TXNM Posts Strong Revenue, Deteriorating Earnings As Blackstone Deal Looms

TXNM Energy (TXNM) reported mixed 2025 Q4 results, with revenue growth outpacing earnings deterioration. The company swung to a net loss, missing expectations, and deferred 2026 guidance due to its pending Blackstone Infrastructure deal.

Revenue

Earnings/Net Income

TXNM Energy reported a net loss of $5.29 million in 2025 Q4, a 126.4% decline from $19.99 million in 2024 Q4, while earnings per share fell to a $0.09 loss from $0.17 profit (153.3% negative change). The significant deterioration reflects one-time charges, including a $58.8 million pension settlement and $43.1 million in transaction-related costs. The earnings performance was notably weaker than ongoing diluted EPS of $2.33, excluding non-recurring items. The sharp EPS decline signals operational challenges despite revenue growth.

Price Action

Post-Earnings Price Action Review

A strategy of purchasing TXNM shares following revenue declines and holding for 30 days generated a 43.90% return over three years, outperforming the 31.78% benchmark. This approach demonstrated a 26.44% CAGR, a Sharpe ratio of 1.32, and a maximum drawdown of 10.93%, indicating strong risk-adjusted returns despite a volatility of 20.09%.

CEO Commentary

Don Tarry highlighted progress toward 80% carbon-free energy at PNM and TNMP’s 28% peak demand growth, while emphasizing the Blackstone transaction’s potential to fund New Mexico’s clean energy transition. Regulatory approvals from FERC and PUCT were confirmed, with final clearance pending.

Guidance

TXNM Energy will not issue 2026 earnings guidance, citing uncertainty from the pending Blackstone Infrastructure deal. The transaction, expected to close in late 2026, remains subject to NMPRC and NRC approvals.

Additional News

TXNM Energy secured FERC clearance for its $11.5 billion Blackstone Infrastructure merger, a critical step toward closing the deal by mid-2026. CEO Don Tarry reiterated confidence in the transaction’s role in funding New Mexico’s clean energy goals. Separately, the company announced $2.17 billion in FY25 revenue, exceeding estimates by $20 million, though non-GAAP EPS of $2.33 fell short by $0.27. The deal’s regulatory path remains active, with NMPRC and NRC approvals still pending.