Sempra (SRE) Q2 2024 earnings summary

Executive summary

• Q2 2024 GAAP earnings were $713M ($1.12/share), up from $603M ($0.95/share) in Q2 2023; adjusted Q2 2024 earnings were $567M ($0.89/share), down from $594M ($0.94/share) year-over-year.

• First half 2024 GAAP earnings were $1.514B ($2.38/share) vs. $1.572B ($2.49/share) in 2023; adjusted earnings were $1.421B ($2.24/share) vs. $1.516B ($2.40/share) year-over-year.

• Affirmed full-year 2024 and 2025 adjusted EPS guidance ranges, despite project delays and mixed segment results.

• Strategic focus on safety, operational excellence, and capital investments in California and Texas to support decarbonization, reliability, and growth.

• Segment realignment in late 2023 now groups SDG&E and SoCalGas as Sempra California, with Sempra Texas Utilities and Sempra Infrastructure as the other segments.

Financial highlights

• Q2 2024 total revenues were $3.011B, down from $3.335B in Q2 2023; six-month revenues were $6.651B, down from $9.895B year-over-year.

• Q2 2024 adjusted EPS was $0.89, down from $0.94 in Q2 2023; YTD-2024 adjusted EPS was $2.24, down from $2.40 YTD-2023.

• Q2 2024 GAAP EPS was $1.12, up from $0.95 in Q2 2023; YTD-2024 GAAP EPS was $2.38, down from $2.49 YTD-2023.

• Sempra California's Q2 earnings were $316M (down 7% YoY); Sempra Texas Utilities $202M (up 26% YoY); Sempra Infrastructure $291M (up 40% YoY).

• SDG&E Q2 earnings were $186M (up 1% YoY); SoCalGas Q2 earnings were $130M (down 16% YoY).

Outlook and guidance

• Affirmed 2024 adjusted EPS guidance of $4.60–$4.90 and 2025 EPS guidance of $4.90–$5.25; updated 2024 GAAP EPS guidance to $4.74–$5.04.

• Long-term projected EPS growth rate remains at 6%–8%.

• Expectation of higher future capital spending, especially in Texas, with updates anticipated in Q4.

• Sempra expects to meet cash requirements through operations, cash, credit facilities, and financing, with adequate liquidity for both short- and long-term needs.

• SDG&E and SoCalGas await a final CPUC decision on the 2024 GRC, with retroactive revenue recognition to January 1, 2024.