TXNM Energy (TXNM) investor relations material

Executive summary

• Net earnings attributable to TXNM were $3.7 million ($0.03 per diluted share) for Q1 2026, down from $8.9 million ($0.10 per diluted share) in Q1 2025, primarily due to higher operating expenses, increased depreciation, property taxes, and interest expense, partially offset by higher revenues at TNMP and PNM and impacts of new rate mechanisms.

• Ongoing net earnings rose to $23.8 million from $18.1 million year-over-year, with ongoing diluted EPS increasing to $0.21 from $0.19.

• The company is progressing toward a merger with Blackstone Infrastructure, with regulatory approvals from FERC and PUCT, shareholder approval, and pending approval from NMPRC and NRC; the merger is expected to close in the second half of 2026.

• No 2026 earnings guidance issued due to the pending acquisition by Blackstone Infrastructure.

• TXNM continues to focus on grid modernization, clean energy transition, and customer experience, with significant investments in infrastructure and sustainability initiatives.

Financial highlights

• Q1 2026 consolidated electric operating revenues were $505.0 million, up from $482.8 million in Q1 2025.

• Operating income rose to $77.0 million from $71.9 million year-over-year.

• Total operating expenses increased to $428.0 million from $410.9 million year-over-year.

• Operating cash flows increased to $153.2 million from $141.3 million year-over-year.

• Capital expenditures for Q1 2026 totaled $312.7 million, primarily for utility plant additions.

Outlook and guidance

• The merger with Blackstone Infrastructure is expected to close in the second half of 2026, pending regulatory approvals.

• TXNM projects consolidated capital requirements of $11.1 billion for 2026–2030, including construction expenditures and dividends.

• Five-year capital investment plan for 2026–2030 updated to $10.2 billion, focusing on grid modernization, clean energy, and infrastructure resilience.

• The company anticipates sufficient liquidity and access to capital markets to meet near-term and long-term funding needs.