TXNM ENERGY INCTXNM
TXNM ENERGY INC Segments Disclosure
Segment Information
TXNM has three reportable segments including PNM, TNMP, and Corporate and other. The accounting policies of the segments are the same as those described in the summary of significant accounting policies. The measure of profitability used by the CODM is Segment earnings (loss) attributable to TXNM, as presented below. The CODM uses this measure of profitability to allocate resources for each segment predominantly in the annual budget and forecasting process. The CODM considers budget to actual variances on a regular basis when making decisions about allocating capital and operational expense funding to the segments. TXNM’s CODM is its President and CEO who is also the CEO of the PNM and TNMP segments.
PNM
PNM includes the retail electric utility operations of PNM that are subject to traditional rate regulation by the NMPRC. PNM provides integrated electricity services that include the generation, transmission, and distribution of electricity for retail electric customers in New Mexico. PNM also includes the generation and sale of electricity into the wholesale market, which includes the asset optimization of PNM’s jurisdictional capacity as well as providing transmission services to third parties. FERC has jurisdiction over wholesale power and transmission rates. PNM includes the results of ETBC I upon its formation in 2023.
TNMP
TNMP is an electric utility providing services in Texas under the TECA. TNMP’s operations are subject to traditional rate regulation by the PUCT. TNMP provides transmission and distribution services at regulated rates to various REPs that, in turn, provide retail electric service to consumers within TNMP’s service area. TNMP also provides transmission services at regulated rates to other utilities that interconnect with TNMP’s facilities.
Corporate and Other
The Corporate and Other segment includes TXNM holding company activities, primarily related to corporate level debt and PNMR Services Company. The activities of PNMR Development and the equity method investment in NMRD are also included in Corporate and Other until the close of the sale of NMRD on February 27, 2024 (Note 21). Eliminations of intercompany transactions are reflected in the Corporate and Other segment.
The following tables present summarized financial information for TXNM by segment. PNM and TNMP each operate in only one segment. Therefore, tabular segment information is not presented for PNM and TNMP.
| 2025 | PNM | TNMP | Corporate and Other | TXNM Consolidated | |||||||||||||||||||
| (In thousands) | |||||||||||||||||||||||
| Electric operating revenues | $ | 1,484,290 | $ | 681,316 | $ | — | $ | 2,165,606 | |||||||||||||||
Cost of energy | |||||||||||||||||||||||
Fuel burn | 131,395 | — | — | 131,395 | |||||||||||||||||||
Purchases for resale | 393,154 | — | — | 393,154 | |||||||||||||||||||
Transmission by others | 24,607 | 166,849 | — | 191,456 | |||||||||||||||||||
Significant segment expenses | |||||||||||||||||||||||
Administrative and general - direct | 76,659 | 252 | 163,673 | 240,584 | |||||||||||||||||||
Administrative and general - corporate allocation | 133,410 | 53,852 | (187,262) | — | |||||||||||||||||||
Customer related expenses | 30,783 | 3,086 | — | 33,869 | |||||||||||||||||||
Energy production costs | 98,371 | — | — | 98,371 | |||||||||||||||||||
Regulatory disallowances | (731) | — | — | (731) | |||||||||||||||||||
Depreciation and amortization | 244,205 | 143,942 | 37,494 | 425,641 | |||||||||||||||||||
Transmission and distribution costs | 63,349 | 37,445 | — | 100,794 | |||||||||||||||||||
Taxes other than income taxes | 56,485 | 47,174 | 6,235 | 109,894 | |||||||||||||||||||
Total operating expenses | 1,251,687 | 452,600 | 20,140 | 1,724,427 | |||||||||||||||||||
Net other income and (deductions) | (2,026) | 14,615 | (2,233) | 10,356 | |||||||||||||||||||
| Interest charges | (129,478) | (86,956) | (55,088) | (271,522) | |||||||||||||||||||
| Income taxes (benefit) | (4,442) | 32,085 | (17,456) | 10,187 | |||||||||||||||||||
| Valencia non-controlling interest | (17,936) | — | — | (17,936) | |||||||||||||||||||
| Subsidiary preferred stock dividends | (528) | — | — | (528) | |||||||||||||||||||
Segment earnings (loss) attributable to TXNM | $ | 87,077 | $ | 124,290 | $ | (60,005) | $ | 151,362 | |||||||||||||||
At December 31, 2025: | |||||||||||||||||||||||
| Total Assets | $ | 7,688,132 | $ | 4,187,718 | $ | 183,435 | $ | 12,059,285 | |||||||||||||||
| Goodwill | $ | 51,632 | $ | 226,665 | $ | — | $ | 278,297 | |||||||||||||||
| 2024 | PNM | TNMP | Corporate and Other | TXNM Consolidated | |||||||||||||||||||
| (In thousands) | |||||||||||||||||||||||
| Electric operating revenues | $ | 1,379,088 | $ | 592,111 | $ | — | $ | 1,971,199 | |||||||||||||||
| Cost of energy | |||||||||||||||||||||||
Fuel burn | 130,380 | — | — | 130,380 | |||||||||||||||||||
Purchases for resale | 286,399 | — | — | 286,399 | |||||||||||||||||||
Transmission by others | 18,139 | 149,066 | — | 167,205 | |||||||||||||||||||
Significant segment expenses | |||||||||||||||||||||||
Administrative and general - direct | 63,105 | (1,452) | 151,089 | 212,742 | |||||||||||||||||||
Administrative and general - corporate allocation | 132,209 | 53,166 | (185,375) | — | |||||||||||||||||||
Customer related expenses | 31,246 | 2,997 | 131 | 34,374 | |||||||||||||||||||
Energy production costs | 93,748 | — | — | 93,748 | |||||||||||||||||||
Regulatory disallowances | 8,980 | — | — | 8,980 | |||||||||||||||||||
Depreciation and amortization | 221,780 | 125,915 | 37,230 | 384,925 | |||||||||||||||||||
Transmission and distribution costs | 61,302 | 37,078 | — | 98,380 | |||||||||||||||||||
Taxes other than income taxes | 49,807 | 44,441 | 6,332 | 100,580 | |||||||||||||||||||
Total operating expenses | 1,097,095 | 411,211 | 9,407 | 1,517,713 | |||||||||||||||||||
Net other income and (deductions) | 61,494 | 8,725 | (15,399) | 54,820 | |||||||||||||||||||
| Interest charges | (106,018) | (58,983) | (63,065) | (228,066) | |||||||||||||||||||
| Income taxes (benefit) | 29,217 | 27,114 | (34,813) | 21,518 | |||||||||||||||||||
| Valencia non-controlling interest | (16,040) | — | — | (16,040) | |||||||||||||||||||
| Subsidiary preferred stock dividends | (528) | — | — | (528) | |||||||||||||||||||
Segment earnings (loss) attributable to TXNM | $ | 191,684 | $ | 103,528 | $ | (53,058) | $ | 242,154 | |||||||||||||||
At December 31, 2024: | |||||||||||||||||||||||
| Total Assets | $ | 7,407,279 | $ | 3,649,125 | $ | 155,329 | $ | 11,211,733 | |||||||||||||||
| Goodwill | $ | 51,632 | $ | 226,665 | $ | — | $ | 278,297 | |||||||||||||||
| 2023 | |||||||||||||||||||||||
| Electric operating revenues | $ | 1,403,948 | $ | 535,250 | $ | — | $ | 1,939,198 | |||||||||||||||
| Cost of energy | |||||||||||||||||||||||
Fuel burn | 138,538 | — | — | 138,538 | |||||||||||||||||||
Purchases for resale | 499,921 | — | — | 499,921 | |||||||||||||||||||
Transmission by others | 25,155 | 138,647 | — | 163,802 | |||||||||||||||||||
Significant segment expenses | |||||||||||||||||||||||
Administrative and general - direct | 52,554 | 2,710 | 139,010 | 194,274 | |||||||||||||||||||
Administrative and general - corporate allocation | 124,321 | 47,470 | (171,791) | — | |||||||||||||||||||
Customer related expenses | 29,775 | 3,783 | 68 | 33,626 | |||||||||||||||||||
Energy production costs | 91,610 | — | — | 91,610 | |||||||||||||||||||
Regulatory disallowances | 70,750 | 1,173 | — | 71,923 | |||||||||||||||||||
Depreciation and amortization | 177,633 | 113,142 | 28,728 | 319,503 | |||||||||||||||||||
Transmission and distribution costs | 61,725 | 36,996 | — | 98,721 | |||||||||||||||||||
Taxes other than income taxes | 48,790 | 41,311 | 5,839 | 95,940 | |||||||||||||||||||
Total operating expenses | 1,320,772 | 385,232 | 1,854 | 1,707,858 | |||||||||||||||||||
Net other income and (deductions) | 41,358 | 8,368 | (182) | 49,544 | |||||||||||||||||||
| Interest charges | (86,574) | (46,152) | (57,629) | (190,355) | |||||||||||||||||||
| Income taxes (benefit) | (16,758) | 17,297 | (16,889) | (16,350) | |||||||||||||||||||
| Valencia non-controlling interest | (18,533) | — | — | (18,533) | |||||||||||||||||||
| Subsidiary preferred stock dividends | (528) | — | — | (528) | |||||||||||||||||||
Segment earnings (loss) attributable to TXNM | $ | 35,657 | $ | 94,937 | $ | (42,776) | $ | 87,818 | |||||||||||||||
At December 31, 2023: | |||||||||||||||||||||||
| Total Assets | $ | 6,813,065 | $ | 3,145,031 | $ | 294,509 | $ | 10,252,605 | |||||||||||||||
| Goodwill | $ | 51,632 | $ | 226,665 | $ | — | $ | 278,297 | |||||||||||||||
Significant Segment Expenses
Reflected above are certain additional categories of operating expenses that are regularly provided to the CODM. Cost of energy consists primarily of fuel and purchase power costs for PNM and costs charged by third-party transmission providers for TNMP. Administrative and general - direct expenses are those that are incurred directly by the segment while corporate allocation are those costs that are incurred by the corporate and other segment and allocated to the utilities based on the nature of the cost incurred. Corporate allocation is eliminated in the corporate and other segment. Customer related expenses include meter reading, customer service, and bad debt expenses.
Major Customers
PNM’s participation in EIM, operated by CAISO, accounted for approximately 1%, 4%, and 15% of electric operating revenues during the years ended December 31, 2025, 2024, and 2023. These revenues are passed on to customers under PNM’s FPPAC with no impact to net earnings. Two REPs during the years ended December 31, 2025, 2024, and 2023 accounted for more than 10% of the electric operating revenues of TNMP as follows:
| Year Ended December 31, | |||||||||||||||||
| 2025 | 2024 | 2023 | |||||||||||||||
| REP A | 24 | % | 26 | % | 25 | % | |||||||||||
| REP B | 19 | 20 | 19 | ||||||||||||||
Historical Timeline
| Fiscal Year | Filed | |
|---|---|---|
| 2025 | Feb 27, 2026 | Showing above |
| 2024 | Feb 28, 2025 | |
| 2023 | Feb 29, 2024 | |
| 2022 | Feb 28, 2023 | |
| 2021 | Mar 1, 2022 | |
| 2020 | Mar 1, 2021 | |
| 2019 | Mar 2, 2020 | |
| 2018 | Mar 1, 2019 | |
| 2017 | Mar 1, 2018 | |
| 2016 | Feb 28, 2017 | |
| 2015 | Feb 29, 2016 | |
About Segments Disclosures
Segment disclosures break a company into its reportable operating units, revealing revenue, profit, and asset allocation that consolidated financial statements obscure. Under ASC 280, segments must match how the chief operating decision maker views the business, providing a window into internal management structure and resource allocation priorities.
Key signals: compare segment margins to identify which units drive profitability and which destroy value. Watch for changes in the number of reportable segments — segment aggregation or disaggregation often coincides with strategic shifts or attempts to obscure declining performance. Intersegment elimination patterns reveal internal pricing practices. The reconciliation between segment totals and consolidated figures exposes corporate overhead allocation and unallocated items. Geographic revenue concentration highlights regulatory and currency exposure. Compare segment-level capital expenditure against segment revenue to assess where management is investing for future growth versus harvesting existing assets.