Sempra Q1 FY2026 Earnings Call

· Earnings call transcript and AI-powered summary

Quarter Highlights and Financial Performance

  • Q1 2026 GAAP earnings were $1.37 billion ($1.58 per share), up sharply from $906 million ($1.39 per share) in Q1 2025.
  • Adjusted earnings rose to $991 million ($1.51 per share) versus $942 million ($1.44 per share) in Q1 2025.
  • Higher earnings were driven by:
    • Texas: +$25 million from UTM, higher invested capital, and customer growth.
    • California: +$44 million from higher CPUC margins, partially offset by –$48 million lower tax benefits and higher interest costs.
    • Sempra Infrastructure: +$34 million from lower depreciation as assets classified “held for sale.”
  • Full-year 2026 and 2027 EPS guidance affirmed at $4.8–$5.3 and $5.1–$5.7, respectively. Long-term EPS growth rate of 7%–9% reaffirmed.

Strategic and Operational Updates

  • Sempra deployed $3 billion in Q1 toward its $13 billion annual T&D infrastructure investment target.
  • Oncor received PUCT approval for its base rate review, increasing:
    • Authorized equity ratio to 43.5%.
    • ROE to 9.75%.
    • Cost of debt to 4.94%.
    • Approval to surcharge January–June 2026 differences after a filing later this year.

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Operator: Good day. Welcome to Sempra’s first quarter earnings call. Today’s conference is being recorded. At this time, I would like to turn the conference over to Louise Bick. Please go ahead. Louise Bick: Good morning, and welcome to Sempra’s first quarter 2026 earnings call. A live webcast of this teleconference and slide presentation are available on our website under the Events and Presentations section. We have several members of our management team with us today, including Jeffrey Walker Martin, Chairman and Chief Executive Officer; Karen L. Sedgwick, Executive Vice President and Chief Financial Officer; Justin Christopher Bird, Executive Vice President of Sempra and Chief Executive Officer of Sempra Infrastructure; Caroline A. Winn, Executive Vice President of Sempra; E. Allen Nye, Chief Executive Officer of Oncor; and Diane Wold, Vice President, Controller and Chief Accounting Officer, along with other members of our senior management team. Before starting, I would like to remind everyone that we will be discussing forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. Actual results may differ materially from those projected in any forward-looking statement we make today. The factors that could cause our actual results to differ materially are discussed in the company’s most recent 10-Q filed with the SEC. Earnings per common share amounts in our presentation are shown on a diluted basis, and we will be discussing cer

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