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

GAAP net earnings attributable to TXNM Energy			$71.3			$21.6			$75.0			$30.5
GAAP diluted EPS			$0.64			$0.22			$0.67			$0.32
Ongoing net earnings			$64.1			$24.5			$88.0			$42.6
Ongoing diluted EPS			$0.58			$0.25			$0.79			$0.45

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

"Increased retail load at both PNM and TNMP, including new all-time system peaks this summer, underscores the need for grid investment to support growing customer demand," said Don Tarry, President and CEO of TXNM Energy. "We continue to pursue approval for our agreement with Blackstone Infrastructure to assist us in meeting these needs along with providing significant benefits and protections to our customers and communities."

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. Approvals continue to be pursued from the Nuclear Regulatory Commission and New Mexico Public Regulation Commission ("NMPRC").

On July 17, 2026, TXNM Energy and Blackstone Infrastructure extended the termination date under the agreement to May 31, 2027, to allow for further time to obtain regulatory approvals. 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 and federal regulatory approvals.

REGULATORY UPDATE

On May 29, 2026, Public Service Company of New Mexico ("PNM") filed its 2029-2032 Resource Portfolio Application with the NMPRC seeking approval of a balanced portfolio including 800 MW of wind power purchase agreements ("PPAs"), 240 MW of solar PPAs, 610 MW of battery storage agreements, 40 MW expansion of PNM-owned natural gas generation and abandonment and exit of PNM's interest in the Four Corners Power Plant ("Four Corners") in 2031. The application also includes a request for an accounting order for resources associated with future economic development and gives notice that PNM intends to extend operations of the existing Reeves Generating Station through the end of 2044 to provide additional resource assurance. The proposed portfolio addresses projected resource shortfalls beginning in 2029, driven by load growth and the need to replace capacity as PNM exits Four Corners.

Texas New Mexico Power ("TNMP") and all parties to TNMP's base rate review reached a settlement and filed an unopposed stipulation with the PUCT on May 29, 2026. The stipulation agreed to TNMP's recovery of $2.8 billion of rate base, a return on equity of 9.65% and a 45% equity ratio. The PUCT approved the settlement on July 30, 2026, with interim rates relating back to May 22, 2026, until the final approved rates are implemented on September 13, 2026.

SEGMENT REPORTING OF 2026 SECOND 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
			Q2 2026			Q2 2025						Q2 2026			Q2 2025
PNM			$0.41			$0.25						$0.30			$0.12
TNMP			$0.36			$0.22						$0.39			$0.27
Corporate and Other			($0.13)			($0.25)						($0.11)			($0.14)
Consolidated TXNM Energy			$0.64			$0.22						$0.58			$0.25

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

•PNM: Rate relief from the approved 2025 Rate Request, higher retail load, higher transmission revenues, timing of plant outages and increased performance on investment securities were partially offset by higher depreciation, property tax and interest expense associated with new capital investments and increased demand charges from energy storage agreements added in late 2025.

•TNMP: Rate recovery through the Distribution Cost Recovery Factor and Transmission Cost of Service rate mechanisms, revenues recorded under Texas House Bill 5247, impacts of interim rates and higher retail load were partially offset by higher depreciation, property tax and interest expense associated with new capital investments.

•Corporate and Other: Lower interest expense due to lower debt balances increased earnings.

GAAP and ongoing earnings per share were reduced in the second quarter of 2026 by shares issued in June and August 2025 and in March and May 2026. In addition, GAAP earnings in the second quarter of 2026 included $16.1 million of net unrealized gains on investment securities compared to $16.6 million in the second quarter of 2025. GAAP earnings in the second quarter of 2026 also included $7.2 million of costs related to the planned acquisition compared to $19.5 million in the second 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