Sempra (SRE) Q2 2025 earnings summary

Executive summary

• Q2 2025 adjusted EPS was $0.89, matching the prior year, while GAAP earnings were $461 million ($0.71/share), down from $713 million ($1.12/share) in Q2 2024; significant capital investments exceeded $5 billion in H1 2025, with a $13 billion capital plan for the year, prioritizing U.S. utilities and grid modernization.

• Progress on value creation initiatives included capital recycling, cost reduction, and non-binding LOIs for equity sales in Sempra Infrastructure and Ecogas México, both expected to close in 2026.

• Ongoing transition to a more utility-focused business model, with emphasis on Texas growth, regulatory diversity, and simplification through non-core asset sales.

• Continued focus on operational efficiency, customer affordability, and risk mitigation, especially in wildfire-prone areas and through cost-saving initiatives.

• Achieved operational milestones, including 100% hardening of SDG&E's Tier 3 transmission, 1,000th LNG cargo from Cameron LNG, and major progress on LNG projects.

Financial highlights

• Q2 2025 adjusted earnings were $583 million ($0.89/share), up from $567 million ($0.89/share) in Q2 2024; Q2 2025 GAAP EPS was $0.71, down from $1.12; YTD 2025 adjusted EPS was $2.34, up from $2.24 in 2024.

• Q2 2025 revenues were $3.0 billion, flat year-over-year; YTD revenues were $6.8 billion, up from $6.7 billion.

• Sempra California saw higher regulatory awards and electric transmission margin, offset by lower CPUC base margin and higher net interest expense.

• Sempra Texas had higher equity earnings from Oncor and customer growth, offset by higher expenses and lower consumption.

• Sempra Infrastructure posted higher revenues from contract modifications and LNG volumes, but was impacted by FX/inflation in Mexico and deferred tax liabilities.

Outlook and guidance

• Affirmed full-year 2025 adjusted EPS guidance of $4.30–$4.70 and 2026 guidance of $4.80–$5.30; long-term EPS CAGR guidance of 7%–9% for 2025–2029.

• 2025 adjusted EPS guidance excludes regulatory disallowances, FX/inflation in Mexico, and derivative/tax impacts.

• Expecting higher earnings contribution from regulated utilities post-2026, improving credit and business risk profile.

• Oncor's base rate review expected to conclude in Q1 2026, with potential catalysts including improved ROE, incremental CapEx, and new project earnings.

• SDG&E and SoCalGas expect continued stable liquidity and performance, with future results dependent on regulatory outcomes.