TXNM Energy Reiterates First-Half 2027 Blackstone Close

The Tip Desk · October 30, 2026 · 4 min read

GAAP earnings were $1.50 a share in the third quarter, with ongoing earnings of $1.62 a share, as the company said it still does not plan to issue guidance.

TXNM Energy (TXNM), the Albuquerque-based energy holding company that operates PNM and TNMP, reported third-quarter 2026 GAAP net earnings of $163.4 million, or $1.50 a diluted share, compared with $130.7 million, or $1.22 a share, a year earlier. Ongoing net earnings were $184.8 million, or $1.62 a share, versus $142.8 million, or $1.33 a share.

The company said it does not plan to issue earnings guidance during the pendency of the proposed transaction with Blackstone Infrastructure. It now anticipates that closing will occur in the first half of 2027, subject to remaining customary conditions, including approval from the New Mexico Public Regulation Commission. That timetable is later than the second-half 2026 close it had previously anticipated.

On May 19, 2025, the company announced that affiliates of Blackstone Infrastructure would acquire its outstanding common stock for $61.25 a share. Shareholders approved the deal on August 28, 2025. In February 2026, the Federal Energy Regulatory Commission approved the transaction and the Public Utility Commission of Texas approved a unanimous settlement. The Nuclear Regulatory Commission issued approval on August 21, 2026. On October 16, 2026, the NMPRC accepted an amended application that includes increased customer benefits such as rate credits and additional contributions to the PNM Good Neighbor Fund. Hearing examiners scheduled evidentiary hearings for January 19 through February 1, 2027.

GAAP diluted earnings per share rose to $1.50 from $0.64 in the second quarter, after $0.03 in the first quarter. Ongoing diluted earnings per share rose to $1.62 from $0.58, after $0.21.

Electric operating revenues were $733.3 million in the third quarter, versus $647.2 million a year earlier. Operating income was $271.1 million, versus $202.9 million.

PNM, the vertically integrated New Mexico utility, contributed $1.17 of GAAP diluted earnings a share, versus $0.95 a year earlier, and $1.24 of ongoing diluted earnings a share, versus $0.98. TNMP, the Texas transmission and distribution utility, contributed $0.50 of GAAP diluted earnings a share, versus $0.38, and $0.50 of ongoing diluted earnings a share, versus $0.46. Corporate and Other posted a GAAP loss of $0.17 a share, versus a loss of $0.11, and an ongoing loss of $0.12 a share, versus a loss of $0.11.

The company said PNM’s year-over-year increase reflected rate relief from the approved 2025 Rate Request, higher retail load and higher transmission revenues, partially offset by higher operating and maintenance, depreciation and property tax associated with new capital investments and lower realized gains on investment securities. TNMP’s increase reflected rate relief from the approved base rate review, recovery through the DCRF and TCOS mechanisms, and higher revenues under Texas House Bill 5247, partially offset by higher depreciation, property tax and interest expense associated with new capital investments. Corporate and Other earnings declined on higher interest expense from higher debt balances. GAAP and ongoing earnings per share were reduced by shares issued in August 2025 and in March and May 2026.

GAAP earnings included $14.7 million of net unrealized losses on investment securities, versus $2.1 million a year earlier, and $9.3 million of costs related to the planned acquisition, versus $14.0 million.

President and CEO Don Tarry said that during a prolonged summer of record-breaking heat, both PNM and TNMP reached new system peaks.

On September 1, 2026, TNMP filed its first Unified Tracker Mechanism application with the PUCT, requesting total incremental increases of $77.9 million and $27.0 million in DCRF and TCOS revenue requirements for the period from July 1, 2025 through June 30, 2026. PNM filed its 2026 Integrated Resource Plan with the NMPRC on the same date and its 2026 Distribution System Plan on October 1, 2026. On October 30, 2026, PNM expected to file an application for a Certificate of Convenience and Necessity for a new 345 kV transmission line, station expansions, a new right-of-way and reconstruction of portions of an existing 115 kV line at an estimated cost of $595 million.