# EDGAR Filing Document

**Accession Number:** 0000022767
**File Stem:** 0001108426-25-000107
**Filing Date:** 2025-10
**Character Count:** 53674
**Document Hash:** 801f339ebffee255d62da42772b3c9a2
**Contains OCR:** False
**Source Format:** 

## Filing Content

## Filing Summary
**0001108426-25-000107.hdr.sgml**: 20251031

**ACCESSION NUMBER**: 0001108426-25-000107

**CONFORMED SUBMISSION TYPE**: 8-K

**PUBLIC DOCUMENT COUNT**: 15

**CONFORMED PERIOD OF REPORT**: 20251031

**ITEM INFORMATION**: Results of Operations and Financial Condition

**ITEM INFORMATION**: Financial Statements and Exhibits

**FILED AS OF DATE**: 20251031

**DATE AS OF CHANGE**: 20251031

**FILER**: 

**COMPANY DATA:**
- **COMPANY CONFORMED NAME:** TXNM ENERGY INC
- **CENTRAL INDEX KEY:** 0001108426
- **STANDARD INDUSTRIAL CLASSIFICATION:** ELECTRIC SERVICES [4911]
- **ORGANIZATION NAME:** 01 Energy & Transportation
- **EIN:** 850019030
- **STATE OF INCORPORATION:** NM
- **FISCAL YEAR END:** 1231

**FILING VALUES:**
- **FORM TYPE:** 8-K
- **SEC ACT:** 1934 Act
- **SEC FILE NUMBER:** 001-32462
- **FILM NUMBER:** 251437900

**BUSINESS ADDRESS:**
- **STREET 1:** 414 SILVER AVE. SW
- **CITY:** ALBUQUERQUE
- **STATE:** NM
- **ZIP:** 87102-3289
- **BUSINESS PHONE:** 5052412700

**MAIL ADDRESS:**
- **STREET 1:** 414 SILVER AVE. SW
- **STREET 2:** ATTN: MS 1045 - ROBERT BISCHOFF
- **CITY:** ALBUQUERQUE
- **STATE:** NM
- **ZIP:** 87102-3289

**FORMER COMPANY:**
- **FORMER CONFORMED NAME:** PNM RESOURCES INC
- **DATE OF NAME CHANGE:** 20010618

**FORMER COMPANY:**
- **FORMER CONFORMED NAME:** MANZANO CORP
- **DATE OF NAME CHANGE:** 20000303
**FILER**: 

**COMPANY DATA:**
- **COMPANY CONFORMED NAME:** TEXAS NEW MEXICO POWER CO
- **CENTRAL INDEX KEY:** 0000022767
- **STANDARD INDUSTRIAL CLASSIFICATION:** ELECTRIC SERVICES [4911]
- **ORGANIZATION NAME:** 01 Energy & Transportation
- **EIN:** 750204070
- **STATE OF INCORPORATION:** TX
- **FISCAL YEAR END:** 1231

**FILING VALUES:**
- **FORM TYPE:** 8-K
- **SEC ACT:** 1934 Act
- **SEC FILE NUMBER:** 002-97230
- **FILM NUMBER:** 251437901

**BUSINESS ADDRESS:**
- **STREET 1:** 577 N. GARDEN RIDGE BLVD.
- **CITY:** LEWISVILLE
- **STATE:** TX
- **ZIP:** 75067
- **BUSINESS PHONE:** 9724204189

**MAIL ADDRESS:**
- **STREET 1:** 577 N. GARDEN RIDGE BLVD.
- **CITY:** LEWISVILLE
- **STATE:** TX
- **ZIP:** 75067

**FORMER COMPANY:**
- **FORMER CONFORMED NAME:** COMMUNITY PUBLIC SERVICE CO
- **DATE OF NAME CHANGE:** 19810617
**FILER**: 

**COMPANY DATA:**
- **COMPANY CONFORMED NAME:** PUBLIC SERVICE CO OF NEW MEXICO
- **CENTRAL INDEX KEY:** 0000081023
- **STANDARD INDUSTRIAL CLASSIFICATION:** ELECTRIC & OTHER SERVICES COMBINED [4931]
- **ORGANIZATION NAME:** 01 Energy & Transportation
- **EIN:** 850019030
- **STATE OF INCORPORATION:** NM
- **FISCAL YEAR END:** 1231

**FILING VALUES:**
- **FORM TYPE:** 8-K
- **SEC ACT:** 1934 Act
- **SEC FILE NUMBER:** 001-06986
- **FILM NUMBER:** 251437902

**BUSINESS ADDRESS:**
- **STREET 1:** 414 SILVER AVE. SW
- **CITY:** ALBUQUERQUE
- **STATE:** NM
- **ZIP:** 87102-3289
- **BUSINESS PHONE:** 5058482700

**MAIL ADDRESS:**
- **STREET 1:** 414 SILVER AVE. SW
- **CITY:** ALBUQUERQUE
- **STATE:** NM
- **ZIP:** 87102-3289

?xml version='1.0' encoding='ASCII'? pnm-20251031

---

| | |
|:---|:---|
| **UNITED STATES** | **UNITED STATES** |
| **SECURITIES AND EXCHANGE COMMISSION** | **SECURITIES AND EXCHANGE COMMISSION** |
| **Washington, D.C. 20549** | **Washington, D.C. 20549** |
| **FORM** | **8-K** |
| **CURRENT REPORT** | **CURRENT REPORT** |
| **Pursuant to Section 13 OR 15(d) of The Securities Exchange Act of 1934** | **Pursuant to Section 13 OR 15(d) of The Securities Exchange Act of 1934** |

---

Date of Report (Date of earliest event reported) October 31, 2025 <br> <u>(October 31, 2025)</u>

<u>Name of Registrant</u>, <u>State of Incorporation</u>, <u>Address Of Principal Executive Offices</u>, <u>Telephone Number</u>, <u>Commission File No.</u>, <u>IRS Employer Identification No.</u><br>

**TXNM Energy, Inc.**

(A New Mexico Corporation)

414 Silver Ave. SW

Albuquerque, New Mexico 87102-3289

Telephone Number - (505) 241-2700

Commission File No. - 001-32462

IRS Employer Identification No. - 85-0468296

**Public Service Company of New Mexico**

(A New Mexico Corporation)

414 Silver Ave. SW

Albuquerque, New Mexico 87102-3289

Telephone Number - (505) 241-2700

Commission File No. - 001-06986

IRS Employer Identification No. - 85-0019030

**Texas-New Mexico Power Company**

(A Texas Corporation)

577 N. Garden Ridge Blvd.

Lewisville, Texas 75067

Telephone Number - (972) 420-4189

Commission File No. - 002-97230

IRS Employer Identification No. - 75-0204070

____________________________________________________________________________________________________________

Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:

☐ Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)

☐ Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)

☐ Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 40.14d-2(b))

☐ Pre-commencement communications pursuant to Rule 13e-4 (c) under the Exchange Act (17 CFR 40.13e-4(c))

Securities registered pursuant to Section 12(b) of the Act:

---

| | | | |
|:---|:---|:---|:---|
| <u>Registrant</u> | <u>Title of each class</u> | <u>Trading Symbol(s)</u> | <u>Name of exchange on which registered</u> |
| TXNM Energy, Inc | Common Stock, no par value | TXNM | New York Stock Exchange |

---

Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (§230.405 of this chapter) or Rule 12b-2 of the Securities Exchange Act of 1934 (§240.12b-2 of this chapter). Emerging growth company ☐

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐

------

**Item 2.02 &nbsp;&nbsp;&nbsp;&nbsp; Results of Operations and Financial Condition.**

On October 31, 2025, TXNM Energy, Inc., Public Service Company of New Mexico, and Texas-New Mexico Power Company (collectively, the "Company") issued a press release announcing results of operations for the three and nine months ended September 30, 2025. The press release is furnished herewith as Exhibit 99.1 and incorporated by reference herein.

The Company's press release and other communications from time to time may include certain financial measures that are not determined in accordance with generally accepted accounting principles in the United States of America ("GAAP"). A "non-GAAP financial measure" is defined as a numerical measure of a company's financial performance, financial position or cash flows that excludes (or includes) amounts that are included in (or excluded from) the most directly comparable measure calculated and presented in accordance with GAAP in the company's financial statements.

Non-GAAP financial measures utilized by the Company include presentations, on an ongoing basis, of revenues, operating expenses, operating income, other income and deductions, earnings, and earnings per share. The Company uses ongoing earnings and ongoing earnings per diluted share (or ongoing diluted earnings per share) to evaluate the operations of the Company and to establish goals, including those used for certain aspects of incentive compensation, for management and employees. Certain non-GAAP financial measures utilized by the Company exclude the impact of net unrealized mark-to-market gains and losses on economic hedges, the net change in unrealized gains and losses on investment securities, pension expense related to previously disposed of gas distribution business, and certain non-recurring, infrequent, and other items. The Company's management believes that these non-GAAP financial measures provide useful information to investors by removing the effect of variances in GAAP reported results of operations that are not indicative of fundamental changes in the earnings capacity of the Company's operations. Management also believes that the presentation of the non-GAAP financial measures is largely consistent with its past practice, as well as industry practice in general, and will enable investors and analysts to compare current non-GAAP measures with non-GAAP measures with respect to prior periods.

The non-GAAP financial measures used by the Company should not be considered in isolation from or as a substitute for measures of performance prepared in accordance with GAAP.

The Company uses ongoing earnings guidance to provide investors with management's expectations of ongoing financial performance over the period presented. While the Company believes ongoing earnings guidance is an appropriate measure, it is not a measure presented in accordance with GAAP. The Company does not intend for ongoing earnings guidance to represent an expectation of net earnings as defined by GAAP. Since the future differences between GAAP and ongoing earnings are frequently outside the control of the Company, management is generally not able to estimate the impact of the reconciling items between forecasted GAAP earnings and ongoing earnings guidance, nor their probable impact on GAAP earnings without unreasonable effort; therefore, management is generally not able to provide a corresponding GAAP equivalent for forecasted ongoing earnings guidance. Reconciling items may include revenues and expenses resulting from transactions that do not occur in the normal course of the Company's business operations, as well as net unrealized mark-to-market gains and losses on economic hedges, the net change in unrealized gains and losses on investment securities, and pension expense related to previously disposed of gas distribution business as discussed above.

*Limitation on Incorporation by Reference*

In accordance with general instruction B.2 of Form 8-K, the information in this report, including exhibits, is furnished pursuant to Item 2.02 and shall not be deemed "filed" for the purposes of Section 18 of the Securities Exchange Act of 1934, or otherwise subject to the liability of that section and not deemed incorporated by reference in any filing under the Securities Act of 1933.

------

**Item 9.01 &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Financial Statements and Exhibits.**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) Exhibits:

**Exhibit Number &nbsp;&nbsp;&nbsp;&nbsp;Description**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;99.1 &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; <u>[Press Release dated](ex99110312025earningsrelea.htm)[October](ex99110312025earningsrelea.htm)[3](ex99110312025earningsrelea.htm)[1, 2025](ex99110312025earningsrelea.htm)</u>.

104&nbsp;&nbsp;&nbsp;&nbsp; Cover Page Interactive Data File (embedded within the Inline XBRL document).

------

**<u>SIGNATURE</u>**

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrants have duly caused this report to be signed on their behalf by the undersigned thereunto duly authorized.

---

| | |
|:---|:---|
| | **TXNM ENERGY, INC.**<br>**PUBLIC SERVICE COMPANY OF NEW MEXICO**<br>**TEXAS-NEW MEXICO POWER COMPANY** |
| | (Registrants) |
| Date: October 31, 2025 | /s/ Gerald R. Bischoff |
| | Gerald R. Bischoff |
| | Vice President and Corporate Controller |
| | (Officer duly authorized to sign this report) |

---

## Exhibit 99.1

**Exhibit 99.1**

![txnmlogo.jpg](txnmlogo.jpg)

ALBUQUERQUE, N.M.

October 31, 2025

TXNM Energy Reports Third Quarter 2025 Results

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• *2025 third quarter GAAP earnings of $1.22 per diluted share*

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• *2025 third quarter ongoing earnings of $1.33 per diluted share*

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• *Proposed transaction with Blackstone Infrastructure approved by shareholders*

**TXNM Energy** (In millions, except EPS)

---

| | | | | |
|:---|:---|:---|:---|:---|
| | **Q3 2025** | **Q3 2024** | **YTD 2025** | **YTD 2024** |
| **GAAP net earnings attributable to TXNM Energy** | $130.7 | $131.2 | $161.2 | $226.4 |
| **GAAP diluted EPS** | $1.22 | $1.45 | $1.63 | $2.50 |
| **Ongoing net earnings** | $142.8 | $129.3 | $185.5 | $220.6 |
| **Ongoing diluted EPS** | $1.33 | $1.43 | $1.87 | $2.44 |

---

TXNM Energy (NYSE: TXNM) today released its 2025 third quarter results. As previously announced, TXNM Energy is not affirming previously issued earnings guidance for 2025 and does not plan to issue revised earnings guidance during the pending transaction.

"Third quarter results incorporate the implementation of the first phase of approved rates in New Mexico and newly approved transmission recovery in Texas, along with additional equity issued during the quarter," said Don Tarry, President and CEO of TXNM Energy. "We have initiated the regulatory approval process for our transaction with Blackstone Infrastructure with filings that address the key issues raised during our conversations with local stakeholders and community groups. We look forward to continued conversations through the regulatory process and achieving the best path forward to invest in positive outcomes for our customers and communities across New Mexico and Texas."

**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 transaction on August 28, 2025.

The transaction is subject to regulatory approvals from the New Mexico Public Regulation Commission ("NMPRC"), Public Utility Commission of Texas ("PUCT"), Federal Energy Regulatory Commission ("FERC"), Department of Justice (Hart Scott-Rodino Clearance), Nuclear Regulatory Commission and Federal Communications Commission. On August 25, 2025, applications were filed with the NMPRC, PUCT and FERC.

TXNM Energy continues to anticipate that the closing of the acquisition will occur in the second half of 2026, subject to the satisfaction or waiver of the customary closing conditions, including among other things, receipt of required state and federal regulatory approvals.

------

**REGULATORY UPDATE** 

TNMP's second Transmission Cost of Service (TCOS) filing for 2025 was approved and implemented in the third quarter, providing recovery for $87 million of rate base. On July 31, 2025, TNMP filed its second Distribution Cost Recovery Factor (DCRF) application, seeking recovery for an additional $28 million of rate base to support ongoing investment in distribution infrastructure.

On August 6, 2025, PNM filed an application with the NMPRC for approval of a CCN to construct, own, and operate 30 megawatts of energy storage. The application consists of six megawatt batteries to be constructed at five existing PNM-owned solar facilities at an estimated cost of $78 million. These investments will provide more flexibility to our grid and to assist in serving our summer peak season when operational.

**SEGMENT REPORTING OF 2025 THIRD QUARTER EARNINGS**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• **PNM** – *a vertically integrated electric utility in New Mexico with distribution, transmission and generation assets.*

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;*•* **TNMP** – *an electric transmission and distribution utility in Texas.*

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• **Corporate and Other** *– reflects the TXNM Energy holding company and other subsidiaries.*

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;

**EPS Results by Segment**

---

| | | | | |
|:---|:---|:---|:---|:---|
| | **GAAP Diluted EPS** | **GAAP Diluted EPS** | **Ongoing Diluted EPS** | **Ongoing Diluted EPS** |
| | **Q3 2025** | **Q3 2024** | **Q3 2025** | **Q3 2024** |
| **PNM** | $0.95 | $1.20 | $0.98 | $1.18 |
| **TNMP** | $0.38 | $0.39 | $0.46 | $0.39 |
| **Corporate and Other** | ($0.11) | ($0.14) | ($0.11) | ($0.14) |
| **Consolidated TXNM Energy** | $1.22 | $1.45 | $1.33 | $1.43 |

---

Net changes to GAAP and ongoing earnings in the third quarter of 2025 compared to the third quarter of 2024 include:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• PNM: Rate relief from the implementation of the first phase of the approved 2025 Rate Request, higher retail load and transmission revenues, higher realized gains on investment securities and the timing of excess deferred income taxes were offset by lower weather-related usage, increased O&M, higher depreciation, property tax and interest expense associated with new capital investments and increased demand charges from energy storage agreements added in late 2024.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• TNMP: Rate recovery through the Distribution Cost Recovery Factor (DCRF) and Transmission Cost of Service (TCOS) rate mechanisms and higher retail load were partially offset by lower weather-related usage and higher depreciation and property tax expense associated with new capital investments.

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

GAAP and ongoing earnings per share were reduced in the third quarter of 2025 by shares issued as part of 2024 forward sales agreements of $150 million, as well as shares issued in June and August 2025 for proceeds of $800 million.

In addition, GAAP earnings in the third quarter of 2025 included $2.1 million of net unrealized losses on investment securities compared to $9.5 million of net unrealized gains in the third quarter of 2024. GAAP earnings in the third quarter of 2025 included $14.0 million of costs related to the planned acquisition. GAAP earnings in the third quarter of 2024 included $6.1 million of regulatory disallowances.

------

**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 <u>www.TXNMEnergy.com</u>.

**CONTACTS:**

**Analysts**&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**Media**

Lisa Goodman&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Corporate Communications

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(505) 241-2160&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(505) 241-2743

**Safe Harbor Statement under the Private Securities Litigation Reform Act of 1995**

Statements made in this press release that relate to future events or expectations, projections, estimates, intentions, goals, targets, and strategies are made pursuant to the Private Securities Litigation Reform Act of 1995. These forward-looking statements generally include statements regarding the potential transaction between TXNM Energy and Blackstone Infrastructure, including any statements regarding the expected timetable for completing the potential transaction, the ability to complete the potential transaction, the expected benefits of the potential transaction, projected financial information, future opportunities, and any other statements regarding TXNM Energy's and Blackstone Infrastructure's future expectations, beliefs, plans, objectives, results of operations, financial condition and cash flows, or future events or performance. Readers are cautioned that all forward-looking statements are based upon current expectations and estimates. Neither Blackstone Infrastructure nor TXNM Energy assumes any obligation to update this information. Because actual results may differ materially from those expressed or implied by these forward-looking statements, TXNM Energy caution readers not to place undue reliance on these statements. TXNM Energy's business, financial condition, cash flow, and operating results are influenced by many factors, which are often beyond its control, that can cause actual results to differ from those expressed or implied by the forward-looking statements. For a discussion of risk factors and other important factors affecting forward-looking statements, please see TXNM Energy's Form 10-K and Form 10-Q filings and the information filed on TXNM Energy's Forms 8-K with the Securities and Exchange Commission (the "SEC"), which factors are specifically incorporated by reference herein and the risks and uncertainties related to the proposed transaction with Blackstone Infrastructure, including, but not limited to: the expected timing and likelihood of completion of the pending transaction, including the timing, receipt and terms and conditions of any required governmental and regulatory approvals of the pending transaction that could reduce anticipated benefits or cause the parties to abandon the transaction, the occurrence of any event, change or other circumstances that could give rise to the termination of the transaction agreement, including in circumstances requiring the Company to pay a termination fee, the possibility that TXNM Energy's shareholders may not approve the transaction agreement, the risk that the parties may not be able to satisfy the conditions to the proposed transaction in a timely manner or at all, the outcome of legal proceedings that may be instituted against TXNM Energy, its directors and others related to the proposed transaction, risks related to disruption of management time from ongoing business operations due to the proposed transaction, the risk that the proposed transaction and its announcement could have an adverse effect on the ability of TXNM Energy to retain and hire key personnel and maintain relationships with its customers and suppliers, and on its operating results and businesses generally, the amount of costs, fees, charges or expenses resulting from the proposed transaction, and the risk that the price of TXNM Energy's common stock may fluctuate during the pendency of the proposed transaction and may decline significantly if the proposed transaction is not completed. Other unpredictable or unknown factors not discussed in this communication could also have material adverse effects on forward-looking statements. Readers are cautioned not to place undue reliance on these forward-looking statements that speak only as of the date hereof.

**Non-GAAP Financial Measures**

GAAP refers to generally accepted accounting principles in the U.S. Ongoing earnings is a non-GAAP financial measure that excludes the impact of net unrealized mark-to-market gains and losses on economic hedges, the net change in unrealized gains and losses on investment securities, pension expense related to previously disposed of gas distribution business, and certain non-recurring, infrequent, and other items that are not indicative of fundamental changes in the earnings capacity of the Company's operations. The Company uses ongoing earnings and ongoing earnings per diluted share to evaluate the operations of the Company and to establish goals, including those used for certain aspects of incentive compensation, for management and employees. While the Company believes these financial measures are appropriate and useful for investors, they are not measures presented in accordance with GAAP. The Company does not intend for these measures, or any piece of these measures, to represent any financial measure as defined by GAAP. Furthermore, the Company's calculations of these measures as presented may or may not be comparable to similarly titled measures used by other companies. Reconciliations between GAAP and ongoing earnings are contained in schedules 1-4.

------

**TXNM Energy, Inc. and Subsidiaries**

**Schedule 1**

**Reconciliation of GAAP to Ongoing Earnings** 

**(Unaudited)**

---

| | | | | |
|:---|:---|:---|:---|:---|
| | **PNM** | **TNMP** | **Corporate and Other** | **TXNM Consolidated** |
| | (in thousands) | (in thousands) | (in thousands) | (in thousands) |
| **<u>Three Months Ended September 30, 2025</u>** |  |  |  |  |
| **GAAP Net Earnings (Loss) Attributable to TXNM** | **102429** | **41130** | **(12849)** | **130710** |
| &nbsp;&nbsp;&nbsp;Adjusting items before income tax effects: |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Net change in unrealized (gains) losses on investment securities<sup>2a</sup> | 2061 |  |  | 2061 |
| &nbsp;&nbsp;&nbsp;&nbsp;Pension expense related to previously disposed of gas distribution business<sup>2c</sup> | 784 |  |  | 784 |
| &nbsp;&nbsp;&nbsp;&nbsp;Regulatory disallowances<sup>2d</sup> | (731) |  |  | (731) |
| &nbsp;&nbsp;&nbsp;&nbsp;Process improvement initiatives<sup>2e</sup> | 132 |  | 1 | 133 |
| &nbsp;&nbsp;&nbsp;&nbsp;Merger related costs<sup>2f</sup> | 926 | 10332 | 2729 | 13987 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total adjustments before income tax effects | 3172 | 10332 | 2730 | 16234 |
| &nbsp;&nbsp;&nbsp;&nbsp;Income tax impact of above adjustments<sup>1</sup> | (805) | (2170) | (694) | (3669) |
| &nbsp;&nbsp;&nbsp; Timing of statutory and effective tax rates on non-recurring items<sup>4</sup> | 319 | (10) | (754) | (445) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total income tax impacts<sup>3</sup> | (486) | (2180) | (1448) | (4114) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Adjusting items, net of income taxes | 2686 | 8152 | 1282 | 12120 |
| **Ongoing Earnings (Loss)** | **105115** | **49282** | **(11567)** | **142830** |
| **<u>Nine Months Ended September 30, 2025</u>** |  |  |  |  |
| **GAAP Net Earnings (Loss) Attributable to TXNM** | **127736** | **84381** | **(50908)** | **161209** |
| &nbsp;&nbsp;&nbsp;Adjusting items before income tax effects: |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Net change in unrealized (gains) losses on investment securities<sup>2a</sup> | (6322) |  |  | (6322) |
| &nbsp;&nbsp;&nbsp;&nbsp;Rate Request settlement<sup>2b</sup> | 1500 |  |  | 1500 |
| &nbsp;&nbsp;&nbsp;&nbsp;Pension expense related to previously disposed of gas distribution business<sup>2c</sup> | 2352 |  |  | 2352 |
| &nbsp;&nbsp;&nbsp;&nbsp;Regulatory disallowances<sup>2d</sup> | (731) |  |  | (731) |
| &nbsp;&nbsp;&nbsp;&nbsp;Process improvement initiatives<sup>2e</sup> | 592 |  | 156 | 748 |
| &nbsp;&nbsp;&nbsp;&nbsp;Merger related costs<sup>2f</sup> | 926 | 17103 | 17093 | 35122 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total adjustments before income tax effects | (1683) | 17103 | 17249 | 32669 |
| &nbsp;&nbsp;&nbsp;&nbsp;Income tax impact of above adjustments<sup>1</sup> | 428 | (3592) | (4381) | (7545) |
| &nbsp;&nbsp;&nbsp; Timing of statutory and effective tax rates on non-recurring items<sup>4</sup> | (1349) | 15 | 460 | (874) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total income tax impacts<sup>3</sup> | (921) | (3577) | (3921) | (8419) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Adjusting items, net of income taxes | (2604) | 13526 | 13328 | 24250 |
| **Ongoing Earnings (Loss)** | **125132** | **97907** | **(37580)** | **185459** |
| <sup>1</sup> Tax effects calculated using a tax rate of 21.0% for TNMP and 25.4% for other segments  | <sup>1</sup> Tax effects calculated using a tax rate of 21.0% for TNMP and 25.4% for other segments  | <sup>1</sup> Tax effects calculated using a tax rate of 21.0% for TNMP and 25.4% for other segments  | <sup>1</sup> Tax effects calculated using a tax rate of 21.0% for TNMP and 25.4% for other segments  | <sup>1</sup> Tax effects calculated using a tax rate of 21.0% for TNMP and 25.4% for other segments  |
| <sup>2</sup> The pre-tax impacts (in thousands) of adjusting items are reflected on the GAAP Condensed Consolidated Statements of Earnings as follows: | <sup>2</sup> The pre-tax impacts (in thousands) of adjusting items are reflected on the GAAP Condensed Consolidated Statements of Earnings as follows: | <sup>2</sup> The pre-tax impacts (in thousands) of adjusting items are reflected on the GAAP Condensed Consolidated Statements of Earnings as follows: | <sup>2</sup> The pre-tax impacts (in thousands) of adjusting items are reflected on the GAAP Condensed Consolidated Statements of Earnings as follows: | <sup>2</sup> The pre-tax impacts (in thousands) of adjusting items are reflected on the GAAP Condensed Consolidated Statements of Earnings as follows: |
| &nbsp;&nbsp;<sup>a</sup> Changes in "Gains on investment securities" reflecting non-cash performance relative to market, not indicative of funding requirements | &nbsp;&nbsp;<sup>a</sup> Changes in "Gains on investment securities" reflecting non-cash performance relative to market, not indicative of funding requirements | &nbsp;&nbsp;<sup>a</sup> Changes in "Gains on investment securities" reflecting non-cash performance relative to market, not indicative of funding requirements | &nbsp;&nbsp;<sup>a</sup> Changes in "Gains on investment securities" reflecting non-cash performance relative to market, not indicative of funding requirements | &nbsp;&nbsp;<sup>a</sup> Changes in "Gains on investment securities" reflecting non-cash performance relative to market, not indicative of funding requirements |
| &nbsp;&nbsp;<sup>b</sup> Increases in "Administrative and general" | &nbsp;&nbsp;<sup>b</sup> Increases in "Administrative and general" | &nbsp;&nbsp;<sup>b</sup> Increases in "Administrative and general" | &nbsp;&nbsp;<sup>b</sup> Increases in "Administrative and general" | &nbsp;&nbsp;<sup>b</sup> Increases in "Administrative and general" |
| &nbsp;&nbsp;<sup>c</sup> Increases in "Other (deductions)"  | &nbsp;&nbsp;<sup>c</sup> Increases in "Other (deductions)"  | &nbsp;&nbsp;<sup>c</sup> Increases in "Other (deductions)"  | &nbsp;&nbsp;<sup>c</sup> Increases in "Other (deductions)"  | &nbsp;&nbsp;<sup>c</sup> Increases in "Other (deductions)"  |
| &nbsp;&nbsp;<sup>d</sup> Decreases in "Regulatory disallowances"  | &nbsp;&nbsp;<sup>d</sup> Decreases in "Regulatory disallowances"  | &nbsp;&nbsp;<sup>d</sup> Decreases in "Regulatory disallowances"  | &nbsp;&nbsp;<sup>d</sup> Decreases in "Regulatory disallowances"  | &nbsp;&nbsp;<sup>d</sup> Decreases in "Regulatory disallowances"  |
| &nbsp;&nbsp;<sup>e</sup> Increases in "Energy production costs" of less than $0.1 million and $0.2 million, in "Transmission and distribution costs" of less than $0.1 million and $0.1 million, and in "Administrative and general" of $0.1 million and $0.2 million for the three and nine months ended September 30, 2025 at PNM and increase of $0.2 million in "Administrative and general" at Corporate and Other for the nine months ended September 30, 2025 | &nbsp;&nbsp;<sup>e</sup> Increases in "Energy production costs" of less than $0.1 million and $0.2 million, in "Transmission and distribution costs" of less than $0.1 million and $0.1 million, and in "Administrative and general" of $0.1 million and $0.2 million for the three and nine months ended September 30, 2025 at PNM and increase of $0.2 million in "Administrative and general" at Corporate and Other for the nine months ended September 30, 2025 | &nbsp;&nbsp;<sup>e</sup> Increases in "Energy production costs" of less than $0.1 million and $0.2 million, in "Transmission and distribution costs" of less than $0.1 million and $0.1 million, and in "Administrative and general" of $0.1 million and $0.2 million for the three and nine months ended September 30, 2025 at PNM and increase of $0.2 million in "Administrative and general" at Corporate and Other for the nine months ended September 30, 2025 | &nbsp;&nbsp;<sup>e</sup> Increases in "Energy production costs" of less than $0.1 million and $0.2 million, in "Transmission and distribution costs" of less than $0.1 million and $0.1 million, and in "Administrative and general" of $0.1 million and $0.2 million for the three and nine months ended September 30, 2025 at PNM and increase of $0.2 million in "Administrative and general" at Corporate and Other for the nine months ended September 30, 2025 | &nbsp;&nbsp;<sup>e</sup> Increases in "Energy production costs" of less than $0.1 million and $0.2 million, in "Transmission and distribution costs" of less than $0.1 million and $0.1 million, and in "Administrative and general" of $0.1 million and $0.2 million for the three and nine months ended September 30, 2025 at PNM and increase of $0.2 million in "Administrative and general" at Corporate and Other for the nine months ended September 30, 2025 |
| &nbsp;&nbsp;<sup>f</sup> Increases in "Administrative and general" of $0.9 million and $0.9 million at PNM for the three and nine months ended September 30, 2025; Increases in "Administrative and general" of $0.7 million and $0.9 million and increases in "Interest charges" of $9.6 million and $16.2 million at TNMP for the three and nine months ended September 30, 2025; Increases in "Administrative and general" at Corporate and Other of $2.7 million and $17.1 million for the three and nine months ended September 30, 2025 | &nbsp;&nbsp;<sup>f</sup> Increases in "Administrative and general" of $0.9 million and $0.9 million at PNM for the three and nine months ended September 30, 2025; Increases in "Administrative and general" of $0.7 million and $0.9 million and increases in "Interest charges" of $9.6 million and $16.2 million at TNMP for the three and nine months ended September 30, 2025; Increases in "Administrative and general" at Corporate and Other of $2.7 million and $17.1 million for the three and nine months ended September 30, 2025 | &nbsp;&nbsp;<sup>f</sup> Increases in "Administrative and general" of $0.9 million and $0.9 million at PNM for the three and nine months ended September 30, 2025; Increases in "Administrative and general" of $0.7 million and $0.9 million and increases in "Interest charges" of $9.6 million and $16.2 million at TNMP for the three and nine months ended September 30, 2025; Increases in "Administrative and general" at Corporate and Other of $2.7 million and $17.1 million for the three and nine months ended September 30, 2025 | &nbsp;&nbsp;<sup>f</sup> Increases in "Administrative and general" of $0.9 million and $0.9 million at PNM for the three and nine months ended September 30, 2025; Increases in "Administrative and general" of $0.7 million and $0.9 million and increases in "Interest charges" of $9.6 million and $16.2 million at TNMP for the three and nine months ended September 30, 2025; Increases in "Administrative and general" at Corporate and Other of $2.7 million and $17.1 million for the three and nine months ended September 30, 2025 | &nbsp;&nbsp;<sup>f</sup> Increases in "Administrative and general" of $0.9 million and $0.9 million at PNM for the three and nine months ended September 30, 2025; Increases in "Administrative and general" of $0.7 million and $0.9 million and increases in "Interest charges" of $9.6 million and $16.2 million at TNMP for the three and nine months ended September 30, 2025; Increases in "Administrative and general" at Corporate and Other of $2.7 million and $17.1 million for the three and nine months ended September 30, 2025 |
| <sup>3</sup> Increases (decreases) in "Income Taxes (Benefits)" | <sup>3</sup> Increases (decreases) in "Income Taxes (Benefits)" | <sup>3</sup> Increases (decreases) in "Income Taxes (Benefits)" | <sup>3</sup> Increases (decreases) in "Income Taxes (Benefits)" | <sup>3</sup> Increases (decreases) in "Income Taxes (Benefits)" |
| <sup>4</sup> Income tax timing impacts resulting from differences between the statutory rates of 25.4% for PNM, 21.0% for TNMP and the average expected statutory tax rate of 22.7% for TXNM, and the GAAP anticipated effective tax rates of 9.6% for PNM, 20.4% for TNMP, and 13.0% for TXNM, which will reverse by year end | <sup>4</sup> Income tax timing impacts resulting from differences between the statutory rates of 25.4% for PNM, 21.0% for TNMP and the average expected statutory tax rate of 22.7% for TXNM, and the GAAP anticipated effective tax rates of 9.6% for PNM, 20.4% for TNMP, and 13.0% for TXNM, which will reverse by year end | <sup>4</sup> Income tax timing impacts resulting from differences between the statutory rates of 25.4% for PNM, 21.0% for TNMP and the average expected statutory tax rate of 22.7% for TXNM, and the GAAP anticipated effective tax rates of 9.6% for PNM, 20.4% for TNMP, and 13.0% for TXNM, which will reverse by year end | <sup>4</sup> Income tax timing impacts resulting from differences between the statutory rates of 25.4% for PNM, 21.0% for TNMP and the average expected statutory tax rate of 22.7% for TXNM, and the GAAP anticipated effective tax rates of 9.6% for PNM, 20.4% for TNMP, and 13.0% for TXNM, which will reverse by year end | <sup>4</sup> Income tax timing impacts resulting from differences between the statutory rates of 25.4% for PNM, 21.0% for TNMP and the average expected statutory tax rate of 22.7% for TXNM, and the GAAP anticipated effective tax rates of 9.6% for PNM, 20.4% for TNMP, and 13.0% for TXNM, which will reverse by year end |

---

------

**TXNM Energy, Inc. and Subsidiaries**

**Schedule 2**

**Reconciliation of GAAP to Ongoing Earnings** 

**(Unaudited)**

---

| | | | | |
|:---|:---|:---|:---|:---|
| | **PNM** | **TNMP** | **Corporate and Other** | **TXNM Consolidated** |
| | (in thousands) | (in thousands) | (in thousands) | (in thousands) |
| **<u>Three Months Ended September 30, 2024</u>** |  |  |  |  |
| **GAAP Net Earnings (Loss) Attributable to TXNM** | **108666** | **35695** | **(13159)** | **131202** |
| Adjusting items before income tax effects: |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Net change in unrealized (gains) losses on investment securities<sup>2a</sup> | (9546) |  |  | (9546) |
| &nbsp;&nbsp;&nbsp;&nbsp;Regulatory disallowances<sup>2b</sup> | 6142 |  |  | 6142 |
| &nbsp;&nbsp;&nbsp;&nbsp;Pension expense related to previously disposed of gas distribution business<sup>2c</sup> | 433 |  |  | 433 |
| &nbsp;&nbsp;&nbsp;&nbsp;Merger related costs<sup>2d</sup> |  |  | 479 | 479 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total adjustments before income tax effects | (2971) |  | 479 | (2492) |
| &nbsp;&nbsp;&nbsp;&nbsp;Income tax impact of above adjustments<sup>1</sup> | 754 |  | (121) | 633 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total income tax impacts<sup>4</sup> | 754 |  | (121) | 633 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Adjusting items, net of income taxes | (2217) |  | 358 | (1859) |
| **Ongoing Earnings (Loss)** | **106449** | **35695** | **(12801)** | **129343** |
| **<u>Nine Months Ended September 30, 2024</u>** |  |  |  |  |
| **GAAP Net Earnings (Loss) Attributable to TXNM** | **181373** | **80203** | **(35135)** | **226441** |
| Adjusting items before income tax effects: |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Net change in unrealized (gains) losses on investment securities<sup>2a</sup> | (16204) |  |  | (16204) |
| &nbsp;&nbsp;&nbsp;&nbsp;Regulatory disallowances<sup>2b</sup> | 10847 |  |  | 10847 |
| &nbsp;&nbsp;&nbsp;&nbsp;Pension expense related to previously disposed of gas distribution business<sup>2c</sup> | 1299 |  |  | 1299 |
| &nbsp;&nbsp;&nbsp;&nbsp;Merger related costs<sup>2d</sup> | 134 | (22) | 2128 | 2240 |
| &nbsp;&nbsp;&nbsp;&nbsp;Sale of NMRD<sup>3</sup> |  |  | 15097 | 15097 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total adjustments before income tax effects | (3924) | (22) | 17225 | 13279 |
| &nbsp;&nbsp;&nbsp;&nbsp;Income tax impact of above adjustments<sup>1</sup> | 997 | 4 | (4375) | (3374) |
| &nbsp;&nbsp;&nbsp;&nbsp;Sale of NMRD<sup>3</sup> |  |  | (15712) | (15712) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total income tax impacts<sup>4</sup> | 997 | 4 | (20087) | (19086) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Adjusting items, net of income taxes | (2927) | (18) | (2862) | (5807) |
| **Ongoing Earnings (Loss)** | **178446** | **80185** | **(37997)** | **220634** |
| <sup>1</sup>Tax effects calculated using a tax rate of 21.0% for TNMP and 25.4% for other segments | <sup>1</sup>Tax effects calculated using a tax rate of 21.0% for TNMP and 25.4% for other segments | <sup>1</sup>Tax effects calculated using a tax rate of 21.0% for TNMP and 25.4% for other segments | <sup>1</sup>Tax effects calculated using a tax rate of 21.0% for TNMP and 25.4% for other segments | <sup>1</sup>Tax effects calculated using a tax rate of 21.0% for TNMP and 25.4% for other segments |
| <sup>2</sup> The pre-tax impacts (in thousands) of adjusting items are reflected on the GAAP Condensed Consolidated Statement of Earnings as follows: | <sup>2</sup> The pre-tax impacts (in thousands) of adjusting items are reflected on the GAAP Condensed Consolidated Statement of Earnings as follows: | <sup>2</sup> The pre-tax impacts (in thousands) of adjusting items are reflected on the GAAP Condensed Consolidated Statement of Earnings as follows: | <sup>2</sup> The pre-tax impacts (in thousands) of adjusting items are reflected on the GAAP Condensed Consolidated Statement of Earnings as follows: | <sup>2</sup> The pre-tax impacts (in thousands) of adjusting items are reflected on the GAAP Condensed Consolidated Statement of Earnings as follows: |
| &nbsp;&nbsp;<sup>a</sup> Changes in "Gains on investment securities" reflecting non-cash performance relative to market, not indicative of funding requirements  | &nbsp;&nbsp;<sup>a</sup> Changes in "Gains on investment securities" reflecting non-cash performance relative to market, not indicative of funding requirements  | &nbsp;&nbsp;<sup>a</sup> Changes in "Gains on investment securities" reflecting non-cash performance relative to market, not indicative of funding requirements  | &nbsp;&nbsp;<sup>a</sup> Changes in "Gains on investment securities" reflecting non-cash performance relative to market, not indicative of funding requirements  | &nbsp;&nbsp;<sup>a</sup> Changes in "Gains on investment securities" reflecting non-cash performance relative to market, not indicative of funding requirements  |
| &nbsp;&nbsp;<sup>b</sup> Increase in "Regulatory disallowances" of $6.1 million and $10.6 million for the three and nine months ended September 30, 2024 and a decrease in "Electric Operating Revenue" of zero and $0.2 million for the three and nine months ended September 30, 2024 | &nbsp;&nbsp;<sup>b</sup> Increase in "Regulatory disallowances" of $6.1 million and $10.6 million for the three and nine months ended September 30, 2024 and a decrease in "Electric Operating Revenue" of zero and $0.2 million for the three and nine months ended September 30, 2024 | &nbsp;&nbsp;<sup>b</sup> Increase in "Regulatory disallowances" of $6.1 million and $10.6 million for the three and nine months ended September 30, 2024 and a decrease in "Electric Operating Revenue" of zero and $0.2 million for the three and nine months ended September 30, 2024 | &nbsp;&nbsp;<sup>b</sup> Increase in "Regulatory disallowances" of $6.1 million and $10.6 million for the three and nine months ended September 30, 2024 and a decrease in "Electric Operating Revenue" of zero and $0.2 million for the three and nine months ended September 30, 2024 | &nbsp;&nbsp;<sup>b</sup> Increase in "Regulatory disallowances" of $6.1 million and $10.6 million for the three and nine months ended September 30, 2024 and a decrease in "Electric Operating Revenue" of zero and $0.2 million for the three and nine months ended September 30, 2024 |
| &nbsp;&nbsp;<sup>c</sup> Increases in "Other (deductions)" |  |  |  |  |
| &nbsp;&nbsp;<sup>d</sup> Increases (decreases) in "Administrative and general", including $0.4 million related to rebranding costs in the three and nine months ended September 30, 2024 | &nbsp;&nbsp;<sup>d</sup> Increases (decreases) in "Administrative and general", including $0.4 million related to rebranding costs in the three and nine months ended September 30, 2024 | &nbsp;&nbsp;<sup>d</sup> Increases (decreases) in "Administrative and general", including $0.4 million related to rebranding costs in the three and nine months ended September 30, 2024 | &nbsp;&nbsp;<sup>d</sup> Increases (decreases) in "Administrative and general", including $0.4 million related to rebranding costs in the three and nine months ended September 30, 2024 | &nbsp;&nbsp;<sup>d</sup> Increases (decreases) in "Administrative and general", including $0.4 million related to rebranding costs in the three and nine months ended September 30, 2024 |
| <sup>3</sup> Net gain of $4.4 million on the sale of NMRD: Increase in "Other (deductions)" of $15.1 million, decrease in "Income Taxes (Benefits)" of $3.8 million for federal income tax and a decrease in "Income Taxes (Benefits)" of $15.7 million for investment tax credits | <sup>3</sup> Net gain of $4.4 million on the sale of NMRD: Increase in "Other (deductions)" of $15.1 million, decrease in "Income Taxes (Benefits)" of $3.8 million for federal income tax and a decrease in "Income Taxes (Benefits)" of $15.7 million for investment tax credits | <sup>3</sup> Net gain of $4.4 million on the sale of NMRD: Increase in "Other (deductions)" of $15.1 million, decrease in "Income Taxes (Benefits)" of $3.8 million for federal income tax and a decrease in "Income Taxes (Benefits)" of $15.7 million for investment tax credits | <sup>3</sup> Net gain of $4.4 million on the sale of NMRD: Increase in "Other (deductions)" of $15.1 million, decrease in "Income Taxes (Benefits)" of $3.8 million for federal income tax and a decrease in "Income Taxes (Benefits)" of $15.7 million for investment tax credits | <sup>3</sup> Net gain of $4.4 million on the sale of NMRD: Increase in "Other (deductions)" of $15.1 million, decrease in "Income Taxes (Benefits)" of $3.8 million for federal income tax and a decrease in "Income Taxes (Benefits)" of $15.7 million for investment tax credits |
| <sup>4</sup> Increases (decreases) in "Income Taxes (Benefits)" | <sup>4</sup> Increases (decreases) in "Income Taxes (Benefits)" | <sup>4</sup> Increases (decreases) in "Income Taxes (Benefits)" | <sup>4</sup> Increases (decreases) in "Income Taxes (Benefits)" | <sup>4</sup> Increases (decreases) in "Income Taxes (Benefits)" |

---

------

**TXNM Energy, Inc. and Subsidiaries**

**Schedule 3**

**Reconciliation of GAAP to Ongoing Earnings Per Diluted Share**

**(Unaudited)**

---

| | | | | |
|:---|:---|:---|:---|:---|
| | **PNM** | **TNMP** | **Corporate and Other** | **TXNM Consolidated** |
| | (per diluted share) | (per diluted share) | (per diluted share) | (per diluted share) |
| **<u>Three Months Ended September 30, 2025</u>** |  |  |  |  |
| **GAAP Net Earnings (Loss) Attributable to TXNM** | $**0.95** | $**0.38** | $**(0.11)** | $**1.22** |
| Adjusting items, net of income tax effects: |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Net change in unrealized (gains) losses on investment securities | 0.02 |  |  | 0.02 |
| &nbsp;&nbsp;&nbsp;&nbsp;Pension expense related to previously disposed of gas distribution business | 0.01 |  |  | 0.01 |
| &nbsp;&nbsp;&nbsp;&nbsp;Regulatory disallowances | (0.01) |  |  | (0.01) |
| &nbsp;&nbsp;&nbsp;&nbsp;Merger related costs | 0.01 | 0.08 | 0.01 | 0.10 |
| &nbsp;&nbsp;&nbsp; Timing of statutory and effective tax rates on non-recurring items |  |  | (0.01) | (0.01) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total Adjustments | 0.03 | 0.08 |  | 0.11 |
| **Ongoing Earnings (Loss)** | $**0.98** | $**0.46** | $**(0.11)** | $**1.33** |
| &nbsp;&nbsp;&nbsp;&nbsp;Average Diluted Shares Outstanding: 107,416,661 |  |  |  |  |
| **<u>Nine Months Ended September 30, 2025</u>** |  |  |  |  |
| **GAAP Net Earnings (Loss) Attributable to TXNM** | $**1.29** | $**0.85** | $**(0.51)** | $**1.63** |
| Adjusting items, net of income tax effects: |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Net change in unrealized (gains) losses on investment securities | (0.05) |  |  | (0.05) |
| &nbsp;&nbsp;&nbsp;&nbsp;Rate Request settlement | 0.01 |  |  | 0.01 |
| &nbsp;&nbsp;&nbsp;&nbsp;Pension expense related to previously disposed of gas distribution business | 0.02 |  |  | 0.02 |
| &nbsp;&nbsp;&nbsp;&nbsp;Regulatory disallowances | (0.01) |  |  | (0.01) |
| &nbsp;&nbsp;&nbsp;&nbsp;Merger related costs | 0.01 | 0.14 | 0.13 | 0.28 |
| &nbsp;&nbsp;&nbsp;Timing of statutory and effective tax rates on non-recurring items | (0.01) |  |  | (0.01) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total Adjustments | (0.03) | 0.14 | 0.13 | 0.24 |
| **Ongoing Earnings (Loss)** | $**1.26** | $**0.99** | $**(0.38)** | $**1.87** |
| &nbsp;&nbsp;&nbsp;&nbsp;Average Diluted Shares Outstanding: 99,041,745 |  |  |  |  |

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------

**TXNM Energy, Inc. and Subsidiaries**

**Schedule 4**

**Reconciliation of GAAP to Ongoing Earnings Per Diluted Share**

**(Unaudited)**

---

| | | | | |
|:---|:---|:---|:---|:---|
| | **PNM** | **TNMP** | **Corporate and Other** | **TXNM Consolidated** |
| | (per diluted share) | (per diluted share) | (per diluted share) | (per diluted share) |
| **<u>Three Months Ended September 30, 2024</u>** |  |  |  |  |
| **GAAP Net Earnings (Loss) Attributable to TXNM** | $**1.20** | $**0.39** | $**(0.14)** | $**1.45** |
| Adjusting items, net of income tax effects: |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Net change in unrealized (gains) losses on investment securities | (0.07) |  |  | (0.07) |
| &nbsp;&nbsp;&nbsp;&nbsp;Regulatory disallowances | 0.05 |  |  | 0.05 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total Adjustments | (0.02) |  |  | (0.02) |
| **Ongoing Earnings (Loss)** | $**1.18** | $**0.39** | $**(0.14)** | $**1.43** |
| &nbsp;&nbsp;&nbsp;&nbsp;Average Diluted Shares Outstanding: 90,605,188 |  |  |  |  |
| **<u>Nine Months Ended September 30, 2024</u>** |  |  |  |  |
| **GAAP Net Earnings (Loss) Attributable to TXNM** | $**2.00** | $**0.89** | $**(0.39)** | $**2.50** |
| Adjusting items, net of income tax effects: |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Net change in unrealized (gains) losses on investment securities | (0.13) |  |  | (0.13) |
| &nbsp;&nbsp;&nbsp;&nbsp;Regulatory disallowances | 0.09 |  |  | 0.09 |
| &nbsp;&nbsp;&nbsp;&nbsp;Pension expense related to previously disposed of gas distribution business | 0.01 |  |  | 0.01 |
| &nbsp;&nbsp;&nbsp;&nbsp;Merger related costs |  |  | 0.02 | 0.02 |
| &nbsp;&nbsp;&nbsp;&nbsp;Sale of NMRD |  |  | (0.05) | (0.05) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total Adjustments | (0.03) |  | (0.03) | (0.06) |
| **Ongoing Earnings (Loss)** | $**1.97** | $**0.89** | $**(0.42)** | $**2.44** |
| &nbsp;&nbsp;&nbsp;&nbsp;Average Diluted Shares Outstanding: 90,551,894 |  |  |  |  |

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------

**TXNM Energy, Inc. and Subsidiaries**

**Schedule 5**

**Condensed Consolidated Statements of Earnings**

**(Unaudited)**

---

| | | | | |
|:---|:---|:---|:---|:---|
| | **Three Months Ended September 30,** | **Three Months Ended September 30,** | **Nine Months Ended September 30,** | **Nine Months Ended September 30,** |
| | **2025** | **2024** | **2025** | **2024** |
| | (In thousands, except per share amounts) | (In thousands, except per share amounts) | (In thousands, except per share amounts) | (In thousands, except per share amounts) |
| **Electric Operating Revenues** | $647162 | $569256 | $1632374 | $1494235 |
| **Operating Expenses:** |  |  |  |  |
| &nbsp;&nbsp;&nbsp;Cost of energy | 195042 | 138909 | 531846 | 425919 |
| &nbsp;&nbsp;&nbsp;Administrative and general | 68445 | 64840 | 205205 | 179848 |
| &nbsp;&nbsp;&nbsp;Energy production costs | 21172 | 21259 | 71799 | 68055 |
| &nbsp;&nbsp;Regulatory disallowances | (731) | 6142 | (731) | 10601 |
| &nbsp;&nbsp;&nbsp;Depreciation and amortization | 105012 | 97400 | 314798 | 285000 |
| &nbsp;&nbsp;&nbsp;Transmission and distribution costs | 27167 | 23660 | 79133 | 71475 |
| &nbsp;&nbsp;&nbsp;Taxes other than income taxes | 28185 | 25966 | 82864 | 75984 |
| &nbsp;&nbsp;&nbsp;&nbsp;Total operating expenses | 444292 | 378176 | 1284914 | 1116882 |
| &nbsp;&nbsp;&nbsp;&nbsp;Operating income | 202870 | 191080 | 347460 | 377353 |
| **Other Income and Deductions:** |  |  |  |  |
| &nbsp;&nbsp;&nbsp;Interest income | 6496 | 8669 | 14615 | 17719 |
| &nbsp;&nbsp;Gains on investment securities | 11376 | 13770 | 33691 | 32326 |
| &nbsp;&nbsp;&nbsp;Other income | 7688 | 7953 | 18121 | 20552 |
| &nbsp;&nbsp;&nbsp;Other (deductions) | (3028) | (1988) | (11767) | (20146) |
| &nbsp;&nbsp;&nbsp;&nbsp;Net other income and deductions | 22532 | 28404 | 54660 | 50451 |
| **Interest Charges** | 70149 | 59664 | 205713 | 169254 |
| **Earnings before Income Taxes** | 155253 | 159820 | 196407 | 258550 |
| **Income Taxes** | 18949 | 23422 | 21293 | 19822 |
| **Net Earnings** | 136304 | 136398 | 175114 | 238728 |
| **(Earnings) Attributable to Valencia Non-controlling Interest** | (5462) | (5064) | (13509) | (11891) |
| **Preferred Stock Dividend Requirements of Subsidiary** | (132) | (132) | (396) | (396) |
| **Net Earnings Attributable to TXNM** | $130710 | $131202 | $161209 | $226441 |
| **Net Earnings Attributable to TXNM per Common Share:** |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Basic | $1.22 | $1.45 | $1.63 | $2.50 |
| &nbsp;&nbsp;&nbsp;&nbsp;Diluted | $1.22 | $1.45 | $1.63 | $2.50 |
| **Dividends Declared per Common Share** | $0.4075 | $0.3875 | $1.2225 | $1.1625 |

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