TXNM Energy (NYSE: TXNM) posts 2025 results and advances Blackstone deal
Filing Impact
Filing Sentiment
Form Type
8-K
Rhea-AI Filing Summary
TXNM Energy reported 2025 GAAP diluted earnings per share of $1.48, down from $2.67 in 2024, mainly reflecting a $58.8 million pension settlement charge, $43.1 million of merger-related costs and $3.4 million of net unrealized losses on investment securities. Ongoing diluted EPS, which excludes these and other specified items, was $2.33 versus $2.74 in 2024. PNM benefited from rate relief and higher load but faced higher costs and lower weather-driven usage, while TNMP saw stronger revenues offset by higher depreciation, taxes and interest from new investments. The company highlighted significant equity issuance in 2024–2025 that increased diluted share count and reduced EPS.
TXNM reaffirmed its proposed sale to affiliates of Blackstone Infrastructure for $61.25 per share. Shareholders have approved the deal, and approvals have been obtained from the Federal Energy Regulatory Commission, the Public Utility Commission of Texas, the Federal Communications Commission and under the Hart-Scott-Rodino Act, with Nuclear Regulatory Commission and New Mexico Public Regulation Commission approvals still pending. TXNM continues to anticipate closing in the second half of 2026, subject to remaining conditions.
Regulatory initiatives include TNMP’s November 2025 Texas rate filing seeking recovery of $2.8 billion of rate base as of June 30, 2025 and $20.5 million of Hurricane Beryl restoration costs over five years, and PNM applications in New Mexico for two economic development projects costing $165.5 million and a $247 million 345 kV transmission project to support reliability, renewable integration and growth.
Positive
- None.
Negative
- None.
Insights
2025 earnings softened, but regulated growth and Blackstone deal progress remain central.
TXNM Energy showed weaker 2025 results, with GAAP diluted EPS falling to
Core utility operations at PNM and TNMP still benefited from rate relief and higher load, but these gains were offset by rising operating costs, depreciation, taxes and interest from recent capital investments, plus lower weather-driven usage at PNM. This mix underscores the capital-intensive nature of regulated utilities, where earning authorized returns depends heavily on timely rate recovery.
The pending acquisition by affiliates of Blackstone Infrastructure at
| UNITED STATES | |||||
| SECURITIES AND EXCHANGE COMMISSION | |||||
| Washington, D.C. 20549 | |||||
| FORM | |||||
| CURRENT REPORT | |||||
| Pursuant to Section 13 OR 15(d) of The Securities Exchange Act of 1934 | |||||
| Date of Report (Date of earliest event reported) | ||||||||
| (February 27, 2026) | ||||||||
Name of Registrant, State of Incorporation, Address Of Principal Executive Offices, Telephone Number, Commission File No., IRS Employer Identification No. | ||||||||||||||
(A New Mexico Corporation)
Telephone Number - (505 ) 241-2700
Commission File No. - 001-32462
IRS Employer Identification No. - 85-0468296
Public Service Company of New Mexico
(A New Mexico Corporation)
Telephone Number - (505 ) 241-2700
Commission File No. - 001-06986
IRS Employer Identification No. - 85-0019030
(A Texas Corporation)
Telephone Number - (972 ) 420-4189
Commission File No. - 002-97230
IRS Employer Identification No. - 75-0204070
____________________________________________________________________________________________________________
Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:
| Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425) | |||||||||||
| Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12) | |||||||||||
| Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 40.14d-2(b)) | |||||||||||
| Pre-commencement communications pursuant to Rule 13e-4 (c) under the Exchange Act (17 CFR 40.13e-4(c)) | |||||||||||
Securities registered pursuant to Section 12(b) of the Act:
Registrant | Title of each class | Trading Symbol(s) | Name of exchange on which registered | ||||||||
| TXNM Energy, Inc | |||||||||||
Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (§230.405 of this chapter) or Rule 12b-2 of the Securities Exchange Act of 1934 (§240.12b-2 of this chapter). Emerging growth company ☐
If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐
Item 2.02 Results of Operations and Financial Condition.
On February 27, 2026, TXNM Energy, Inc., Public Service Company of New Mexico, and Texas-New Mexico Power Company (collectively, the “Company”) issued a press release announcing results of operations for the three months and year ended December 31, 2025. The press release is furnished herewith as Exhibit 99.1 and incorporated by reference herein.
The Company's press release and other communications from time to time may include certain financial measures that are not determined in accordance with generally accepted accounting principles in the United States of America ("GAAP"). A “non-GAAP financial measure” is defined as a numerical measure of a company's financial performance, financial position or cash flows that excludes (or includes) amounts that are included in (or excluded from) the most directly comparable measure calculated and presented in accordance with GAAP in the company's financial statements.
Non-GAAP financial measures utilized by the Company include presentations, on an ongoing basis, of revenues, operating expenses, operating income, other income and deductions, earnings, and earnings per share. The Company uses ongoing earnings and ongoing earnings per diluted share (or ongoing diluted earnings per 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. Certain non-GAAP financial measures utilized by the Company exclude the impact of net unrealized mark-to-market gains, 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. The Company's management believes that these non-GAAP financial measures provide useful information to investors by removing the effect of variances in GAAP reported results of operations that are not indicative of fundamental changes in the earnings capacity of the Company's operations. Management also believes that the presentation of the non-GAAP financial measures is largely consistent with its past practice, as well as industry practice in general, and will enable investors and analysts to compare current non-GAAP measures with non-GAAP measures with respect to prior periods.
The non-GAAP financial measures used by the Company should not be considered in isolation from or as a substitute for measures of performance prepared in accordance with GAAP.
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 earnings and ongoing earnings guidance, nor their probable impact on GAAP earnings without unreasonable effort; therefore, management is generally not able to provide a corresponding GAAP equivalent for forecasted ongoing earnings guidance. Reconciling items may include revenues and expenses resulting from transactions that do not occur in the normal course of the Company's business operations, as well as net change in unrealized gains and losses on investment securities, and pension expense related to previously disposed of gas distribution business as discussed above.
Limitation on Incorporation by Reference
In accordance with general instruction B.2 of Form 8-K, the information in this report, including exhibits, is furnished pursuant to Item 2.02 and shall not be deemed “filed” for the purposes of Section 18 of the Securities Exchange Act of 1934, or otherwise subject to the liability of that section and not deemed incorporated by reference in any filing under the Securities Act of 1933.
Item 9.01 Financial Statements and Exhibits.
(d) Exhibits:
Exhibit Number Description
99.1 Press Release dated February 27, 2026.
104 Cover Page Interactive Data File (embedded within the Inline XBRL document).
SIGNATURE
Pursuant to the requirements of the Securities Exchange Act of 1934, the registrants have duly caused this report to be signed on their behalf by the undersigned thereunto duly authorized.
| TXNM ENERGY, INC. | |||||
| PUBLIC SERVICE COMPANY OF NEW MEXICO | |||||
| TEXAS-NEW MEXICO POWER COMPANY | |||||
| (Registrants) | |||||
| Date: February 27, 2026 | /s/ Gerald R. Bischoff | ||||
| Gerald R. Bischoff | |||||
| Vice President and Corporate Controller | |||||
| (Officer duly authorized to sign this report) | |||||
Exhibit 99.1
ALBUQUERQUE, N.M.
February 27, 2026
TXNM Energy Reports 2025 Results, Transaction and Regulatory Updates
•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 | ||||||
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 | |||||||||||
FAQ
How did TXNM (TXNM) perform financially in 2025 versus 2024?
TXNM’s 2025 GAAP diluted EPS was $1.48, down from $2.67 in 2024. Ongoing diluted EPS, which excludes specified non-recurring and mark-to-market items, decreased to $2.33 from $2.74, reflecting higher costs, one-time pension and merger charges, and dilution from recent equity issuance.
What non-GAAP measures does TXNM (TXNM) emphasize and why?
TXNM emphasizes ongoing earnings and ongoing diluted EPS, which exclude net unrealized gains or losses on investment securities, pension items tied to a disposed gas business, merger-related costs and other non-recurring items. Management believes these measures better reflect underlying earnings capacity and are used for internal performance evaluation and incentive goals.
What is the status of TXNM (TXNM) and Blackstone Infrastructure’s proposed transaction?
Affiliates of Blackstone Infrastructure agreed to acquire TXNM for $61.25 per share. Shareholders approved the deal, and approvals have been obtained from FERC, the PUCT, the FCC and under the Hart-Scott-Rodino Act. Approvals from the Nuclear Regulatory Commission and NMPRC are still being pursued, with closing anticipated in the second half of 2026.
What major rate and regulatory filings did TXNM (TXNM) make in Texas?
In November 2025, TNMP filed a general rate case with the PUCT seeking recovery of $2.8 billion of rate base as of June 30, 2025, a 10.4% requested return on equity and a 47.54% equity ratio. The filing also requests recovery of $20.5 million in Hurricane Beryl restoration costs over five years.
What significant New Mexico projects is PNM, part of TXNM (TXNM), pursuing?
PNM applied to the NMPRC for two economic development projects totaling $165.5 million and for a Certificate of Convenience and Necessity for a $247 million 345 kV transmission line, station expansions and a new substation. These projects aim to enhance reliability, support renewable integration and encourage economic development.
How did segment results trend for TXNM (TXNM) in 2025?
In 2025, GAAP diluted EPS was $0.85 for PNM, $1.21 for TNMP and negative $0.58 for Corporate and Other. Ongoing diluted EPS was $1.35 for PNM, $1.42 for TNMP and negative $0.44 for Corporate and Other, highlighting stronger utility operations versus holding-company level costs and adjustments.
What were TXNM (TXNM) consolidated revenues and operating income in 2025?
For 2025, TXNM reported electric operating revenues of $2,165.6 million and operating income of $441.2 million. Total operating expenses were $1,724.4 million, reflecting higher cost of energy, depreciation, taxes and administrative expenses associated with growing rate base and utility operations in New Mexico and Texas.
Filing Exhibits & Attachments
5 documentsPress Releases
TXNM Energy
NYSE:TXNM
TXNM Rankings
TXNM Latest News
TXNM Latest SEC Filings
Feb 17, 2026
[Form 4] TXNM ENERGY INC Insider Trading Activity
Jan 2, 2026
[8-K] TXNM ENERGY INC Reports Material Event
Dec 19, 2025
[8-K] TXNM ENERGY INC Reports Material Event
Dec 18, 2025
[Form 4] TXNM ENERGY INC Insider Trading Activity
Dec 18, 2025
[Form 4] TXNM ENERGY INC Insider Trading Activity