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TXNM’s quarterly results show revenue of $733.3 million, up from $647.2 million a year earlier. Diluted earnings were $1.54 per share, compared with $1.22 a year earlier; the company separately reported third-quarter GAAP diluted earnings of $1.50 per share.
TXNM’s results show gross margin increased to 69.8% from 66.6%, while operating margin rose to 37.0% from 31.3%. In its filing, the company attributed higher utility margins at PNM partly to increased customer usage, warmer weather, approved rate increases and higher transmission revenue. The filing also reported higher plant maintenance costs and depreciation at PNM.
At TNMP, the filing attributed higher utility margin partly to rate increases, warmer weather and revenue recorded under HB 5247. It also reported higher depreciation from increased utility plant in service, partly offset by lower depreciation rates approved in the utility’s base rate review.
For the nine months ended September 30, 2026, TXNM reported higher earnings than a year earlier, partly offset by increased operating expenses, depreciation, property taxes and interest expense at its utilities.
| Q3 FY2026 | Q3 FY2025 | Change | |
|---|---|---|---|
| Revenue | $733.3 million | $647.2 million | 13.3% |
| Diluted EPS | $1.54 | $1.22 | 26.6% |
| Gross margin | 69.8% | 66.6% | 3.2 percentage points |
| Operating margin | 37.0% | 31.3% | 5.6 percentage points |
| Free cash flow | −$195.0 million | −$262.6 million | — |
| Against the consensus | Reported | Consensus | Result |
|---|---|---|---|
| Adjusted EPS | $0.25 | $0.46 | Missed by 45.7% |
Adjusted EPS is the figure the consensus estimates, not the GAAP EPS above.
What management said on the call
In its filing, TXNM reported that PNM’s weather-normalized residential load increased 5.0% and industrial load increased 18.6% in the third quarter from a year earlier, while commercial load decreased 0.9%. At TNMP, data center load decreased 29.1% over the same period.
The filing said Texas regulators approved a settlement in TNMP’s base rate review in July 2026. It also said PNM’s grid modernization plan was updated in June 2025 to increase planned investments in its first six years.
Guidance
TXNM projects consolidated capital requirements of $11.1 billion for 2026 - 2030, including construction expenditures and dividends. The company said construction expenditures may change with additional spending for customer growth and transmission and renewable energy expansion.