Sempra Sees Exceptional Opportunity to Grow and Compete Through End of Decade
Sempra reported adjusted earnings per share (EPS) of $1.44 for its first quarter 2025, exceeding last year's results of $1.34, the company announced on its recent conference call.
The positive step in execution reflects the company's plan to invest $13 billion this year in energy infrastructure, with over $10 billion targeted for the U.S., a key component of Sempra's value creation initiatives.
These investments are expected to improve regulatory compact in both Texas and California, which will be accretive to the company's earnings per share forecast and credit enhancing, according to Jeff Martin, Chairman and Chief Executive Officer.
The Fit for 2025 campaign, launched in summer 2024, aims to reduce the company's cost structure to align with future business needs. This initiative also focuses on new technology adoption, including artificial intelligence to improve productivity and customer service.
Through operational excellence, Sempra will continue delivering safe and reliable energy for its customers, leveraging competitive advantages such as established leadership in wildfire science and mitigation in California and Oncor.
The company affirms full year 2025 adjusted EPS guidance range of $4.30 to $4.70 and also reaffirmed its 2026 EPS guidance of $4.80 to $5.30.
Furthermore, Sempra maintains an objective long-term EPS compound annual growth rate (CAGR) of 7% to 9% for 2025 through 2029 with a projection of the high end above that range.
The company's business and financial updates indicate its three growth platforms are off to a solid start for the year. In Texas, ERCOT is proposing a regional transmission plan that would overlay new high-voltage backbone across the state's transmission grid to meet peak load growth projected to increase to 150 gigawatts by 2030.
Overall, Sempra sees an exceptional opportunity to grow and competitively differentiate its company through the end of the decade. To deliver on this opportunity, the management team has a plan in place that they believe will make their company stronger and more valuable.
