Sempra (NYSE: SRE) reported fourth‑quarter 2025 earnings with an adjusted earnings per share of $1.28, beating the consensus estimate of $1.18 by $0.10 or 8.5%. The beat was driven by disciplined cost control and a favorable shift in the mix toward its regulated utilities, which have higher margins than the company’s infrastructure and energy‑delivery segments.
Total revenue for the quarter was $3.75 billion, a slight decline of 0.3% from the $3.76 billion reported in Q4 2024 and below the consensus range of $3.64 billion to $4.25 billion. The revenue miss was largely attributable to modest demand weakness in the company’s infrastructure segment, while the regulated‑utility segment, led by Oncor, posted strong earnings that helped offset the decline. Oncor’s net income rose to $1.07 billion from $968 million in 2024, reflecting new regulatory mechanisms, customer growth, and updated rates.
Net income for the quarter was $352 million, down from $665 million in the same period a year earlier. The decline mirrors the revenue shortfall but is partially mitigated by the company’s cost‑control initiatives and the higher‑margin mix shift. Management highlighted that these measures have strengthened the balance sheet and positioned the company for future earnings growth.
Sempra reaffirmed its full‑year 2026 adjusted EPS guidance of $4.80 to $5.30 and announced a $65 billion capital‑spending plan for 2026‑2030, with more than 95% of the investment earmarked for regulated‑utility projects in Texas and California. The guidance reflects confidence in the company’s long‑term growth prospects and the stability of its regulated‑utility portfolio.
Investors responded with mixed sentiment, noting the EPS beat but weighing the revenue miss. Management emphasized its strategic focus on regulated utilities and capital efficiency, stating, "In addition to posting strong financial results, we took important steps in 2025 to simplify our business, improve capital efficiency and strengthen our balance sheet... Taken together, these considerations support an improved outlook for future earnings growth through the end of the decade."
The content on EveryTicker is for informational purposes only and should not be construed as financial or investment advice. We are not financial advisors. Consult with a qualified professional before making any investment decisions. Any actions you take based on information from this site are solely at your own risk.