TXNM Energy shares slip as earnings miss amid Blackstone deal uncertainty
Quarterly results hampered by $105 million in one-time charges as utility awaits final regulatory approvals
TXNM Energy shares fell in Thursday trading after the New Mexico-based utility reported quarterly earnings that missed analyst expectations, while announcing the suspension of 2026 guidance due to its pending acquisition by Blackstone Infrastructure Partners.
The company reported fourth-quarter earnings of $0.48 per share, falling short of the $0.57 consensus estimate, according to earnings data compiled by Benzinga. The miss came despite a $56.3 million increase in revenue compared with the same period in the prior year.
For the full year 2025, TXNM reported GAAP diluted earnings per share of $1.48, down from $2.67 in 2024. However, the company's ongoing diluted EPS—excluding one-time items—came in at $2.33, providing a clearer picture of core operating performance. The significant gap between GAAP and ongoing results was driven by $105 million in special charges recorded during the year.
According to the company's earnings press release, TXNM recorded a $61.9 million pre-tax pension expense and settlement charge related to a previously disposed gas distribution business. Additionally, the company incurred $43.1 million in merger-related costs as it prepared for the Blackstone transaction.
The earnings report comes as TXNM navigates the final stages of its $11.5 billion acquisition by Blackstone Infrastructure Partners, which was announced in May 2025. The all-cash deal offers $61.25 per share—a 23% premium to TXNM's unaffected share price at the time of announcement.
Regulatory approval momentum has been building in recent weeks. The Federal Energy Regulatory Commission (FERC) authorized the acquisition on February 20, determining the transaction is in the public interest. The Public Utility Commission of Texas has also approved a settlement supporting the acquisition, which includes $45 million in rate credits for customers and enhanced governance standards.
However, TXNM Energy reported that it will not provide 2026 earnings guidance "due to the pending transaction." The deal remains subject to approval from the Nuclear Regulatory Commission and the New Mexico Public Regulation Commission, with closing anticipated in the second half of 2026.
Shares of TXNM Energy were trading around $59 on Thursday, about 3.7% below Blackstone's offer price of $61.25, suggesting some investors perceive uncertainty around the deal's completion timeline. Analysts maintain a consensus "Hold" rating on the stock with an average price target of $60.79, according to data from MarketBeat.
The utility's core operating performance showed resilience in 2025, with electric operating revenues reaching $2.17 billion for the year. Ongoing net earnings totaled $238.9 million, benefiting from rate relief, higher retail load, and transmission revenues at its PNM subsidiary, though these gains were partially offset by increased operating expenses and higher interest costs from new capital investments.
TXNM shareholders overwhelmingly approved the Blackstone transaction in August 2025. The deal would take the company private, removing it from public markets as Blackstone expands its portfolio of regulated utility infrastructure assets.