Sempra Sees Path to Growth Amidst Market Shifts
As Sempra announced its fourth quarter earnings, the company outlined a vision for a 'decisive decade of growth.' At the heart of this plan lies a strategy to invest in critical infrastructure, leveraging opportunities presented by shifting market dynamics.
In a conference call on February 25, Sempra's leadership emphasized their commitment to delivering strong financial results. The company reported adjusted EPS of $4.65 for 2024, falling just short of the midpoint of its guidance range. Despite this slight miss, management expressed confidence in their revised 2025 guidance, pegging full-year EPS at a range of $4.30 to $4.70.
A key driver behind Sempra's growth plans is the expected surge in electricity demand in Texas. As the Lone Star State continues to attract new businesses and residents, Oncor – Sempra's Texas-based utility – stands poised to capitalize on this trend. The company has announced its intention to file a comprehensive base rate review later this year, rather than waiting until 2027.
This move is seen as crucial in enabling Oncor to make critical investments necessary to support the anticipated growth in energy demand. As Texas's population and economy continue their ascent, Sempra is well-positioned to capitalize on these trends, driving growth across its various business segments.
Jeff Martin, Chairman and CEO of Sempra, highlighted the company's commitment to delivering a 'decisive decade of growth.' This vision is underpinned by a focus on strategic investments, operational excellence, and a clear understanding of shifting market dynamics. As Sempra continues to navigate an evolving energy landscape, its leadership remains steadfast in their pursuit of growth and returns for shareholders.
The company's revised 2025 guidance reflects these changing market conditions, with a focus on delivering strong financial results amidst uncertainty. While this may mean adjusting expectations slightly downward, Sempra's overall strategy remains unwavering: to drive growth through strategic investments and operational excellence.
