Sempra Energy Q2 Earnings Call Highlights

Sempra reported strong second-quarter results, with adjusted earnings rising to $1.16 per share from $0.89 a year earlier, while reaffirming its 2026 and 2027 EPS guidance and 7%–9% long-term growth target.

The company is advancing a $65 billion capital plan and expects the planned SI Partners stake sale to simplify operations, recycle capital into regulated utilities and remove nearly $9 billion of debt from its balance sheet.

Texas growth remains a major opportunity: Oncor has a $47.5 billion base capital plan plus $10 billion in identified projects, while potential large-load interconnections could significantly expand future transmission investment.

Sempra Energy NYSE: SRE affirmed its 2026 and 2027 earnings guidance as management highlighted higher earnings across its business segments, a planned asset-sale strategy and growing transmission investment opportunities in Texas during its second-quarter earnings call.

The company reported second-quarter 2026 GAAP earnings of $796 million, or $1.21 per diluted share, compared with $461 million, or $0.71 per share, in the prior-year quarter.

On an adjusted basis, earnings rose to $762 million, or $1.16 per share, from $583 million, or $0.89 per share, a year earlier.

Chief Executive Officer Jeff Martin said the company’s operating businesses were executing well and that year-to-date adjusted earnings per share showed double-digit gains, with positive contributions from each of its three growth segments.

Chief Financial Officer Karen Sedgwick said Sempra reaffirmed its full-year 2026 adjusted EPS guidance range of $4.80 to $5.30 and its 2027 range of $5.10 to $5.70.

The company also maintained its projected long-term EPS growth rate of 7% to 9%.

Sedgwick said the company remains focused on closing the pending sale of a 45% equity stake in SI Partners, strengthening its balance sheet after the transaction and advancing its $65 billion capital plan.

The transaction is expected to close later in the third quarter.

Martin said the SI Partners sale supports Sempra’s strategy of simplifying its business model, recycling capital into regulated utilities and reducing the need for common equity under its current capital plan.

The transaction is also expected to deconsolidate nearly $9 billion of debt from Sempra’s balance sheet.

Management said it expects Texas to become a larger share of the company’s operations, with a goal for the state to account for more than 60% of Sempra’s total rate base by 2030.

Sempra emphasized growth prospects at Oncor, its Texas electric transmission and distribution business, as ERCOT recorded an all-time peak load of 91 gigawatts in July.

Oncor’s five-year base capital plan totals $47.5 billion, supplemented by $10 billion in identified incremental capital opportunities through 2030.

The incremental opportunities include $4 billion of North and Central Texas transmission upgrades endorsed by ERCOT, $3 billion of non-Permian Basin reliability projects endorsed in 2025 and approximately $3 billion associated with a system resiliency plan filing expected next year.

Martin said Oncor expects its next five-year capital-plan update on Sempra’s fourth-quarter call.

He said management expects the plan to increase and that the business has flexibility to sequence projects within its capital program.

The Public Utility Commission of Texas recently approved ERCOT’s Batch Zero process for evaluating and sequencing large-load interconnection requests.

Sempra said 44 GW of load requests...