Loading...
01/11 10:25
Loading...
Access earnings results, analyst expectations, report, slides, earnings call, and transcript.
The earnings call highlights strong financial performance, ambitious capital investment plans, and optimism about future growth, especially in Texas. Affirmed EPS guidance and the commitment to maintaining a strong balance sheet are positive indicators. However, uncertainties in regulatory discussions and the SIP transaction leakage are concerns. Overall, the positive aspects, particularly the strategic focus on Texas and robust growth plans, outweigh the negatives, suggesting a positive stock price movement.
Adjusted EPS (Earnings Per Share) Third quarter 2025 adjusted EPS was $1.11, compared to $0.89 in the prior year, representing a year-over-year increase. The improvement was attributed to strong year-to-date execution and higher equity earnings from investments.
GAAP Earnings Third quarter 2025 GAAP earnings were $77 million or $0.12 per share, compared to $638 million or $1 per share in the prior year. The decline was due to a $514 million tax expense related to classifying Sempra Infrastructure Partners as held for sale, which is nonrecurring.
Adjusted Earnings Third quarter 2025 adjusted earnings were $728 million, compared to $566 million in the prior year. The increase was driven by higher equity earnings, higher CPUC-based operating margin, and tax benefits.
Capital Deployment Through the first three quarters of 2025, Sempra deployed nearly $9 billion in capital, on track to meet or exceed the year-end goal of $13 billion. This was primarily allocated to U.S. utilities, with improved returns at Sempra Texas due to increased capital efficiency.
Sempra Infrastructure Partners Sale A 45% stake in Sempra Infrastructure Partners was sold for $10 billion. This transaction is expected to add $0.20 to EPS accretion over five years starting in 2027 and improve credit metrics by deconsolidating debt.
Oncor Growth Oncor's active LC and IQ increased over 10% from the prior quarter, with premise count rising by 16,000. Oncor also built or upgraded nearly 660 circuit miles of T&D lines during the quarter, driven by customer growth and transmission expansion plans.
California SB 254 Impact SDG&E's share of contributions under SB 254 is 4.3%, amounting to just under $13 million per year through 2045. This legislation strengthens financial safeguards for electric utilities and reduces enterprise risk.
Port Arthur LNG Phase 1: Train 1 is expected to reach COD in 2027, with over 1/3 of piping installation complete and Tank A Roof Air Raise milestone achieved.
Port Arthur LNG Phase 2: Reached FID and issued a full notice to proceed under a fixed-price EPC contract with Bechtel. High-value orders for long lead plant equipment placed, and first permanent piles for Tank C and Train 3 completed.
ECA LNG Phase 1: Over 95% complete with pre-commissioning activities ongoing. First LNG production expected in spring 2026.
Cimarron Wind Project: Approximately 95% complete, with 1/3 of turbines online and operational. COD expected in the first half of 2026.
Texas Market Expansion: Prioritizing Texas market with significant capital allocation. Oncor's projected 2026-2030 capital plan to increase by over 30%, driven by transmission expansion and customer growth.
ERCOT Transmission Expansion: Estimated $32-$35 billion investment for full build-out, with Oncor's portion surpassing 50%. Permian projects expected online by 2030, non-Permian by 2034.
Capital Deployment: Deployed nearly $9 billion of $13 billion 2025 goal, primarily to U.S. utilities.
Unified Tracker Mechanism (UTM): Improved capital efficiency at Oncor, contributing to better returns.
California SB 254: Strengthened wildfire fund stability and reduced enterprise risk for California electric utilities.
Sempra Infrastructure Partners Sale: Selling 45% stake for $10 billion, improving regulated earnings mix, unlocking reinvestment capital, and fortifying balance sheet.
Ecogas Sale: Ongoing sales process with final bids expected by year-end, closing anticipated by mid-2026.
Regulatory Risks: Several regulatory matters in California, including Track 2 of the GRC, the T06 proceeding at FERC, and the CPUC's cost of capital proceeding, remain unresolved. These could impact financial outcomes and operational planning.
Wildfire Liability: Although California SB 254 has strengthened the wildfire fund, there is still a modest financial contribution required from SDG&E, and future contingent contributions may be needed, posing a potential financial risk.
Debt and Financial Metrics: The sale of a 45% stake in Sempra Infrastructure Partners is expected to deconsolidate debt and improve credit metrics, but the process is ongoing and subject to successful completion.
Project Execution Risks: Port Arthur LNG Phase 1 and Phase 2, as well as ECA LNG Phase 1, face risks related to construction timelines, budget adherence, and equipment repairs, which could delay project completion and revenue generation.
Economic and Market Risks: The company is heavily investing in Texas and California markets, which are subject to economic conditions, customer growth rates, and regulatory environments that could impact returns.
Interest Rate and Taxation Risks: Higher net interest expenses and tax-related adjustments, such as the $514 million tax expense related to Sempra Infrastructure Partners, could affect profitability.
EPS Guidance: Affirmed full year 2025 adjusted EPS guidance range of $4.30 to $4.70 and 2026 EPS guidance range of $4.80 to $5.30. Projected long-term EPS growth rate remains affirmed.
Capital Investments: Targeting approximately $13 billion in investments for 2025, primarily allocated to U.S. utilities. Oncor's capital plan for 2026-2030 is expected to increase by over 30% from its current $36 billion base plan.
Sempra Infrastructure Partners Transaction: Sale of a 45% stake in Sempra Infrastructure Partners for $10 billion is expected to close by mid-2026. This transaction is projected to add an average of $0.20 to EPS accretion over the 5-year period starting in 2027.
LNG Projects: Port Arthur LNG Phase 1 is on schedule and on budget, with Train 1 expected to reach COD in 2027. Port Arthur Phase 2 has reached FID, with construction leveraging continuous site work to reduce risk. ECA LNG Phase 1 is over 95% complete, with first LNG production expected in spring 2026.
Wind Energy Project: Cimarron Wind project is approximately 95% complete and is on track to achieve COD in the first half of 2026.
Texas Transmission Expansion: Oncor's portion of ERCOT's $32-$35 billion transmission expansion is expected to surpass 50% of the total investment. Permian projects are expected to come online by 2030, with non-Permian projects completing between 2030 and 2034.
The selected topic was not discussed during the call.
The earnings call highlights strong financial performance, ambitious capital investment plans, and optimism about future growth, especially in Texas. Affirmed EPS guidance and the commitment to maintaining a strong balance sheet are positive indicators. However, uncertainties in regulatory discussions and the SIP transaction leakage are concerns. Overall, the positive aspects, particularly the strategic focus on Texas and robust growth plans, outweigh the negatives, suggesting a positive stock price movement.
The earnings call shows positive sentiment with strong financial metrics, strategic investments, and optimistic guidance. The company plans significant infrastructure investments and portfolio realignment for growth. Customer affordability initiatives and potential equity sales with KKR indicate a focus on maximizing value. The Q&A reveals management's strategic flexibility and confidence in growth opportunities, despite some lack of specifics. The positive aspects outweigh uncertainties, suggesting a stock price increase.
Sempra's earnings call shows mixed signals. The affirmation of EPS guidance and strong financial results are positive, but regulatory risks and operational incidents pose concerns. The Q&A revealed management's reluctance to provide clear guidance on key issues, which may unsettle investors. The absence of a share buyback program or dividend increase limits positive catalysts. Overall, the sentiment is neutral, as positive financial performance is offset by regulatory and operational risks, and lack of shareholder return initiatives.
The earnings call indicates a positive outlook with increased dividends and a robust capital plan. Adjusted earnings showed significant growth, and the company expects high growth rates in Texas. Despite some challenges, the management's responses in the Q&A suggest confidence in overcoming them. The consistent dividend increase and share repurchase plan further support a positive sentiment.
All transcripts are sourced directly from the official live webcast or the company’s official investor relations website. We use the exact words spoken during the call with no paraphrasing of the core discussion.
Full verbatim transcripts are typically published within 4–12 hours after the call ends. Same-day availability is guaranteed for all S&P 500 and most mid-cap companies.
No material content is ever changed or summarized in the “Full Transcript” section. We only correct obvious spoken typos (e.g., “um”, “ah”, repeated 10 times”, or clear misspoken ticker symbols) and add speaker names/titles for readability. Every substantive sentence remains 100% as spoken.
When audio quality is poor or multiple speakers talk over each other, we mark the section instead of guessing. This ensures complete accuracy rather than introducing potential errors.
They are generated by a specialized financial-language model trained exclusively on 15+ years of earnings transcripts. The model extracts financial figures, guidance, and tone with 97%+ accuracy and is regularly validated against human analysts. The full raw transcript always remains available for verification.
