At a glance
TXNM Energy, Inc. is worth $6.45B, about 40 times its fiscal 2025 earnings. Revenue grew 9.9% to $2.17B in fiscal 2025, with 7.0% kept as profit; over 5 years it has grown 7.3% a year. It pays a 2.87% dividend yield, raised every year for at least 9 years, and returned $711.4M to shareholders in dividends and buybacks over FY2021–FY2025. The stock returned +6.2% over the past year with dividends reinvested, against +11.5% for the S&P 500.
The business in plain English
TXNM Energy, formerly PNM Resources, is a holding company: a parent that owns two regulated electric utilities, PNM in New Mexico and TNMP in Texas. Together they serve about 842,000 residential, commercial and industrial customers, and revenue was $2.17 billion in 2025. The utilities make money by investing in power plants and lines. They then ask regulators to let them recover those costs, plus an allowed return, through rate cases (formal pricing requests) and add-on charges called riders.
PNM, which dates to 1917, generates electricity and delivers it across north-central New Mexico, including Albuquerque, Rio Rancho and Santa Fe. It also serves parts of southern New Mexico and 9 sovereign nations. Its largest retail customer made up 5.4% of its 2025 retail electric revenue. PNM also sells transmission service to other companies.
TNMP only delivers power, using lines in three separate parts of Texas: north of Dallas and around Fort Worth, the Gulf Coast between Houston and Galveston, and far west Texas between Midland and El Paso. Instead of billing households, it charges 125 retail electricity providers, which sell power to consumers. The two largest made up 24% and 19% of TNMP's 2025 revenue. Data center demand on its system rose 70.5% in 2025. Demand peaks in hot summers, so quarterly results swing with the weather.
Price history
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TXNM +6.2% over the year to Oct 28, 2026, total return with dividends reinvested.
Latest results
- In Q3 FY2026 (ended Sep 30, 2026), revenue was $733.3M, up 11.7% from a year earlier, and net income was $163.4M (+25.0%).
- For fiscal 2025, revenue was $2.17B (+9.9% year over year; +7.3% a year from FY2020 to FY2025) with a 7% net margin.
Financial health check
| Revenue growth a year (FY2020–FY2025) | +7.3% good |
|---|---|
| Operating margin | 20.4% good |
| Free cash flow margin | -28.2% weak |
| Return on equity (FY2025) | 4.4% weak |
| Return on assets (FY2025) | 1.3% weak |
| Net cash (cash minus debt) | $-5.97B weak |
| Fiscal year | Revenue | Net income | Free cash flow |
|---|---|---|---|
| FY2020 | $1.52B | $172.8M | $-193.3M |
| FY2021 | $1.78B | $195.8M | $-387.1M |
| FY2022 | $2.25B | $169.5M | $-345.3M |
| FY2023 | $1.94B | $87.8M | $-524.6M |
| FY2024 | $1.97B | $242.2M | $-738.9M |
| FY2025 | $2.17B | $151.4M | $-611.4M |
Valuation snapshot
| Market value | $6.45B |
|---|---|
| P/E ratio | 39.6 |
| Dividend yield | 2.87% |
Rank among 1514 US companies
Market value at each year end
TXNM Energy’s market value went from $4.44B at the end of 2024 to $6.45B on Oct 28, 2026, up 46%; since the end of 2025 it is up 1%.
Show as a table
| Year end | Market value | Change |
|---|---|---|
| Oct 28, 2026 | $6.45B | +0.6% |
| 2025 | $6.41B | +44.6% |
| 2024 | $4.44B |
Price behavior
| YTD | 1 yr | 3 yr | 5 yr | 10 yr | |
|---|---|---|---|---|---|
| TXNM price data to Oct 28, 2026 | +2.4% | +6.2% | — | — | — |
Show as a table
| Year | Price data |
|---|---|
| 2026 (to date) | +2.4% |
| 2025 | +23.5% |
| 2008 financial crisis stocks fell Oct 9, 2007 – Mar 9, 2009 | Before this security existed |
|---|---|
| 2020 COVID crash stocks fell Feb 19, 2020 – Mar 23, 2020 | Before this security existed |
| 2022 bear market stocks fell Jan 3, 2022 – Oct 12, 2022 | Before this security existed |
Insider activity
Form 4 filings from 2025-10-31 to 2026-10-31 (25 read): 0 open-market purchases and 0 sales ($0.00).
Who owns it
Large shareholders (13G filings)
| BlackRock, Inc. | 12.9% | Sep 30, 2026 |
| Balyasny Asset Management L.P. | 6.55% | Mar 31, 2026 |
| BALYASNY ASSET MANAGEMENT L.P. | 6.43% | Jun 30, 2026 |
| Vanguard Portfolio Management | 6.04% | Mar 31, 2026 |
| Pentwater Capital Management LP | 5.9% | Jun 30, 2026 |
| Vanguard Capital Management | 5.05% | Mar 31, 2026 |
| T. Rowe Price Investment Management, Inc. | 4.8% | Jun 30, 2025 |
| Fuller & Thaler Asset Management, Inc. | 4.27% | Dec 31, 2024 |
| FMR LLC | 3.4% | Jun 30, 2025 |
ETFs with the most weight in TXNM
| UTES Virtus Reaves Utilities ETF | 5.18% |
| URAN Themes Uranium & Nuclear ETF | 2.08% |
| CSB VictoryShares US Small Cap High Dividend Volatility Wtd ETF | 1.74% |
| XMLV Invesco S&P MidCap Low Volatility ETF | 1.41% |
| HSMV First Trust Horizon Managed Volatility Small/Mid ETF | 1.29% |
| SMDV ProShares Russell 2000 Dividend Growers ETF | 1.2% |
| NIXT Research Affiliates Deletions ETF | 1.11% |
| ZAP Global X U.S. Electrification ETF | 0.91% |
What could go wrong
- Blackstone takeover may not be completed. The $61.25-per-share cash deal with Blackstone Infrastructure depends on approvals that include New Mexico's utility regulator, and lawsuits have challenged it. TXNM warns a terminated deal could hurt its business.
- Regulators decide prices and allowed returns. Profits depend on New Mexico, Texas and federal regulators letting PNM and TNMP recover costs and earn a fair return. With $10.2 billion of construction planned for 2026–2030, a weak rate decision could hurt.
- Nuclear exposure and plant cleanup costs. Owning and operating nuclear facilities carries inherent risks. Costs to shut down and clean up nuclear and fossil-fuel plants, and restore related coal mines, could exceed estimates and what PNM recovers from customers.
- Wildfire risk in New Mexico and Texas. TXNM warns wildfires could hurt both utilities' results. TNMP's resiliency plan, approved in March 2025, includes $545.8 million of capital spending on programs such as vegetation management (tree trimming) and wildfire mitigation through 2027.
- Heavy debt and negative free cash flow. Total debt was $6.0 billion against $28.7 million of cash and investments as of September 30, 2026. Capital spending exceeded operating cash flow every year from 2020 through 2025, so TXNM depends on outside funding.
- Holding company relies on its utilities' cash. As a holding company, TXNM pays its own debts and shareholder dividends with cash that PNM and TNMP send up to it. If they cannot pay, TXNM's dividend could be at risk.
Recent events
- Quarterly results released
- Investor presentation or announcement
- Other company announcement
- Investor presentation or announcement; Other company announcement
- Major agreement signed; New debt or financial obligation
- Quarterly results released
- Major agreement signed; New debt or financial obligation
- Major agreement signed; New debt or financial obligation; Investor presentation or announcement
- Other company announcement
- Shareholder vote results
For income and retirement investors
TXNM has raised its dividend at least 9 years in a row through 2025, and the streak may be longer. The payout grew from $1.25 per share in 2020 to $1.65 in 2025, about 5.7% a year. In 2025, though, dividends equaled 107.9% of net income, above the company's 50% to 60% target, as profit fell 37.5%. Free cash flow (operating cash minus capital spending) was negative every year from 2020 to 2025, so the dividend relied on outside funding. Buybacks were small, $48.2 million over 2021–2025, and the share count rose 28.3% from February 2022 to October 2026.
Our price history through October 28, 2026, spans 2.2 years, so it misses the 2008, 2020 and 2022 downturns; the worst drop in that span was 10.2%. Shares with a pending cash offer, here $61.25, tend to trade near that price. If the deal closes, holders get cash and the dividend ends. Single stocks carry more risk than diversified funds.
Questions investors ask
How does TXNM Energy make money?
TXNM makes money by charging regulated rates for electricity service. PNM generates and delivers power across north-central New Mexico, including Albuquerque, Rio Rancho and Santa Fe. TNMP owns transmission and distribution lines in three parts of Texas and bills retail electricity providers for delivery. Regulators set prices meant to let both utilities recover costs and earn a return on their investments. Revenue was $2.17 billion in 2025, with net income of $151.4 million.
Is TXNM Energy being bought by Blackstone?
Yes. TXNM agreed to be acquired by affiliates of Blackstone Infrastructure, though the deal needed regulatory approvals. Under the May 18, 2025 agreement, each share would be converted into $61.25 in cash at closing, and shareholders approved the deal on August 28, 2025. By February 27, 2026, Texas regulators, the Federal Communications Commission and the Federal Energy Regulatory Commission had approved it. New Mexico's utility regulator and the Nuclear Regulatory Commission also had to sign off. As of that date, closing was expected in the second half of 2026.
Does TXNM Energy raise its dividend every year?
Yes. TXNM has raised its dividend at least 9 years in a row through 2025, and the streak may be longer. Dividends per share rose from $1.25 in 2020 to $1.65 in 2025, about 5.7% a year, and the yield was 2.87% as of October 28, 2026. Dividends paid in 2025 equaled 107.9% of net income, above the company's 50% to 60% target. If the Blackstone deal closes, public shareholders receive cash and the dividends stop.
Does TXNM Energy benefit from data center growth?
Data center growth shows up mainly in its Texas utility. Data center demand on TNMP's system, including distribution and transmission, rose 70.5% in 2025 compared with 2024. TNMP says a significant increase in requests to connect to its system, including data center applications, has required new transmission stations, station upgrades and more line capacity. Because TNMP is regulated, this growth matters mostly through the extra investment it requires, which regulators may let TNMP recover with a return.
How much debt does TXNM Energy have?
TXNM had about $6.0 billion of total debt and $28.7 million of cash and investments as of September 30, 2026, compared with $3.64 billion of shareholders' equity. Utilities typically borrow heavily to build power plants and lines, and TXNM projects $10.2 billion of construction spending for 2026–2030. Free cash flow was negative $611.4 million in 2025, so the company depends on credit and capital markets. Its annual report lists its substantial debt as a risk.