TXNM Energy Reports 2025 Results, Transaction and Regulatory Updates

Rhea-AI Summary

TXNM Energy (NYSE: TXNM) reported 2025 results and gave transaction and regulatory updates. GAAP diluted EPS fell to $1.48 from $2.67 in 2024; ongoing diluted EPS was $2.33 versus $2.74. The proposed Blackstone Infrastructure acquisition at $61.25 per share is advancing through regulatory reviews with closing expected in the second half of 2026, subject to remaining approvals.

Key regulatory filings include TNMP’s $2.8 billion base rate request and PNM applications totaling roughly $412.5 million in project requests.

Positive

• Proposed acquisition price of $61.25 per share
• FERC and PUCT approvals received for the Blackstone transaction
• TNMP DCRF approval recovered $19 million of rate base in Q4 2025

Negative

• GAAP diluted EPS declined from $2.67 to $1.48 (2024–2025)
• Ongoing diluted EPS fell from $2.74 to $2.33 (2024–2025)
• 2025 included a $58.8 million pension settlement charge and $43.1 million transaction costs

Key Figures

2025 GAAP diluted EPS: $1.48 2025 ongoing EPS: $2.33 2025 GAAP net earnings: $151.4M +5 more

8 metrics

2025 GAAP diluted EPS $1.48 GAAP earnings per diluted share for 2025

2025 ongoing EPS $2.33 Ongoing earnings per diluted share for 2025

2025 GAAP net earnings $151.4M GAAP net earnings attributable to TXNM Energy in 2025

2025 ongoing net earnings $238.9M Ongoing net earnings attributable to TXNM Energy in 2025

Blackstone offer price $61.25 per share Cash consideration for TXNM common stock under proposed acquisition

TNMP rate base request $2.8B Rate base requested in TNMP general rate proceeding as of June 30, 2025

Requested ROE 10.4% Return on equity requested in TNMP rate case

Transmission project cost $247M Estimated cost for new 345 kV line and related facilities

Market Reality Check

Price: $59.15 Vol: Volume 950,738 is below t...

normal vol

$59.15 Last Close

Volume Volume 950,738 is below the 20-day average of 1,163,143 (rel. volume 0.82). normal

Technical Price 59.15 is trading above the 200-day MA of 57.38 and near the 59.52 52-week high.

Peers on Argus

TXNM slipped 0.49% while peers showed mixed, modest moves (e.g., ENIC +0.23%, ID...

TXNM slipped 0.49% while peers showed mixed, modest moves (e.g., ENIC +0.23%, IDA +0.61%, POR -0.35%, NWE +0.56%, OGE -0.12%). This points to stock-specific factors rather than a sector-wide move.

Historical Context

5 past events · Latest: Feb 20 (Positive)

Pattern 5 events

Date	Event	Sentiment	Move	Catalyst
Feb 20	Acquisition approval	Positive	-0.3%	FERC authorized Blackstone’s acquisition, finding it consistent with public interest.
Feb 06	Acquisition approval	Positive	-0.1%	Texas commission approved settlement for Blackstone to acquire TNMP with customer credits.
Dec 15	Acquisition settlement	Positive	-0.3%	Unanimous settlement in Texas supporting Blackstone’s purchase of TXNM common stock.
Dec 02	Dividend increase	Positive	+0.3%	Board raised annual dividend and confirmed ongoing payouts during the pending acquisition.
Nov 17	Rate case filing	Positive	-0.1%	TNMP filed a base rate review seeking higher rate base, ROE and hurricane cost recovery.

Pattern Detected

Recent history shows multiple positive acquisition and regulatory milestones often met by small negative price reactions, suggesting a pattern of muted-to-soft responses to favorable news.

Recent Company History

Over the past several months, TXNM has been driven mainly by its pending acquisition by Blackstone Infrastructure and related regulatory milestones. On Nov 17, 2025, TNMP filed a base rate review seeking higher rate base and returns. In Dec 2025, TXNM announced a dividend increase, and Texas parties reached a unanimous settlement supporting the acquisition. In Feb 2026, the Texas commission and then FERC approved key aspects of the deal. Despite generally constructive headlines, share reactions around these events tended to be modest with several slight pullbacks.

Regulatory & Risk Context

Active S-3 Shelf

Shelf Active

Active S-3 Shelf Registration 2025-08-08

An effective S-3ASR shelf registered the resale of up to 3,615,003 previously issued common shares in August 2025 for selling shareholders. TXNM will not receive proceeds from these resales, but the shelf provides an avenue for secondary market liquidity.

Market Pulse Summary

This announcement combined 2025 GAAP EPS of $1.48, ongoing EPS of $2.33, and detailed segment result...

Analysis

This announcement combined 2025 GAAP EPS of $1.48, ongoing EPS of $2.33, and detailed segment results with a thorough update on the proposed $61.25-per-share Blackstone acquisition. It also outlined major regulatory steps, including TNMP’s $2.8 billion rate base request and PNM’s $247 million transmission project filing. Investors may focus on how lower year-on-year earnings, future rate decisions, and execution of large capital programs interact with the pending transaction and existing capital structure.

Key Terms

gaap, rate base, return on equity, certificate of convenience and necessity, +2 more

6 terms

gaap financial

"2025 GAAP earnings of $1.48 per diluted share2025 Ongoing earnings..."

GAAP, or Generally Accepted Accounting Principles, are a set of standardized rules and guidelines that companies follow when preparing their financial statements. They ensure consistency, transparency, and comparability across different companies, making it easier for investors to understand and compare financial information accurately. This helps investors make informed decisions based on trustworthy and uniform financial reports.

rate base financial

"TNMP filed a general rate proceeding with the PUCT requesting recovery of $2.8 billion of rate base..."

Rate base is the dollar value of the physical assets and capital a regulated utility uses to deliver its service — things like power plants, pipes, or equipment. Regulators use that value as the starting point to set prices the utility can charge by allowing a specific percentage return on that base, so a larger or higher-valued rate base usually means higher permitted revenues and therefore directly affects investor earnings and the company's ability to raise capital.

return on equity financial

"...requesting recovery of $2.8 billion of rate base..., a requested return on equity of 10.4%..."

Return on equity shows how effectively a company uses its shareholders' money to generate profit. It is calculated by dividing the company's net profit by its shareholders' equity, indicating how much profit is earned for each dollar invested by owners. Higher return on equity suggests the company is good at turning investments into earnings, which can be an important factor for investors assessing its profitability and efficiency.

certificate of convenience and necessity regulatory

"PNM filed an application with the NMPRC for approval of a Certificate of Convenience and Necessity..."

A certificate of convenience and necessity is a government permit that gives a company the legal right to build and operate public-service infrastructure, like power lines, pipelines or transit routes, in a specific area. For investors it matters because the certificate is often required before revenue can be earned and construction begins; think of it as the official green light that reduces legal and market risk and makes a project fundable and bankable.

integrated resource plan technical

"PNM initiated its 2026 Integrated Resource Plan ("IRP") process which will cover the 20-year planning period..."

An integrated resource plan is a utility’s long-term roadmap showing how it will meet future electricity needs using a mix of power sources, energy efficiency, demand reductions and storage while balancing cost, reliability and regulatory requirements. Like a household budget that plans income, bills and savings, the plan reveals expected investments, operating costs and risks, so investors use it to assess future capital spending, potential rate changes and long-term profitability.

hart-scott-rodino act regulatory

"the waiting period under the Hart-Scott-Rodino Act has expired without any objections..."

A U.S. antitrust law that requires parties to large mergers and acquisitions to notify federal regulators and wait a set period before closing the deal, so authorities can check whether the transaction would unfairly reduce competition. For investors, the process is like notifying a referee before a major team trade: it can reveal objections, trigger investigations, delay or block a deal, and therefore affect transaction timing, value and deal risk.

AI-generated analysis. Not financial advice.

• 2025 GAAP earnings of $1.48 per diluted share
• 2025 Ongoing earnings per share of $2.33
• Proposed transaction with Blackstone Infrastructure is progressing through the regulatory approval process                              

TXNM Energy (In millions, except EPS)
	2025	2024
GAAP net earnings attributable to TXNM Energy	$151.4	$242.2
GAAP diluted EPS	$1.48	$2.67
Ongoing net earnings	$238.9	$247.8
Ongoing diluted EPS	$2.33	$2.74

ALBUQUERQUE, N.M., Feb. 27, 2026 /PRNewswire/ -- TXNM Energy (NYSE: TXNM) today reported 2025 earnings results. As previously announced, TXNM Energy does not plan to issue 2026 earnings guidance during pendency of the proposed transaction with Blackstone Infrastructure.

"PNM and TNMP continue to grow and we remain focused on meeting our customer needs across New Mexico and Texas, with TNMP supporting a 28% increase in system peak demand and PNM delivering 80% carbon free energy in 2025," said Don Tarry, President and CEO of TXNM Energy. "Our proposed transaction with Blackstone Infrastructure will provide the necessary capital to support this growth and New Mexico's transition to clean energy. We look forward to bringing the benefits of this transaction to our customers and communities."

TRANSACTION UPDATE
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 ("PUCT") 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 has expired without any objections or concerns having been raised. Approvals continue to be pursued from the Nuclear Regulatory Commission and New Mexico Public Regulation Commission ("NMPRC").

TXNM Energy continues to anticipate that the closing of the acquisition will occur in the second half of 2026, subject to the satisfaction or waiver of the remaining customary closing conditions, including among other things, receipt of other required state and federal regulatory approvals.

REGULATORY UPDATE
On November 14, 2025, Texas New Mexico Power ("TNMP") filed a general rate proceeding with the PUCT requesting recovery of $2.8 billion of rate base as of June 30, 2025, a requested return on equity of 10.4%, and a 47.54% equity ratio. The TNMP base rate review also includes increases in operations and maintenance expenses that are not recovered through semi-annual Transmission Cost of Service ("TCOS") and Distribution Cost Recovery Factor ("DCRF") filings, excludes increases in interest expense resulting from refinancing of debt associated with the proposed Blackstone Infrastructure transaction, and requests recovery of $20.5 million associated with Hurricane Beryl restoration costs over a five-year period. If approved by the PUCT, the new rates are expected to become effective in mid-2026.

On December 29, 2025, Public Service Company of New Mexico ("PNM") filed an application with the NMPRC for approval of two economic development projects related to New Mexico Senate Bill 170 at an estimated cost of $165.5 million. Senate Bill 170 allows a utility to defer costs of economic development projects that serve sites certified by the New Mexico Economic Development Department.

On February 25, 2026, PNM filed an application with the NMPRC for approval of a Certificate of Convenience and Necessity for a new 345 kV transmission line, existing station expansions, and a new substation at an estimated cost of $247 million. This project aims to enhance reliability and resilience in the Albuquerque area, facilitate the integration of renewable energy, and support economic development.

In the fourth quarter of 2025, PNM initiated its 2026 Integrated Resource Plan ("IRP") process which will cover the 20-year planning period from 2026 through 2046. Consistent with historical practice, PNM is receiving public input from interested parties as part of this process. PNM expects to file its 2026 IRP with the NMPRC on or before September 1, 2026.

TNMP's second DCRF filing for 2025 was approved and implemented in the fourth quarter, providing recovery for $19 million of rate base.

SEGMENT REPORTING OF 2025 EARNINGS

• PNM – a vertically integrated electric utility in New Mexico with distribution, transmission and generation assets.
• TNMP – an electric transmission and distribution utility in Texas.
• Corporate and Other – reflects the TXNM Energy holding company and other subsidiaries.

EPS Results by Segment
	GAAP Diluted EPS			Ongoing Diluted EPS
	2025	2024		2025	2024
PNM	$0.85	$2.12		$1.35	$2.16
TNMP	$1.21	$1.14		$1.42	$1.15
Corporate and Other	($0.58)	($0.59)		($0.44)	($0.57)
Consolidated TXNM Energy	$1.48	$2.67		$2.33	$2.74

Net changes to earnings in 2025 compared to 2024 include:

• PNM: Rate relief from the implementation of the first phase of the approved 2025 Rate Request, higher retail load and transmission revenues, and higher realized gains on investment securities were more than offset by lower weather-related usage, increased O&M, higher depreciation, property tax and interest expense associated with new capital investments and increased demand charges from energy storage agreements added in late 2024.
• TNMP: Rate recovery through the DCRF and TCOS rate mechanisms, revenues recorded under Texas House Bill 5247 and higher retail load were partially offset by higher depreciation, property tax and interest expense associated with new capital investments.
• Corporate and Other: Lower interest expense due to lower debt balances increased earnings.

GAAP and ongoing earnings per share were reduced in 2025 by shares issued as part of 2024 forward sales agreements of $150 million, as well as shares issued in June and August 2025 for proceeds of $800 million.

In addition, GAAP earnings in 2025 included $3.4 million of net unrealized losses on investment securities compared to $2.7 million of net unrealized gains in 2024. GAAP earnings in 2025 also included a $58.8 million pension settlement charge related to a previously disposed of gas distribution business and $43.1 million of costs related to the planned transaction. GAAP earnings in 2024 included $9.2 million of regulatory disallowances.

Background:
TXNM Energy (NYSE: TXNM), an energy holding company based in Albuquerque, New Mexico, delivers energy to more than 800,000 homes and businesses across Texas and New Mexico through its regulated utilities, TNMP and PNM. For more information, visit the company's website at www.TXNMEnergy.com.

CONTACTS:
Analysts	Media
Lisa Goodman	Corporate Communications
(505) 241-2160	(505) 241-2743

Safe Harbor Statement under the Private Securities Litigation Reform Act of 1995
Statements made in this news release for TXNM Energy, PNM, or TNMP (collectively, the "Company") that relate to future events or expectations, projections, estimates, intentions, goals, targets, and strategies, including the unaudited financial results, earnings guidance, statements regarding the potential transaction between TXNM Energy and Blackstone Infrastructure, including any statements regarding the expected timetable for completing the potential transaction, the ability to complete the potential transaction and the expected benefits of the potential transaction, rate proceeding outcomes, anticipated benefits of the new transmission line project, and the expected timing of the IRP filing, are made pursuant to the Private Securities Litigation Reform Act of 1995. Readers are cautioned that all forward-looking statements are based upon current expectations and estimates and apply only as of the date of this report. TXNM, PNM, and TNMP assume no obligation to update this information. Because actual results may differ materially from those expressed or implied by these forward-looking statements, TXNM, PNM, and TNMP caution readers not to place undue reliance on these statements. TXNM's, PNM's, and TNMP's business, financial condition, cash flow, and operating results are influenced by many factors, which are often beyond their control, that can cause actual results to differ from those expressed or implied by the forward-looking statements. For a discussion of risk factors and other important factors affecting forward-looking statements, please see the Company's Form 10-K, Form 10-Q filings and the information included in the Company's Form 8-K's with the Securities and Exchange Commission, which factors are specifically incorporated by reference herein and the risks and uncertainties related to the proposed transaction with Blackstone Infrastructure, including, but not limited to: the expected timing and likelihood of completion of the pending transaction, including the timing, receipt and terms and conditions of any required governmental and regulatory approvals of the pending transaction that could reduce anticipated benefits or cause the parties to abandon the transaction, the occurrence of any event, change or other circumstances that could give rise to the termination of the transaction agreement, including in circumstances requiring TXNM Energy to pay a termination fee, the risk that the parties may not be able to satisfy the conditions to the proposed transaction in a timely manner or at all, the outcome of legal proceedings that may be instituted against TXNM Energy, its directors and others related to the proposed transaction, risks related to disruption of management time from ongoing business operations due to the proposed transaction, the risk that the proposed transaction and its announcement could have an adverse effect on the ability of TXNM Energy to retain and hire key personnel and maintain relationships with its customers and suppliers, and on its operating results and businesses generally, the amount of costs, fees, charges or expenses resulting from the proposed transaction, and the risk that the price of TXNM Energy's common stock may fluctuate during the pendency of the proposed transaction and may decline significantly if the proposed transaction is not completed. Other unpredictable or unknown factors not discussed in this communication could also have material adverse effects on forward-looking statements.

Non-GAAP Financial Measures
GAAP refers to generally accepted accounting principles in the U.S. Ongoing earnings is a non-GAAP financial measure that excludes 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 previously disposed of gas distribution business, and certain non-recurring, infrequent, and other items that are not indicative of fundamental changes in the earnings capacity of the Company's operations. The Company uses ongoing earnings and ongoing earnings per diluted share to evaluate the operations of the Company and to establish goals, including those used for certain aspects of incentive compensation, for management and employees. While the Company believes these financial measures are appropriate and useful for investors, they are not measures presented in accordance with GAAP. The Company does not intend for these measures, or any piece of these measures, to represent any financial measure as defined by GAAP. Furthermore, the Company's calculations of these measures as presented may or may not be comparable to similarly titled measures used by other companies. The Company uses ongoing earnings guidance to provide investors with management's expectations of ongoing financial performance over the period presented. While the Company believes ongoing earnings guidance is an appropriate measure, it is not a measure presented in accordance with GAAP. The Company does not intend for ongoing earnings guidance to represent an expectation of net earnings as defined by GAAP. Since the future differences between GAAP and ongoing earnings are frequently outside the control of the Company, management is generally not able to estimate the impact of the reconciling items between forecasted GAAP net earnings and ongoing earnings guidance, nor their probable impact on GAAP net earnings without unreasonable effort, therefore, management is generally not able to provide a corresponding GAAP equivalent for ongoing earnings guidance. Reconciliations between GAAP and ongoing earnings are contained in schedules 1-4.               

TXNM Energy, Inc. and Subsidiaries Schedule 1 Reconciliation of GAAP to Ongoing Earnings
		PNM		TNMP		Corporate and Other		Consolidated
		(in thousands)
Quarter Ended December 31, 2025
GAAP Net Earnings (Loss) Attributable to TXNM:		$   (40,659)		$     39,909		$     (9,097)		$          (9,847)
Adjusting items before income tax effects
Net change in unrealized (gains) losses on investment securities2a		9,757		—		—		9,757
Regulatory settlements2b		—		3,500		—		3,500
Pension expense and settlement charge related to previously disposed of gas distribution business2c		59,552		—		—		59,552
Process improvement initiatives2e		363		—		1		364
Merger related costs2f		676		6,038		1,295		8,009
Total adjustments before income tax effects		70,348		9,538		1,296		81,182
Income tax impact of above adjustments1		(17,868)		(2,003)		(329)		(20,200)
Income tax valuation allowance3		193		—		1,270		1,463
Timing of statutory and effective tax rates on non-recurring items4		1,349		(15)		(460)		874
Total income tax impacts3		(16,326)		(2,018)		481		(17,863)
Adjusting items, net of income taxes		54,022		7,520		1,777		63,319
Ongoing Earnings (Loss)		$     13,363		$     47,429		$     (7,320)		$          53,472
Year Ended December 31, 2025
GAAP Net Earnings (Loss) Attributable to TXNM:		$     87,077		$   124,290		$   (60,005)		$        151,362
Adjusting items before income tax effects
Net change in unrealized (gains) losses on investment securities2a		3,435		—		—		3,435
Regulatory settlements2b		1,500		3,500		—		5,000
Pension expense and settlement charge related to previously disposed of gas distribution business2c		61,904		—		—		61,904
Regulatory disallowances2d		(731)		—		—		(731)
Process improvement initiatives2e		955		—		157		1,112
Merger related costs2f		1,602		23,141		18,388		43,131
Total adjustments before income tax effects		68,665		26,641		18,545		113,851
Income tax impact of above adjustments1		(17,440)		(5,595)		(4,711)		(27,746)
Income tax valuation allowance3		193		—		1,270		1,463
Total income tax impacts3		(17,247)		(5,595)		(3,441)		(26,283)
Adjusting items, net of income taxes		51,418		21,046		15,104		87,568
Ongoing Earnings (Loss)		$   138,495		$   145,336		$   (44,901)		$        238,930

1 Tax effects calculated using a tax rate of 21.0% for TNMP and 25.4% for other segments
2 The pre-tax impacts (in thousands) of adjusting items are reflected on the GAAP Consolidated Statement of Earnings as follows:
a Changes in "Gains (losses) on investment securities" reflecting non-cash performance relative to market, not indicative of funding requirements
b Increases in "Administrative and general"
c Increases in "Other (deductions)"
d Decreases in "Regulatory disallowances"
e Increases in "Energy production costs" of zero and $0.2 million, in "Transmission and distribution costs" of less than $0.1 million and $0.1 million,     and in "Administrative and general" of $0.4 million and $0.6 million for the three and twelve months ended December 31, 2025 at PNM and increase     of zero and $0.2 million in "Administrative and general" at Corporate and Other for the three and  twelve months ended December 31, 2025
f Increases in "Administrative and general" of $0.7 million and $1.6 million at PNM for the three and twelve months ended December 31, 2025;     Increases in "Administrative and general" of $2.3 million and $3.2 million and increases in "Interest charges" of $3.7 million and $20.0 million at     TNMP for the three and twelve months ended December 31, 2025; Increases in "Administrative and general" at Corporate and Other of $1.2 million     and $18.1 million for the three and twelve months ended December 31, 2025
3 Increases (decreases) in "Income Taxes"
4 Income tax timing impacts resulting from differences between the statutory rates of 25.4% for PNM, 21.0% for TNMP and the average expected     statutory tax rate of 22.6% for TXNM, and the GAAP anticipated effective tax rates of 7.5% for PNM, 20.4% for TNMP, and 10.8% for TXNM, which     have reversed by year end

 

TXNM Energy, Inc. and Subsidiaries Schedule 2 Reconciliation of GAAP to Ongoing Earnings
		PNM		TNMP		Corporate and Other		Consolidated
		(in thousands)
Quarter Ended December 31, 2024
GAAP Net Earnings (Loss) Attributable to TXNM:		$     10,311		$     23,325		$   (17,922)		$          15,714
Adjusting items before income tax effects
Net change in unrealized (gains) losses on investment securities2a		13,486		—		—		13,486
Regulatory disallowances2b		(1,621)		—		—		(1,621)
FERC refunds2c		(4,037)		—		—		(4,037)
Pension expense related to previously disposed of gas distribution business2d		433		—		—		433
Process improvement initiatives2e		523		1,046		2,137		3,706
Merger related costs2f		40		13		860		913
Total adjustments before income tax effects		8,824		1,059		2,997		12,880
Income tax impact of above adjustments1		(2,241)		(222)		(761)		(3,224)
Income tax valuation allowance3		—		—		1,346		1,346
Income tax impact of non-deductible merger related costs3		289		179		—		468
Total income tax impacts5		(1,952)		(43)		585		(1,410)
Adjusting items, net of income taxes		6,872		1,016		3,582		11,470
Ongoing Earnings (Loss)		$     17,183		$     24,341		$   (14,340)		$          27,184
Year Ended December 31, 2024
GAAP Net Earnings (Loss) Attributable to TXNM:		$   191,684		$   103,528		$   (53,058)		$        242,154
Adjusting items before income tax effects
Net change in unrealized (gains) losses on investment securities2a		(2,718)		—		—		(2,718)
Regulatory disallowances2b		9,226		—		—		9,226
FERC refunds2c		(4,037)		—		—		(4,037)
Pension expense related to previously disposed of gas distribution business2d		1,732		—		—		1,732
Process improvement initiatives2e		523		1,046		2,137		3,706
Merger related costs2f		174		(8)		2,988		3,154
Sale of NMRD4		—		—		15,097		15,097
Total adjustments before income tax effects		4,900		1,038		20,222		26,160
Income tax impacts of above adjustments1		(1,244)		(218)		(5,135)		(6,597)
Sale of NMRD4		—		—		(15,712)		(15,712)
Income tax valuation allowance3		—		—		1,346		1,346
Income tax impact of non-deductible merger related costs3		289		179		—		468
Total income tax impacts5		(955)		(39)		(19,501)		(20,495)
Adjusting items, net of income taxes		3,945		999		721		5,665
Ongoing Earnings (Loss)		$   195,629		$   104,527		$   (52,337)		$        247,819

1 Tax effects calculated using a tax rate of 21.0% for TNMP and 25.4% for other segments
2 The pre-tax impacts (in thousands) of adjusting items are reflected on the GAAP Consolidated Statement of Earnings as follows:
a Changes in "Gains (losses) on investment securities" reflecting non-cash performance relative to market, not indicative of funding requirements
b Decreases in "Regulatory disallowances" of $1.6 million for the three months ended December 31, 2024, increases in "Regulatory disallowances"     of $9.0 million for the twelve months ended December 31, 2024, and decreases in "Electric Operating Revenues" of $0.2 million for the twelve     months ended December 31, 2024
c Decreases in "Cost of energy" of $3.8 million and increases in "Interest income" of $0.2 million for the three and twelve months ended December 31, 2024
d Increases in "Other (deductions)"
e Increases in "Administrative and general" of $5.0 million for the three and twelve months ended December 31, 2024 and decreases in "Energy     production costs" of $1.3 million for the three and twelve months ended December 31, 2024
f Increases in "Administrative and general"
3 Increases (decreases) in "Income Taxes"
4 Net gain of $4.4 million on the sale of NMRD: Increase in "Other (deductions)" of $15.1 million, decrease in "Income Taxes (Benefits)" of $3.8 million     for federal income tax and a decrease in "Income Taxes (Benefits)" of $15.7 million for investment tax credits
5 Income tax impacts reflected in "Income Taxes"

 

TXNM Energy, Inc. and Subsidiaries Schedule 3 Reconciliation of GAAP to Ongoing Earnings Per Diluted Share
		PNM		TNMP		Corporate and Other		Consolidated
		(per diluted share)
Quarter Ended December 31, 2025
GAAP Net Earnings (Loss) Attributable to TXNM:		$       (0.36)		$         0.36		$       (0.08)		$            (0.08)
Adjusting items, net of income tax effects
Net change in unrealized (gains) losses on investment securities		0.07		—		—		0.07
Regulatory settlements		—		0.02		—		0.02
Pension expense and settlement charge related to previously disposed of gas distribution business		0.40		—		—		0.40
Income tax valuation allowance		—		—		0.01		0.01
Merger related costs		—		0.04		0.01		0.05
Timing of statutory and effective tax rates on non-recurring items		0.01		—		—		0.01
Total Adjustments		0.48		0.06		0.02		0.56
Ongoing Earnings (Loss)		$         0.12		$         0.42		$       (0.06)		$              0.48
Average Diluted Shares Outstanding:  112,357,639
Year Ended December 31, 2025
GAAP Net Earnings (Loss) Attributable to TXNM:		$         0.85		$         1.21		$       (0.58)		$              1.48
Adjusting items, net of income tax effects
Net change in unrealized (gains) losses on investment securities		0.03		—		—		0.03
Regulatory settlements		0.01		0.03		—		0.04
Regulatory disallowances		(0.01)		—		—		(0.01)
Pension expense and settlement charge related to previously disposed of gas distribution business		0.45		—		—		0.45
Process improvement initiatives		0.01		—		—		0.01
Income tax valuation allowance		—		—		0.01		0.01
Merger related costs		0.01		0.18		0.13		0.32
Total Adjustments		0.50		0.21		0.14		0.85
Ongoing Earnings (Loss)		$         1.35		$         1.42		$       (0.44)		$              2.33
Average Diluted Shares Outstanding: 102,392,046

 

TXNM Energy, Inc. and Subsidiaries Schedule 4 Reconciliation of GAAP to Ongoing Earnings Per Diluted Share
		PNM		TNMP		Corporate and Other		Consolidated
		(per diluted share)
Quarter Ended December 31, 2024
GAAP Net Earnings (Loss) Attributable to TXNM:		$         0.11		$         0.26		$       (0.20)		$              0.17
Adjusting items, net of income tax effects
Net change in unrealized (gains) losses on investment securities		0.12		—		—		0.12
Regulatory disallowances		(0.01)		—		—		(0.01)
FERC refunds		(0.03)		—		—		(0.03)
Process improvement initiatives		—		0.01		0.02		0.03
Income tax valuation allowance		—		—		0.01		0.01
Merger related costs		—		—		0.01		0.01
Total Adjustments		0.08		0.01		0.04		0.13
Ongoing Earnings (Loss)		$         0.19		$         0.27		$       (0.16)		$              0.30
Average Diluted Shares Outstanding:  90,998,879
Year Ended December 31, 2024
GAAP Net Earnings (Loss) Attributable to TXNM:		$         2.12		$         1.14		$       (0.59)		$              2.67
Adjusting items, net of income tax effects
Net change in unrealized (gains) losses on investment securities		(0.02)		—		—		(0.02)
Regulatory disallowances		0.08		—		—		0.08
FERC refunds		(0.03)		—		—		(0.03)
Pension expense related to previously disposed of gas distribution business		0.01		—		—		0.01
Process improvement initiatives		—		0.01		0.02		0.03
Income tax valuation allowance		—		—		0.02		0.02
Merger related costs		—		—		0.03		0.03
Sale of NMRD		—		—		(0.05)		(0.05)
Total Adjustments		0.04		0.01		0.02		0.07
Ongoing Earnings (Loss)		$         2.16		$         1.15		$       (0.57)		$              2.74
Average Diluted Shares Outstanding:  90,590,573

 

TXNM Energy, Inc. and Subsidiaries Schedule 5 Consolidated Statements of Earnings
	Year Ended December 31,
	2025		2024		2023
	(In thousands, except per share amounts)
Electric Operating Revenues	$      2,165,606		$      1,971,199		$      1,939,198
Operating Expenses:
Cost of energy	716,005		583,984		802,261
Administrative and general	274,453		247,116		227,900
Energy production costs	98,371		93,748		91,610
Regulatory disallowances	(731)		8,980		71,923
Depreciation and amortization	425,641		384,925		319,503
Transmission and distribution costs	100,794		98,380		98,721
Taxes other than income taxes	109,894		100,580		95,940
Total operating expenses	1,724,427		1,517,713		1,707,858
Operating income	441,179		453,486		231,340
Other Income and Deductions:
Interest income	20,065		23,537		21,963
Gains on investment securities	34,750		26,851		19,246
Other income	29,087		28,621		24,204
Other (deductions)	(73,546)		(24,189)		(15,869)
Net other income and (deductions)	10,356		54,820		49,544
Interest Charges	271,522		228,066		190,355
Earnings before Income Taxes	180,013		280,240		90,529
Income Taxes (Benefits)	10,187		21,518		(16,350)
Net Earnings	169,826		258,722		106,879
(Earnings) Attributable to Valencia Non-controlling Interest	(17,936)		(16,040)		(18,533)
Preferred Stock Dividend Requirements of Subsidiary	(528)		(528)		(528)
Net Earnings Attributable to TXNM	$         151,362		$         242,154		$           87,818
Net Earnings Attributable to TXNM per Common Share:
Basic	$                1.49		$                2.67		$                1.02
Diluted	$                1.48		$                2.67		$                1.02

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SOURCE TXNM Energy, Inc.

FAQ

What were TXNM Energy's reported 2025 GAAP and ongoing diluted EPS (TXNM)?

TXNM reported 2025 GAAP diluted EPS of $1.48 and ongoing diluted EPS of $2.33. According to TXNM Energy, GAAP EPS declined versus 2024 largely due to a pension settlement charge and transaction-related costs, while ongoing results exclude certain one-time items.

What is the status and expected timing of the Blackstone Infrastructure acquisition of TXNM (TXNM)?

The acquisition at $61.25 per share is progressing with several approvals secured and others pending. According to TXNM Energy, closing is anticipated in the second half of 2026, subject to remaining state and federal regulatory approvals and customary closing conditions.

How did regulatory actions affect TXNM segment performance in 2025 (TXNM)?

Regulatory actions materially affected 2025 results through approved rate mechanisms and filings. According to TXNM Energy, TNMP recovered rate base via DCRF/TCOS and PNM pursued projects and an IRP, impacting revenues, O&M and capital-related expenses across segments.

What material charges and one-time items reduced TXNM's 2025 GAAP earnings (TXNM)?

GAAP 2025 earnings included a $58.8 million pension settlement and $43.1 million of transaction costs, plus net unrealized losses on investments. According to TXNM Energy, these items reduced GAAP results versus the prior year.

What rate and project filings did TXNM affiliates submit in late 2025 and early 2026 (TXNM)?

TNMP filed for a $2.8 billion rate base and PNM filed projects of about $165.5 million and $247 million for transmission and economic development. According to TXNM Energy, these filings aim to recover costs and enhance reliability.