TXNM Energy Reports Third Quarter 2026 Results

TXNM Energy posts strong Q3 earnings and nears completion of Blackstone acquisition.

What the company is saying

TXNM Energy reports Q3 2026 GAAP earnings of $1.50 per diluted share and ongoing earnings of $1.62 per diluted share, highlighting year-over-year improvements across all major profitability metrics. The company frames its narrative around operational resilience during record heat, with President and CEO Don Tarry emphasizing infrastructure reliability and cost management for customers. Management explains earnings growth as driven by rate relief, higher retail load, and increased transmission revenues, partially offset by higher operating, depreciation, and property tax expenses, as well as lower realized gains on investment securities. The company stresses the critical role of its utilities, PNM and TNMP, in meeting extreme demand, and details regulatory progress on the pending $61.25 per share acquisition by Blackstone Infrastructure, noting all major federal approvals are complete except for the New Mexico Public Regulation Commission (NMPRC). The announcement also details new regulatory filings, including TNMP’s Unified Tracker Mechanism application and PNM’s upcoming $595 million transmission project filing. The tone is factual, comprehensive, and focused on both realised results and near-term regulatory milestones.

What the data suggests

GAAP net earnings for Q3 2026 were $163.4 million, up from $130.7 million in Q3 2025, and year-to-date GAAP net earnings rose to $238.4 million from $161.2 million, confirming a clear upward trajectory. Ongoing net earnings for Q3 2026 reached $184.8 million, compared to $142.8 million in Q3 2025, and year-to-date ongoing net earnings increased to $272.7 million from $185.5 million. Ongoing diluted EPS for Q3 2026 was $1.62, up from $1.33 in Q3 2025, and year-to-date ongoing diluted EPS was $2.42, compared to $1.87 in 2025. Segment results show PNM contributed $1.17 in GAAP diluted EPS and $1.24 in ongoing diluted EPS, while TNMP contributed $0.50 in both metrics; Corporate and Other was a drag at ($0.17) and ($0.12), respectively. The company incurred $14.7 million in net unrealized investment losses and $9.3 million in acquisition-related costs in Q3 2026. Regulatory progress on the Blackstone acquisition is substantial, with only NMPRC approval outstanding and evidentiary hearings scheduled for January 19–February 1, 2027. TNMP’s UTM application seeks $77.9 million and $27.0 million in incremental DCRF and TCOS revenue requirements. PNM is preparing to file for a $595 million transmission project, indicating significant upcoming capital expenditure. The data is granular, transparent, and supports the narrative of operational and financial improvement.

Analysis

The announcement is proportionate in tone, providing detailed, realised financial results for Q3 and year-to-date 2026, including GAAP and ongoing net earnings, EPS, and segment breakdowns. All major financial claims are supported by disclosed figures, and the narrative does not overstate progress on forward-looking items. The only forward-looking claims relate to the anticipated closing of the Blackstone acquisition (pending one regulatory approval) and the expected filing for a $595 million transmission project, both of which are clearly identified as future events. The capital intensity flag is true due to the large transmission project, but the announcement does not exaggerate its impact or timeline. There is no narrative inflation or overstatement; the language is factual and measured, with no promotional phrasing. The gap between narrative and evidence is minimal, as all realised claims are substantiated and forward-looking statements are appropriately caveated.

Risk flags

• ●The Blackstone acquisition remains subject to NMPRC approval, with evidentiary hearings not scheduled until January 19–February 1, 2027. This regulatory dependency introduces execution risk, as any delay or adverse ruling could postpone or jeopardize the transaction.
• ●The $595 million transmission project is still in the pre-approval phase, with PNM only expecting to file its application on October 30, 2026. Project returns are therefore speculative until regulatory approval is granted and construction timelines are set, exposing the company to permitting, cost overrun, and execution risk.
• ●Earnings quality is affected by non-recurring items, including $14.7 million in net unrealized investment losses and $9.3 million in acquisition-related costs in Q3 2026. These items create volatility in reported GAAP results and may obscure underlying operational trends.
• ●Higher operating, depreciation, property tax, and interest expenses tied to new capital investments are eroding some of the gains from rate relief and revenue growth. Sustained cost escalation could pressure future margins if not offset by regulatory recovery or further rate increases.

Bottom line

TXNM Energy delivered strong Q3 and year-to-date earnings growth, with both GAAP and ongoing metrics showing clear improvement over 2025. The company is in the final regulatory stages of a $61.25 per share buyout by Blackstone Infrastructure, but the deal’s completion hinges on NMPRC approval, with a decision not expected until after hearings in early 2027. Major capital projects, such as the $595 million transmission line, are still at the application stage and will not impact financials in the near term. While operational performance is robust and regulatory progress is steady, investors face execution risk from pending approvals and rising cost pressures tied to capital investment. The most immediate catalyst is the NMPRC’s decision on the Blackstone transaction; until then, the company’s improving earnings profile and regulatory filings set the stage for future growth, but key transformative events remain several quarters away.

Announcement summary

(NYSE:TXNM) TXNM Energy reported 2026 third quarter GAAP earnings of $1.50 per diluted share and ongoing earnings of $1.62 per diluted share. GAAP net earnings attributable to TXNM Energy for Q3 2026 were $163.4 million, compared to $130.7 million in Q3 2025. Year-to-date 2026 GAAP net earnings were $238.4 million, up from $161.2 million in the same period of 2025. Ongoing net earnings for Q3 2026 were $184.8 million, compared to $142.8 million in Q3 2025, and year-to-date ongoing net earnings were $272.7 million versus $185.5 million in 2025. Ongoing diluted EPS for Q3 2026 was $1.62, up from $1.33 in Q3 2025, and year-to-date ongoing diluted EPS was $2.42, compared to $1.87 in 2025. Segment GAAP diluted EPS for Q3 2026 was $1.17 for PNM, $0.50 for TNMP, and ($0.17) for Corporate and Other, with consolidated TXNM Energy at $1.50. Ongoing diluted EPS by segment for Q3 2026 was $1.24 for PNM, $0.50 for TNMP, and ($0.12) for Corporate and Other, with consolidated ongoing EPS at $1.62. Net changes to GAAP and ongoing earnings in Q3 2026 versus Q3 2025 for PNM included rate relief from the approved 2025 Rate Request, higher retail load, and higher transmission revenues, partially offset by higher O&M, depreciation, property tax, and lower realized gains on investment securities. For TNMP, rate relief from the approved base rate review, rate recovery through DCRF and TCOS, and higher revenues under Texas House Bill 5247 were partially offset by higher depreciation, property tax, and interest expense. Corporate and Other earnings decreased due to higher interest expense from higher debt balances. GAAP and ongoing EPS were reduced in Q3 2026 by shares issued in August 2025 and in March and May 2026. GAAP earnings in Q3 2026 included $14.7 million of net unrealized losses on investment securities, compared to $2.1 million in Q3 2025. GAAP earnings in Q3 2026 also included $9.3 million of costs related to the planned acquisition, compared to $14.0 million in Q3 2025. On May 19, 2025, TXNM Energy announced an agreement for affiliates of Blackstone Infrastructure to acquire the outstanding common stock of TXNM Energy for $61.25 per share. Shareholders approved the transaction on August 28, 2025. Regulatory approvals were received from the Federal Energy Regulatory Commission, the Public Utility Commission of Texas (PUCT), the Federal Communications Commission, and the Nuclear Regulatory Commission. The Hart-Scott-Rodino Act waiting period expired without objections. Approval from the New Mexico Public Regulation Commission (NMPRC) is still being pursued. On October 16, 2026, the NMPRC accepted TXNM Energy and Blackstone Infrastructure's amended application, which includes increased customer benefits such as rate credits, additional contributions to the PNM Good Neighbor Fund, and workforce development programs. On October 27, 2026, NMPRC hearing examiners published a revised procedural schedule with evidentiary hearings set for January 19 through February 1, 2027. TXNM Energy anticipates closing the acquisition in the first half of 2027, subject to satisfaction or waiver of remaining customary closing conditions, including NMPRC approval. On September 1, 2026, Texas-New Mexico Power Company (TNMP) filed its first Unified Tracker Mechanism (UTM) application with the PUCT, consolidating updates to the Distribution Cost Recovery Factor (DCRF), interim Transmission Cost of Service (TCOS), and Transmission Cost Recovery Factor for July 1, 2025 through June 30, 2026. The UTM application requests total incremental increases of $77.9 million and $27.0 million in DCRF and TCOS revenue requirements, including revenues under Texas House Bill 5247. On September 1, 2026, Public Service Company of New Mexico (PNM) filed its 2026 Integrated Resource Plan (IRP) with the NMPRC, covering 2026-2045. On October 1, 2026, PNM filed its 2026 Distribution System Plan (DSP) with the NMPRC. 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, a new right-of-way, and reconstruction of portions of an existing 115 kV line at an estimated cost of $595 million. This project supports resources identified in PNM's 2029-2032 Resource Portfolio Application filed on May 29, 2026. For the three months ended September 30, 2026, GAAP net earnings attributable to TXNM were $126,939,000 for PNM, $54,029,000 for TNMP, ($17,539,000) for Corporate and Other, and $163,429,000 consolidated. Ongoing earnings for the same period were $141,465,000 for PNM, $57,674,000 for TNMP, ($14,365,000) for Corporate and Other, and $184,774,000 consolidated.

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