v3.26.3
Segment Information
 9 Months Ended
Sep. 30, 2026
Segment Reporting [Abstract]  
Segment Information Segment Information
TXNM has three reportable segments, namely PNM, TNMP, and Corporate and Other. The accounting policies of the segments are the same as those described in the summary of significant accounting policies. The measure of profitability used by the CODM is Segment earnings (loss) attributable to TXNM, as presented below. The CODM uses this measure of profitability to allocate resources for each segment predominantly in the annual budget and forecasting process. The CODM considers budget to actual variances on a regular basis when making decisions about allocating capital and operational expense funding to the segments. TXNM’s CODM is its current President and Chief Executive Officer (“CEO”) who is also the CEO of the PNM and TNMP segments.

PNM

PNM’s electric utility operations are subject to traditional rate regulation by the NMPRC. PNM provides integrated electricity services that include the generation, transmission, and distribution of electricity for retail electric customers in New Mexico; the generation and sale of electricity into the wholesale market, which includes the asset optimization of PNM’s jurisdictional capacity, as well as providing transmission services to third parties. FERC has jurisdiction over wholesale power and transmission rates. PNM’s operations also include the results of ETBC I since its formation in 2023.

TNMP

TNMP is an electric utility providing services in Texas under the TECA. TNMP’s operations are subject to traditional rate regulation by the PUCT. TNMP provides transmission and distribution services at regulated rates to various REPs that, in turn, provide retail electric service to consumers within TNMP’s service area. TNMP also provides transmission services at regulated rates to other utilities that interconnect with TNMP’s facilities.

Corporate and Other

The Corporate and Other segment includes TXNM holding company activities, primarily related to corporate level debt and PNMR Services Company. Eliminations of intercompany transactions are reflected in the Corporate and Other segment. The following tables present summarized financial information for TXNM by segment. PNM and TNMP each operate in only one segment. Therefore, tabular segment information is not presented for PNM and TNMP.
TXNM SEGMENT INFORMATION
PNMTNMPCorporate
and Other
TXNM
(In thousands)
Three Months Ended September 30, 2026
Electric operating revenues$527,828 $205,462 $— $733,290 
Cost of energy
Fuel burn25,803 — — 25,803 
Purchases for resale119,327 — — 119,327 
Transmission by others8,234 45,142 — 53,376 
Significant segment expenses
Administrative and general - direct24,990 (1,669)36,783 60,104 
Administrative and general - corporate allocation31,547 13,597 (45,144)— 
Customer related expenses7,903 864 — 8,767 
Energy production costs23,255 — — 23,255 
Depreciation and amortization67,009 36,215 9,122 112,346 
Transmission and distribution costs17,507 10,719 — 28,226 
Taxes other than income taxes15,454 14,011 1,533 30,998 
Total operating expenses341,029 118,879 2,294 462,202 
Net other income and (deductions)(3,666)4,398 (384)348 
Interest charges(34,026)(23,280)(18,753)(76,059)
Income taxes (benefit)17,596 13,672 (3,892)27,376 
Valencia non-controlling interest(4,440)— — (4,440)
Subsidiary preferred stock dividends(132)— — (132)
Segment earnings (loss) attributable to TXNM$126,939 $54,029 $(17,539)$163,429 
Nine Months Ended September 30, 2026
Electric operating revenues$1,218,955 $567,871 $— $1,786,826 
Cost of energy
Fuel burn86,108 — — 86,108 
Purchases for resale287,368 — — 287,368 
Transmission by others23,134 132,527 — 155,661 
Significant segment expenses
Administrative and general - direct63,963 (2,698)112,601 173,866 
Administrative and general - corporate allocation97,275 41,833 (139,108)— 
Customer related expenses24,261 2,525 — 26,786 
Energy production costs72,998 — — 72,998 
Depreciation and amortization196,429 114,351 28,520 339,300 
Transmission and distribution costs50,823 28,667 — 79,490 
Taxes other than income taxes48,673 39,861 5,314 93,848 
Total operating expenses951,032 357,066 7,327 1,315,425 
Net other income and (deductions)22,511 11,986 (862)33,635 
Interest charges(99,390)(66,711)(47,896)(213,997)
Income taxes (benefit)21,255 31,427 (13,039)39,643 
Valencia non-controlling interest(12,570)— — (12,570)
Subsidiary preferred stock dividends(396)— — (396)
Segment earnings (loss) attributable to TXNM$156,823 $124,653 $(43,046)$238,430 
At September 30, 2026:
Total Assets$8,022,581 $4,608,874 $192,655 $12,824,110 
Goodwill$51,632 $226,665 $— $278,297 
PNMTNMPCorporate
and Other
TXNM
(In thousands)
Three Months Ended September 30, 2025
Electric operating revenues$463,720 $183,442 $— $647,162 
Cost of energy
Fuel burn26,312 — — 26,312 
Purchases for resale119,834 — — 119,834 
Transmission by others6,707 42,189 — 48,896 
Significant segment expenses
Administrative and general - direct22,764 969 36,167 59,900 
Administrative and general - corporate allocation30,865 12,136 (43,001)— 
Customer related expenses7,792 753 — 8,545 
Energy production costs21,172 — — 21,172 
Regulatory disallowances(731)— — (731)
Depreciation and amortization61,366 34,956 8,690 105,012 
Transmission and distribution costs18,127 9,040 — 27,167 
Taxes other than income taxes14,111 12,659 1,415 28,185 
Total operating expenses328,319 112,702 3,271 444,292 
Net other income and (deductions)17,334 5,623 (425)22,532 
Interest charges(33,805)(24,754)(11,590)(70,149)
Income taxes (benefit)10,907 10,479 (2,437)18,949 
Valencia non-controlling interest(5,462)— — (5,462)
Subsidiary preferred stock dividends(132)— — (132)
Segment earnings (loss) attributable to TXNM$102,429 $41,130 $(12,849)$130,710 
Nine Months Ended September 30, 2025
Electric operating revenues$1,135,472 $496,902 $— $1,632,374 
Cost of energy
Fuel burn82,780 — — 82,780 
Purchases for resale305,939 — — 305,939 
Transmission by others19,424 123,703 — 143,127 
Significant segment expenses
Administrative and general - direct57,233 (948)123,646 179,931 
Administrative and general - corporate allocation98,270 39,621 (137,891)— 
Customer related expenses23,054 2,220 — 25,274 
Energy production costs71,799 — — 71,799 
Regulatory disallowances(731)— — (731)
Depreciation and amortization181,947 105,095 27,756 314,798 
Transmission and distribution costs49,703 29,430 — 79,133 
Taxes other than income taxes42,676 35,607 4,581 82,864 
Total operating expenses932,094 334,728 18,092 1,284,914 
Net other income and (deductions)47,139 9,723 (2,202)54,660 
Interest charges(95,596)(66,018)(44,099)(205,713)
Income taxes (benefit)13,280 21,498 (13,485)21,293 
Valencia non-controlling interest(13,509)— — (13,509)
Subsidiary preferred stock dividends(396)— — (396)
Segment earnings (loss) attributable to TXNM$127,736 $84,381 $(50,908)$161,209 
At September 30, 2025:
Total Assets$7,793,306 $4,013,441 $164,787 $11,971,534 
Goodwill$51,632 $226,665 $— $278,297 
Significant Segment Expenses

Reflected above are certain additional categories of operating expenses that are regularly provided to the CODM. Cost of energy consists primarily of fuel and purchase power costs for PNM and costs charged by third-party transmission providers for TNMP. Administrative and general - direct expenses are those that are incurred directly by the segment while Administrative and general - corporate allocation are those costs that are incurred by the Corporate and Other segment and allocated to the utilities based on the nature of the cost incurred. Administrative and general - corporate allocation is eliminated in the Corporate and Other segment. Customer related expenses include meter reading, customer service, and bad debt expenses.