Sempra (SRE) Q1 2025 earnings summary

Executive summary

• Q1 2025 adjusted EPS was $1.44 (up from $1.34), and GAAP EPS was $1.39 (up from $1.26); net income reached $919M, up from $881M.

• Strong financial performance driven by higher authorized revenues, tax benefits, and disciplined growth strategy.

• Five value creation initiatives underway, including $13B capital investment, LNG franchise value unlock, non-core asset sales, cost/productivity program, and operational excellence.

• Business model simplification and divestitures aim to support utility growth, strengthen the balance sheet, and enhance shareholder value.

• Sempra Infrastructure and California utilities saw significant earnings increases, while Texas segment earnings declined due to higher expenses.

Financial highlights

• Q1 2025 revenues were $3.8B, up from $3.6B; net income attributable to common shares was $906M, up from $801M.

• Adjusted Q1 2025 earnings were $942M, up from $854M; operating income for SDG&E and SoCalGas increased year-over-year.

• Sempra’s effective tax rate dropped to 7% from 21% year-over-year.

• Capital expenditures for PP&E and investments totaled $2.8B in Q1 2025, up from $2.1B.

• Operating cash flow was $1.5B, down from $1.9B year-over-year, mainly due to regulatory and working capital changes.

Outlook and guidance

• 2025 adjusted EPS guidance affirmed at $4.30–$4.70; 2026 guidance at $4.80–$5.30; long-term EPS CAGR projected at 7%–9% for 2025–2029.

• 2025 capital expenditures expected to total $12.5B, focusing on regulated utility and LNG infrastructure growth.

• Oncor's five-year capital plan exceeds $12B, supporting rate base and earnings growth.

• Asset sales of Ecogas and a minority interest in SI Partners are underway, expected to close within 12–18 months and be accretive.

• Guidance does not include impacts from proposed asset sales.