Sempra Q2 Earnings Surge 70% on Texas Utility Strength; Guidance Raised
SRE is trading near its 52-week low of $78.97 (7.1% above the low) on light trading volume (0.3× avg).
Summary
Sempra reported Q2 GAAP EPS of $1.21, up 70% year-over-year, raised full-year GAAP guidance, and affirmed long-term growth targets. Texas utility Oncor is benefiting from surging electricity demand and new rate structures, while asset sales are progressing to sharpen the company's focus on regulated utilities.
Key Events · Earnings and Guidance · SRE
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Q2 Earnings Beat
GAAP EPS of $1.21 vs $0.71 in Q2 2025; adjusted EPS of $1.16 vs $0.89. Net income rose 73% to $796 million, driven by Sempra Texas Utilities' equity earnings doubling to $346 million.
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Guidance Raised
Full-year 2026 GAAP EPS guidance raised to $5.02–$5.55 from prior implied range; adjusted EPS guidance affirmed at $4.80–$5.30. 2027 EPS guidance of $5.10–$5.70 and 7%–9% long-term growth rate reaffirmed.
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Texas Utility Growth Accelerates
Oncor's new base rates effective June 1; ERCOT endorsed >$7 billion in transmission projects, with Oncor expected to build the majority. 44 GW of large-load interconnection requests in Oncor territory represent over 140% growth potential relative to current peak load.
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Regulatory Progress in California
SDG&E and SoCalGas filed 2028 General Rate Case applications; FERC approved SDG&E TO6 transmission settlement with 10.28% ROE. CAISO 2025–2026 Transmission Plan includes >$160 million in reliability projects for SDG&E.
Analysis · SRE · Energy & Transportation
A standout quarter was driven by a 66% earnings surge at Sempra Texas Utilities, pushing GAAP EPS to $1.21 from $0.71 a year ago. Confidence in the $65 billion capital plan is underscored by a raised full-year GAAP EPS guidance of $5.02–$5.55 and affirmed adjusted and 2027 outlooks. Oncor's new rates and a massive pipeline of transmission projects tied to Texas' 44 GW load growth highlight the utility's structural growth story. The planned sale of a stake in Sempra Infrastructure Partners to KKR remains on track, which will simplify the business and strengthen the balance sheet.
At the time of this filing, SRE was trading at $84.58 on NYSE in the Energy & Transportation sector, with a market capitalization of approximately $55.3B. The 52-week trading range was $78.97 to $101.04. This filing was assessed with positive market sentiment and an importance score of 8 out of 10.