Sempra Reports Strong Q4 2025 Earnings and Capital Plans
Written by Emily J. Thompson, Senior Investment Analyst
Updated: 4 days ago
0mins
Should l Buy SRE?
Source: seekingalpha
- Innovative Capital Plan: Sempra announced a record $65 billion capital plan for 2026-2030, representing a 17% increase over the previous plan, which is expected to drive an 11% CAGR over the next five years, showcasing the company's strong growth potential in the industry.
- Strong Earnings Performance: In Q4 2025, Sempra reported GAAP earnings of $352 million or $0.54 per share, with full-year adjusted earnings reaching $3.066 billion or $4.69 per share, both at the high end of guidance, reflecting the company's competitive position and profitability in the market.
- Strategic Asset Sale: Sempra announced the sale of a 45% stake in SI Partners for $10 billion, anticipated to close in Q2 or Q3 2026, which will provide additional funding support and further optimize its asset portfolio.
- Optimistic Future Outlook: The company affirmed its 2026 adjusted EPS guidance of $4.80 to $5.30 and introduced 2027 EPS guidance for the first time, demonstrating management's confidence in future growth, particularly in its Texas operations.
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Analyst Views on SRE
Wall Street analysts forecast SRE stock price to rise
12 Analyst Rating
9 Buy
3 Hold
0 Sell
Strong Buy
Current: 96.270
Low
89.00
Averages
100.58
High
115.00
Current: 96.270
Low
89.00
Averages
100.58
High
115.00
About SRE
Sempra is a North American energy infrastructure company. The Company's businesses invest in, develop and operate energy infrastructure, and provide electric and gas services to customers. Its segments include Sempra California, Sempra Texas Utilities, and Sempra Infrastructure. The Sempra California segment provides natural gas and electric service to Southern California and part of central California through its subsidiaries, SDG&E and SoCalGas. The Sempra Texas Utilities segment holds its investment in Oncor Holdings, which owns an over 80.25% interest in Oncor, a regulated electric transmission and distribution utility serving customers in the north-central, eastern, western and panhandle regions of Texas, and its indirect 50% interest in Sharyland Holdings, which owns Sharyland Utilities, a regulated electric transmission utility serving customers near the Texas-Mexico border. The Sempra Infrastructure segment develops, builds, operates and invests in energy infrastructure.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
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- Strong Earnings Performance: In Q4 2025, Sempra reported GAAP earnings of $352 million or $0.54 per share, with full-year adjusted earnings reaching $3.066 billion or $4.69 per share, both at the high end of guidance, reflecting the company's competitive position and profitability in the market.
- Strategic Asset Sale: Sempra announced the sale of a 45% stake in SI Partners for $10 billion, anticipated to close in Q2 or Q3 2026, which will provide additional funding support and further optimize its asset portfolio.
- Optimistic Future Outlook: The company affirmed its 2026 adjusted EPS guidance of $4.80 to $5.30 and introduced 2027 EPS guidance for the first time, demonstrating management's confidence in future growth, particularly in its Texas operations.
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- Strong Earnings Performance: In Q4 2025, Sempra reported GAAP earnings of $352 million or $0.54 per share, with full-year adjusted earnings reaching $3.066 billion or $4.69 per share, both at the high end of guidance, reflecting the company's competitive position and profitability in the market.
- Strategic Asset Sale: Sempra announced the sale of a 45% stake in SI Partners for $10 billion, anticipated to close in Q2 or Q3 2026, which will provide additional funding support and further optimize its asset portfolio.
- Optimistic Future Outlook: The company affirmed its 2026 adjusted EPS guidance of $4.80 to $5.30 and introduced 2027 EPS guidance for the first time, demonstrating management's confidence in future growth, particularly in its Texas operations.
See More
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- Quarterly Dividend Announcement: Sempra has declared a quarterly dividend of $0.6575 per share, payable on April 15, with a record date of March 19 and an ex-dividend date also on March 19, demonstrating the company's commitment to returning value to shareholders.
- Earnings Performance Beat: The company reported a non-GAAP EPS of $1.28, exceeding market expectations by $0.11, indicating enhanced profitability amid a surge in power demand, although total revenue of $3.75 billion fell short of expectations by $300 million.
- Market Reaction Analysis: Despite the revenue miss, the earnings beat may bolster investor confidence, particularly as Sempra is viewed as a defensive investment amid the AI-driven surge in power demand, which could attract more capital.
- Future Outlook: With ongoing growth in power demand, Sempra's business outlook appears promising, and market expectations for future earnings may rise, especially ahead of the upcoming Q4 2025 earnings report, generating anticipation among investors.
See More
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- Earnings Decline: Sempra Energy reported a fourth-quarter net income of $352 million, or $0.54 per share, which represents a significant drop from last year's $665 million and $1.04 per share, indicating a notable weakening in the company's profitability.
- Adjusted Earnings: Excluding special items, Sempra reported adjusted earnings of $841 million, or $1.28 per share; however, this still fails to offset the overall decline in profitability, reflecting operational challenges faced by the company.
- Revenue Slight Drop: The company's revenue for the fourth quarter was $3.749 billion, down 0.2% from $3.758 billion last year, suggesting a lack of revenue growth in a competitive market environment.
- Market Reaction: The dual decline in earnings and revenue has led to a cautious market outlook on Sempra Energy's future, potentially impacting its investment attractiveness and stock performance.
See More
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- Increased Capital Plan: The company announced a capital plan of approximately $65 billion for 2026-2030, up 16% from the $56 billion plan for 2025-2029, with 95% of expenditures focused on utility investments in Texas and California, demonstrating a strong commitment to future growth.
- Increased Shareholder Returns: Sempra's board declared a quarterly dividend of $0.6575 per share, raising the annualized dividend to $2.63 from $2.58 in 2025, indicating ongoing efforts to enhance shareholder returns and attract more investors.
- Future Earnings Guidance: Sempra affirmed its adjusted EPS guidance for 2026 in the range of $4.80 to $5.30, with a projected EPS of $6.70 to $7.50 for 2030, reflecting confidence in long-term profitability and positive market expectations.
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