On May 8, 2025, Sempra (SRE, Financial) released its 8-K filing reporting first-quarter 2025 earnings. Sempra Energy, a leading utility company in the United States, serves a vast customer base by distributing natural gas and electricity in Southern California and owning a significant stake in Oncor, a major transmission and distribution business in Texas. The company also operates liquefied natural gas facilities in North America and infrastructure in Mexico.
Sempra reported first-quarter 2025 GAAP earnings of $906 million, or $1.39 per diluted share, surpassing the analyst estimate of $1.20 per share. This marks an increase from the $801 million, or $1.26 per diluted share, reported in the same quarter of 2024. On an adjusted basis, earnings were $942 million, or $1.44 per diluted share, also exceeding the estimated earnings per share.
The company's performance is attributed to its disciplined growth strategy and strategic initiatives aimed at delivering safer and more reliable energy. Sempra's focus on infrastructure investments, particularly in Texas and California, has been pivotal. Oncor, Sempra's Texas-based subsidiary, is executing a $36.1 billion five-year capital plan to meet the growing electricity demand in the state. In California, Sempra's utilities are advancing projects to modernize energy networks and enhance system reliability.
Sempra's total revenues for the quarter were $3.802 billion, slightly below the estimated $3.917 billion. The company's operating expenses included $1.343 billion in operation and maintenance costs and $640 million in depreciation and amortization. Interest expenses rose to $433 million from $305 million in the previous year, reflecting increased borrowing costs.
| Metric | Q1 2025 | Q1 2024 |
|---|---|---|
| GAAP Earnings | $906 million | $801 million |
| Adjusted Earnings | $942 million | $854 million |
| GAAP EPS | $1.39 | $1.26 |
| Adjusted EPS | $1.44 | $1.34 |
Sempra faces challenges such as foreign currency impacts and inflation in Mexico, which affected earnings by $8 million. Additionally, the company reported net unrealized losses on derivatives and interest rate swaps. Despite these challenges, Sempra remains committed to its long-term growth strategy, with plans to divest certain assets to streamline operations and enhance shareholder value.
We are pleased to report a solid quarter for Sempra, which is the direct result of continued focus on delivering strong financial performance while making steady progress on our strategic initiatives," said Jeffrey W. Martin, chairman and CEO of Sempra.
Sempra's strong first-quarter performance, driven by strategic investments and operational efficiencies, positions the company well for future growth. The company's ability to exceed earnings expectations highlights its resilience and commitment to delivering value to shareholders and customers alike. As Sempra continues to navigate industry challenges, its focus on infrastructure development and strategic initiatives will be crucial in maintaining its competitive edge in the utilities sector.
Explore the complete 8-K earnings release (here) from Sempra for further details.
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