10-Q · May 1, 2026
TXNM reported disappointing Q1 2026 results with actual EPS of $0.21 falling short of the $0.36 estimate, and revenue of $504.98 million compared to an expectation of $531.78 million. This marks a significant decline in…
Earnings analysis · 10-Q
TXNM earnings analysis
Filed October 30, 2026 · Our reading of the company's report
The latest report
TXNM reported stronger Q3 results, with revenue of $733.3 million versus $647.2 million in the prior-year quarter and EPS of $1.62 versus $1.22. PNM and TNMP both benefited from rate relief and higher demand-related…
Read full summary
TXNM reported stronger Q3 results, with revenue of $733.3 million versus $647.2 million in the prior-year quarter and EPS of $1.62 versus $1.22. PNM and TNMP both benefited from rate relief and higher demand-related revenues, while commodity derivative losses fell to zero from $3.2 million. The principal overhang is the pending Blackstone transaction, which remains subject to NMPRC approval and has led the company to withhold quantitative guidance; closing is anticipated in the first half of 2027.
Gross and operating margin
How much of each revenue dollar the business keeps.
One point per quarterly or annual filing. Both margins are shares of that report's revenue.
How we read each report
Our analysis across the last few reports.
Our model's reading of each filing, not the share price or the market's reaction. Annual and quarterly reports each occupy one position.
Reported figures
- Earnings per share
- $1.62
What stood out
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Revenue and EPS increased year over year
Q3 revenue was $733.3 million versus $647.2 million in the prior-year quarter, an increase of approximately 13.3%. Reported EPS was $1.62 versus $1.22, up approximately 32.8%.
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Both utility segments improved
PNM and TNMP both reported higher ongoing EPS, with performance supported by rate relief and higher demand-related revenues; the filing does not provide segment revenue amounts in the available extract.
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Commodity derivative losses reversed
Commodity derivative fair-value losses recorded as a regulatory asset declined to zero at September 30, 2026, from $3.2 million at December 31, 2025.
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Wholesale exposure remained investment grade
The company reported $4,404,922 of wholesale credit-risk exposure as of September 30, 2026, with all exposure classified as investment grade and no non-investment-grade exposure.
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Trust assets totaled $500.2 million
PNM’s decommissioning and reclamation trusts had an estimated fair value of $500.2 million at September 30, 2026, providing a substantial pool supporting related obligations.
What to watch
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Blackstone transaction approval remains pending
The proposed Blackstone transaction remains subject to NMPRC approval and other conditions, with anticipated closing in the first half of 2027. The company is withholding quantitative earnings guidance while the transaction remains pending.
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Counterparty and credit exposure
Wholesale credit-risk exposure totaled $4,404,922 at September 30, 2026, and exposure to the largest counterparty was reported at $3.0 million. The company held no cash collateral against its credit exposure.
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Trust assets exposed to equity markets
Equity securities represented 90% of PNM’s trust securities. A hypothetical 10% decline in equity prices would reduce the fair value of the trusts by $45.1 million.
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Variable-rate debt increases interest risk
Variable-rate debt totaled $279.9 million at October 23, 2026, including TXNM commercial paper of $182.7 million at a weighted-average rate of 4.38%. Higher rates could increase financing costs when variable-rate debt is repriced or refinanced.
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Long-term debt remains rate-sensitive
PNM and TNMP had $315.0 million of long-term variable-rate debt outstanding, consisting of a $195.0 million PNM 2026 term loan and a $120.0 million PNM November 2025 term loan.
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Merger-related litigation and approvals
The company states that there were no material changes to the risk factors disclosed in the 2025 Form 10-K, but merger-related litigation and regulatory applications remain listed legal matters.
Management's outlook
No quantitative EPS or revenue guidance was provided while the proposed Blackstone transaction remains pending. Management anticipates closing in the first half of 2027, subject to remaining conditions including NMPRC approval.
Earlier filings 4
10-K · February 27, 2026
TXNM’s 10-K emphasizes a regulated-utility strategy driven by PNM and TNMP, continued investment in grid modernization and rate-recovery mechanisms, and a pending cash merger valued at $61.25 per share. Operational…
10-Q · August 1, 2025
TXNM reported Q2 electric operating revenue of $502.42M (up $14.32M vs Q2 2024) but operating income and EPS fell sharply. Operating income declined to $72.70M from $105.68M a year earlier and diluted EPS declined to…
10-Q · May 9, 2025
TXNM reported quarter-over-quarter and year-over-year revenue growth but a sharp drop in net earnings and EPS driven by higher operating expenses, higher interest charges, and the absence of prior-period investment…
This is our reading of a public filing, not the filing itself. Analysis can contain errors; check the source document for full context.