Sempra (SRE) Q1 2025 earnings summary

Executive summary

• Q1 2025 adjusted EPS was $1.44 (up from $1.34), and GAAP EPS was $1.39 (up from $1.26); consolidated net income reached $919M, up from $881M.

• Five value creation initiatives underway, including $13B capital investment, LNG franchise value unlock, non-core asset sales in Mexico, cost/productivity program, and operational excellence.

• Earnings growth driven by higher authorized revenues at California utilities, favorable tax benefits, and lower commodity costs.

• Business model simplification and divestitures aim to support utility growth, strengthen the balance sheet, and enhance shareholder value.

• Sempra Infrastructure earnings rose due to FX/inflation effects and lower O&M, offset by lower asset optimization and higher interest expense.

Financial highlights

• Q1 2025 revenues were $3.8B, up from $3.6B; net income attributable to common shares was $906M, up from $801M.

• Operating income for SDG&E increased to $390M and for SoCalGas to $527M year-over-year.

• Sempra California contributed $88M from higher CPUC-based margin and $54M from higher tax benefits, offset by higher interest expense.

• Sempra Texas Utilities earnings fell to $146M from $183M, due to higher expenses despite revenue growth.

• Capital expenditures for PP&E and investments totaled $2.8B in Q1 2025, up from $2.1B in Q1 2024.

Outlook and guidance

• 2025 adjusted EPS guidance affirmed at $4.30–$4.70; 2026 guidance at $4.80–$5.30; long-term EPS CAGR projected at 7%–9% for 2025–2029.

• 2025 GAAP EPS guidance updated to $4.25–$4.65.

• Regulated businesses expected to account for 90%+ of earnings mix by end of five-year plan.

• Guidance does not include impacts from proposed Ecogas and SI Partners sales, which are expected to be accretive.

• Sempra expects 2025 capital expenditures for PP&E and investments to total $12.5B, focusing on regulated utility and LNG infrastructure growth.