Sempra (SRE) Q4 2025 earnings summary

Executive summary

• Achieved record adjusted EPS of $4.69 for 2025, at the high end of guidance, driven by strong execution of value creation initiatives, robust utility investments, and successful asset sales unlocking significant equity value.

• Announced a new $65 billion capital plan for 2026-2030, a 17% increase over the prior plan, with 95% targeted for utility investments, especially in Texas and California.

• Completed major transactions, including the sale of a 45% stake in Sempra Infrastructure Partners for $10 billion and the agreement to sell Ecogas for $500 million, supporting capital recycling.

• Invested $13 billion in 2025, prioritizing utility investments and improved returns, increasing rate base from $50 billion to $57 billion and declaring $1.7 billion in common dividends.

• Focused on cost reduction, organizational efficiency, operational excellence, and wildfire risk mitigation.

Financial highlights

• Full year 2025 adjusted earnings: $3.07 billion ($4.69/share), up from $2.97 billion ($4.65/share) in 2024; GAAP earnings: $1.80 billion ($2.75/share), down from $2.82 billion ($4.42/share) in 2024.

• Q4 2025 adjusted earnings: $841 million ($1.28/share) vs. $960 million ($1.50/share) in Q4 2024.

• Net income for 2025 was $2.07 billion, down from $3.5 billion in 2024.

• Operating cash flow for 2025 was $4.57 billion, compared to $4.91 billion in 2024.

• Capital expenditures for 2025 totaled $13 billion, up from $8.2 billion in 2024.

Outlook and guidance

• Affirmed 2026 adjusted EPS guidance of $4.80-$5.30 and introduced 2027 guidance of $5.10-$5.70.

• Issued 2030 EPS outlook of $6.70-$7.50, reflecting one of the highest projected growth rates in the sector.

• Projected 11% five-year CAGR in overall rate base, with Sempra Texas expected to surpass California as the majority of rate base by 2030.

• Targeting annual dividend growth of 2%-4% over the plan period, with dividend increased to $2.63/share annualized for 2026.

• No need for common equity issuances to fund base capital plan due to improved operating cash flows and capital recycling.