Sempra(US:SRE)2026-02-26 18:00Financial Data and Key Metrics Changes - For Q4 2025, GAAP earnings were $352 million or $0.54 per share, down from $665 million or $1.04 per share in Q4 2024. Full year 2025 GAAP earnings were $1,796 million or $2.75 per share, compared to $2,817 million or $4.42 per share in 2024. Adjusted earnings for Q4 2025 were $841 million or $1.28 per share, down from $960 million or $1.50 per share in Q4 2024. Full year 2025 adjusted earnings were $3,066 million or $4.69 per share, up from $2,969 million or $4.65 per share in 2024 [8][9][10] Business Line Data and Key Metrics Changes - Sempra Texas reported $80 million higher equity earnings due to increased invested capital and customer growth, while Sempra California saw a $213 million decrease primarily from lower income tax benefits and higher net interest expense. Sempra Infrastructure had $123 million in higher asset and supply optimization results [9][10] Market Data and Key Metrics Changes - Sempra's capital plan for 2026-2030 totals $65 billion, a 17% increase from the previous year, with 95% targeted for utility investments. The projected rate base is expected to grow from $57 billion in 2025 to $97 billion in 2030, reflecting an 11% CAGR [12][14] Company Strategy and Development Direction - The company introduced five value creation initiatives aimed at simplifying the business model, mitigating risk, and improving financial strength. Key initiatives include prioritizing utility investments, highlighting LNG franchise value, simplifying the business, executing cost structure reductions, and enhancing community safety [4][5][6][7] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in achieving a strong growth trajectory through 2030, with adjusted EPS guidance for 2026 set at $4.80-$5.30 and for 2030 at $6.70-$7.50. The company aims to maintain a strong balance sheet and investment-grade credit ratings, with regulated earnings expected to comprise approximately 95% of total earnings by 2027 [18][20][21] Other Important Information - The company plans to close a significant transaction involving a 45% stake in SI Partners for $10 billion, which is expected to enhance shareholder value and improve financial metrics. Additionally, the company is focused on capital recycling and efficient financing strategies [5][16][20][21] Q&A Session Summary Question: Clarification on 2023 guidance and growth expectations - Management indicated that the $9 billion upside opportunities could help achieve the upper end of the 2030 guidance, emphasizing improved quality and certainty of future earnings and cash flows [25][26] Question: Insights on California's earnings growth - Management noted that earnings growth in California is impacted by approved attrition from the last GRC and ongoing efforts to improve efficiencies [30][31] Question: Overview of the 2028-2030 growth shaping - Management explained that growth is expected to be more linear, driven by rate base growth and the Unified Tracker Mechanism (UTM) [36] Question: Timeline for $9 billion upside at Oncor - Management stated that the $9 billion upside opportunities are expected to materialize around 2028-2030, with ongoing efforts to secure regulatory approvals [39][40] Question: Data center pipeline and construction challenges - Management confirmed that data center demand remains strong, with ongoing projects and efforts to meet large load customer needs despite potential supply chain challenges [78][81]