TXNM Energy Inc. reported first‑quarter 2026 revenue of $504.98 million, up 4.6% from $482.79 million a year earlier, but the figure fell short of the consensus estimate of $513.94 million. The company’s ongoing diluted earnings per share were $0.21, a 10.5% increase from $0.19 in the same quarter last year, yet the number missed analysts’ expectation of $0.28. GAAP diluted earnings per share were $0.03, reflecting a sharp decline in net income driven by higher unrealized investment losses and merger‑related costs.
The revenue growth was largely driven by the Texas Natural Gas (TNMP) segment, which benefited from stronger demand and favorable rate mechanisms. In contrast, the New Mexico Public Service (PNM) segment experienced headwinds from mild weather, higher operating costs, and a phased‑in rate approach that limited revenue expansion. The mix shift toward the higher‑margin TNMP segment helped lift ongoing EPS, but the weaker PNM performance contributed to the overall margin compression.
GAAP earnings declined because of a combination of higher unrealized investment losses, increased interest charges, and broader merger‑related expenses. These factors eroded net income, resulting in a GAAP EPS of $0.03, a significant drop from the $0.19 ongoing EPS reported in the prior year. The company’s management highlighted that the GAAP figure does not reflect the core operating performance that the ongoing EPS captures.
President and CEO Don Tarry emphasized that the company is executing a $10.2 billion capital investment plan for 2026‑2030, focused on grid modernization, battery storage, and reliability projects. He noted that the planned investments are designed to support a clean‑energy transition and to provide customers with reliable, affordable power. Tarry also reiterated that the pending transaction with Blackstone Infrastructure is intended to secure the capital needed to implement these initiatives.
The company remains in the process of finalizing a $61.25‑per‑share acquisition by Blackstone Infrastructure, which values TXNM at $11.5 billion. While FERC, PUCT, and HSR approvals have been obtained, regulatory clearance from the NRC and NMPRC is still pending. Investors are closely monitoring the progress of these approvals, as the deal’s completion is a key factor influencing the company’s future financial outlook.
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