Financial Data and Key Metrics Changes - The company reported second quarter 2025 adjusted EPS of $0.89, consistent with the prior period's results [7][27] - Full year 2025 adjusted EPS guidance remains affirmed at $4.3 to $4.7, with 2026 EPS guidance at $4.8 to $5.3 [8] - Second quarter 2025 GAAP earnings were $461 million or $0.71 per share, compared to $713 million or $1.12 per share in the same quarter of 2024 [26] Business Line Data and Key Metrics Changes - Sempra California saw a $5 million increase primarily from higher regulatory awards and electric transmission margin, offset by lower CPUC base operating margin [28] - Sempra Texas reported $6 million of higher equity earnings due to increased invested capital and customer growth, despite higher operating and interest expenses [29] - Sempra Infrastructure experienced a $26 million increase in revenues from contract modifications and higher power volumes [29] Market Data and Key Metrics Changes - The company is focusing on regulatory compacts in Texas, with the passage of House Bill 5247 expected to improve earned return on equity by 50 to 100 basis points over time [18] - The legislative environment in Texas is supportive of infrastructure expansion, enhancing growth opportunities for Sempra's Texas operations [17] Company Strategy and Development Direction - The company is transitioning towards a more utility-focused business model, with a capital plan targeting $13 billion in investments for 2025, primarily in U.S. utilities [8][12] - The Fit for 2025 campaign aims to improve customer affordability by reducing internal costs and enhancing productivity [13] - The company is advancing capital recycling initiatives and expects higher contributions from regulated utilities, improving overall credit and business risk profile [11][12] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in achieving 2025 goals, citing steady execution on value creation initiatives [7] - The macroeconomic backdrop for LNG is strengthening, with growing demand in Europe and Asia expected to support Sempra's LNG assets [84][86] - The company anticipates significant growth opportunities in Texas, driven by legislative support and increasing demand for energy [17][44] Other Important Information - Sempra Infrastructure is making progress on major construction projects, including ECA LNG Phase 1 and Port Arthur LNG Phase 1, with expected revenue generation starting in 2026 [22][24] - The company has successfully hardened 100% of its transmission system in high fire threat areas, demonstrating commitment to operational excellence and safety [14] Q&A Session Summary Question: Can you provide details on the KKR LOI regarding the Sempra Infrastructure Partner sale process? - Management indicated that the LOI with KKR contemplates an equity sale in the 15% to 30% range, with flexibility based on valuation [34][36] Question: What is the timing of the capital plan update related to incremental capital at Encore in Texas? - Management expects to confirm the capital plan at the board meeting in October, with updates likely in 2026 following the base rate review [40][41] Question: How does the company view the LNG market and contracting opportunities for Port Arthur? - Management maintains a bullish outlook on LNG, driven by energy security needs in Europe and growing demand in Asia [84][86] Question: What is the expected impact of the Unified Tracker Mechanism (UTM) on earned ROE? - Management anticipates a positive impact on earned ROE of about 50 to 100 basis points, with the first UTM filing expected in the first half of next year [102][104]

Financial Data and Key Metrics Changes - The company reported second quarter 2025 adjusted EPS of $0.89, consistent with the prior period's results [6][27] - Full year 2025 adjusted EPS guidance remains affirmed at $4.3 to $4.7, with 2026 EPS guidance of $4.8 to $5.3 [6] - Second quarter 2025 GAAP earnings were $461 million or $0.71 per share, compared to $713 million or $1.12 per share in the same quarter of 2024 [26] Business Line Data and Key Metrics Changes - Sempra California saw a $5 million increase primarily from higher regulatory awards and electric transmission margin, offset by lower CPUC base operating margin [28] - Sempra Texas reported $6 million of higher equity earnings due to increased invested capital and customer growth, despite higher operating and interest expenses [29] - Sempra Infrastructure experienced a $26 million increase in revenues, mainly from a contract modification and higher power volumes [29] Market Data and Key Metrics Changes - The company is focusing on regulatory compacts in Texas, with the recently passed House Bill 5247 expected to improve earned return on equity by 50 to 100 basis points over time [16][30] - The legislative environment in Texas is supportive of infrastructure expansion, which is critical for the company's growth strategy [15] Company Strategy and Development Direction - The company is transitioning towards a more utility-focused business model, with a capital plan targeting $13 billion in investments for 2025, primarily in U.S. Utilities [6][11] - The Fit for 2025 campaign aims to improve customer affordability by reducing internal costs and enhancing productivity [12] - The company is advancing its capital recycling initiatives and expects higher contributions from regulated utilities, improving overall credit and business risk profile [10][11] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in achieving solid financial performance for the year, with ongoing progress on value creation initiatives [27][30] - The company anticipates a notable increase in earnings contributions from regulated utilities, particularly in Texas, which is expected to enhance overall value [11][30] - Management highlighted the importance of legislative developments in Texas for future growth and profitability [16][30] Other Important Information - The company has made significant investments in operational excellence and safety measures, including wildfire mitigation efforts [13] - Sempra Infrastructure is advancing multiple construction projects, including ECA LNG Phase 1 and Port Arthur LNG Phase 1, which are expected to drive cash flow growth [21][23] Q&A Session Summary Question: Inquiry about KKR LOI and stake sales - Management indicated that the LOI with KKR contemplates an equity sale in the 15% to 30% range, with flexibility based on valuation [34][36] Question: Update on capital plan and execution confidence - Management confirmed that the incremental capital opportunities at Encore are outside the current base plan, with confidence in executing the capital plan due to supportive legislative developments [38][40] Question: LNG market and contracting opportunities - Management expressed a bullish view on LNG demand driven by energy security in Europe and growing needs in Asia, positioning Gulf Coast assets favorably [85][88] Question: Timing of UTM filings and ROE improvement - Management expects the first UTM filing in the first half of next year, anticipating a low-end impact on ROE this year, with potential for higher contributions in subsequent years [102][104]

Financial Performance - Reported Q2-2025 adjusted EPS of $0.89 and YTD-2025 adjusted EPS of $2.34[12] - Affirmed FY-2025 adjusted EPS guidance range of $4.30 - $4.70[12] - Affirmed FY-2026 EPS guidance range of $4.80 - $5.30[12] - Affirmed guidance at high-end or above projected EPS CAGR of 7% - 9% for 2025 through 2029[12] - Oncor invested $3 billion of CapEx, supporting premise count increase of 20,000[16] Strategic Initiatives - Invested over $5 billion of CapEx in 1H-2025[11] - Executed an effort to save $300 million by phasing out certain non-economic regulatory programs in California[11] - Initiated Ecogas sale process[11] - Extended ROFO process with existing limited partners and signed non-binding letter of intent with KKR[11] Operational Excellence and Infrastructure Development - Hardened 100% of SDGE's transmission system located in Tier 3 HFTD, with 100% of all HFTD transmission expected in 2028[11] - Safely completed 1,000th LNG cargo from Cameron LNG Phase 1 since start of operations[11] - SDGE awarded estimated $600 million of projects in finalized CAISO 2024 – 2025 Transmission Plan[16]

Financial Performance - Sempra reported second-quarter 2025 GAAP earnings of $461 million or $0.71 per diluted share, a decrease from $713 million or $1.12 per diluted share in the same quarter of 2024 [1][3] - Adjusted earnings for the second quarter of 2025 were $583 million or $0.89 per diluted share, compared to $567 million or $0.89 per diluted share in 2024 [1][3] - For the first half of 2025, GAAP earnings totaled $1.367 billion, down from $1.514 billion in the first half of 2024 [3][21] Value Creation Initiatives - Sempra is focused on five value creation initiatives for 2025, including capital recycling programs [2][4] - The company has signed a non-binding letter of intent with KKR for the planned sale of equity at Sempra Infrastructure and is advancing the sale process for Ecogas México, expected to close in 2026 [4] Legislative and Regulatory Developments - Texas passed new legislation, House Bill 5247, to help utilities manage regulatory lag and improve returns on equity during high investment periods [5] - Oncor Electric Delivery Company has begun utilizing an alternative tracker mechanism to enhance electric reliability and has seen a nearly 40% increase in active transmission requests compared to the previous year [6][7] Infrastructure and Capital Expenditures - Sempra California is investing over $1.2 billion to modernize energy networks and meet growing demand [9] - Sempra Infrastructure is progressing on five significant construction projects, including the Port Arthur LNG Phase 2 project, which received export authorization for 13.5 million tonnes per annum [10][11] Earnings Guidance - The company updated its full-year 2025 GAAP EPS guidance range to $4.05 to $4.45 and affirmed its adjusted EPS guidance range of $4.30 to $4.70 [12][27]

Financial Performance - Sempra reported first-quarter 2025 GAAP earnings of $906 million or $1.39 per diluted share, an increase from $801 million or $1.26 per diluted share in the same period of 2024 [1][3] - Adjusted earnings for the first quarter of 2025 were $942 million or $1.44 per diluted share, compared to $854 million or $1.34 per diluted share in 2024 [1][3] Strategic Initiatives - The company is focused on delivering strong financial performance while progressing on strategic initiatives aimed at providing safer and more reliable energy to nearly 40 million consumers [2][4] - Sempra's Texas subsidiary, Oncor, is executing a $36.1 billion five-year capital plan to meet the growing electricity demand in Texas, which saw a new all-time winter peak demand of 80.5 gigawatts in February 2025 [4][5] Infrastructure Development - Oncor had approximately 1,100 active transmission point of interconnection requests at the end of Q1 2025, representing a 35% increase compared to the end of Q1 2024 [5] - The company is advancing critical transmission and distribution infrastructure projects to support population growth and reliability in Texas [5][6] Regulatory and Market Developments - In March 2025, San Diego Gas & Electric and Southern California Gas filed applications to update their costs of capital for 2026 to 2028, with a decision expected by the end of the year [8][9] - The California Public Utilities Commission approved the expansion of SDGE's energy storage facility, adding 100 megawatts of capacity [9] Earnings Guidance - Sempra updated its full-year 2025 GAAP EPS guidance range to $4.25 – $4.65 and affirmed its adjusted EPS guidance range of $4.30 to $4.70 [12][31] - The company expects to achieve a long-term EPS compound annual growth rate of 7% to 9% for the period from 2025 to 2029 [12] Value Creation Initiatives - Sempra reiterated its five value creation initiatives aimed at simplifying its business model and improving financial performance [14][15] - The company plans to sell Ecogas México and a minority stake in Sempra Infrastructure Partners, which are expected to be accretive to earnings [15][16]

Financial Data and Key Metrics Changes - The company reported a 3.7% increase in revenue year-on-year for Q1 2025, driven by strong performance in the HVAC segment and recent acquisitions [8][13] - Adjusted EBITDA grew by 12% year-on-year, with a margin expansion of 150 basis points [6][8] - Adjusted EPS increased by 10% to $1.38 for the quarter [13][17] Segment Performance Changes - In the HVAC segment, revenues grew by 6.8% year-on-year, with organic growth of 4.4% driven by the heating platform [13][14] - The Infection and Measurement segment saw a 2% decline in revenues year-on-year, with organic revenue down 6.9%, partially offset by a 5.2% increase from the acquisition of KTS [15][16] - Segment backlog for HVAC was $451 million, up approximately 3% from Q4, while the Infection and Measurement segment backlog was $346 million, up 56% sequentially [14][16] Market Data and Key Metrics Changes - The company noted a healthy backlog for highly engineered solutions in the HVAC segment, with positive sentiment regarding data center opportunities in 2025 and 2026 [21][22] - Demand in the Detection and Measurement segment remains steady, with regional variations noted, particularly stronger in the U.S. compared to Europe and Asia [42][44] Company Strategy and Industry Competition - The acquisition of Sigma and Omega is expected to enhance the value provided to HVAC customers and position the company for future growth [10][22] - The company aims to leverage its business system to manage tariff impacts and maintain strong margin performance [8][9] - The company believes it is less cyclical than most industrial tech companies due to diverse end market drivers and a high level of replacement revenue [20][22] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the updated full-year guidance, anticipating adjusted EBITDA growth of 15% at the midpoint [7][22] - The company is well-positioned to navigate macroeconomic uncertainties and adapt to rapid changes in the environment [22] - Management highlighted strong demand in the HVAC segment, particularly in data centers, and noted that replacement sales are critical and resilient [20][38] Other Important Information - The company ended Q1 with cash of $182 million and total debt of $960 million, resulting in a leverage ratio of approximately 1.6 times [16] - Adjusted free cash flow for Q1 was approximately $36 million [17] Q&A Session Summary Question: What are the assumptions regarding gross and net tariff impact for the year? - Management indicated a tariff impact of approximately $0.08 to $0.12 on adjusted EPS, with a gross cost of around $20 million offset by price increases of about $14 million [28][29] Question: How does the Sigma and Omega acquisition fit into growth rates and EBITDA margins? - Management expressed strong confidence in the acquisition, noting it complements existing products and has synergy opportunities for growth, with expected revenues of $65 million for Sigma and Omega [30][31] Question: What is the outlook for order rates and demand amid tariff-related uncertainty? - Management reported no significant changes in demand, with a balanced performance across HVAC segments and strong activity in data centers [37][38] Question: Can you provide insights on Ingenia's revenue projections and multi-year growth visibility? - Management projected Ingenia's revenue capacity to reach $140 million by the end of the year, with high demand for its unique value proposition [48][50] Question: How does the acquisition of Sigma and Omega affect total addressable market (TAM)? - Management noted that while the TAM for Sigma and Omega is smaller than cooling towers, it still meaningfully expands the company's market opportunities [52][53]