics
as reported| Metric | Value | q/q | y/y |
|---|---|---|---|
| GAAP net earnings attributable to TXNM EnergyGAAP | $71.3 | – | – |
| GAAP diluted EPSGAAP | $0.64 | – | – |
| Ongoing net earningsnon-GAAP | $64.1 | – | – |
| Ongoing diluted EPSnon-GAAP | $0.58 | – | – |
| Year-to-date GAAP net earnings attributable to TXNM EnergyGAAP | $75.0 | – | – |
| Year-to-date GAAP diluted EPSGAAP | $0.67 | – | – |
| Year-to-date ongoing net earningsnon-GAAP | $88.0 | – | – |
| Year-to-date ongoing diluted EPSnon-GAAP | $0.79 | – | – |
| PNM GAAP diluted EPSGAAP | $0.41 | – | – |
| PNM ongoing diluted EPSnon-GAAP | $0.30 | – | – |
| TNMP GAAP diluted EPSGAAP | $0.36 | – | – |
| TNMP ongoing diluted EPSnon-GAAP | $0.39 | – | – |
| Corporate and Other GAAP diluted EPSGAAP | ($0.13) | – | – |
| Corporate and Other ongoing diluted EPSnon-GAAP | ($0.11) | – | – |
| Net unrealized gains on investment securities included in GAAP earningsGAAP | $16.1 million | – | – |
| Costs related to the planned acquisition included in GAAP earningsGAAP | $7.2 million | – | – |
What drove it
- PNM earnings reflected rate relief from the approved 2025 Rate Request, higher retail load, higher transmission revenues, timing of plant outages and increased performance on investment securities.
- TNMP earnings reflected rate recovery through the Distribution Cost Recovery Factor and Transmission Cost of Service rate mechanisms, revenues recorded under Texas House Bill 5247, impacts of interim rates and higher retail load.
- Corporate and Other earnings benefited from lower interest expense due to lower debt balances.
- PNM filed its 2029-2032 Resource Portfolio Application seeking a portfolio including 800 MW of wind PPAs, 240 MW of solar PPAs, 610 MW of battery storage agreements, a 40 MW expansion of PNM-owned natural gas generation, and abandonment and exit of PNM's interest in Four Corners in 2031.
- The TNMP rate-review settlement approved by the PUCT provides recovery of $2.8 billion of rate base, a return on equity of 9.65% and a 45% equity ratio.
Concerns
- Higher depreciation, property tax and interest expense associated with new capital investments partially offset earnings at both PNM and TNMP.
- PNM also faced increased demand charges from energy storage agreements added in late 2025.
- GAAP and ongoing earnings per share were reduced by shares issued in June and August 2025 and in March and May 2026.
- The Blackstone Infrastructure acquisition remains subject to approval from the NMPRC and federal regulatory approvals.
- TXNM Energy does not plan to issue earnings guidance during pendency of the proposed transaction with Blackstone Infrastructure.
What to watch
- PUCT interim rates relate back to May 22, 2026, and final approved TNMP rates are scheduled to be implemented on September 13, 2026.
- NMPRC consideration of PNM's 2029-2032 Resource Portfolio Application, which addresses projected resource shortfalls beginning in 2029.
- Remaining Nuclear Regulatory Commission and NMPRC approvals for the Blackstone Infrastructure transaction.
- TXNM Energy anticipates closing of the acquisition in the first half of 2027, subject to remaining customary closing conditions.
Analysis
TXNM Energy reported materially higher second-quarter earnings than in Q2 2025. GAAP net earnings attributable to TXNM Energy were $71.3 versus $21.6, and GAAP diluted EPS was $0.64 versus $0.22. Ongoing net earnings were $64.1 versus $24.5, while ongoing diluted EPS was $0.58 versus $0.25. Year-to-date GAAP diluted EPS was $0.67 versus $0.32, and year-to-date ongoing diluted EPS was $0.79 versus $0.45.
The two regulated utility operations both improved on an EPS basis. PNM reported GAAP diluted EPS of $0.41 and ongoing diluted EPS of $0.30, compared with $0.25 and $0.12, respectively, in Q2 2025. Its reported drivers were approved-rate relief, higher retail load, higher transmission revenues, plant-outage timing and investment-security performance. TNMP reported GAAP diluted EPS of $0.36 and ongoing diluted EPS of $0.39, compared with $0.22 and $0.27, respectively, supported by its rate mechanisms, Texas House Bill 5247 revenues, interim-rate impacts and higher retail load.
The release identifies the cost side of the utility growth program as an offset. Higher depreciation, property tax and interest expense associated with new capital investments affected both PNM and TNMP. PNM also incurred increased demand charges from energy storage agreements added in late 2025. Corporate and Other improved to GAAP diluted EPS of ($0.13) from ($0.25), with lower interest expense due to lower debt balances identified as the driver.
GAAP results included $16.1 million of net unrealized gains on investment securities and $7.2 million of planned-acquisition costs, compared with $16.6 million and $19.5 million, respectively, in Q2 2025. The company also stated that shares issued in June and August 2025 and in March and May 2026 reduced second-quarter 2026 GAAP and ongoing EPS. These items are relevant to the gap between reported GAAP and ongoing results and to per-share comparability.
Regulatory execution is central to the next phase. The PUCT approved TNMP's rate-review settlement, including recovery of $2.8 billion of rate base, a return on equity of 9.65% and a 45% equity ratio. PNM's resource application addresses projected shortfalls beginning in 2029 through proposed wind, solar, battery-storage and natural-gas resources, alongside its planned Four Corners exit in 2031. TXNM is not providing earnings guidance while the Blackstone Infrastructure transaction is pending; the agreement's termination date was extended to May 31, 2027, and the company anticipates closing in the first half of 2027 subject to remaining approvals and conditions.
Management, verbatim
Increased retail load at both PNM and TNMP, including new all-time system peaks this summer, underscores the need for grid investment to support growing customer demand.
Don Tarry, President and CEO of TXNM Energy
We continue to pursue approval for our agreement with Blackstone Infrastructure to assist us in meeting these needs along with providing significant benefits and protections to our customers and communities.
Don Tarry, President and CEO of TXNM Energy
Not in the filing
stated, not guessed- Period-end date
- Total revenue
- Segment revenue
- Revenue growth rates
- Gross profit and gross margin
- Operating income and operating margin
- Operating expenses
- Income tax rate
- Cash balance
- Debt balance
- Operating cash flow
- Free cash flow
- Capital expenditures
- Share repurchases
- Dividends
- Capital-return figures
- Prior-quarter comparisons for reported earnings metrics
- Percentage changes for reported earnings metrics
- Formal forward financial guidance
AlphaAI analysis generated from the company’s SEC earnings filing (Form 8-K Item 2.02, or Form 6-K for a foreign private issuer). Every figure was cross-checked against the filing text; consensus estimates, price targets and share-price reactions are not shown because they are not in the filing. AI-generated research, not investment advice.
Background
TXNM is a regulated utility holding company with operating subsidiaries PNM (New Mexico) and TNMP (Texas), and it is in a pending acquisition by affiliates of Blackstone Infrastructure.
Ticker impact
TXNM reported Q2 2026 GAAP EPS of $0.64 and ongoing EPS of $0.58, alongside an extended Blackstone acquisition timeline into 1H 2027.
Likely supportive near-term bias, but upside may be capped by deal-regulatory uncertainty into 1H 2027.
The filing provides fresh quarterly results and a concrete extension of the termination date to May 31, 2027, plus remaining approvals (NMPRC and federal). That combination can move both fundamentals and deal-spread expectations.
Market effects
Utility earnings and rate-case outcomes remain sensitive to regulatory approvals and interim rate mechanisms; TXNM’s PNM and TNMP updates reinforce that linkage.
New Mexico and Texas utility regulatory calendars (NMPRC and PUCT) are directly relevant to TXNM’s operating cash flows and deal closing risk.
Limited direct global spillover; primarily affects US regulated-utility and infrastructure M&A deal-spread positioning.
Counterpoint
Deal progress may not translate into equity upside if remaining NMPRC and federal approvals slip, keeping a discount on deal certainty despite stronger quarterly earnings.
Key entities
- issuerTXNM Energy Inc
Reported Q2 2026 results and updated the Blackstone acquisition regulatory timeline.
- acquirerBlackstone Infrastructure
Affiliates agreed to acquire TXNM for $61.25 per share; termination date extended to May 31, 2027.
- subsidiaryPublic Service Company of New Mexico (PNM)
Filed a 2029-2032 resource portfolio application with NMPRC and plans to extend Reeves through 2044.
- subsidiaryTexas New Mexico Power (TNMP)
Reached a settlement with parties to TNMP’s base rate review; PUCT approved interim rates and final implementation on Sept 13, 2026.
- regulatorNMPRC
Remaining approval required for the TXNM-Blackstone transaction.
