01—Abstract
Summary
Summary of the 10-Q filed November 5, 2025. Cited figures are marked; the original filing is the authoritative source.
Sempra (SRE) reported its third-quarter and year-to-date financial results for the period ending September 29, 2025.
The company experienced a significant decrease in net income to $150 milliona from $759 million in the same period last year, resulting in basic and diluted EPS of $0.12 for the quarter, down from $1.01 and $1.00 respectively in Q3 2024. For the nine months ended September 30, 2025, net income was $1.588 billion, a decrease from $2.511 billion in the prior year, with EPS of $2.21. The substantial decline in profitability appears to be driven by a large income tax expense recognized in the current period, particularly related to the classification of SI Partners and Ecogas as held for sale.
Operationally, Sempra California (SDG&E and SoCalGas) showed mixed performance with increased revenues and earnings driven by regulatory rate adjustments, but also higher operating expenses and interest costs. Sempra Infrastructure faced significant challenges, reporting losses primarily due to income tax expenses related to asset sales and unfavorable foreign currency impacts. The company's capital expenditures remain substantial, with plans to invest heavily in infrastructure projects.
02—Key points
Key Highlights
- Net income for the third quarter of 2025 decreased to $150 million from $759 million in the prior year's quarter, with EPS falling to $0.12 from $1.01/$1.00.
- Nine-month net income declined to $1.588 billion from $2.511 billion, impacting EPS to $2.21 from $3.40/$3.38.
- Sempra California segment saw an increase in earnings driven by higher CPUC base revenues and income tax benefits, despite higher operating and interest expenses.
- Sempra Infrastructure reported losses for the quarter, primarily due to substantial income tax expenses related to the classification of SI Partners and Ecogas as held for sale, along with adverse foreign currency impacts.
- Total capital expenditures for the nine months were $7.201 billion, with significant investments in Sempra California and Sempra Infrastructure.
- The company is actively pursuing the sale of a 45% equity interest in SI Partners and plans to sell Ecogas, expecting to complete these transactions in the second or third quarter of 2026.
03—One dollar
04—Financials
Financial Highlights
Figures from 10-QQ3 FY2025filed November 5, 2025Financial Statements
Q3 FY2025 against Q3 FY2024
| Line item | Q3 FY2025Q3 FY2024 | Change |
|---|---|---|
| Revenue | $3.15B$2.78B | +13.5% |
| Net Income | $95.00M$649.00M | −85.4% |
| EPS (Basic) | $0.12$1.01 | −88.1% |
| EPS (Diluted) | $0.12$1.00 | −88.0% |
| Shares Outstanding (Basic) | 652.95M633.75M | +3.0% |
| Shares Outstanding (Diluted) | 654.01M638.06M | +2.5% |
05—Questions
Frequently Asked Questions
What caused the significant decrease in net income for the quarter?
The significant decrease in net income for the quarter and year-to-date was primarily driven by substantial income tax expenses recognized in the current period. These expenses are largely related to management's decision to classify SI Partners and Ecogas as held for sale, which required adjustments to deferred income tax liabilities and other tax-related items.
How is the planned sale of SI Partners progressing?
Sempra entered into an agreement in September 2025 to sell a 45% equity interest in SI Partners to KKR Partners for approximately $9.99 billion, subject to adjustments. The sale is expected to close in the second or third quarter of 2026, subject to regulatory approvals and other customary closing conditions. Following the sale, Sempra will retain a 25% interest and account for it under the equity method.
What is the outlook for Sempra's regulated utility businesses (Sempra California)?
Sempra California, which includes SDG&E and SoCalGas, reported increased earnings driven by higher CPUC-authorized base revenues, reflecting rate updates and capital investments. However, these were partially offset by higher operating expenses and interest costs. The company's performance remains closely tied to regulatory proceedings and capital recovery approvals from the CPUC.
What are the key risks or challenges highlighted in the report?
Key risks include potential impacts from wildfires in California, regulatory uncertainties from the CPUC and FERC, the success of business development and construction projects, changes in economic and political factors, cybersecurity threats, and access to capital. The company also faces specific legal and regulatory challenges in Mexico related to energy policies and permits.
06—Continue