TXNM Energy Q3 GAAP EPS Rises to $1.50 as Ongoing EPS Reaches $1.62

TXNM Energy (TXNM ) on October 30, 2026 reported third-quarter 2026 GAAP earnings of $1.50 per diluted share, compared with $1.22 in the third quarter of 2025, and ongoing earnings of $1.62 per diluted share, compared with $1.33 a year earlier, according to the company’s third-quarter 2026 earnings release.

GAAP net earnings attributable to TXNM Energy were $163.4 million for the quarter, compared with $130.7 million in the third quarter of 2025. Ongoing net earnings were $184.8 million, compared with $142.8 million a year earlier. The company defines ongoing earnings, a non-GAAP measure, as excluding the impact of net unrealized mark-to-market gains and losses on economic hedges, the net change in unrealized gains and losses on investment securities, pension expense related to a previously disposed of gas distribution business, and certain non-recurring, infrequent, and other items.

For the first nine months of 2026, GAAP net earnings attributable to TXNM Energy were $238.4 million, or $2.15 per diluted share, compared with $161.2 million, or $1.63 per diluted share, in the same period of 2025. Ongoing net earnings for the nine months ended September 30, 2026 were $272.7 million, or $2.42 per diluted share, compared with $185.5 million, or $1.87 per diluted share, a year earlier.

Electric operating revenues were $733,290 thousand in the third quarter of 2026, compared with $647,162 thousand in the third quarter of 2025, and operating income was $271,088 thousand, compared with $202,870 thousand. Dividends declared per common share were $0.4225 for the quarter, compared with $0.4075 a year earlier, and $1.2675 for the nine months ended September 30, 2026, compared with $1.2225 in the prior-year period.

TXNM Energy does not plan to issue earnings guidance during the pendency of the proposed transaction with Blackstone Infrastructure, as previously announced.

“During a prolonged summer of record-breaking heat, both PNM and TNMP reached new system peaks, demonstrating the critical role our infrastructure plays during periods of extreme demand,” said Don Tarry, TXNM Energy president and CEO. “We are acutely aware of the impact of higher energy use on our customers, and we remain focused on strengthening reliability while managing costs responsibly for our customers.”

TXNM Energy is an energy holding company based in Albuquerque, New Mexico, that delivers energy to more than 800,000 homes and businesses across Texas and New Mexico through its regulated utilities, TNMP and PNM.

Blackstone Infrastructure Transaction Status

On May 19, 2025, TXNM Energy announced an agreement under which affiliates of Blackstone Infrastructure will acquire the outstanding common stock of TXNM Energy for $61.25 per share. Shareholders approved the proposed transaction on August 28, 2025. In February 2026, approval was received from the Federal Energy Regulatory Commission, and the Public Utility Commission of Texas approved a unanimous settlement agreement on the proposed transaction. Clearance has been received from the Federal Communications Commission, and the waiting period under the Hart-Scott-Rodino Act expired without any objections or concerns having been raised. On August 21, 2026, approval was received from the Nuclear Regulatory Commission. Approval continues to be pursued from the New Mexico Public Regulation Commission.

On October 16, 2026, the NMPRC accepted TXNM Energy and Blackstone Infrastructure’s amended application for approval of the transaction, which includes increased benefits to customers including rate credits, additional contributions to the PNM Good Neighbor Fund and workforce development programs across local communities. On October 27, 2026, the NMPRC hearing examiners published a revised procedural schedule with evidentiary hearings scheduled for January 19 through February 1, 2027.

TXNM Energy stated that it anticipates the closing of the acquisition will occur in the first half of 2027, subject to the satisfaction or waiver of the remaining customary closing conditions, including, among other things, receipt of approval from the NMPRC.

PNM and TNMP Regulatory Filings

On September 1, 2026, Texas-New Mexico Power Company filed its first single Unified Tracker Mechanism application with the Public Utility Commission of Texas. The application consolidates and includes updates to TNMP’s Distribution Cost Recovery Factor, interim Transmission Cost of Service, and Transmission Cost Recovery Factor for the period from July 1, 2025 through June 30, 2026, and requests total incremental increases of $77.9 million and $27.0 million in DCRF and TCOS revenue requirements, including revenues recorded under Texas House Bill 5247.

Also on September 1, 2026, Public Service Company of New Mexico filed its 2026 Integrated Resource Plan with the NMPRC, covering the 2026-2045 planning period. The plan outlines PNM’s long-term strategy to maintain reliability and affordability while meeting New Mexico’s clean energy requirements, addressing significant projected load growth, transmission needs, and changing market conditions, according to the release.

On October 1, 2026, PNM filed its 2026 Distribution System Plan with the NMPRC, which the company said establishes a forward-looking framework for maintaining a safe, reliable, resilient, and affordable distribution system while responding to load growth, electrification, distributed energy resources, and grid modernization.

On October 30, 2026, PNM expects to file an application with the NMPRC for approval of a Certificate of Convenience and Necessity for a new 345 kV transmission line, existing station expansions, determination for a new right-of-way, and reconstruction of portions of an existing 115 kV line at an estimated cost of $595 million. The company said the project aims to strengthen PNM’s east to west transmission system and supports resources identified in PNM’s 2029-2032 Resource Portfolio Application filed on May 29, 2026.

TXNM Energy reported the following diluted earnings per share by segment for the third quarter. PNM is a vertically integrated electric utility in New Mexico with distribution, transmission and generation assets; TNMP is an electric transmission and distribution utility in Texas; and Corporate and Other reflects the TXNM Energy holding company and other subsidiaries.

The company attributed PNM’s net changes to rate relief from the approved 2025 Rate Request, higher retail load and higher transmission revenues, partially offset by higher O&M, higher depreciation and property tax associated with new capital investments and lower realized gains on investment securities. TNMP’s changes reflected rate relief from the approved base rate review, rate recovery through the DCRF and TCOS rate mechanisms, and higher revenues recorded under Texas House Bill 5247, partially offset by higher depreciation, property tax and interest expense associated with new capital investments. Corporate and Other earnings decreased on higher interest expense due to higher debt balances.

GAAP and ongoing earnings per share were reduced in the third quarter of 2026 by shares issued in August 2025 and in March and May 2026, the release stated. GAAP earnings in the quarter included $14.7 million of net unrealized losses on investment securities, compared with $2.1 million in the third quarter of 2025, and $9.3 million of costs related to the planned acquisition, compared with $14.0 million a year earlier.

Ongoing earnings per diluted share is adjusted for the dilutive impacts of the cancellation of 8,000,000 shares of TXNM common stock aggregating $400.0 million until the subsequent issuance of 7,079,646 shares aggregating $400.0 million in the three and nine months ended September 30, 2026. Average diluted shares outstanding were 108,755,087 for the third quarter of 2026, while ongoing average diluted shares outstanding were 114,059,435.