Texas New Mexico Power Energy reported $733.29 million in revenue for Q3 2026.

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For the quarterly period ended June September 30, 2026

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As of July 24, October 23, 2026, 103,046,111 110,125,757 shares of common stock, no par value per share, of TXNM were outstanding.

The total number of shares of common stock of PNM, no par value per share, outstanding as of July 24, October 23, 2026, was 39,117,799 all held by TXNM (and none held by non-affiliates).

The total number of shares of common stock of TNMP, $10 par value per share, outstanding as of July 24, October 23, 2026, was 6,358 all held indirectly by TXNM (and none held by non-affiliates).

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Financial statements (unaudited) 1 change

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Condensed Consolidated Statements of Comprehensive Income 15 16

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Exhibits 28 changes

2024 Rate Change PNM's request for a general increase in electric rates filed with the NMPRC on December 5, 2022, using a calendar year 2024 FTY future test year

PNM's request for a general increase in electric rates filed with the NMPRC on June 14, 2024, using a FTY future test year beginning July 1, 2025

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BESS Battery Energy Storage System

ATM At-the-market offering/program

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CCRMU Coal Combustion Residual Management Unit

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CTFP New Mexico's Clean Transportation Fuel Program administered by NMED

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Four Corners CSA Four Corners' coal supply contract agreement with NTEC

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FTY Future Test Year

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PNM New Mexico Credit Facility PNM's $40.0 million Unsecured Revolving Credit Facility

PNM 2021 Fixed Rate PCRBs PNM's $100.3 million 0.875% PCRBs subject to mandatory tender on October 1, 2026

PNM 2025 Term Loan PNM's $195.0 million unsecured term loan issued on January 21, 2025 and matured on July 21, 2026

PNM 2026 Term Loan PNM's $195.0 million unsecured term loan issued July 21, 2026

PNM 2026 PCRBs PNM's $100.3 million 4.125% PCRBs subject to mandatory tender on October 1, 2030

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PNM August 2026 Note Purchase Agreement PNM's agreement for sale of PNM August 2026 SUNs

PNM August 2026 SUNs PNM's $200.0 million Senior Unsecured Notes issued on August 19, 2026

PNM Commercial Paper Program PNM's commercial paper program from which it may issue from time to time short-term, unsecured commercial paper notes not to exceed $400.0 million

PNM New Mexico Credit Facility PNM's $40.0 million Unsecured Revolving Credit Facility

PNM November 2025 Term Loan PNM's $120.0 million unsecured term loan issued November 10, 2025

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TNMP August 2026 Bonds TNMP's First Mortgage Bonds issued under the TNMP August 2026 Bond Purchase Agreement

TNMP August 2026 Bond Purchase Agreement TNMP's agreement for sale of an aggregate $150.0 Million of TNMP August 2026 Bonds

TNMP Base Rate Review TNMP's general rate proceeding filed with the PUCT on November 14, 2025

TNMP Commercial Paper Program TNMP's commercial paper program from which it may issue from time to time short-term, unsecured commercial paper notes not to exceed $300.0 million

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Transmission Service Agreement(s)

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TXNM 2025 Junior Subs TXNM's $350.0 million 7.00% Fixed-to-Fixed Reset Rate Junior Subordinated Notes due 2056

TXNM 2026 ATM Program TXNM's distribution agreement pursuant to which the Company issued and sold up to an aggregate of $125.0 million of TXNM common stock, no par value, through the sales agents

TXNM Commercial Paper Program TXNM's commercial paper program from which it may issue from time to time short-term, unsecured commercial paper notes not to exceed $300.0 million

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UTM Unified Tracker Mechanism

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WACC Weighted average cost of capital

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Financial statements 531 changes

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Three Months Ended June 30, Six Months Ended June 30,

Electric Operating Revenues $ 548,554 $ 502,420 $ 1,053,536 $ 985,212

Cost of energy 164,139 167,622 330,631 336,804

Administrative and general 64,868 75,991 131,781 136,760

Energy production costs 25,340 26,081 49,743 50,627

Depreciation and amortization 114,631 105,235 226,954 209,786

Transmission and distribution costs 25,377 26,461 51,264 51,966

Taxes other than income taxes 30,897 28,329 62,850 54,679

Total operating expenses 425,252 429,719 853,223 840,622

Operating income 123,302 72,701 200,313 144,590

Three Months Ended September 30, Nine Months Ended September 30, (In thousands, except per share amounts)

Electric Operating Revenues $ 733,290 $ 647,162 $ 1,786,826 $ 1,632,374

Cost of energy 198,506 195,042 529,137 531,846

Administrative and general 68,871 68,445 200,652 205,205

Energy production costs 23,255 21,172 72,998 71,799

Regulatory disallowances

Depreciation and amortization 112,346 105,012 339,300 314,798

Transmission and distribution costs 28,226 27,167 79,490 79,133

Taxes other than income taxes 30,998 28,185 93,848 82,864

Total operating expenses 462,202 444,292 1,315,425 1,284,914

Operating income 271,088 202,870 471,401 347,460

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Interest income 4,179 3,872 7,746 8,119

Gains on investment securities 24,414 23,556 15,470 22,315

Other income 8,111 5,704 14,968 10,433

Other (deductions) ( 2,997 ) ( 6,481 ) ( 4,897 ) ( 8,739 )

Net other income and deductions 33,707 26,651 33,287 32,128

Interest Charges 69,343 72,013 137,938 135,564

Earnings before Income Taxes 87,666 27,339 95,662 41,154

Income Taxes 12,276 1,326 12,267 2,344

Net Earnings 75,390 26,013 83,395 38,810

(Earnings) Attributable to Valencia Non-controlling Interest ( 3,994 ) ( 4,305 ) ( 8,130 ) ( 8,047 )

Interest income 6,114 6,496 13,860 14,615

Gains (losses) on investment securities ( 9,890 ) 11,376 5,580 33,691

Other income 9,269 7,688 24,237 18,121

Other (deductions) ( 5,145 ) ( 3,028 ) ( 10,042 ) ( 11,767 )

Net other income and deductions 348 22,532 33,635 54,660

Interest Charges 76,059 70,149 213,997 205,713

Earnings before Income Taxes 195,377 155,253 291,039 196,407

Income Taxes 27,376 18,949 39,643 21,293

Net Earnings 168,001 136,304 251,396 175,114

(Earnings) Attributable to Valencia Non-controlling Interest ( 4,440 ) ( 5,462 ) ( 12,570 ) ( 13,509 )

Preferred Stock Dividend Requirements of Subsidiary ( 132 ) ( 132 ) ( 264 396 ) ( 264 396 )

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Basic $ 0.64 $ 0.22 $ 0.68 $ 0.32

Diluted $ 0.64 $ 0.22 $ 0.67 $ 0.32

Basic $ 1.55 $ 1.22 $ 2.19 $ 1.63

Diluted $ 1.50 $ 1.22 $ 2.15 $ 1.63

Dividends Declared per Common Share $ 0.4225 $ 0.4075 $ 0.8450 1.2675 $ 0.8150 1.2225

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Three Months Ended June 30, Six Months Ended June 30,

Net Earnings $ 75,390 $ 26,013 $ 83,395 $ 38,810

Three Months Ended September 30, Nine Months Ended September 30, (In thousands)

Net Earnings $ 168,001 $ 136,304 $ 251,396 $ 175,114

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Net increase in unrealized holding gains arising during the period, net of income tax (expense) of $( 17 7 ), $( 60 36 ), $( 17 24 ), and $( 128 164 )

Reclassification adjustment for (gains) included in net earnings, net of income tax expense of $ 27 28 , $ 51 69 , $ 65 93 , and $ 86 155 ( 79 82 ) ( 150 204 ) ( 191 273 ) ( 252 456 )

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Reclassification adjustment for amortization of experience losses recognized as net periodic benefit cost, net of income tax (benefit) of $( 150 16 ), $( 349 ), $( 367 383 ), and $( 698 1,047 )

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Change in fair market value, net of income tax (expense) benefit of $ 0 , $( 633 242 ), $ 0 , and $ 633 391

Reclassification adjustment for amortization of losses recognized in net earnings, net of income tax (expense) benefit of $( 12 ), $ 0 , $( 24 36 ), and $ 0

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Comprehensive Income 75,835 25,206 84,402 39,125

Comprehensive Income 168,021 137,943 252,423 177,068

Comprehensive (Income) Attributable to Valencia Non-controlling Interest ( 3,994 4,440 ) ( 4,305 5,462 ) ( 8,130 12,570 ) ( 8,047 13,509 )

Preferred Stock Dividend Requirements of Subsidiary ( 132 ) ( 132 ) ( 264 396 ) ( 264 396 )

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Six Months Ended June 30,

Nine Months Ended September 30,

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Net earnings $ 83,395 $ 38,810

Net earnings $ 251,396 $ 175,114

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Depreciation and amortization 253,039 235,245

Deferred income tax expense 11,123 1,796

Depreciation and amortization 379,835 361,095

Deferred income tax expense 37,342 19,901

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Stock based compensation expense 4,278 5,266

Other, net 2,189 1,753

Stock based compensation expense 5,732 6,676

Regulatory disallowances

Allowance for equity funds used during construction ( 10,756 17,284 ) ( 5,266 11,319 )

Other, net 2,863 2,735

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Other current assets ( 63,473 ) ( 20,651 )

Other assets ( 59,518 ) ( 8,211 )

Accounts payable ( 2,879 ) ( 3,669 )

Accrued interest and taxes 7,985 ( 19,588 )

Other current liabilities 15,766 ( 17,140 )

Other liabilities 28,328 ( 6,001 )

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Notes to the financial statements 11 changes

In certain circumstances an entity may perform a qualitative analysis to conclude that the goodwill of a reporting unit is not impaired. Under a qualitative assessment an entity considers macroeconomic conditions, industry and market considerations, cost factors, overall financial performance, other relevant entity-specific events affecting a reporting unit, as well as whether a sustained decrease (both absolute and relative to its peers) in share price has occurred. An entity considers the extent to which each of the adverse events and circumstances identified could affect the comparison of a reporting unit's fair value with its carrying amount. An entity places more weight on the events and circumstances that most affect a reporting unit's fair value or the carrying amount of its net assets. An entity also considers positive and mitigating events and circumstances that may affect its determination of whether it is more likely than not that the fair value of a reporting unit is less than its carrying amount. An entity evaluates, on the basis of the weight of evidence, the significance of all identified events and circumstances in the context of determining whether it is more likely than not that the fair value of a reporting unit is less than its carrying amount. A quantitative analysis is not required if, after assessing events and circumstances, an entity determines that it is not more likely than not that the fair value of a reporting unit is less than its carrying amount.

In other circumstances, an entity may perform a quantitative analysis to reach the conclusion regarding impairment with respect to a reporting unit. An entity may choose to perform a quantitative analysis without performing a qualitative analysis and may perform a qualitative analysis for certain reporting units, but a quantitative analysis for others. The first step of the quantitative impairment test requires an entity to compare the fair value of the reporting unit with its carrying value, including goodwill. If, as a result of this analysis, the entity concludes there is an indication of impairment in a reporting unit having goodwill, the entity is required to perform the second step of the impairment analysis, determining the amount of goodwill impairment to be recorded. The amount is calculated by comparing the implied fair value of the goodwill to its carrying amount. This exercise would require the entity to allocate the fair value determined in step one to the individual assets and liabilities of the reporting unit. Any remaining fair value would be the implied fair value of goodwill on the testing date. To the extent the recorded amount of goodwill of a reporting unit exceeds the implied fair value determined in step two, an impairment loss would be reflected in results of operations.

TXNM periodically updates its quantitative analysis for both PNM and TNMP. The use of a quantitative approach in a given period is not necessarily an indication that a potential impairment has been identified under a qualitative approach. When TXNM performs a quantitative analysis for PNM or TNMP, a discounted cash flow methodology is primarily used to estimate the fair value of the reporting unit. This analysis requires significant judgments, including estimations of future cash flows, which is dependent on internal forecasts, estimations of long-term growth rates for the business, and determination of appropriate weighted average cost of capital for the reporting unit. Changes in these estimates and assumptions could materially affect the determination of fair value and the conclusion of impairment. When TXNM performs a qualitative or quantitative analysis for PNM or TNMP, TXNM considers market and macroeconomic factors including changes in growth rates, changes in the WACC, and changes in discount rates. TXNM also evaluates its stock price relative to historical performance, industry peers, and to major market indices, including an evaluation of TXNM's market capitalization relative to the carrying value of its reporting units.

For its annual evaluations performed as of April 1, 2026 and 2025, TXNM performed a qualitative analysis for both the PNM and TNMP reporting units. In addition to the typical considerations discussed above, the qualitative analysis considered changes in the Company's expectations of future financial performance since the April 1, 2024, quantitative analysis performed for PNM, as well as the April 1, 2020, quantitative analysis and the previous qualitative analyses through April 1, 2024, performed for TNMP. This analysis considered Company-specific events such as the Merger, potential impacts of legal and regulatory matters discussed in Note 11 and Note 12, including the outcomes in the 2025 Rate Request, PNM's Grid Modernization Plan, and TNMP's System Resiliency Plan. Based on an evaluation of these and other factors, the Company determined it was not more likely than not that the April 1, 2026, carrying values of PNM and TNMP exceeded their fair value.

The quantitative analysis, discussed above, indicated that the fair value of the PNM reporting unit, which has goodwill of $ 51.6 million, exceeded its carrying value by approximately 54 %. The qualitative analysis, in addition to the typical considerations discussed above, considered changes in the Company's expectations of future financial performance since the April 1, 2020, quantitative analysis and the previous qualitative analyses through April 1, 2023, performed for TNMP. The April 1, 2020, quantitative evaluations indicated the fair value of the TNMP reporting unit, which has goodwill of $ 226.7 million, exceeded its carrying value by approximately 38 %. This analysis considered events specific to TNMP such as the potential impacts of legal and regulatory matters discussed in Note 11 and Note 12. Based on an evaluation of these and other factors, the Company determined it was not more likely than not that the April 1, 2024, carrying values of PNM and TNMP exceeded their fair value. Since the April 1, 2024 annual evaluation, there have been no events, including the Merger, or indications that the fair values of the reporting units with recorded goodwill have decreased below their carrying values.

EPA's 2015 coal ash rule included a non-hazardous waste determination for coal ash and sets minimum criteria for existing and new CCR landfills and surface impoundments. In 2016, the Water Infrastructure Improvements for the Nation Act (the "WIIN Act") was signed into law to address critical water infrastructure needs in the U.S. and contained a number of provisions related to CCRs. Among other things, the WIIN Act allowed, but did not require, states to develop and submit CCR permit programs for EPA approval, provided flexibility for states to incorporate EPA's 2015 rule for CCRs or develop other criteria that are at least as protective as EPA's rule, and required EPA to approve state permit programs within 180 days of submission by the state. Because states are not required to implement their own CCR permit programs, EPA was required to develop a federal permit program in states that chose not to implement a program, subject to congressional funding. Until state or federal permit programs are in effect, the 2015 rule continues to be self-implementing in nature, subject to enforcement by EPA or citizen groups. For facilities located within the boundaries of Native American reservations, such as the Navajo Nation where Four Corners is located, EPA is required to develop a federal permit program regardless of appropriated funds.

In 2018, EPA published a rule that constitutes "Phase One, Part One" of its ongoing reconsideration and revision of the 2015 CCR rule. The final Phase One, Part One rule extended the deadline to allow EGUs with unlined impoundments or that fail to meet the uppermost aquifer requirement to continue to receive coal ash until October 31, 2020, which was again extended by subsequent amendments. The rule also authorized a "Participating State Director" or EPA to approve suspension of groundwater monitoring requirements and to issue certifications related to the location restrictions, design criteria, groundwater monitoring, remedy selection and implementation. The rule also modified groundwater protection standards for certain constituents, which include cobalt, molybdenum, lithium, and lead without a maximum contamination level.

In 2019, EPA published a second round of proposed revisions, which are commonly referred to as the "Phase Two" revisions, to address reporting and accessibility to public information, "CCR piles" and "beneficial use" definitions, and the requirements for management of CCR piles. EPA reopened and extended the Phase Two comment period several times. To date, EPA has not yet finalized provisions in Phase Two related to beneficial use of CCR and CCR piles.

Since its Phase Two proposal, EPA has finalized three other rules addressing various CCR rule provisions. In 2020, EPA promulgated its proposed Holistic Approach to Closure Part A ("Part A"), which set forth a new deadline of April 11, 2021, for companies to initiate closure of unlined CCR impoundments. In accordance with the DC Circuit's vacatur of portions of the 2015 CCR Rule, Part A also changed the classification of compacted soil-lined or clay-lined surface impoundments from "lined" to "unlined", triggering closure or retrofit requirements for those impoundments. In addition, Part A delineated a process for owners/operators to submit requests for alternative closure deadlines.

EPA also issued the Holistic Approach to Closure Part B ("Part B") in 2020, which delineated the process for owners/operators to submit alternate liner demonstrations for clay-lined surface impoundments that could otherwise meet applicable requirements. This rule did not include beneficial use of CCR for closure, which EPA explained would be addressed in subsequent rulemaking actions. On May 18, 2023, EPA published a proposed rule establishing the regulatory requirements for inactive surface impoundments at inactive facilities and a new category of regulated unit called a CCR management unit ("CCRMU"), including groundwater monitoring, corrective action, closure, and post-closure care requirements for all CCR management units (regardless of how or when that CCR was placed), and several technical corrections to the existing regulations. Comments on the proposed rule were due July 17, 2023.

On May 8, 2024, EPA published a final rule that extended federal CCR regulatory requirements to (1) inactive CCR surface impoundments at inactive utilities and (2) CCRMU, including CCR impoundments and landfills that closed prior to the effective date of the 2015 CCR rule, inactive CCR landfills, and other areas where CCR was managed directly on the land ("Legacy Rule"). The Legacy Rule became effective on November 8, 2024. EPA included deferral options for smaller CCRMU containing between one and 1,000 tons of CCR, CCRMU located beneath critical infrastructure or large buildings or structures vital to the continuation of current site activities, and CCRMU that closed prior to the effective date of the new rule (subject to certain eligibility conditions). EPA also codified the controversial definitions of infiltration and liquids that were litigated in the DC Circuit. Six petitions for review of the Legacy Rule were filed and were consolidated into one case by the DC Circuit. The Utility Solid Waste Activities Group, of which TXNM is a member, is a petitioner jointly with the National Rural Electric Cooperative Association, and American Public Power Association. The U.S. Supreme Court denied a requested stay of the rule by East Kentucky Power Cooperative. The DC Circuit agreed to hold the case in abeyance pending the outcome of EPA's reconsideration of the Legacy Rule, with status reports due on March 16, 2026, and at 90-day intervals thereafter. On July 22, 2025, EPA published a final rule and companion proposal revising the compliance deadlines for CCRMU requirements under the Legacy Rule. In September 2025, EPA withdrew the direct final rule due to adverse comments but subsequently issued a final extension rule on February 6, 2026, delaying the deadline to complete the "Facility Evaluation Report Part 1" until February 9, 2027, and extending all subsequent deadlines, as well. The final extension rule was published in the Federal

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MD&A 266 changes

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TXNM is a holding company with two regulated electric utilities, PNM and TNMP, serving approximately 846,000 849,000 residential, commercial, and industrial customers in New Mexico and Texas. TXNM strives to create a clean and bright energy future for customers, communities, and shareholders. TXNM's strategy and decision-making are focused on safely providing reliable, affordable, and environmentally responsible power built on a foundation of sustainability.

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On December 11, 2025, TXNM and Blackstone Infrastructure reached a unanimous settlement with parties in the Merger proceeding filed with the PUCT, that was approved on February 6, 2026. On February 20, 2026, FERC approved the proposed Merger rejecting claims related to data centers, private equity ownership, and speculative cross-subsidization relying on existing state ring-fencing protections in New Mexico and Texas. See Note 12.

The proposed Merger has been unanimously approved by the Board and was approved by the TXNM shareholders at a special meeting held on August 28, 2025. The waiting period under the HSR Act in connection with the Merger has expired without any objections or concerns having been raised, both the FCC, and FERC, and the NRC approved the application, and the PUCT approved the unanimous settlement, satisfying four five of the conditions to closing of the Merger Agreement. Consummation of the Merger remains subject to the satisfaction or waiver of certain customary conditions, including, without limitation, no Legal Restraint, and the receipt of certain required regulatory approvals (including the NMPRC). and the NRC). TXNM has filed applications for regulatory approval of the Merger with the NMPRC (Note 12). and NRC. The Merger Agreement does not contain any financing condition and is currently expected to close in the first half of 2027.

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During the 2024 and 2025 periods, PNM and TNMP together invested $2.4 billion in utility plant, including transmission and distribution systems, substations, power plants, and nuclear fuel. Investment plans emphasize new investments in transmission and distribution infrastructure to support growing demand with and grid reliability and resilience and to deliver clean energy. The Company has been improving the diversification of its rate base among regulatory jurisdictions, moving TNMP and FERC transmission rate base to over half of the consolidated rate base.

Investments at TNMP support the continued high growth across each region of its service territory. Economic growth across Texas continues to push the demands on TNMP's system to new levels, including a new all-time system peak in July September 2026. In 2023, the Texas legislature passed a series of bills aimed at encouraging investments to enhance grid reliability and resilience, while the PUCT continues to develop rules in support of new legislation. TNMP will continue to submit filings for recovery of its investments, in accordance with these new rules, in addition to the existing rate recovery mechanisms. See the subheading under State Regulation and Legislation below.

Investments at PNM are aimed at supporting economic development and advancing the infrastructure beyond its original architecture to a more flexible and redundant system accommodating growing amounts of intermittent and distributed generation resources and integrating evolving technologies that provide long-term customer value. New Mexico's clean energy future depends on a reliable, resilient, secure grid to deliver an evolving mix of energy resources to customers. More recently, the PNM's 2029-2032 Resource Portfolio Application filed with the NMPRC is an integrated package of resources designed to ensure that PNM continues to provide safe, reliable, and cost-effective electric service while meeting anticipated load growth, including a new all-time system peak in July August 2026 and supporting the clean energy transition under New Mexico's ETA. In addition, the CCN requesting PNM's application for approval of a CCN for a new transmission line and the recent approval recently received approval to defer costs of two economic development transmission and distribution projects filed under SB 170 support economic development in New Mexico. Similarly, Finally, projects included in the Grid Modernization Plan will improve customers' ability to customize their use of energy and will modernize PNM's electric grid through infrastructure and technology improvements.

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PNM, as a vertically integrated utility in New Mexico, is focused on providing customers reliable, affordable and clean energy. PNM holds in-person engagements with residential and business customers through customer advisory councils to receive feedback on the programs and services offered. Additionally, PNM continues to focus its efforts on customer service improvements, including enhanced digital payment options, strategic customer outreach, and improved communications. To supplement its service, PNM has implemented programs regulated by the NMPRC to incentivize customers to address these issues through rebates and/or discounts, including Energy Efficiency, Transportation Electrification, Community Solar, and Time-of-Day Pilot programs. Increased incentives are provided to low-income customers to further encourage participation from households typically experiencing a higher energy burden. Additionally, PNM offers customer bill payment assistance through PNM Good Neighbor Fund and accepts employee and customer donations to supplement this fund. As a result of PNM's efforts, 2,608 3,108 families in need received emergency assistance through the PNM Good Neighbor Fund for the six nine months ended June September 30, 2026.

While the electric utility industry continues to experience declines in customer satisfaction, as measured by J.D. Power, PNM's ranking in 2025 remained stable, reflecting the Company's sustained efforts to improve the customer journey through a more seamless and customer-friendly experience. In early 2026, PNM refreshed its outage communications to push out more timely, transparent and customer-friendly information when a customer experiences a power outage. These communications were implemented for all customers with available contact information and follow a bill redesign implemented in 2025 to improve transparency and usability. Additional improvements, are planned such as a the PNM Mobile application and targeted rollout of smart meters which began in September 2026, are part of PNM's approved Grid Modernization Plan.

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PNM's Grid Modernization Plan is a major step forward in providing reliable, affordable and sustainable energy. As part of that plan, PNM will promote energy equity by installing technology like smart meters and making distribution upgrades in low-income areas first in order to allow lower-income customers to gain insights into their energy usage to improve affordability and create fairer access to energy. In addition, PNM's Time-of-Day Pilot program incentivizes customers, through price signals, to use energy during the day when renewable generation is abundant.

In October 2024, PNM was selected for a grant from the DOE under the Grid Resilience and Innovation Partnerships ("GRIP") program that supports the design, construction, and operation of a Virtual Power Plant ("VPP") enabling PNM to leverage small, intermittent energy resources on its distribution system to enhance grid management. After a period of the award being on hold, then terminated, a formal dispute process was completed, and the termination was rescinded in August 2026. PNM is in final negotiations with DOE for final award determination including compliance details related to the administration of the $72.6 million grant of which, $35.6 million is expected DOE funding and $37.0 million is PNM cost sharing.

On September 24, 2026, PNM was announced as one of the intended recipients of another GRIP funded DOE grant as a part of the Speed to Power through Accelerated Reconductoring and other Key Advanced Transmission Technology Upgrades ("SPARK") initiative. The SPARK initiative is aimed at putting advanced transmission technologies to work, modernizing critical infrastructure, maximizing the capacity of existing lines, and unlocking additional grid capacity. PNM's project is aimed at deploying cutting edge software and targeted transmission support structure upgrades to unlock capacity increases and improve operational flexibility.

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TXNM's sustainability goals include plans for additional emissions reductions through the electrification of its vehicle fleet. Growing the number of EVs within the Company's fleet will benefit the environment and lower fuel costs furthering the Company's commitment to sustainability. Under the commitment, existing fleet vehicles will be replaced as they are retired with an increasing percentage of EVs.

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In April 2026, New Mexico became the fourth state to adopt a clean fuel standard by launching the CTFP administered by NMED. The primary goal of the CTFP is to reduce overall climate pollution from transportation fuel used in New Mexico by establishing annual statewide CI standards for transportation fuel, creating a marketplace where CI standards may be met by generating credits from importing or producing low-carbon fuel, using banked credits, or acquiring credits. PNM expects the first batch of credits to be produced from residential EV charging to be available towards the end of 2026 and sold in the marketplace within the first half of 2027. PNM will use the proceeds from the sale of the credits to further support transportation electrification through the current TEP rider.

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PNM's utility-owned solar and energy storage capacity, as well as solar, energy storage, wind, and geothermal procurements from facilities in service as of June September 30, 2026, have a total net generation capacity of 3,409 3,427 MW. In addition to PNM's owned and third-party contracted solar facilities, PNM also has a customer distributed solar generation program that represented 387.4 409.6 MW at June September 30, 2026. The NMPRC has approved plans for PNM to procure energy and RECs from additional solar and energy storage resources to serve retail customers and a data center located in PNM's service territory. PNM's approved resources have a generation capacity of 1,318 1,300 MW. This includes approximately 280 262 MW of additional capacity under the Community Solar Act which will provide customers an additional option of accessing solar energy.

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Energy efficiency plays a significant role in helping to keep customers' electricity costs low while meeting their energy needs and is one of the Company's approaches to supporting environmentally responsible power. PNM's and TNMP's energy efficiency and load management portfolios continue to achieve robust results. In 2026, incremental energy saved as a result of participation in PNM's portfolio of energy efficiency programs is estimated to be 87 GWh. This is equivalent to the annual consumption of approximately 12,056 homes in PNM's service territory. PNM's load management and energy efficiency programs also help lower peak demand requirements. In 2026, TNMP's incremental energy saved as a result of participation in TNMP's energy efficiency programs is estimated to be approximately 17 GWh. This is equivalent to the annual consumption of approximately 2,392 homes in TNMP's service territory, estimated using a national average avoided emissions rate. TNMP's High-Performance Homes residential new construction energy efficiency Program has earned the Energy Star Partner of the Year award for 8 years, including 6 years receiving the Sustained Excellence Award, recognizing long-term commitment to fighting climate change and protecting public health through energy efficiency. In April 2026, PNM filed an application with the NMPRC for its energy efficiency and load management programs to be offered in its 2027 Plan (Note 12). In May 2026, TNMP filed its annual request with the PUCT to adjust its EECRF for changes in costs for 2027 (Note 12).

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In July 2026, PUCT adopted a rule requiring utilities that own or operate power transmission or distribution facilities in wildfire risk areas, as defined by the Texas Division of Emergency Management to prepare and submit a wildfire mitigation plan ("WMP") for approval. TNMP has filed a notice of intent to prepare and submit its WMP, for approval and on or before September 30, October 5, 2026, TNMP submitted its WMP to the PUCT for approval.

Throughout 2025, PNM held in-person community events focused on wildfire safety and educating customers about the PSPS process and wildfire mitigation efforts to protect the public. These gatherings are designed to share critical information, coordinate with local resources, and listen to feedback from local communities. PNM hosted four events in High Fire Risk Areas ("HFRA") across New Mexico in 2025 and expects to host has hosted similar events in 2026. In addition, PNM included local emergency managers in its periodic meetings referred to as "wildfire tabletops" in 2025. Each of these engagements builds and strengthens our preparedness as a Company for wildfire prevention and response.

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Employee volunteers are the lifeblood of a healthy corporate culture. Community giving through volunteers' time and effort is at the heart of employee engagement. Throughout 2025, the Company held large-scale volunteer events, working alongside nonprofits, schools, and vulnerable communities throughout New Mexico and Texas. More than 640 350 employees in both states participated in the annual "Day of Service," a workday event encouraging employee volunteerism and serving more than 40 approximately 30 organizations. Throughout the year, employees volunteer their time generously through independent volunteer activities and board participation. Employees strengthen community resilience by giving more than 4,000 volunteer hours each year to support the health, safety, and well-being of diverse communities.

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PUCT also approved rate riders that allow TNMP to recover amounts related to energy efficiency and third-party transmission costs. TNMP also has approximately 285,000 advanced meters across its service territory, the costs of which are being recovered through base rates.

In the 2023 and 2025 Texas Legislative sessions several bills were passed to support utility reliability and resiliency by encouraging and protecting utility infrastructure investments. Under the new legislation, TNMP filed its 2025-2027 SRP in August 2024 and filed an unopposed settlement with the PUCT in December 2024 that was approved with slight modifications in March 2025. Other bills directed ERCOT to develop reliability plans for the Permian Basin which resulted in the need for additional investments in the West Texas service territory and to establish standards for interconnecting large load customers in the region. In 2025, HB 5247 was passed, which immediately authorized certain utilities, including TNMP, to offset depreciation, property tax expenses, and carrying costs with alternative revenue and recognize a regulatory asset for qualifying investments that are not currently reflected in rates, until the following year in which they would file a single, annual proceeding with the PUCT. In February 2026, PUCT adopted a rule to ensure the power demands of large load customers of 75 MW or more, be incorporated into ERCOT's Regional Transmission Plan and resource adequacy assessments. These pieces of legislation demonstrate that Texas continues to encourage utility investment and prioritizes timely rate recovery. TNMP will look to prioritize investments aligned with these measures that improve the quality of service for current and future customers and anticipates submitting has filed its first annual filings UTM filing in accordance with the rule. HB 5247. See Note 12.

Beyond legislative actions, the regulatory framework in Texas strongly encourages investments into the grid by providing timely recovery through rate mechanisms outside of general rate cases. The PUCT has approved mechanisms that allow TNMP to recover capital invested in transmission and distribution projects without having to file a general rate case. The PUCT also approved rate riders that allow TNMP to recover amounts related to energy efficiency and third-party transmission costs. TNMP also has approximately 287,000 advanced meters across its service territory, the costs of which are being recovered through base rates.

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In November 2025, TNMP filed the TNMP Base Rate Review with the PUCT, requesting recovery of $2.8 billion of rate base, a requested ROE of 10.4%, and a 47.54% equity ratio. The TNMP Base Rate Review also includes increases in operations and maintenance expenses that are not recovered through semi-annual TCOS and DCRF filings, excludes increases in interest expense resulting from refinancing of debt associated with the proposed Merger, and requests recovery of $20.5 million associated with Hurricane Beryl restoration costs over a five-year period. If approved by the PUCT, the new rates are expected to become effective in mid-2026. On May 29, 2026, TNMP filed an unopposed stipulation and settlement agreement with the PUCT that was approved in a Final Order issued on July 30, 2026. See Note 12.

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In the fourth quarter of 2025, PNM initiated its 2026 IRP process which will cover covers the 20-year planning period from 2026 through 2046. Consistent with historical practice, PNM is receiving public input from interested parties as part of this process. 2045. PNM expects to file filed its 2026 IRP with the NMPRC on or before September 1, 2026.

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TXNM targets a dividend payout ratio in the 50% to 60% range of its ongoing earnings. The Board will continue to evaluate the dividend on an annual basis, considering sustainability and growth, capital planning, and industry standards. The Board approved the following increases in the indicated annual common stock dividend:

The Board approved the following increases in the indicated annual common stock dividend:

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The Company is committed to maintaining investment grade issuer credit ratings in order to reduce the cost of debt financing and to help ensure access to credit markets, when required. On January 15, 2024, S&P revised TXNM, PNM, and

The Company is committed to maintaining investment grade issuer credit ratings in order to reduce the cost of debt financing and to help ensure access to credit markets, when required. On January 15, 2024, S&P revised TXNM, PNM, and TNMP's outlook to stable from positive. See the subheading Liquidity included in the full discussion of Liquidity and Capital Resources below for the specific credit ratings for TXNM, PNM, and TNMP. All of the credit ratings issued by both Moody's and S&P on the Company's senior debt continue to be investment grade.

TNMP – In the three and six nine months ended June September 30, 2026, TNMP experienced an increase in volumetric weather normalized retail load of 4.3% 0.3% and 1.4% 1.0% compared to 2025. Weather normalized demand-based load, excluding retail transmission consumers, increased 5.8% 1.6% and 4.5% 3.5% in the three and six nine months ended June September 30, 2026, compared to 2025. Data center load, including distribution and transmission, has decreased 24.6% 29.1% and 21.4% 24.0% in the three and six nine months ended June September 30, 2026 compared to 2025.

PNM – In the three and six nine months ended June September 30, 2026, PNM experienced an increase of 1.3% 5.0% and a decrease of 0.8% 1.5% in weather normalized residential load compared to 2025. Weather normalized commercial load increased 1.5% and decreased 0.7% 0.9% and 0.8% in the three and six nine months ended June September 30, 2026 compared to 2025. Industrial load increased 5.5% 18.6% and 4.5% 9.6% in the three and six nine months ended June September 30, 2026 compared to 2025.

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Net earnings attributable to TXNM were $75.0 $238.4 million, or $0.67 $2.15 per diluted share, in the six nine months ended June September 30, 2026, compared to $30.5 $161.2 million, or $0.32 $1.63 per diluted share, in 2025. Among other things, earnings in the six nine months ended June September 30, 2026, benefited from higher transmission and distribution rates at TNMP, impacts of revenues recorded under HB 5247 at TNMP, higher demand-based load at TNMP, increased revenue approved in TNMP's Base Rate Review, higher weather normalized retail load at PNM and TNMP, increased revenue at TNMP and PNM due to warmer weather in the third quarter of 2026, increased revenue at PNM approved in the 2025 Rate Change, Request, and higher transmission margin at PNM. These increases were partially offset by higher operating expenses at PNM and TNMP, increased depreciation, property taxes, and interest expense at PNM and TNMP due to increased plant in service, capacity arrangements at PNM, milder weather at PNM and TNMP, and decreased performance of investment securities in the NDT and coal mine reclamation trusts at PNM. Additional information on factors impacting results of operations for each segment is discussed below under Results of Operations.

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As of June September 30, 2026, TXNM, PNM, and TNMP had revolving credit facilities with capacities of $300.0 million, $440.0 million, and $300.0 million. Total availability for TXNM on a consolidated basis was $512.9 $757.4 million at July 24, 2026. The Company utilizes the revolving credit facilities and notes outstanding under the commercial paper program that are backed by the revolving credit facilities, except the PNM New Mexico Credit Facility, and cash flows from operations to provide funds for both construction and operational expenditures. TXNM also has intercompany loan agreements with each of its subsidiaries. October 23,

2026. The Company utilizes the revolving credit facilities and notes outstanding under the commercial paper program that are backed by the revolving credit facilities, except the PNM New Mexico Credit Facility, and cash flows from operations to provide funds for both construction and operational expenditures. TXNM also has intercompany loan agreements with each of its subsidiaries.

TXNM projects that its consolidated capital requirements, consisting of construction expenditures and dividends, will total $11.1 billion for 2026 - 2030, including amounts expended through June September 30, 2026. These construction expenditures may change due to incremental expenditures for new customer growth and other transmission and renewable energy expansion. TNMP's investments support continued high growth in system demand across TNMP's service territories and growing encouragement for infrastructure investments from the Texas legislature to support grid reliability and resilience. PNM's capital initiatives include investments in generation, transmission, and distribution infrastructure to deliver clean energy, support customer growth, enhance customer satisfaction, and increase grid resilience. Construction expenditures also include investments proposed in PNM's Grid Modernization Plan and TNMP's SRP.

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After considering the effects of these financings and the Company's short-term liquidity position as of July 24, October 23, 2026, the Company has consolidated maturities of long-term and short-term debt aggregating approximately $751.8 $407.6 million through July October 2027. In addition to internal cash generation, the Company anticipates that it will be necessary to obtain additional long-term financing in the form of debt refinancing, new debt issuances, and/or new equity, including those provided for under the Merger Agreement, in order to fund its capital requirements during the 2026-2030 period. The Company currently believes that its internal cash generation, existing credit arrangements, and access to public and private capital markets will provide sufficient resources to meet the Company's capital requirements for at least the next twelve months. As of June September 30, 2026 and July 24, October 23, 2026, the Company was in compliance with its debt covenants.

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Three Months Ended June 30, Six Months Ended June 30,

Three Months Ended September 30, Nine Months Ended September 30,

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June 30, 2026 June 30, 2026

Corporate and Other 9.4 12.6

Net change $ 49.7 $ 44.5

Three Months Ended Six Nine Months Ended

September 30, 2026 September 30, 2026

Corporate and Other (4.7) 7.9

Net change $ 32.7 $ 77.2

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Three Months Ended June 30, Six Months Ended June 30,

2026 2025 Change 2026

Gross margin $ 93.9 $ 75.1 $ 18.8 $ 178.9 $ 141.4 $ 37.5

Transmission and distribution costs 10.0 10.7 (0.7) 17.9 20.4 (2.5)

Depreciation and amortization 39.6 34.9 4.7 78.1 70.1 8.0

Utility margin $ 143.5 $ 120.8 $ 22.7 $ 275.0 $ 231.9 $ 43.1

Three Months Ended September 30, Nine Months Ended September 30, (In millions)

Gross margin $ 113.4 $ 97.3 $ 16.1 $ 292.3 $ 238.7 $ 53.6

Transmission and distribution costs 10.7 9.0 1.7 28.7 29.4 (0.7)

Depreciation and amortization 36.2 35.0 1.2 114.4 105.1 9.3

Utility margin $ 160.3 $ 141.3 $ 19.0 $ 435.3 $ 373.2 $ 62.1

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Three Months Ended June 30, Six Months Ended June 30,

Three Months Ended September 30, Nine Months Ended September 30, (In millions)

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Three Months Ended June 30, Six Months Ended June 30,

Three Months Ended September 30, Nine Months Ended September 30,

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Operating Results – Three Months Ended June September 30, 2026, compared to 2025

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Depreciation and amortization (see below) (4.7) (1.2)

Lower Higher vegetation management and outside services employee related expense, partially offset by higher employee related lower outside services expense, excluding administrative costs 0.7 (1.8)

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Rate relief - Increase in revenue due to interim base rates pending final order Note 12

Transmission rate relief/load – Transmission cost of service rate increase in September 2025 and a decrease in ERCOT approved demand in May 2025

Distribution rate relief – Distribution cost of service rate increases increase in June 2025 and December 2025

Volumetric-based consumer usage/load – Weather normalized KWh sales increased 4.3%; 0.3%; the average number of volumetric consumers increased 1.5%

Demand-based consumer usage/load – Weather normalized demand-based MW sales for large commercial and industrial consumers excluding retail transmission consumers increased 5.8% 1.6%

Weather – Milder Warmer weather in the second third quarter of 2026

Rate relief - Increase in revenue approved in TNMP's Base Rate Review (Note 12)

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Decrease in deferral of excess deferred income tax benefits refunded through base rates (0.3) (1.4)

Rate Riders and other – Includes transmission cost recovery factor, and energy efficiency rider, rate case expense rider, and hurricane cost recovery factor, which are partially offset in operating expenses (1.6) and depreciation and amortization (1.4)

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Lower employee related, outside services and vegetation management expense $ (2.4)

Higher vegetation management expense partially offset by lower employee related expenses and outside services $ 2.1

Lower Higher capitalization of administrative and general expenses due to lower higher construction expenditures (2.3)

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Higher property tax due to increased utility plant in service (0.5)

Higher energy efficiency program costs, offset in utility margin

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Lower depreciation rates approved in the TNMP's Base Rate Review (Note 12) (2.4)

Amortization related to Hurricane Beryl costs, offset in utility margin

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Higher equity AFUDC 1.0 0.3

Lower interest on Texas Sales and Use Tax refund refunds (2.0)

Carrying charges on regulatory assets approved in TNMP's Base Rate Review (Note 12) 1.5

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and 186 more changes in the filing

Market risk 23 changes

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Consolidated Balance Sheets. During the six months ended June 30, 2026, and the year ended December 31, 2025, the Company had no commodity derivative instruments designated as cash flow hedging instruments.

Information concerning accounting for derivatives and the risks associated with commodity contracts is set forth in Note 7, including a summary of the fair values of mark-to-market energy related derivative contracts included in the Condensed Consolidated Balance Sheets. During the nine months ended September 30, 2026, and the year ended December 31, 2025, the Company had no commodity derivative instruments designated as cash flow hedging instruments.

Commodity contracts that met the definition of a derivative were recorded at fair value on the Condensed Consolidated Balance Sheets. In the six months ended June As of September 30, 2026 and December 31, 2025, the effects of mark-to-market commodity derivative instruments had no impact to PNM's net earnings and Zero and $3.2 million of fair value losses have been from mark-to-market commodity derivative instruments were recorded as a Regulatory asset and for the nine months ended September 30, 2026 and 2025, respectively, there were no impact to PNM's net earnings.

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Investment grade $ 3,895 2 $ 1,894

Investment grade $ 3,934,785 1 $ 2,974,797

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Investment grade 1,029 — —

Investment grade 470,137 — —

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Total $ 4,924 $ 1,894

Total $ 4,404,922 $ 2,974,797

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(2) The Credit Risk Exposure is the gross credit exposure, including long-term contracts, forward sales, and short-term sales. The gross exposure captures the amounts from receivables/payables for realized transactions, delivered and unbilled revenues, and mark-to-market gains/losses. Gross G ross exposures can be offset according to legally enforceable netting arrangements but are not reduced by posted credit collateral. At June September 30, 2026, TXNM held no cash collateral to offset its credit exposure.

Net credit risk for the Company's largest counterparty as of June September 30, 2026, was $1.3 $3.0 million. Other investments have no significant counterparty credit risk.

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At July 24, October 23, 2026, variable rate debt balances and weighted average interest rates were as follows:

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TXNM Revolving Credit Facility

PNM Revolving Credit Facility 4.93 180,000 400,000

TNMP Revolving Credit Facility 4.55 107,000 300,000

TXNM 2026 Term Loan 5.02 % 400,000

TXNM Commercial Paper 4.38 % 182,700 $ 300,000

PNM Commercial Paper 4.10 26,000 400,000

PNM New Mexico Credit Facility 5.01 5.25 40,000 40,000

TNMP Commercial Paper 4.17 31,200 300,000

PNM 2026 Term Loan 4.57 4.83 % $ 195,000

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The investments held by PNM in trusts for decommissioning and reclamation had an estimated fair value of $513.6 $500.2 million at June September 30, 2026, of which 7.9% 7.8% were fixed-rate debt securities that subject PNM to risk of loss of fair value with increases in market interest rates. If interest rates were to increase by 50 basis points from their levels at June September 30, 2026, the decrease in the fair value of the fixed-rate securities would be 0.36%, or $0.2 million.

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The investments held by PNM in trusts for decommissioning and reclamation include certain equity securities at June September 30, 2026. These equity securities expose PNM to losses in fair value should the market values of the underlying securities decline. Equity securities comprised 85% 90% of the securities held by the trusts as of June September 30, 2026. A hypothetical 10% decrease in equity prices would reduce the fair values of these funds by $43.7 $45.1 million.

Controls and procedures 1 change

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There have been no changes in each of TXNM's, PNM's, and TNMP's internal control over financial reporting (as such term is defined in Rules 13a-15(f) and 15d-15(f) under the Securities Exchange Act of 1934) during the quarter ended June September 30, 2026, that have materially affected, or are reasonably likely to materially affect, each of TXNM's, PNM's, and TNMP's internal control over financial reporting.

Legal proceedings 3 changes

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• TNMP – Transmission Cost of Service Rates

• TNMP – Periodic Distribution Rate Adjustment

• TNMP – Unified Tracker Mechanism

Other information 1 change

During the six nine months ended June September 30, 2026, no director or officer (as defined by Rule 16a-1(f) of the Exchange Act) of the Company adopted or terminated a "Rule 10b5-1 trading arrangement" or "non-Rule 10b5-1 trading arrangement," as each term is defined in Item 408(a) of Regulation S-K.