Key Highlights

● Second-quarter ongoing earnings rose to $0.58 per share from $0.25 a year earlier.

● The Blackstone Infrastructure acquisition is valued at $61.25 per share in cash.

● The merger agreement's termination date was extended to 31 May 2027.

● Texas regulators approved a TNMP rate settlement supporting a 9.65 per cent return on equity.

TXNM (NYSE:TXNM) reported second-quarter 2026 results on 31 July 2026. GAAP net earnings attributable to the company were $71.3 million, or $0.64 per diluted share, against $21.6 million, or $0.22, a year earlier. Ongoing earnings were $64.1 million, or $0.58 per share, compared with $24.5 million, or $0.25. By segment, PNM contributed ongoing earnings of $0.30 per share and TNMP $0.39, while corporate and other was a $0.11 drag. For the first six months, ongoing earnings were $0.79 per share, up from $0.45. The company is not issuing earnings guidance while its sale is pending. A quarterly dividend of $0.4225 per share was declared for the second quarter, compared with $0.4075 a year earlier.

The Blackstone transaction

The defining feature of the stock is the agreed acquisition by affiliates of Blackstone Infrastructure at $61.25 per share in cash, announced on 19 May 2025 and approved by shareholders on 28 August 2025. Approvals have been received from the Federal Energy Regulatory Commission, the Public Utility Commission of Texas, the Federal Communications Commission, and the Hart-Scott-Rodino waiting period has expired. The Nuclear Regulatory Commission and the New Mexico Public Regulation Commission (NMPRC) remain outstanding. On 17 July 2026 the parties extended the merger agreement's termination date to 31 May 2027 and said they expect completion in the first half of 2027. The NMPRC schedule had been paused pending a compliance report on a 2025 stock transaction between TXNM and Blackstone Infrastructure, which the commission found required its prior approval. Market data indicated that TXNM had borrowed $400 million through a 30-month term loan to reverse that sale, cancelling roughly eight million shares, and that the New Mexico Department of Justice still questioned whether replacement financing could create indirect costs for ratepayers. The commission also asked the New Mexico Supreme Court for guidance on its review standards, and no hearing schedule appeared.

Rates and resource planning

In Texas, the Public Utility Commission approved a settlement for TNMP's base rate case on 30 July 2026, supporting $2.8 billion of rate base, a 9.65% return on equity and a 45% equity ratio; final rates were due to take effect on 13 September 2026. In New Mexico, PNM filed a 2029 to 2032 resource portfolio on 29 May 2026 that includes 800 megawatts of wind power purchase agreements, 240 megawatts of solar, 610 megawatts of battery storage and an exit from the Four Corners plant in 2031.

New Mexico Approval Remains the Key Unresolved Step

TXNM Energy's operating results improved sharply from a weak year-earlier quarter, but with the Blackstone Infrastructure deal pricing the stock at a fixed $61.25 per share, operating performance now matters mainly for dividend support rather than valuation. The New Mexico Public Regulation Commission's review remains paused pending a compliance question over a 2025 stock transaction, and with the Nuclear Regulatory Commission approval also still outstanding and the termination date pushed to May 2027, timing and regulatory outcome, not earnings, are the main uncertainties left.