On February 25, 2025, Sempra (SRE, Financial) released its 8-K filing detailing its financial performance for the year 2024. Sempra Energy, a major utility provider in the United States, serves millions of customers through its subsidiaries, including SoCalGas, San Diego Gas & Electric, and Oncor in Texas. The company also operates liquefied natural gas facilities in North America and infrastructure in Mexico.
Sempra reported full-year 2024 GAAP earnings of $2.82 billion, or $4.42 per diluted share, a decrease from the previous year's $3.03 billion, or $4.79 per diluted share. On an adjusted basis, earnings were $2.97 billion, or $4.65 per diluted share, slightly up from $2.92 billion, or $4.61 per diluted share in 2023. The adjusted earnings per share fell short of the annual estimate of $4.75. The revenue of $13.19 billion fell short of the estimated $15.78 billion.
Sempra's financial achievements include a record five-year capital plan of $56 billion, with significant investments in Texas to expand and modernize the energy grid. The company aims to produce over 50% of its earnings from Texas by 2030. However, challenges such as regulatory disallowances and foreign currency impacts in Mexico affected the financial results. The company's adjusted EPS for the fourth quarter was $1.50, aligning with the quarterly estimate, while GAAP EPS was $1.04, below the estimated $1.50.
| Metric | 2024 | 2023 |
|---|---|---|
| GAAP Earnings | $2.82 billion | $3.03 billion |
| Adjusted Earnings | $2.97 billion | $2.92 billion |
| GAAP EPS | $4.42 | $4.79 |
| Adjusted EPS | $4.65 | $4.61 |
Sempra's total assets increased to $96.16 billion from $87.18 billion in 2023, with significant investments in property, plant, and equipment. The company's cash and cash equivalents rose to $1.57 billion from $236 million, indicating improved liquidity. However, short-term debt slightly decreased to $2.02 billion from $2.34 billion, reflecting effective debt management.
Sempra's strategic initiatives include a focus on expanding its infrastructure in Texas and California, with a significant portion of its capital plan dedicated to regulated utility investments. The company is also advancing its liquefied natural gas projects, with the Port Arthur LNG Phase 2 receiving strong commercial interest. Sempra has adjusted its 2025 EPS guidance to $4.30 to $4.70 and issued a 2026 EPS guidance of $4.80 to $5.30, reflecting a 12% increase from the midpoint of 2025 guidance.
“With the reset of our guidance in 2025, we are setting a new foundation for a decisive decade of growth,” said Jeffrey W. Martin, chairman and CEO of Sempra.
Overall, Sempra's financial results reflect a mixed performance, with adjusted earnings meeting expectations but revenue falling short. The company's strategic focus on infrastructure expansion and modernization positions it for future growth, despite current challenges.
Explore the complete 8-K earnings release (here) from Sempra for further details.
Disclaimer: Investing carries risk. This is not financial advice. The above content should not be regarded as an offer, recommendation, or solicitation on acquiring or disposing of any financial products, any associated discussions, comments, or posts by author or other users should not be considered as such either. It is solely for general information purpose only, which does not consider your own investment objectives, financial situations or needs. TTM assumes no responsibility or warranty for the accuracy and completeness of the information, investors should do their own research and may seek professional advice before investing.