Sempra Reports Strong Third-Quarter 2026 Results

Sempra’s third-quarter 2026 results showed a sharp improvement in earnings and EPS versus the prior-year quarter, with GAAP earnings of $877 million and GAAP diluted EPS of $1.34 per diluted share compared with $77 million and $0.12 per diluted share in 2025. On an adjusted basis, earnings were $917 million and adjusted EPS were $1.40 per diluted share versus $728 million and $1.11 per diluted share in 2025. The filing attributes the GAAP to adjusted difference to a mix of significant items, including Impact from regulatory disallowances, net 149; Impact from foreign currency and inflation on monetary positions in Mexico and associated undesignated derivatives (65); Net unrealized losses (gains) on derivatives 67; Net unrealized (gains) losses on interest rate swaps related to Port Arthur LNG Phase 1 project (16); and a Gain on sale of Ecogas (97) along with tax items related to assets held for sale 2.

On the revenue and segment profit bridge, total revenues were $3,191 million in the quarter versus $3,151 million in the prior-year quarter. Segment earnings attributable to common shares were $223 million for Sempra California, $460 million for Sempra Texas Utilities, and $346 million for Sempra Infrastructure, compared with $370 million, $306 million, and $(580) million, respectively, for the prior-year quarter. This mix aligns with the narrative emphasis on Texas demand and regulatory momentum, while also acknowledging a large quarter-to-quarter difference in Infrastructure that is reflected through the adjustment items (including derivatives and the Ecogas sale) in the reconciliation.

Capital allocation and cash generation in the nine-month period further frame the quarter. For nine months ended September 30, 2026, Sempra generated net cash provided by operating activities of 4,680 (Dollars in millions) and used net cash in investing activities of (8,906) (Dollars in millions), while net cash provided by financing activities was 2,776 (Dollars in millions). The company also returned capital via common dividends of (1,245) (Dollars in millions) and repurchases of common stock of (21) (Dollars in millions) over the same nine-month period. On the capital plan execution, the quarter included an expected 20% increase to Oncor’s base capital plan for 2027-2031 relative to 2026-2030, and the company reported investing approximately $10 billion in capital in the first nine months of 2026.

Guidance was updated with the filing specifically noting strong results through the third quarter. Full-year 2026 GAAP EPS guidance range is updated to $7.41 to $8.41, and adjusted EPS is guided to the high end of $4.80 to $5.30. 2027 EPS guidance range is affirmed at $5.10 to $5.70, with the filing also affirming a 7% to 9% projected long‑term EPS growth rate. A key stated caveat is regulatory: following a proposed CPUC decision denying a request related to the 2024 General Rate Case capital attrition mechanism for 2027, Sempra California expects 2027 earnings to be at the low end of its segment guidance range if not successful, unless otherwise mitigated.

Finally, the filing highlights an active capital recycling and portfolio simplification effort, with the transaction to sell a 45% equity interest in Sempra Infrastructure Partners to affiliates of KKR on track and expected to close in the next two weeks. The quarter’s reported non-GAAP reconciliation includes an estimated gain on sale of SI Partners ranging from $2.00 billion to $2.40 billion, subject to post-closing adjustments, and estimated ancillary costs ranging from $325 million to $400 million associated with the sale of SI Partners, which are central to how adjusted EPS guidance is expected to bridge to GAAP EPS for full-year 2026.