Sempra (SRE) Q2 2024 earnings summary

Executive summary

• Reported Q2 2024 GAAP earnings of $713M ($1.12/share), up from $603M ($0.95/share) in Q2 2023; adjusted Q2 2024 earnings were $567M ($0.89/share), down from $594M ($0.94/share) year-over-year.

• First half 2024 GAAP earnings were $1.514B ($2.38/share) vs. $1.572B ($2.49/share) in 2023; adjusted earnings were $1.421B ($2.24/share) vs. $1.516B ($2.40/share) year-over-year.

• Owns a portfolio of transmission and distribution businesses in major North American markets, executing a $48B five-year capital plan through 2028.

• Sempra California benefits from constructive regulation and advanced wildfire mitigation; key regulatory decisions expected by year-end.

• Sempra Texas sees diversified demand growth, driving investments to increase rate base and earnings, with grid resiliency improvements.

Financial highlights

• Q2 2024 total revenues were $3.011B, down from $3.335B in Q2 2023; six-month revenues were $6.651B, down from $9.895B year-over-year.

• Net income for Q2 2024 was $713M, up from $603M in Q2 2023; six-month net income was $1.514B, down from $1.572B year-over-year.

• Q2 2024 adjusted earnings were $567M ($0.89/share), down from $594M ($0.94/share) in Q2 2023; YTD adjusted earnings were $1.421B ($2.24/share), down from $1.516B ($2.40/share) YTD-2023.

• Q2 2024 gross margin: $1.38B; Q2 2024 operating income: $308M, down from $523M in Q2 2023.

• Sempra California's Q2 earnings were $316M (down 7% YoY); Sempra Texas Utilities $202M (up 26% YoY); Sempra Infrastructure $291M (up 40% YoY).

Outlook and guidance

• Affirmed 2024 adjusted EPS guidance of $4.60–$4.90 and 2025 EPS guidance of $4.90–$5.25; updated 2024 GAAP EPS guidance to $4.74–$5.04.

• Long-term projected EPS growth rate remains at 6%–8%.

• Sempra expects to meet cash requirements through operations, cash, credit facilities, and financing, with adequate liquidity for both short- and long-term needs.

• SDG&E and SoCalGas await a final CPUC decision on the 2024 GRC, with retroactive revenue recognition to January 1, 2024.

• Oncor reached a settlement in principle on a $3B System Resiliency Plan, expected to begin implementation in Q4 2024, supporting incremental capital investment.