Sempra (SRE) Q2 2026 earnings summary

Executive summary

• Q2 2026 GAAP earnings rose to $796 million ($1.21/share), up from $461 million ($0.71/share) year-over-year, with adjusted earnings at $762 million ($1.16/share), up from $583 million ($0.89/share), driven by disciplined execution and strong segment performance.

• Year-to-date GAAP earnings reached $1.83 billion ($2.80/share), up from $1.37 billion ($2.09/share) in 2025; adjusted earnings were $1.75 billion ($2.67/share), up from $1.53 billion ($2.34/share).

• Major divestiture: Agreement to sell 45% of SI Partners for $9.99 billion, expected to close Q3 2026, with Ecogas sale in Mexico also expected to close in August.

• Over $6 billion in capital expenditures in the first half of 2026, supporting a five-year $65 billion capital plan focused on Texas and California utilities.

• Growth was driven by higher operating margins, favorable regulatory outcomes, and strong equity earnings from Texas utilities.

Financial highlights

• Q2 2026 revenues were $2.997 billion (flat YoY) to $6.65 billion (slightly down YoY); net income was $942 million in Q2 (up 81% YoY); operating cash flow was $3.12 billion YTD (up $851 million YoY).

• Capital expenditures and investments totaled $6.17 billion YTD (up $560 million YoY); property, plant, and equipment capex was $4.69 billion for the first half.

• Debt: $32.2 billion long-term, $3.6 billion short-term at June 30, 2026; total equity at $39.99 billion.

• Q2 2026 gross margin improved to 80% due to lower cost of natural gas and electric fuel.

• Debt/capitalization ratio below 65%, in compliance with covenants.

Outlook and guidance

• Full-year 2026 adjusted EPS guidance affirmed at $4.80–$5.30; GAAP EPS guidance updated to $5.02–$5.55; 2027 EPS guidance at $5.10–$5.70.

• Projected long-term EPS growth rate remains at 7%–9%, with 2–4% annual dividend increases targeted.

• No need for new common equity issuances to fund the base capital plan.

• Capital expenditures for 2026 projected at $11.3 billion, up from prior estimate due to delayed SI Partners sale.

• Sale of SI Partners and Ecogas expected to close in Q3 and August 2026, respectively.