Sempra
Q1 2025 Earnings
Market Reaction
S&P 500 over the same 30 days: +6.73%.
Did SRE Beat Earnings? Q1 2025 Results
Sempra delivered a solid first quarter for 2025, posting adjusted earnings of $1.44 per diluted share on revenue of $3.80 billion, as strength in its California utility operations more than compensated for headwinds elsewhere. The standout driver was the Sempra California segment, which saw earnings climb to $724 million from $582 million a year ago, fueled by higher natural gas utility revenues that pushed segment revenue to $3.40 billion. The gains were partially tempered by a sharp rise in interest expense — to $433 million from $305 million — and softer results at Sempra Texas Utilities, where earnings dipped to $146 million despite record winter peak demand on ERCOT's grid. Oncor, in which Sempra holds an 80.25% stake, continues executing a $36.10 billion five-year capital plan, with <a href="https://247wallst.com/investing/2025/07/17/ai-data-centers-and-big-tech-are-devouring-electricity-jim-cramer-has-4-favorite-utility-stocks/">surging grid interconnection requests</a> up 35% year-over-year signaling robust long-term demand. Looking ahead, Sempra affirmed its 2025 adjusted EPS guidance of $4.30–$4.70 and its 2026 range of $4.80–$5.30, while planned divestitures are expected to be both EPS-accretive and credit-enhancing.
- Sempra California earnings increased to $724 million from $582 million year-over-year, driven by higher natural gas utility revenues
- ERCOT set a new all-time winter peak demand record of 80.5 GW in February 2025
- Oncor's active transmission point of interconnection requests increased 35% year-over-year to approximately 1,100
- Oncor increased premises served by approximately 19,000 in Q1 2025
- Oncor built, rebuilt or upgraded nearly 800 miles of transmission and distribution power lines in Q1 2025
- Income tax expense declined significantly to $57 million from $172 million year-over-year
“We are pleased to report a solid quarter for Sempra, which is the direct result of continued focus on delivering strong financial performance while making steady progress on our strategic initiatives. We remain committed to our disciplined growth strategy, which centers on delivering safer and more reliable energy to the nearly 40 million consumers we serve.”
Sempra CEO, on the earnings call
Forward Guidance & Outlook
Sempra updated its full-year 2025 GAAP EPS guidance range to $4.25–$4.65, reflecting actual Q1 results. The company affirmed its full-year 2025 adjusted EPS guidance range of $4.30–$4.70 and its full-year 2026 EPS guidance range of $4.80–$5.30. Sempra has also guided to the high end or above its projected long-term EPS compound annual growth rate of 7%–9% for 2025 through 2029. The proposed sales of Ecogas México and a minority stake in Sempra Infrastructure Partners, expected to close over the next 12–18 months, are anticipated to be EPS-accretive and credit-enhancing. The 2025 adjusted EPS guidance does not contemplate the anticipated impacts of these proposed divestitures.
SRE YoY Financials
SRE Revenue by Segment
Figures from SEC filings and company reports. Not investment advice.