01—Abstract
Summary
Summary of the 10-Q filed November 5, 2026. Cited figures are marked; the original filing is the authoritative source.
Sempra reported mixed results for the third quarter and first nine months of 2026.
While consolidated net income saw a significant increase year-over-year for the nine-month period, driven by substantial improvements in Sempra Infrastructure's results, the Sempra California segment experienced a decline in earnings. This was primarily attributed to regulatory disallowances and higher interest expenses, partially offset by increased operating margins and transmission revenues. The company continues to execute on its long-term capital plan, with significant investments in infrastructure projects.
The planned divestiture of a portion of Sempra Infrastructure's equity interest in SI Partners is progressing towards an expected close in November 2026, which is anticipated to reduce earnings volatility. The company maintains adequate liquidity through cash flows from operations and committed credit facilities.
02—Key points
Key Highlights
- Consolidated net income for the nine months ended September 30, 2026, significantly increased to $3,206 million from $1,588 million in the prior year period, largely driven by improved performance in the Sempra Infrastructure segment.
- Sempra California (comprising SDG&E and SoCalGas) reported a decrease in earnings for both the three and nine-month periods, primarily due to regulatory disallowances and higher interest expenses.
- Sempra Infrastructure reported a substantial turnaround, moving from a net loss of $580 million in Q3 2025 to earnings of $346 million in Q3 2026, and from a net loss of $362 million for the nine months in 2025 to earnings of $838 million in 2026. This improvement was driven by gains from asset sales (Ecogas), favorable foreign currency impacts, and reduced tax expenses related to the classification of certain assets as held for sale.
- The planned sale of a 45% equity interest in SI Partners is expected to close in November 2026, subject to customary closing conditions. This divestiture is projected to result in a significant gain and will lead to the deconsolidation of SI Partners, with Sempra retaining a 25% equity method investment.
- Capital expenditures for property, plant and equipment totaled $9,422 million for the nine months ended September 30, 2026, an increase from $8,693 million in the prior year period, with the majority of this increase attributed to Sempra Infrastructure, partly due to the delayed closing of the SI Partners divestiture.
- Total debt outstanding for Sempra, SDG&E, and SoCalGas remains at investment-grade levels, with Sempra's credit ratings showing a negative outlook from Moody's and S&P, while SDG&E and SoCalGas maintain stable outlooks.
- SDG&E recorded a $104 million credit in regulatory disallowances, net, in Q3 2026 related to prior years, impacting its overall segment earnings.
03—One dollar
04—Financials
Financial Highlights
Figures from 10-QQ3 FY2026filed November 5, 2026Financial Statements
Q3 FY2026 against Q3 FY2025
| Line item | Q3 FY2026Q3 FY2025 | Change |
|---|---|---|
| Revenue | $3.03B$3.15B | −3.8% |
| Net Income | $883.00M$95.00M | +829.5% |
| EPS (Basic) | $1.34$0.12 | +1016.7% |
| EPS (Diluted) | $1.34$0.12 | +1016.7% |
| Shares Outstanding (Basic) | 654.26M652.95M | +0.2% |
| Shares Outstanding (Diluted) | 655.94M654.01M | +0.3% |
05—Questions
Frequently Asked Questions
What is the financial performance trend for Sempra in the reported periods?
Sempra's financial performance shows a mixed trend. While consolidated net income for the nine months ended September 30, 2026, significantly increased year-over-year due to strong performance in Sempra Infrastructure, the Sempra California segment experienced a decline in earnings due to regulatory disallowances and higher interest expenses. Sempra Infrastructure's turnaround was driven by gains from asset sales and favorable foreign currency impacts.
What is the status of the SI Partners divestiture and its expected impact?
The sale of a 45% equity interest in SI Partners to KKR Partners is expected to close in November 2026. This transaction is anticipated to generate a significant gain, reduce earnings volatility by deconsolidating SI Partners, and result in Sempra retaining a 25% equity method investment. The delay in closing has also increased Sempra's share of SI Partners' capital expenditures for 2026.
How are regulatory matters impacting Sempra's utility segments, particularly Sempra California?
Regulatory matters have had a significant impact on Sempra California. SDG&E recorded a $104 million credit in regulatory disallowances in Q3 2026 related to prior years, while SoCalGas recorded a $217 million charge due to regulatory disallowances. These, along with other regulatory adjustments and interest expense changes, have negatively affected the segment's earnings. However, higher CPUC base operating margins and electric transmission revenues provided some offset.
What is Sempra's liquidity position and outlook?
Sempra maintains adequate liquidity through operating cash flows, distributions from equity method investees, unrestricted cash, committed credit facilities, and potential asset sales or equity issuances. The company expects these sources to be sufficient to fund its operations, capital expenditures, debt repayments, and dividends. The credit ratings for Sempra, SDG&E, and SoCalGas remain at investment-grade levels, though Sempra's outlook is negative.
06—Continue