Sempra (NYSE:SRE), the San Diego-based energy infrastructure holding company, reported its fourth-quarter and full-year 2025 financial results on February 26, 2026. The earnings release presented a mixed financial picture, with a significant year-over-year decline in GAAP earnings but growth in adjusted profits. The market's initial reaction, as reflected in pre-market trading, was notably positive.
Earnings Performance Versus Estimates
For the critical fourth quarter of 2025, Sempra's results came in ahead of analyst expectations on a per-share basis, while revenue fell short of forecasts.
- Reported Q4 2025 Revenue: $3.75 billion
- Analyst Estimated Q4 2025 Revenue: $4.09 billion
- Reported Q4 2025 Non-GAAP EPS: $1.28
- Analyst Estimated Q4 2025 Non-GAAP EPS: $1.18
The earnings beat, despite the revenue miss, appears to be the primary driver behind the positive investor sentiment in early trading. The company's ability to deliver higher-than-expected earnings per share suggests effective cost management or favorable outcomes in its regulated businesses, which can offset top-line volatility.
Full-Year 2025 Results and Key Drivers
The full-year figures highlight the distinction between GAAP and the company's preferred adjusted earnings metrics. Sempra reported full-year 2025 GAAP earnings of $1.80 billion, or $2.75 per diluted share, a substantial decrease from $2.82 billion, or $4.42 per share, in 2024. However, the company emphasized its adjusted earnings, which exclude certain one-time items and the impact of non-controlling interests.
On this adjusted basis, which management uses to evaluate core operational performance, Sempra's full-year 2025 earnings were $3.07 billion, or $4.69 per diluted share. This represents an increase from adjusted earnings of $2.97 billion, or $4.65 per share, in the prior year. The growth in adjusted earnings points to underlying strength in its core utility and infrastructure operations, even as GAAP results were impacted by specific accounting charges or divestments.
A significant portion of this performance is tied to its majority-owned Texas subsidiary, Oncor Electric Delivery Company. In a separate release also dated February 26, Oncor reported a strong year, with net income rising to $1.07 billion in 2025 from $968 million in 2024. Oncor cited benefits from new regulatory mechanisms, customer growth, and updated rates as key drivers. As Sempra's single largest investment, Oncor's robust results provide a stable foundation for the parent company's earnings.
Market Reaction and Forward Outlook
The market's response to the report has been favorable. In pre-market trading following the announcement, Sempra's stock was up approximately 1.7%. This positive move builds on a steady upward trend over recent weeks, with the stock gaining over 8% in the past month.
While Sempra's press release did not provide specific quantitative financial guidance for 2026, analysts have already established expectations. The consensus estimates project continued growth, setting a high bar for the coming year.
- Analyst Estimated Full-Year 2026 EPS: $5.16
- Analyst Estimated Full-Year 2026 Sales: $14.64 billion
- Analyst Estimated Q1 2026 EPS: $1.48
- Analyst Estimated Q1 2026 Sales: $4.17 billion
The company's announcement of a massive $47.5 billion base capital plan for its subsidiary Oncor for the 2026-2030 period signals a confident, long-term commitment to investing in regulated energy infrastructure. This aligns with Sempra's strategy as a holding company focused on stable, rate-based growth. Investors will be watching closely to see if the company's operational execution can meet or exceed the analyst estimates for the year ahead.
For a detailed breakdown of historical earnings, future estimates, and analyst projections, you can view more on Sempra's earnings and estimates page here.
Disclaimer: This article is for informational purposes only and does not constitute financial advice, a recommendation to buy or sell any security, or an endorsement of any investment strategy. Investors should conduct their own research and consult with a qualified financial advisor before making any investment decisions.
