Q2 FY2026
Filed Jul 31, 2026TXNM 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
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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.