Sempra Reports Strong Third-Quarter 2026 Results

Sempra posts sharp earnings growth and invests $10 billion in utility infrastructure.

What the company is saying

Sempra emphasizes strong year-over-year financial improvement, reporting third-quarter 2026 GAAP earnings of $877 million ($1.34 per diluted share), up from $77 million ($0.12) in 2025. Adjusted third-quarter earnings reached $917 million ($1.40 per share), compared to $728 million ($1.11) last year. For the first nine months, GAAP earnings were $2.710 billion ($4.13 per share), up from $1.444 billion ($2.21), while adjusted earnings were $2.670 billion ($4.07), up from $2.253 billion ($3.45). The company highlights disciplined execution and progress on 2026 value creation initiatives, with CEO Jeffrey W. Martin attributing results to operational discipline and capital recycling. Sempra invested approximately $10 billion in the first nine months to modernize regulated utility infrastructure in Texas and California. The narrative stresses regulatory and operational milestones, including Oncor’s new peak demand record and regulatory approvals for key transmission projects. The company is guiding to the high end of its 2026 adjusted EPS range and affirms a 7% to 9% long-term EPS growth rate, while also flagging pending regulatory outcomes in California as a potential headwind for 2027 earnings.

What the data suggests

The disclosed numbers show a marked improvement in both quarterly and year-to-date earnings. Third-quarter 2026 GAAP earnings rose to $877 million ($1.34 per share) from $77 million ($0.12) in 2025, and adjusted earnings increased to $917 million ($1.40) from $728 million ($1.11). For the first nine months, GAAP earnings climbed to $2.710 billion ($4.13) from $1.444 billion ($2.21), and adjusted earnings to $2.670 billion ($4.07) from $2.253 billion ($3.45). Sempra invested $10 billion in capital in the first nine months, supporting infrastructure expansion. Oncor set a new peak demand record of 33.3 GW, up 6% from 31.4 GW, and classified 24 GW of large load as base load, including 10 GW already energized. San Diego Gas & Electric reached a peak net system demand of 5.2 GW. The company’s guidance for 2026 GAAP EPS is $7.41 to $8.41, with adjusted EPS guidance at $4.80 to $5.30, and 2027 EPS guidance at $5.10 to $5.70. The figures are comprehensive for realised results, but forward-looking projections such as Oncor’s 20% capital plan increase lack specific dollar amounts.

Analysis

The announcement's tone is positive but proportionate to the substantial, realised financial and operational progress disclosed. Sempra reports significant year-over-year increases in both GAAP and adjusted earnings, with clear per-share figures for both the quarter and year-to-date, and provides detailed operational metrics such as peak demand records and capital invested. While there are some forward-looking statements (e.g., capital plan projections, EPS guidance, pending transaction close), the majority of key claims are realised and supported by hard numbers. The $10 billion capital investment is already completed for the period, and the benefits (earnings growth, operational milestones) are immediate and measurable. There is no evidence of narrative inflation or overstatement; the language is factual and supported by disclosed results.

Risk flags

• ●Regulatory risk in California is significant, as the California Public Utilities Commission issued a proposed decision denying SoCalGas and SDGE’s request to correct the 2024 General Rate Case capital attrition mechanism for 2027. If unresolved, this could push 2027 earnings to the low end of guidance.
• ●Execution risk remains around the closing of the 45% Sempra Infrastructure Partners sale to KKR, which is expected within two weeks but not yet completed. Any delay or failure could affect capital recycling and financial flexibility.
• ●Oncor’s capital plan increase is driven by rising demand and regulatory approvals, but the actual realization of the 20% increase depends on continued regulatory support and successful project execution, both of which can be affected by appeals and motions for rehearing.
• ●Foreign currency and inflation impacts in Mexico, as well as derivative and tax-related items, have materially affected earnings in recent periods and could continue to introduce volatility.
• ●Pending motions for rehearing and appeals on Texas transmission projects introduce uncertainty regarding the timing and certainty of infrastructure expansion, which could impact future growth.

Bottom line

Sempra’s results show robust earnings growth and aggressive capital deployment, with $10 billion invested year-to-date and strong operational milestones in both Texas and California. The company’s guidance implies confidence in continued growth, but regulatory risks in California and pending transaction closures could affect future results. The lack of specific dollar figures for Oncor’s projected capital plan increase limits full assessment of future capital intensity. The most immediate catalyst is the expected closing of the Sempra Infrastructure Partners stake sale within weeks, while regulatory developments in California and Texas remain key watch points. The main takeaway is that Sempra is delivering on near-term financial and operational goals, but future performance will hinge on regulatory outcomes and successful execution of planned asset sales and infrastructure investments.

Announcement summary

(NYSE:SRE) Sempra reported third-quarter 2026 GAAP earnings of $877 million, or $1.34 per diluted share, compared to $77 million, or $0.12 per diluted share, in the third quarter of 2025. Adjusted third-quarter 2026 earnings were $917 million, or $1.40 per diluted share, versus $728 million, or $1.11 per diluted share, in 2025. For the first nine months of 2026, Sempra's GAAP earnings were $2.710 billion, or $4.13 per diluted share, compared to $1.444 billion, or $2.21 per diluted share, in the same period of 2025. Adjusted earnings for the first nine months of 2026 were $2.670 billion, or $4.07 per diluted share, versus $2.253 billion, or $3.45 per diluted share, in 2025. The reported results reflect significant items including regulatory disallowances, foreign currency and inflation impacts in Mexico, net unrealized gains and losses on derivatives, interest rate swaps related to Port Arthur LNG Phase 1, tax items related to assets held for sale, gain on sale of Ecogas, and foreign tax credit valuation allowance related to TCJA. Sempra invested approximately $10 billion in capital in the first nine months of 2026 to support utility infrastructure in Texas and California. Oncor Electric Delivery Company LLC projects its 2027-2031 base capital plan to increase by approximately 20% relative to its 2026-2030 plan. Sempra expects to finalize and announce its 2027-2031 capital plan on the fourth quarter earnings call in February next year. The transaction to sell a 45% equity interest in Sempra Infrastructure Partners to affiliates of KKR is expected to close in the next two weeks. Sempra Infrastructure Partners completed the sale of Ecogas México, S. de R.L. de C.V. in August. Oncor set a new all-time system peak demand record of 33.3 GW, a 6% increase from the prior year's record of 31.4 GW. Oncor submitted Certificates of Convenience and Necessity for 765-kV transmission projects (Import Path 1 and Import Path 2 of the Permian Basin Reliability Plan), and the Public Utility Commission of Texas approved both segments of Import Path 1 in August, subject to motions for rehearing and appeals. Within Oncor's footprint, approximately 24 GW of large load has been classified as base load, including 10 GW of already energized load, and 21 GW as studied load. In California, San Diego Gas & Electric reached a new all-time peak net system energy demand of 5.2 GW. Construction commenced on compressor station modernization projects at Southern California Gas Company and SDGE. SoCalGas launched a new customer information system. On October 29, the California Public Utilities Commission issued a proposed decision denying SoCalGas and SDGE's request to correct the 2024 General Rate Case capital attrition mechanism for 2027. Sempra updated its full-year 2026 GAAP EPS guidance range to $7.41 to $8.41, guided to the high end of its 2026 adjusted EPS guidance range of $4.80 to $5.30, and affirmed its 2027 EPS guidance range of $5.10 to $5.70. Sempra affirmed a 7% to 9% projected long-term EPS growth rate.

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