GAAP net earnings attributable to TXNM Energy (Form 8-K)

GAAP net earnings attributable to TXNM Energy			$163.4			$130.7			$238.4			$161.2
GAAP diluted EPS			$1.50			$1.22			$2.15			$1.63
Ongoing net earnings			$184.8			$142.8			$272.7			$185.5
Ongoing diluted EPS			$1.62			$1.33			$2.42			$1.87

TXNM Energy (NYSE: TXNM) today reported 2026 third quarter results. As previously announced, TXNM Energy does not plan to issue earnings guidance during pendency of the proposed transaction with Blackstone Infrastructure.

"During a prolonged summer of record-breaking heat, both PNM and TNMP reached new system peaks, demonstrating the critical role our infrastructure plays during periods of extreme demand," said Don Tarry, TXNM Energy President and CEO. "We are acutely aware of the impact of higher energy use on our customers, and we remain focused on strengthening reliability while managing costs responsibly for our customers."

TRANSACTION UPDATE

On May 19, 2025, TXNM Energy announced an agreement under which affiliates of Blackstone Infrastructure will acquire the outstanding common stock of TXNM Energy for $61.25 per share.

Shareholders approved the proposed transaction on August 28, 2025. In February 2026, approval was received from the Federal Energy Regulatory Commission and the Public Utility Commission of Texas ("PUCT") approved a unanimous settlement agreement on the proposed transaction. Clearance has been received from the Federal Communications Commission and the waiting period under the Hart-Scott-Rodino Act has expired without any objections or concerns having been raised. On August 21, 2026, approval was received from the Nuclear Regulatory Commission. Approval continues to be pursued from the New Mexico Public Regulation Commission ("NMPRC").

On October 16, 2026, the NMPRC accepted TXNM Energy and Blackstone Infrastructure's amended application for approval of the transaction, which includes increased benefits to customers including rate credits, additional contributions to the PNM Good Neighbor Fund and workforce development programs across local communities. On October 27, 2026, the NMPRC hearing examiners published a revised procedural schedule with evidentiary hearings scheduled for January 19 through February 1, 2027.

TXNM Energy anticipates that the closing of the acquisition will occur in the first half of 2027, subject to the satisfaction or waiver of the remaining customary closing conditions, including among other things, receipt of approval from the NMPRC.

REGULATORY UPDATE

On September 1, 2026, Texas-New Mexico Power Company ("TNMP") filed its first single Unified Tracker Mechanism ("UTM") application with the PUCT. The UTM application consolidates and includes updates to TNMP's Distribution Cost Recovery Factor ("DCRF"), interim Transmission Cost of Service ("TCOS"), and Transmission Cost Recovery Factor for the period from 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 recorded 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 the 2026-2045 planning period. The 2026 IRP outlines PNM's long-term strategy to maintain reliability and affordability while meeting New Mexico's clean energy requirements, addressing significant projected load growth, transmission needs, and changing market conditions.

On October 1, 2026, PNM filed its 2026 Distribution System Plan (the "2026 DSP") with the NMPRC. The 2026 DSP establishes a forward looking framework for maintaining a safe, reliable, resilient, and affordable distribution system while responding to load growth, electrification, distributed energy resources, and grid modernization. The 2026 DSP identifies emerging system needs and investments to support detailed engineering studies, project prioritization, and budgeting.

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, determination for a new right-of-way, and reconstruction of portions of an existing 115 kV line at an estimated cost of $595 million. This project aims to strengthen PNM's east to west transmission system and supports resources identified in PNM's 2029-2032 Resource Portfolio Application filed on May 29, 2026.

SEGMENT REPORTING OF 2026 THIRD QUARTER EARNINGS

•PNM - a vertically integrated electric utility in New Mexico with distribution, transmission and generation assets.

•TNMP - an electric transmission and distribution utility in Texas.

•Corporate and Other - reflects the TXNM Energy holding company and other subsidiaries.

EPS Results by Segment

			GAAP Diluted EPS									Ongoing Diluted EPS
			Q32026			Q3 2025						Q3 2026			Q3 2025
PNM			$1.17			$0.95						$1.24			$0.98
TNMP			$0.50			$0.38						$0.50			$0.46
Corporate and Other			($0.17)			($0.11)						($0.12)			($0.11)
Consolidated TXNM Energy			$1.50			$1.22						$1.62			$1.33

Net changes to GAAP and ongoing earnings in the third quarter of 2026 compared to the third quarter of 2025 include:

•PNM: Rate relief from the approved 2025 Rate Request, higher retail load and higher transmission revenues were partially offset by higher O&M, higher depreciation and property tax associated with new capital investments and lower realized gains on investment securities.

•TNMP: Rate relief from the approved base rate review, rate recovery through the DCRF and TCOS rate mechanisms, and higher revenues recorded under Texas House Bill 5247 were partially offset by higher depreciation, property tax and interest expense associated with new capital investments.

•Corporate and Other: Higher interest expense due to higher debt balances decreased earnings.

GAAP and ongoing earnings per share were reduced in the third quarter of 2026 by shares issued in August 2025 and in March and May 2026. In addition, GAAP earnings in the third quarter of 2026 included $14.7 million of net unrealized losses on investment securities compared to $2.1 million in the third quarter of 2025. GAAP earnings in the third quarter of 2026 also included $9.3 million of costs related to the planned acquisition compared to $14.0 million in the third quarter of 2025.

Background:

TXNM Energy (NYSE: TXNM), an energy holding company based in Albuquerque, New Mexico, delivers energy to more than 800,000 homes and businesses across Texas and New Mexico through its regulated utilities, TNMP and PNM. For more information, visit the company's website at www.TXNMEnergy.com.

CONTACTS:

Analysts Media

Lisa Goodman Corporate Communications

(505) 241-2160 (505) 241-2743