01—Abstract
Summary
Summary of the 10-Q filed August 7, 2025. Cited figures are marked; the original filing is the authoritative source.
Sempra (SRE) reported its financial results for the second quarter and first half of 2025.
The company's overall performance saw a decrease in net income for both the three-month and six-month periods ending June 30, 2025, compared to the same periods in 2024. This decline was primarily driven by negative foreign currency and inflation effects impacting Sempra Infrastructure, along with certain regulatory disallowances for COVID-19 costs at Sempra California. Despite the overall decrease in net income, Sempra California's earnings saw an increase in the first half of the year due to higher CPUC-authorized base revenues and favorable tax treatments, although this was partially offset by higher interest expenses and regulatory disallowances.
Sempra Texas Utilities reported a slight increase in earnings for the quarter but a decrease for the first half, mainly due to changes in equity earnings from Oncor Holdings. Sempra Infrastructure experienced a significant earnings decline, largely attributable to adverse foreign currency and inflation impacts, as well as a deferred tax liability recognized related to the planned sale of Ecogas.
Looking ahead, Sempra remains focused on its strategic capital expenditure plan, with approximately $2.6 billiona in common stock still available under its at-the-market program. The company continues to navigate regulatory environments, particularly with ongoing proceedings at the CPUC for SDG&E and SoCalGas, and faces various legal and operational risks, including those related to wildfires and infrastructure projects in Mexico.
02—Key points
Key Highlights
- Sempra reported a decrease in net income attributable to common shares to $461 million ($0.71 per share) for the three months ended June 30, 2025, down from $713 million ($1.13 per share) in the prior year period.
- For the six months ended June 30, 2025, net income attributable to common shares decreased to $1.367 billion ($2.10 per share), compared to $1.514 billion ($2.39 per share) in the same period of 2024.
- Sempra California's earnings increased in the first half of 2025 due to higher CPUC-authorized revenues, despite facing regulatory disallowances and higher interest expenses.
- Sempra Infrastructure's earnings were significantly impacted by negative foreign currency and inflation effects, along with a recognized deferred tax liability related to the planned sale of Ecogas.
- The company has approximately $2.6 billion in common stock remaining available for sale under its at-the-market (ATM) program.
- Capital expenditures for property, plant, and equipment, and investments for the six months ended June 30, 2025, totaled $5.612 billion, an increase from $4.217 billion in the prior year period.
- The company continues to manage various regulatory matters, including pending General Rate Cases for SDG&E and SoCalGas, and faces ongoing legal and operational challenges.
03—One dollar
04—Financials
Financial Highlights
Figures from 10-QQ2 FY2025filed August 7, 2025Financial Statements
Q2 FY2025 against Q2 FY2024
| Line item | Q2 FY2025Q2 FY2024 | Change |
|---|---|---|
| Revenue | $3.00B$3.01B | −0.4% |
| Net Income | $473.00M$725.00M | −34.8% |
| EPS (Basic) | $0.71$1.13 | −37.2% |
| EPS (Diluted) | $0.71$1.12 | −36.6% |
| Shares Outstanding (Basic) | 652.66M633.45M | +3.0% |
| Shares Outstanding (Diluted) | 653.22M636.28M | +2.7% |
05—Questions
Frequently Asked Questions
What was Sempra's net income for the second quarter of 2025?
For the three months ended June 30, 2025, Sempra reported net income attributable to common shares of $461 million, or $0.71 per diluted share.
What are the main drivers of the decrease in net income for Sempra Infrastructure?
The decrease in earnings for Sempra Infrastructure was primarily driven by unfavorable foreign currency and inflation effects on its Mexican operations, a recognized deferred tax liability related to the planned sale of Ecogas, and impacts from commodity derivative movements.
How is Sempra managing its liquidity and capital needs?
Sempra expects to meet its cash requirements through operating cash flows, unrestricted cash, borrowings under credit facilities, debt and equity issuances (including its ATM program), and funding from noncontrolling interest owners. The company maintains access to money and capital markets and has approximately $2.6 billion in common stock available under its ATM program.
What are the key regulatory matters affecting Sempra California (SDG&E and SoCalGas)?
Sempra California is navigating ongoing General Rate Case proceedings with the CPUC for both SDG&E and SoCalGas, which influence authorized revenues and cost recovery. The company also recorded disallowances for COVID-19 costs and is managing wildfire mitigation plan costs and other capital recovery requests.
06—Continue