Sempra raises 2026 profit forecast, tops Q3 estimates

Sempra (SRE) topped third-quarter profit estimates and raised its full-year 2026 GAAP earnings forecast, while revenue fell short of expectations.

Shares fell 1.3% at 12:04 p.m. ET, from an $80.63 close.

GAAP earnings were $877 million, or $1.34 per diluted share, against $77 million.

Nine-month adjusted earnings were $2.67 billion, or $4.07 per diluted share, from $2.25 billion, or $3.45 per share.

Here's how the company did:

• Adjusted EPS: $1.40 vs. $1.11 a year earlier, $1.24 expected
• GAAP EPS: $1.34 vs. 12 cents a year earlier
• Revenue: $3.19 billion vs. $3.15 billion a year earlier, $3.35 billion expected

Revenue for the first nine months was $9.84 billion, from $9.95 billion.

2026 guidance

Sempra updated its full-year 2026 GAAP EPS guidance to $7.41 to $8.41, from the $5.02 to $5.55 range it gave on Aug. 6.

The company expects to finish at the high end of its 2026 adjusted EPS range of $4.80 to $5.30. The 2027 EPS guidance of $5.10 to $5.70 and the 7% to 9% long-term EPS growth rate were affirmed.

Pending regulatory outcomes could place 2027 EPS in the lower half of the range, unless otherwise mitigated.

Segment results

Sempra California earned $223 million in the quarter, down from $370 million a year earlier.

Sempra Texas Utilities earned $460 million, up from $306 million. Sempra Infrastructure earned $346 million, against a loss of $580 million a year earlier.

Operation and maintenance expenses fell to $1.22 billion from $1.35 billion. The quarter also included a $97 million after-tax gain on the sale of Ecogas.

California and Texas

A proposed decision issued Oct. 29 by the California Public Utilities Commission would deny a request by SoCalGas and SDG&E to correct the 2024 General Rate Case capital attrition mechanism. If it is not successful, Sempra California expects its 2027 earnings to be at the low end of its segment guidance range.

Oncor projects its 2027-2031 base capital plan to rise about 20% from its 2026-2030 plan. Sempra expects to finalize its 2027-2031 capital plan on its fourth-quarter earnings call in February next year.

In Texas, Oncor set a new all-time system peak demand of 33.3 gigawatts, up 6% from the prior-year peak of 31.4 gigawatts. In August, the Public Utility Commission of Texas approved both segments of Import Path 1 of the Permian Basin Reliability Plan. That approval is subject to motions for rehearing and appeals.

Sale of Sempra Infrastructure stake

The sale of a 45% equity interest in Sempra Infrastructure Partners to affiliates of KKR remains on track and is expected to close in the next two weeks. Ecogas México was sold in August.

Chairman and CEO Jeffrey W. Martin said the sale is "with a view toward supporting strong growth in our Texas and California utilities and strengthening our financial position."

It estimates a gain on the Sempra Infrastructure Partners sale of $2.00 billion to $2.40 billion, with ancillary costs of $325 million to $400 million. It expects to complete the sale in November 2026.