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The call conveyed a constructive and forward-looking tone: management reported solid Q1 results, affirmed full-year guidance, and highlighted meaningful regulatory wins (Oncor rate decision, UTM filing) and project progress (ECA feed gas, Cimarron COD, Port Arthur on time). The company is executing an aggressive capital plan with clear upside in Texas and is advancing capital recycling (SI Partners, Ecogas) to strengthen the balance sheet. Headwinds include timing of some rate benefits, higher interest expense and tax impacts in segments, near-term rating-agency timing, and execution risks tied to regulatory processes, labor and remaining transactional consents. Overall, the positives (earnings growth, regulatory approvals, large-scale capital opportunities, project milestones, and affirmed guidance) materially outweigh the lowlights.
Sempra affirmed its full‑year 2026 adjusted EPS guidance of $4.80–$5.30 and 2027 EPS guidance of $5.10–$5.70 and reiterated a long‑term EPS growth target of 7–9%; Q1 results included GAAP earnings of $1.37 (per transcript) and $1.58 per share and adjusted Q1 earnings of $991 million or $1.51 per share (vs. Q1‑2025 adjusted $942M/$1.44). Management also reiterated a $65 billion capital plan supporting roughly 11% annual rate‑base growth through 2030, plans to invest approximately $13 billion in T&D in 2026 (with $3 billion deployed in Q1), Oncor’s $47.5 billion capital plan with ~30% annual earnings growth through the midpoint of 2027 and $10 billion of identified incremental CapEx (plus ~127 GW of large‑load queue and a $4.4 billion UTM filing), visibility to ~$9 billion incremental opportunities, Oncor authorized metrics of 43.5% equity / 9.75% ROE / 4.94% cost of debt, SDG&E’s proposed ROE of 10.28% (54% equity hypothetical), and expectations to close the SI Partners transaction in 2026 and the Ecogas sale in Q2–Q3 to deconsolidate assets and strengthen the parent balance sheet.
Reported Q1 2026 GAAP earnings of $1.37 billion ($1.58/share) versus $906 million ($1.39/share) in Q1 2025 (≈+51% GAAP earnings; ≈+13.7% GAAP EPS). Adjusted earnings were $991 million ($1.51/share) versus $942 million ($1.44/share) a year ago (≈+5.2% adjusted earnings; ≈+4.9% adjusted EPS). Management affirmed full-year 2026 adjusted EPS guidance of $4.80–$5.30, 2027 EPS guidance of $5.10–$5.70, and long-term EPS growth of 7%–9%.
Deployed $3.0 billion of investment capital in Q1, on track for the ~$13 billion T&D investment target for 2026. Company executing a record $65 billion capital plan with ~11% projected annual rate base growth and ~ $9 billion of incremental capital opportunities beyond the base plan.
PUCT approved Oncor settlement with higher authorized equity layer (43.5%), authorized ROE of 9.75%, and cost of debt of 4.94%. Approval also allows surcharge recovery for Jan 1–Jun 1, 2026, expected to improve earned returns and credit metrics during elevated capital investment.
Company reported large-load opportunity (company cited 127 GW of qualifying load) and submitted 102.22 GW of ≥75 MW load plus 5.2 GW medium load in RTP filing. ERCOT queue includes ~289 GW of large load (≈271 GW data-center related). Oncor has a $47.5 billion capital plan and identified ~$10 billion incremental CapEx opportunity; Oncor earnings expected to grow ~30% annually through midpoint of 2027 guidance.
Cimarron Wind declared COD. ECA LNG Phase 1 introduced feed gas and began startup; first LNG expected next month with substantial completion targeted this summer (revenues begin at substantial completion). Port Arthur LNG Phase 1 & Phase 2 construction progressing on time and on budget.
Making progress toward closing SI Partners transaction with key approvals from FERC and antitrust regulators; closing expected in 2026. Proceeds to be used to reinvest in utilities and strengthen balance sheet. Ecogas sale remains on track to close in Q2–Q3 2026.
Oncor submitted inaugural UTM to incorporate $4.4 billion of T&D assets into rates (reduces regulatory lag; can be filed every 365 days). Oncor is diversifying supply base, expanding logistics/warehousing, securing labor and materials, and increasing contract labor (nearly tripled contract labor usage) to reduce execution risk.
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.
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 certain non-GAAP financial measures. Please refer to the presentation slides that accompany this call for reconciliation to GA...