second-quarter 2026
Filed Aug 6, 2026Sempra Reports Strong Second-Quarter 2026 Results
Second-quarter GAAP earnings were $796 million or $1.21 per diluted share, compared to $461 million or $0.71 per diluted share in 2025, while adjusted earnings were $762 million or $1.16 per diluted share, compared to $583 million or $0.89 per diluted share. The company affirmed its 2026 adjusted EPS guidance range and its long-term growth rate.
Key metrics
as reported| Metric | Value | q/q | y/y |
|---|---|---|---|
| GAAP EarningsGAAP | $796 million | – | – |
| Adjusted Earningsnon-GAAP | $762 million | – | – |
| Diluted Weighted-Average Common Shares Outstandingother | 656 million | – | – |
| GAAP EPSGAAP | $1.21 | – | – |
| Adjusted EPSnon-GAAP | $1.16 | – | – |
| Impact from regulatory disallowancesother | — | – | – |
| Impact from foreign currency and inflation on monetary positions in Mexico and associated undesignated derivativesother | 71 million | – | – |
| Net unrealized (gains) losses on derivativesother | $(82) million | – | – |
| Net unrealized (gains) losses on interest rate swaps related to Port Arthur LNG Phase 1 projectother | $(3) million | – | – |
| Tax items related to assets held for saleother | $(20) million | – | – |
| Six months ended June 30 GAAP EarningsGAAP | $1,833 million | – | – |
| Six months ended June 30 Adjusted Earningsnon-GAAP | $1,753 million | – | – |
| Six months ended June 30 Diluted Weighted-Average Common Shares Outstandingother | 656 million | – | – |
| Six months ended June 30 GAAP EPSGAAP | $2.80 | – | – |
| Six months ended June 30 Adjusted EPSnon-GAAP | $2.67 | – | – |
| Six months ended June 30 Impact from regulatory disallowancesother | — | – | – |
| Six months ended June 30 Impact from foreign currency and inflation on monetary positions in Mexico and associated undesignated derivativesother | 52 million | – | – |
| Six months ended June 30 Net unrealized (gains) losses on derivativesother | $(85) million | – | – |
| Six months ended June 30 Net unrealized (gains) losses on interest rate swaps related to Port Arthur LNG Phase 1 projectother | 8 million | – | – |
| Six months ended June 30 Tax items related to assets held for saleother | $(55) million | – | – |
full-year 2026 and full-year 2027 outlook
- Notefull-year 2026 GAAP earnings-per-common share (EPS) guidance range of $5.02 to $5.55
- Note2026 adjusted EPS guidance range of $4.80 to $5.30
- Notefull-year 2027 EPS guidance range of $5.10 to $5.70
- Note7% to 9% projected long-term EPS growth rate
What drove it
- Oncor’s new base rates became effective June 1, and its approved surcharge took effect August 1.
- ERCOT set a new all-time peak load of 91 gigawatts (GW) in July.
- ERCOT endorsed high-voltage transmission projects expected to require more than $7 billion of incremental investment and support approximately 16 GW of new electric demand.
- The Federal Energy Regulatory Commission approved SDGE’s electric transmission rate settlement, including an authorized base return on equity of approximately 10.28%.
- The California Independent System Operator’s 2025–2026 Transmission Plan included over $160 million of reliability-driven projects for SDGE.
- SDGE and SoCalGas filed their 2028 General Rate Case applications during the quarter.
- The transaction to sell a 45% equity interest in Sempra Infrastructure Partners to affiliates of KKR is expected to close in the third quarter of 2026.
- The planned sale of Ecogas México, S. de R.L. de C.V. is expected to close in August.
Concerns
- The 45% equity-interest sale in Sempra Infrastructure Partners remains subject to required approvals and customary closing conditions.
- Oncor’s expected majority participation in ERCOT-endorsed transmission projects is subject to regulatory approval.
- The timeline of ERCOT’s Batch Zero process remains to be determined.
- The reported results include impacts from foreign currency and inflation on monetary positions in Mexico and associated undesignated derivatives, unrealized derivative gains and losses, interest-rate swaps related to Port Arthur LNG Phase 1, and tax items related to assets held for sale.
What to watch
- Closing of the 45% sale of Sempra Infrastructure Partners to affiliates of KKR in the third quarter of 2026.
- Closing of the planned Ecogas México, S. de R.L. de C.V. sale in August.
- Regulatory progress for Oncor transmission investment opportunities and the Batch Zero large-load interconnection process.
- Outcomes of SDGE’s and SoCalGas’ 2028 General Rate Case applications.
- Execution against the approximately $65 billion 2026-2030 capital plan.
Balance sheet and cash flow
- In the first half of 2026, Sempra's businesses invested capital expenditures of over $6 billion.
- Sempra’s record five-year 2026-2030 capital plan is approximately $65 billion, with 95% allocated to investments at its Texas and California utilities.
Analysis
Sempra reported materially higher second-quarter earnings. GAAP earnings were $796 million or $1.21 per diluted share, compared to $461 million or $0.71 per diluted share in the prior-year quarter. Adjusted earnings were $762 million or $1.16 per diluted share, compared to $583 million or $0.89 per diluted share. For the six months ended June 30, GAAP earnings were $1,833 million and adjusted earnings were $1,753 million, compared with $1,367 million and $1,525 million, respectively, in 2025.
The release identifies several items affecting the reconciliation between GAAP and adjusted earnings. In the second quarter, these included a 71 million impact from foreign currency and inflation on monetary positions in Mexico and associated undesignated derivatives, $(82) million of net unrealized gains on derivatives, $(3) million of net unrealized gains on interest-rate swaps related to the Port Arthur LNG Phase 1 project, and $(20) million of tax items related to assets held for sale. These items remain important for assessing the difference between reported and adjusted results.
Utility investment and regulatory activity were central to the update. Sempra said its businesses invested capital expenditures of over $6 billion in the first half of 2026, within an approximately $65 billion five-year 2026-2030 capital plan. The company stated that 95% of the plan is allocated to Texas and California utilities. In Texas, Oncor’s new base rates became effective June 1, while the approved surcharge took effect August 1. ERCOT’s 91 GW all-time peak load and its endorsed transmission projects underscore the investment opportunity described by the company.
California regulatory developments included the filing of SDGE’s and SoCalGas’ 2028 General Rate Case applications and Federal Energy Regulatory Commission approval of SDGE’s TO6 settlement. The settlement included an authorized base return on equity of approximately 10.28%. Sempra also cited over $160 million of reliability-driven SDGE projects in the California Independent System Operator’s 2025–2026 Transmission Plan.
Sempra updated its full-year 2026 GAAP EPS guidance range to $5.02 to $5.55, reflecting actual results through the second quarter. It affirmed its 2026 adjusted EPS guidance range of $4.80 to $5.30, its full-year 2027 EPS guidance range of $5.10 to $5.70, and its 7% to 9% projected long-term EPS growth rate. The pending sale of a 45% equity interest in Sempra Infrastructure Partners and the planned Ecogas México sale are described as capital-recycling initiatives intended to simplify the strategy, strengthen the financial position and support long-term utility growth.
Management, verbatim
Across our management team, there is a consistent emphasis on execution, and our progress through the first half of the year is reflected in strong financial performance.
Jeffrey W. Martin, chairman and CEO of Sempra
Not in the filing
stated, not guessed- Total revenue
- Revenue comparison with prior year or prior quarter
- Segment revenue and segment revenue comparisons
- Gross margin
- Operating income
- Operating margin
- Operating cash flow
- Free cash flow
- Cash and cash equivalents
- Debt
- Share repurchases
- Dividends
- Revenue guidance
- Gross-margin guidance
- Operating-expense guidance
- Tax-rate guidance
- Previous outlook needed for comparison against prior guidance
AlphaAI analysis generated from the company’s SEC earnings filing (Form 8-K Item 2.02, or Form 6-K for a foreign private issuer). Every figure was cross-checked against the filing text; consensus estimates, price targets and share-price reactions are not shown because they are not in the filing. AI-generated research, not investment advice.