In This Article:
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Adjusted EPS: $1.44 for Q1 2025, compared to $1.34 in Q1 2024.
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GAAP Earnings: $906 million or $1.39 per share for Q1 2025, compared to $801 million or $1.26 per share in Q1 2024.
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Adjusted Earnings: $942 million for Q1 2025, compared to $854 million in Q1 2024.
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Full Year 2025 EPS Guidance: Affirmed at $4.30 to $4.70.
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2026 EPS Guidance: Affirmed at $4.80 to $5.30.
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Investment Plan: $13 billion in energy infrastructure for 2025, with over $10 billion targeted for the US.
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Sempra California Earnings: $88 million from higher CPUC base operating margin and $54 million of higher income tax benefits.
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Sempra Texas Earnings: $37 million of lower equity earnings due to higher interest and operating expenses.
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Sempra Infrastructure: $2 billion decrease driven by lower asset optimization, partially offset by lower O&M and higher interest income.
Release Date: May 08, 2025
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
Positive Points
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Sempra (NYSE:SRE) reported first quarter 2025 adjusted EPS of $1.44, an increase from $1.34 in the prior period.
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The company affirmed its full-year 2025 adjusted EPS guidance range of $4.30 to $4.70 and 2026 EPS guidance of $4.80 to $5.30.
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Sempra (NYSE:SRE) plans to invest approximately $13 billion in energy infrastructure in 2025, with over $10 billion targeted for the U.S.
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The company is executing its 'Fit for 2025' campaign to reduce costs and improve productivity through technology adoption, including AI.
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Sempra (NYSE:SRE) is well-positioned to construct significant portions of ERCOT's proposed $32 billion to $35 billion transmission investments in Texas.
Negative Points
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Sempra (NYSE:SRE) faces potential impacts from tariffs, though they are working to mitigate these through domestic sourcing and foreign trade zones.
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The macroeconomic environment may affect the timing of project developments, such as Port Arthur LNG Phase 2.
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Oncor's lower equity earnings were primarily due to higher interest and operating expenses, despite higher revenues from invested capital.
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The company is monitoring potential legislative changes in Texas that could impact regulatory frameworks and investments.
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Sempra (NYSE:SRE) is navigating complex regulatory environments in California, including cost of capital applications and wildfire mitigation efforts.
Q & A Highlights
Q: Can you clarify the timeline for the Sempra Infrastructure Partners (SIP) transaction process? A: Jeffrey Martin, CEO, explained that the process involves sequential steps. Once KKR provides their written offer, Sempra has 30 days to deliberate and respond. After that, ADIA has 10 days, followed by another 30 days for Sempra to respond. An update is expected during the Q2 call.