01—Abstract
Summary
Summary of the 8-K filed August 6, 2026. Cited figures are marked; the original filing is the authoritative source.
Sempra (NYSE: SRE) reported second-quarter 2026 GAAP earnings attributable to common shares of $796 milliona, or $1.21 per diluted share, up from $461 million, or $0.71, in the second quarter of 2025.
Adjusted earnings were $762 millionb, or $1.16 per diluted share, versus $583 million, or $0.89, a year earlier. For the first half, GAAP EPS was $2.80 and adjusted EPS was $2.67. The quarter's GAAP results were lifted by a $82 million net unrealized gain on commodity derivatives and a $20 million net tax benefit tied to assets held for sale, partly offset by a $71 million FX and inflation impact in Mexico.
Segment earnings were led by Sempra Texas Utilities ($346 millionc, up from $208 million) and Sempra Infrastructure ($230 million, up from $72 million), while Sempra California was $297 million, up from $259 million. The company raised its full-year 2026 GAAP EPS guidance to $5.02-$5.55, while affirming adjusted EPS guidance of $4.80-$5.30 and 2027 adjusted EPS guidance of $5.10-$5.70, plus a 7%-9% long-term EPS growth target. The GAAP range is higher mainly because of expected gains on the sale of Ecogas and related items.
Management highlighted a record five-year 2026-2030 capital plan of about $65 billiond, with 95% directed to the Texas and California utilities. Oncor's new base rates took effect June 1, and ERCOT's large-load pipeline in Oncor's territory is about 44 GW. The planned sale of a 45% equity interest in Sempra Infrastructure Partners to KKR is expected to close in the third quarter of 2026, and the Ecogas sale is expected to close in August.
Investors should note that the GAAP-to-adjusted gap is driven largely by derivative mark-to-market swings and Mexico currency effects, and the filing's forward-looking statements flag risks including California wildfire liability, regulatory outcomes, transaction execution, and credit access. Total debt rose meaningfully, with long-term debt up to $31.0 billion from $29.0 billion at year-end 2025, and cash flow from operations for the first half was $3.1 billion against $6.2 billion of capital expenditures for PP&E and investments.
02—Key points
Key Highlights
- Q2 2026 GAAP EPS of $1.21 vs. $0.71 a year ago; adjusted EPS of $1.16 vs. $0.89, a 30% increase
- First-half 2026 GAAP EPS of $2.80 and adjusted EPS of $2.67, versus $2.09 and $2.34 in 1H 2025
- Full-year 2026 GAAP EPS guidance raised to $5.02-$5.55; adjusted EPS guidance of $4.80-$5.30 and 2027 guidance of $5.10-$5.70 affirmed
- Sempra Texas Utilities earnings nearly doubled to $346 million in Q2 2026, and Sempra Infrastructure rose to $230 million from $72 million
- Record 2026-2030 capital plan of about $65 billion, with 95% in Texas and California; first-half capital expenditures exceeded $6 billion
- Sale of 45% of Sempra Infrastructure Partners to KKR expected to close in Q3 2026; Ecogas sale expected in August 2026
- Oncor's large-load pipeline of about 44 GW and a $7 billion-plus ERCOT transmission program support long-term growth
03—Questions
Frequently Asked Questions
Why is GAAP EPS higher than adjusted EPS this quarter?
Q2 2026 GAAP EPS of $1.21 exceeded adjusted EPS of $1.16 mainly because of an $82 million net unrealized gain on commodity derivatives, which is excluded from adjusted earnings, plus a $20 million tax benefit from assets held for sale. These were partly offset by a $71 million negative impact from foreign currency and inflation on monetary positions in Mexico.
Why did the full-year GAAP EPS guidance go up while adjusted guidance stayed the same?
The GAAP range was raised to $5.02-$5.55 to reflect actual first-half results and an expected gain on the sale of Ecogas, estimated at about $0.09-$0.12 per share. Those items are excluded from adjusted EPS, so the $4.80-$5.30 adjusted range was simply affirmed.
What is driving growth at Sempra Texas Utilities?
Oncor's new base rates took effect June 1, 2026, and a surcharge recovering the difference from January 1 to June 1 began August 1. ERCOT endorsed high-voltage transmission projects needing more than $7 billion of investment, and Oncor's large-load pipeline is about 44 GW, which the company says would represent over 140% growth from its 31 GW peak. Timing of the Batch Zero process remains undetermined.
How is the KKR transaction affecting Sempra's balance sheet and capital plan?
Sempra is selling a 45% equity interest in Sempra Infrastructure Partners to KKR, with closing expected in Q3 2026, subject to approvals. The company's capital plan assumes it retains a 25% ownership interest in SI Partners after the sale, and management says the transaction is expected to be accretive. Assets and liabilities held for sale rose to $32.9 billion and $13.0 billion, respectively, at June 30, 2026.
What are the main risks investors should monitor?
The filing highlights California wildfire liability and cost recovery, regulatory decisions at the CPUC, FERC, and PUCT, the completion and pricing of asset sales, and Mexican currency and inflation exposure. Rising debt is also a consideration, with long-term debt up to $31.0 billion from $29.0 billion at year-end 2025 and short-term debt of $3.6 billion, alongside a $6.2 billion first-half capital spend.
04—Continue