This article first appeared on GuruFocus.
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GAAP Earnings: Q3 2026 GAAP earnings of $877 million, or $1.34 per share, vs. $77 million, or $0.12 per share, in Q3 2025.
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Adjusted Earnings: Q3 2026 adjusted earnings of $917 million, or $1.40 per share, up 26% from $728 million, or $1.11 per share, in Q3 2025.
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Adjusted EPS Guidance (2026): Guiding to the high end of the full-year 2026 range of $4.80 to $5.30.
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Adjusted EPS Guidance (2027): Affirmed range of $5.10 to $5.70, with pending regulatory outcomes potentially pushing results to the lower half.
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Long-Term EPS Growth: Affirmed projected growth rate of 7% to 9%.
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Sempra Texas Earnings: $154 million of higher equity earnings from new base rates, UTM, SRP, and higher customer consumption (primarily weather), partly offset by higher interest, depreciation, and O&M.
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Sempra California Earnings: $46 million increase from higher CPUC base operating margin and electric transmission margin; $44 million decrease from lower income tax benefits, higher net interest expense, and lower net regulatory interest income.
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Sempra Infrastructure Earnings: $53 million increase, primarily from lower depreciation on assets held for sale, lower interest expense, and lower O&M, partly offset by lower asset optimization.
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Sempra Parent: $20 million of higher losses from lower income tax benefits and net investment losses, partly offset by lower preferred dividends.
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Rate Base: 2026 rate base projected to exceed $65 billion, up from ~$14 billion in 2018.
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Oncor Capital Plan: Existing $47.5 billion base capital plan; 20272031 plan expected to reflect ~20% increase.
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Oncor System Peak: New peak of 33 gigawatts, a 6% increase over the prior record.
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SI Partners Transaction: Pending sale of 45% equity stake expected to close within two weeks; proceeds to pay down debt and strengthen balance sheet.
Release Date: November 05, 2026
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
Positive Points
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Sempra (NYSE:SRE) is guiding to the high end of its 2026 adjusted EPS guidance range of $4.80 to $5.30 and affirming its 2027 EPS guidance range of $5.10 to $5.70, reflecting strong year-to-date financial performance.
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Sempra (NYSE:SRE) expects to increase Oncor’s 2027-2031 base capital plan by approximately 20% over the existing $47.5 billion plan, driven by robust customer demand and load growth in Texas.
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Sempra (NYSE:SRE) is making significant progress on the sale of a 45% equity stake in SI Partners, expected to close within two weeks, which will simplify the business model, pay down debt, and strengthen the balance sheet.
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Sempra (NYSE:SRE) has a long-term EPS growth rate target of 7% to 9%, supported by approximately 11% rate base growth across its utility platforms.
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Sempra (NYSE:SRE) continues to invest in modernizing critical infrastructure in California, including compressor station modernization and a new customer information system, to enhance reliability and customer service.
Negative Points
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The CPUC issued a proposed decision denying Sempra (NYSE:SRE)’s petition for modification related to the 2024 GRC capital attrition rates, which could reduce 2027 Sempra California segment earnings to the low end of its guidance range if not corrected.
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Sempra (NYSE:SRE) faces potential headwinds from higher O&M costs in Texas, with inflation running about 1% to 1.5% above the national average, which could pressure margins.
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There is regulatory uncertainty in California regarding wildfire policy, and while there is ongoing dialogue, it is unclear if legislative action will be taken in the near term, which could impact the utility’s risk profile.
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The pending sale of a 45% equity stake in SI Partners has experienced delays, and while it is expected to close soon, any further delay could affect Sempra (NYSE:SRE)’s financing plans and balance sheet strengthening.
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Sempra (NYSE:SRE) may face political and regulatory risks in Texas, including potential legislative changes affecting transmission capital expenditures and data center demand, which could impact Oncor’s growth trajectory.
Q & A Highlights
Q: With political changes in Texas and uncertainty around data center rhetoric, what is the risk to Oncor’s transmission CapEx, particularly the 765 kV projects?A: CEO Jeffrey Martin expressed strong confidence in Oncor’s capital plan, noting the expected 20% increase to the base plan does not include the Eastern 765 STEP projects or the SRP, which remain in the incremental opportunity bucket. He emphasized that high-voltage transmission is the “anchor investment” for growth, and the debate is about “how we do it and not whether it happens.” EVP Allen Nye added that providing essential electric service and supporting economic growth are non-partisan issues, and he looks forward to working with the new administration.
Q: Can you provide an update on the pending sale of a 45% equity stake in SI
Source: finance.yahoo.com — article syndicated from the publisher’s feed; all rights remain with the original publisher.
