Sempra Energy (NYSE:SRE) Announces Earnings Results, Beats Estimates By $0.16 EPS

Sempra Energy (NYSE:SRE) released its earnings results on Thursday. The utilities provider reported $1.28 EPS for the quarter, beating the consensus estimate of $1.12 by $0.16, Briefing.com reports. Sempra Energy had a net margin of 13.27% and a return on equity of 8.28%. The firm had revenue of $3.75 billion during the quarter, compared to analysts’ expectations of $3.82 billion. During the same period in the prior year, the company earned $1.50 EPS. The business’s quarterly revenue was down .2% compared to the same quarter last year.

Here are the key takeaways from Sempra Energy’s conference call:

• Record $65 billion 2026–2030 capital plan (17% increase) with ~95% of spending targeted to utilities, and management issued a 2030 EPS outlook of $6.70–$7.50 plus 2026–2027 guidance, reinforcing a high‑growth, regulated utility strategy.
• Management expects to close the sale of a 45% stake in Sempra Infrastructure Partners for $10 billion (implying >$22 billion equity value) in Q2–Q3 2026, proceeds that are intended to bolster the balance sheet, deconsolidate debt, and avoid new common equity for the base plan.
• Oncor/Texas is the primary growth driver — rate base is projected to rise from $57B to $97B by 2030 (11% CAGR) with Sempra Texas growing ~18% CAGR and $9–10B of tracked incremental transmission upside tied to ERCOT projects and data‑center demand.
• 2025 adjusted EPS was a record $4.69 (high end of guidance) while GAAP results fell year‑over‑year due to prior‑year tax benefits, and management expects ~ $50B of operating cash flow plus transaction proceeds to fund the base plan.
• Execution and regulatory risks remain — unfinished Fit for 2025 cost initiatives, the upcoming California 2028 GRC and wildfire policy work, ERCOT Batch Zero/data‑center uncertainties, and the need to finalize the Oncor settlement and SI Partners close could negatively affect the plan if outcomes are adverse.

Sempra Energy Trading Up 1.0%

NYSE SRE opened at $96.16 on Friday. The company has a quick ratio of 1.56, a current ratio of 1.59 and a debt-to-equity ratio of 0.76. The stock has a market capitalization of $62.76 billion, a P/E ratio of 34.84, a P/E/G ratio of 3.59 and a beta of 0.74. The firm has a 50-day moving average price of $89.68 and a 200 day moving average price of $88.73. Sempra Energy has a 52-week low of $61.90 and a 52-week high of $97.44.

Sempra Energy Increases Dividend

The company also recently declared a quarterly dividend, which will be paid on Wednesday, April 15th. Stockholders of record on Thursday, March 19th will be paid a dividend of $0.6575 per share. This represents a $2.63 dividend on an annualized basis and a dividend yield of 2.7%. This is a positive change from Sempra Energy’s previous quarterly dividend of $0.65. The ex-dividend date is Thursday, March 19th. Sempra Energy’s dividend payout ratio (DPR) is presently 79.14%.

Hedge Funds Weigh In On Sempra Energy

Large investors have recently added to or reduced their stakes in the company. Empowered Funds LLC lifted its holdings in shares of Sempra Energy by 52.5% in the 1st quarter. Empowered Funds LLC now owns 18,008 shares of the utilities provider’s stock worth $1,285,000 after purchasing an additional 6,196 shares during the last quarter. Woodline Partners LP raised its holdings in Sempra Energy by 40.7% during the first quarter. Woodline Partners LP now owns 53,512 shares of the utilities provider’s stock worth $3,819,000 after purchasing an additional 15,474 shares in the last quarter. Baird Financial Group Inc. boosted its stake in Sempra Energy by 6.2% during the 2nd quarter. Baird Financial Group Inc. now owns 14,699 shares of the utilities provider’s stock valued at $1,114,000 after purchasing an additional 858 shares in the last quarter. Cary Street Partners Financial LLC increased its position in shares of Sempra Energy by 78.5% during the 2nd quarter. Cary Street Partners Financial LLC now owns 771 shares of the utilities provider’s stock valued at $58,000 after purchasing an additional 339 shares during the period. Finally, Sei Investments Co. boosted its position in shares of Sempra Energy by 80.0% during the 2nd quarter. Sei Investments Co. now owns 423,280 shares of the utilities provider’s stock valued at $32,072,000 after purchasing an additional 188,131 shares in the last quarter. 89.65% of the stock is currently owned by institutional investors.

Wall Street Analysts Forecast Growth

Several research analysts recently commented on SRE shares. UBS Group reissued an “outperform” rating and set a $100.00 price target on shares of Sempra Energy in a research report on Thursday, January 22nd. Citigroup reiterated a “neutral” rating and issued a $99.00 price target (up from $80.00) on shares of Sempra Energy in a research note on Monday, November 24th. Barclays set a $95.00 price objective on shares of Sempra Energy and gave the company an “overweight” rating in a research report on Tuesday, February 3rd. Morgan Stanley reiterated an “overweight” rating and issued a $101.00 price objective on shares of Sempra Energy in a report on Friday, February 20th. Finally, Weiss Ratings reissued a “hold (c+)” rating on shares of Sempra Energy in a research note on Wednesday, January 21st. One investment analyst has rated the stock with a Strong Buy rating, six have issued a Buy rating and five have given a Hold rating to the stock. According to data from MarketBeat, the stock has a consensus rating of “Moderate Buy” and a consensus target price of $99.20.

Key Stories Impacting Sempra Energy

Here are the key news stories impacting Sempra Energy this week:

• Positive Sentiment: Wells Fargo raised its price target to $113 and kept an “overweight” rating — the new target implies roughly a mid-teens upside from current levels, supporting buy-side interest. Benzinga
• Positive Sentiment: Company lifted its five-year capital plan (16% increase) and beat Q4 adjusted profit estimates, signaling higher near-term infrastructure spending and growth that justify a premium multiple. Reuters
• Positive Sentiment: Sempra issued a robust long‑range EPS outlook (2030 guidance) and highlighted value‑creation initiatives in its 2025 results release, which supports a constructive long-term growth story. PR Newswire
• Positive Sentiment: Q4 EPS beat street estimates ($1.28 vs. consensus ~ $1.12), which investors often reward even though revenue was slightly soft — the beat helps justify recent analyst upgrades. Zacks
• Positive Sentiment: Sempra raised its quarterly dividend (to $0.6575; ~2.8% yield), a modest increase that supports income-focused investors and signals board confidence.
• Neutral Sentiment: Brokerage consensus remains a “Moderate Buy,” indicating broad analyst support but not unanimous conviction. AmericanBankingNews
• Neutral Sentiment: Updated FY‑2026 and FY‑2027 guidance provide ranges that are roughly in line with consensus (some endpoints below/above estimates), leaving near‑term growth visibility mixed. PR Newswire (guidance)
• Neutral Sentiment: Earnings call transcript and slide deck are available for investors who want detail on segment performance and capital allocation—useful but not market-moving by themselves. Seeking Alpha
• Negative Sentiment: Revenue slipped year-over-year (down ~0.2%) and overall profits/cash levels were described as tighter, which could temper valuation expansion and raise near‑term execution questions. Zacks (revenue note)

Sempra Energy Company Profile

Sempra Energy is a San Diego–based energy infrastructure company that develops, owns and operates businesses delivering electricity and natural gas. Its operations include regulated utility services that provide electric and gas distribution to residential, commercial and industrial customers, as well as non‑regulated infrastructure businesses that develop and manage large-scale energy assets.

The company’s product and service portfolio spans electricity and natural gas delivery, transmission and storage, liquefied natural gas (LNG) facilities, power generation and electric transmission projects.