Sempra Releases Earnings Report for Third Quarter of 2025

Sempra Reports Earnings for Third Quarter 2025

In the latest financial announcement, Sempra (NYSE: SRE) presented its third-quarter 2025 earnings, highlighting a significant drop in GAAP earnings compared to the previous year. The company reported a net income of $77 million, or $0.12 per diluted share, a notable decrease from the $638 million, or $1.00 per diluted share, reported in the third quarter of 2024. However, when adjusted for certain items, earnings stood at $728 million, or $1.11 per diluted share, compared to $566 million, or $0.89 per diluted share in the same quarter last year.

Financial Overview

Sempra's earnings throughout the first nine months of 2025 totalled $1.444 billion, equating to $2.21 per diluted share. This reflects a decline from $2.152 billion, or $3.38 per diluted share, during the same period in 2024. On the adjusted earnings front, Sempra reported $2.253 billion, or $3.45 per diluted share, up from $1.987 billion, or $3.12 per diluted share in 2024.

Jeffrey W. Martin, chairman and CEO of Sempra, expressed satisfaction with the quarter's performance despite the decline, citing ongoing efforts to enhance the company's value creation initiatives and the positive trajectory of year-to-date financial results.

Strategic Developments

This quarter also saw Sempra announce a strategic decision to sell a 45% equity interest in its subsidiary, Sempra Infrastructure Partners, to affiliates of KKR. This transaction is part of Sempra's broader strategy to simplify its business model, support extensive capital campaigns, and fortify its financial standing. Expected to finalize in the second or third quarter of 2026, the sale is pending necessary regulatory approvals.

Furthermore, Oncor Electric Delivery Company, a subsidiary of Sempra, is advancing its investment plan focusing on essential transmission and distribution infrastructure to bolster electric reliability in Texas. Notably, Oncor anticipates being a significant contributor to the Electric Reliability Council of Texas, Inc.'s (ERCOT) 765-kV Strategic Transmission Expansion Plan, with an expectation of over a 30% increase in its capital spending for the 2026-2030 fiscal years. The ongoing projects are crucial given the increasing demand for electric reliability due to population and business growth in North Texas.

Oncor's activities have included the upgrade of about 660 circuit miles of transmission and distribution lines, which resulted in nearly 16,000 new premises connected during the quarter. The current commercial and industrial interconnection requests have surged to over 600, indicating robust growth across Oncor's service regions.

Regulatory Updates

In California, Sempra has responded to legislative changes, including the enactment of Senate Bill 254, which establishes a continuation account for the wildfire fund, promoting improved stability and liquidity for future claims. This legislation is pivotal for Sempra's California utility, San Diego Gas & Electric (SDGE), as it supports the mission of delivering safe and affordable energy to consumers.

SDGE, along with Southern California Gas Company, is pursuing cost-saving measures in response to California Public Utilities Commission initiatives aimed at reducing administrative costs, potentially saving customers over $300 million from 2026 to 2031 by optimizing energy efficiency programs and transitioning to a digital-first service model.

Future Outlook

Sempra has provided guidance for the full year of 2025, adjusting its GAAP earnings per share (EPS) range to $3.05 to $3.45. They reaffirmed their adjusted EPS guidance for 2025 at $4.30 to $4.70 and for 2026 at $4.80 to $5.30. The projected long-term compound annual growth rate for earnings stands at 7% to 9% for the 2025-2029 period.

With these results, Sempra continues to strengthen its position in North America's energy infrastructure sector, focusing on sustainable practices and operational excellence, evidenced by its consistent ranking in the Dow Jones Sustainability Index North America. For more detailed insights, Sempra's live discussion on this earnings report can be accessed on its investor relations webpage.

For further updates, visit Sempra's official website or follow them on social media at @Sempra.