Sempra Reports Q2 2025 Earnings, Affirms Full Year Guidance

Sempra Energy has outlined a $13B 2025 capital plan and affirmed its EPS guidance while advancing its utility-focused strategy. The company reported Q2 2025 adjusted EPS of $0.89, in line with the prior period's results, and confirmed its full-year 2025 adjusted EPS guidance range of $4.30 to $4.70.

Sempra Energy (NYSE: SRE) has outlined a significant $13 billion capital plan for 2025, affirming its EPS guidance while advancing its utility-focused strategy. The company reported a Q2 2025 adjusted EPS of $0.89, in line with the prior period's results, and confirmed its full-year 2025 adjusted EPS guidance range of $4.30 to $4.70.

Chairman, President, and CEO Jeffrey Walker Martin reported that the company's capital plan targets the investment of roughly $13 billion this year, with over $10 billion allocated toward its growing U.S. utilities. Over $5 billion of new capital has already been deployed in the first half of the year. Martin highlighted the company's transition toward a more utility-focused business model, with increasing business mix weighted toward Texas through the end of the decade.

The company also reported that it has entered into a nonbinding letter of intent with KKR for an equity sale at Sempra Infrastructure, potentially within or even above the 15% to 30% range depending upon valuation and other considerations. Major progress was noted in the Ecogas sales process, with substantial interest received from strategic and financial parties. Both the Sempra Infrastructure and Ecogas transactions are anticipated to close mid-2026, with expectations for an accretive impact on EPS and credit.

Executive VP and CFO Karen L. Sedgwick highlighted the passage of Texas House Bill 5247, which established the Unified Tracker Mechanism (UTM) to reduce regulatory lag and improve earned ROE. Oncor anticipates a 50 to 100 basis point increase in ROE over time. SDG&E was awarded an estimated $600 million in transmission projects as part of the Cal ISO 2024 to 2025 transmission plan, with most investments occurring beyond the current period.

Sempra Energy's spending remains elevated, with operating and maintenance expenses (GAAP) falling modestly to $1.24 billion, while depreciation and amortization costs (GAAP) rose 8% to $653 million compared to Q2 2024. Interest expense (GAAP) jumped 15.4% from Q2 2024, reflecting higher debt and ongoing capital expenditures. Net cash provided by operations (GAAP) totaled $2.27 billion for the first half of 2025, down from $2.52 billion for the first half of 2024 as investment spending outpaced operating cash flow growth.

The company's goal is to deliver annual earnings growth at or above the high end of its 7% to 9% long-term target for 2025 through 2029. Investors should watch for further developments on key regulatory filings in California and Texas that could impact Sempra’s allowed returns, as well as progress on asset sales slated for 2026. Persistent underperformance in the infrastructure segment or any delays to the company’s asset sales could put pressure on future results and capital plans.

[1] https://www.nasdaq.com/articles/sempra-sre-q2-eps-beats-47
[2] https://seekingalpha.com/news/4481666-sempra-outlines-13b-2025-capital-plan-and-affirms-eps-guidance-while-advancing-utility