Sempra (SRE) Q4 2025 earnings summary

Executive summary

• Achieved record adjusted EPS of $4.69 for 2025, at the high end of guidance, with strong execution on value creation initiatives, utility-focused investments, and successful asset sales including SI Partners and Ecogas, supporting capital recycling and portfolio simplification.

• Announced a new $65 billion capital plan for 2026-2030, a 17% increase over the prior plan, with 95% targeted for utility investments, especially in Texas and California.

• Achieved mechanical completion of ECA LNG Phase 1 and reached FID for Port Arthur LNG Phase 2, advancing LNG project milestones.

• Continued operational excellence, cost structure optimization, and community safety, with SDG&E recognized for electric reliability for the 20th consecutive year.

• Invested $13 billion in 2025, increasing rate base from $50 billion to $57 billion and declaring $1.7 billion in common dividends.

Financial highlights

• Full year 2025 adjusted earnings: $3.07 billion ($4.69/share), up from $2.97 billion ($4.65/share) in 2024; GAAP earnings: $1.80 billion ($2.75/share), down from $2.82 billion ($4.42/share) in 2024.

• Q4 2025 adjusted earnings: $841 million ($1.28/share) vs. $960 million ($1.50/share) in Q4 2024.

• Operating cash flow for 2025 was $4.57 billion, compared to $4.91 billion in 2024.

• Capital expenditures for 2025 totaled $10.6 billion, up from $8.2 billion in 2024.

• Adjusted earnings growth driven by higher equity earnings from UTM/Oncor, increased invested capital, and customer growth.

Outlook and guidance

• Affirmed 2026 adjusted EPS guidance of $4.80-$5.30, introduced 2027 EPS guidance of $5.10-$5.70, and 2030 EPS outlook of $6.70-$7.50, reflecting a projected 7%-9% CAGR.

• 2030 rate base projected to reach $97 billion, up from $57 billion in 2025, an 11% five-year CAGR, with increased capital allocation to Texas.

• Sempra Texas rate base expected to grow at 18% CAGR, surpassing California by 2030.

• Targeting annual dividend growth of 2%-4% over the plan period.

• No need for common equity issuances to fund the base capital plan due to improved operating cash flows and capital recycling.