Sempra Reports Strong Q1 Earnings, Affirms Guidance, and Advances Strategic Initiatives
Summary
Sempra reported strong first-quarter 2026 earnings, with GAAP EPS up 13.6% and adjusted EPS up 4.8% year-over-year, while affirming its full-year adjusted EPS guidance and long-term growth rate.
Key Events
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Strong Q1 Earnings Performance
Sempra reported first-quarter 2026 GAAP earnings of $1.04 billion ($1.58 per diluted share), up from $906 million ($1.39 per diluted share) in Q1 2025. Adjusted earnings also increased to $991 million ($1.51 per diluted share) from $942 million ($1.44 per diluted share) year-over-year.
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Full-Year Guidance Affirmed
The company updated its full-year 2026 GAAP EPS guidance range to $4.87 to $5.37 and affirmed its full-year 2026 adjusted EPS guidance range of $4.80 to $5.30. The projected long-term EPS growth rate of 7% to 9% was also affirmed.
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Favorable Oncor Rate Settlement
The Public Utility Commission of Texas (PUCT) adopted Oncor Electric Delivery Company LLC's base rate settlement, providing for an annual revenue requirement of approximately $6.97 billion and an authorized return on equity of 9.75%. This is expected to improve Oncor's financial strength and enable future investments.
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Progress on Strategic Asset Sales
Transactions for Sempra Infrastructure Partners (SI Partners) and Ecogas México are expected to close in the second or third quarter of 2026, with key regulatory approvals already received for SI Partners. These sales are anticipated to be accretive to earnings.
Analysis
Sempra delivered a robust first quarter, with both GAAP and adjusted earnings per share showing significant year-over-year growth. The company affirmed its full-year 2026 adjusted EPS guidance and long-term growth rate, signaling stability and confidence in its outlook. Key operational advancements, such as the favorable base rate settlement for Oncor Electric Delivery Company LLC in Texas, are expected to bolster financial strength and support substantial infrastructure investments. Progress on strategic asset sales, including SI Partners and Ecogas México, which are anticipated to be accretive, further strengthens the company's financial position and business model simplification.
At the time of this filing, SRE was trading at $90.94 on NYSE in the Energy & Transportation sector, with a market capitalization of approximately $59.4B. The 52-week trading range was $73.06 to $101.04. This filing was assessed with positive market sentiment and an importance score of 7 out of 10.