TXNM Energy (TXNM) investor relations material

Executive summary

• TXNM is a holding company with two regulated utilities, PNM and TNMP, serving 846,000 customers in NM and TX, focused on reliability, affordability, and sustainability.

• Second quarter 2026 GAAP earnings were $0.64 per diluted share, with ongoing earnings at $0.58 per diluted share, reflecting strong retail load growth and new system peaks.

• Net earnings attributable to TXNM for the six months ended June 30, 2026, were $75.0M ($0.67 per diluted share), up from $30.5M ($0.32 per diluted share) in 2025.

• The acquisition agreement with Blackstone Infrastructure was extended to May 31, 2027, with closing anticipated in the first half of 2027, pending regulatory approvals.

• The company targets long-term earnings growth, a 50–60% dividend payout ratio, and investment grade credit ratings.

Financial highlights

• Electric operating revenues for Q2 2026 were $548.6M, up from $502.4M in Q2 2025; six-month revenues were $1.05B, up from $985M in 2025.

• Operating income increased to $123.3M in Q2 2026 from $72.7M in Q2 2025.

• Cash flows from operating activities increased to $223.0M from $144.8M year-over-year.

• Capital expenditures for the first half of 2026 totaled $577.6M.

• Dividend payout for the first half of 2026 was $93.1M; dividends declared per common share were $0.4225 in Q2 2026, up from $0.4075 in Q2 2025.

Outlook and guidance

• The merger is expected to close in the first half of 2027, pending NMPRC and NRC approvals.

• TXNM projects $11.1B in consolidated capital requirements for 2026–2030, including $10.2B in construction expenditures.

• TNMP expects to make annual filings under new Texas legislation to recover costs for transmission and distribution investments.

• PNM continues to pursue a carbon-free generation portfolio by 2040 and plans significant renewable and storage additions, including a 2029–2032 resource portfolio application and exit from Four Corners by 2031.

• No earnings guidance is being issued during the pending Blackstone transaction.