SRE

Sempra stock has delivered a gain of 43.3% over the past five years, yet on broad valuation checks it still leans expensive rather than clearly cheap. Recent share price weakness adds another wrinkle for investors trying to judge whether the current level fairly reflects the utility group's prospects. The 43.3% return over five years points to solid longer term value creation, which now raises the question of how much of that progress is already reflected in the share price. The recent sale of Ecogas México may support capital recycling and balance sheet strength. However, any execution missteps in refocusing on core regulated utilities in Texas and California could weigh on how investors view Sempra's risk profile. With a value score of 2 out of 6, Sempra does not screen as a clear bargain on the broader valuation checks. The issue now is whether Sempra's current valuation still offers enough potential reward to compensate for the risks around its refocused utility portfolio and capital allocation plans. Compare Sempra's valuation and recent returns with a hand picked list of other regulated utilities through the 39 power grid technology and infrastructure stocks P/E works well for Sempra because earnings are a key focus for regulated utilities where cash flows are shaped by approved returns. Sempra trades on a P/E of about 23.6x, compared with an integrated utilities industry average of roughly 18.4x and a peer group average near 19.9x. On raw comparison, investors are paying a premium for each dollar of Sempra's earnings relative to many similar utilities. The fair P/E ratio for Sempra, based on its specific profile, is estimated at about 26.1x. That is modestly above the current 23.6x level. Despite the recent Ecogas México sale supporting the capital recycling story, the market multiple still sits a little below what this model implies would be justified for Sempra's earnings. Overall, Sempra stock appears roughly fairly valued on its P/E multiple, with only a small discount to the modelled fair ratio. See what the numbers say about this price — find out in our valuation breakdown. Simply Wall St Narratives pick up where this Sempra valuation puzzle leaves off. They spell out what would need to happen to Sempra's growth, margins and earnings for the stock to be worth materially more or less than today's price, and they sit on the company's Community page. Each one treats fair value as a thesis about Sempra's business that you can track over time rather than a one off snapshot. You can add your voice to the Sempra conversation by sharing a Narrative that lays out a clear, number driven view on whether the Ecogas México sale really supports the value the current share price implies. Set out your thesis now and see how it holds up as Sempra's execution and results unfold. Do you think there's more to the story for Sempra? Head over to our Community to see what others are saying! On the current P/E, Sempra looks about right rather than clearly undervalued or overvalued. The premium to industry and peer averages suggests the market already prices in a relatively strong outcome for the refocused utility portfolio and capital plans. The low value score signals that broader checks do not flag a clear bargain, so the appeal now rests on whether Sempra can execute cleanly on its shift toward core regulated operations. The key question from here is whether that execution and risk profile ultimately support the existing earnings multiple or lead to a reset in expectations. This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned. Companies discussed in this article include SRE. Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email [email protected]

Interested in Sempra Energy? Here are five stocks we like better. Sempra reported strong second-quarter results, with adjusted earnings rising to $1.16 per share from $0.89 a year earlier, while reaffirming its 2026 and 2027 EPS guidance and 7%–9% long-term growth target. The company is advancing a $65 billion capital plan and expects the planned SI Partners stake sale to simplify operations, recycle capital into regulated utilities and remove nearly $9 billion of debt from its balance sheet. Texas growth remains a major opportunity: Oncor has a $47.5 billion base capital plan plus $10 billion in identified projects, while potential large-load interconnections could significantly expand future transmission investment. 3 Stocks Investing $650 Billion in the U.S.—Should You Invest? Sempra Energy (NYSE:SRE) affirmed its 2026 and 2027 earnings guidance as management highlighted higher earnings across its business segments, a planned asset-sale strategy and growing transmission investment opportunities in Texas during its second-quarter earnings call. The company reported second-quarter 2026 GAAP earnings of $796 million, or $1.21 per diluted share, compared with $461 million, or $0.71 per share, in the prior-year quarter. On an adjusted basis, earnings rose to $762 million, or $1.16 per share, from $583 million, or $0.89 per share, a year earlier. → Sandisk Just Delivered a Blowout Quarter—Here's Why the Stock Is Falling 3 Utility Stocks to Weather Market Storms Chief Executive Officer Jeff Martin said the company’s operating businesses were executing well and that year-to-date adjusted earnings per share showed double-digit gains, with positive contributions from each of its three growth segments. Chief Financial Officer Karen Sedgwick said Sempra reaffirmed its full-year 2026 adjusted EPS guidance range of $4.80 to $5.30 and its 2027 range of $5.10 to $5.70. The company also maintained its projected long-term EPS growth rate of 7% to 9%. → No Hangover: Revisiting Microsoft One Week After Earnings Sedgwick said the company remains focused on closing the pending sale of a 45% equity stake in SI Partners, strengthening its balance sheet after the transaction and advancing its $65 billion capital plan. The transaction is expected to close later in the third quarter. Martin said the SI Partners sale supports Sempra’s strategy of simplifying its business model, recycling capital into regulated utilities and reducing the need for common equity under its current capital plan. The transaction is also expected to deconsolidate nearly $9 billion of debt from Sempra’s balance sheet. → MarketBeat Week in Review – 08/03 - 08/07 Management said it expects Texas to become a larger share of the company’s operations, with a goal for the state to account for more than 60% of Sempra’s total rate base by 2030. Sempra emphasized growth prospects at Oncor, its Texas electric transmission and distribution business, as ERCOT recorded an all-time peak load of 91 gigawatts in July. Oncor’s five-year base capital plan totals $47.5 billion, supplemented by $10 billion in identified incremental capital opportunities through 2030. The incremental opportunities include $4 billion of North and Central Texas transmission upgrades endorsed by ERCOT, $3 billion of non-Permian Basin reliability projects endorsed in 2025 and approximately $3 billion associated with a system resiliency plan filing expected next year. Martin said Oncor expects its next five-year capital-plan update on Sempra’s fourth-quarter call. He said management expects the plan to increase and that the business has flexibility to sequence projects within its capital program. The Public Utility Commission of Texas recently approved ERCOT’s Batch Zero process for evaluating and sequencing large-load interconnection requests. Sempra said 44 GW of load requests could be eligible as base or studied load on Oncor’s transmission system, including 27 GW classified as base load and 17 GW requiring further system-wide reliability analysis. That potential load would equal a 140% increase over Oncor’s current system peak load of 31 GW. About 8 GW of the 44 GW is already connected and expected to ramp toward full utilization, according to management. Oncor holds nearly $6 billion in collateral from large-load customers, including more than $2 billion related to the Batch Zero submissions. Management said any transmission projects ultimately required through Batch Zero would be incremental to both Oncor’s base plan and its currently identified incremental opportunities. ERCOT’s timeline for identifying potential transmission projects is expected to extend beyond February 2027, meaning Oncor’s next capital-plan update is not expected to include Batch Zero-related investments. Oncor CEO Allen Nye said the company’s overall interconnection queue reached 298 GW. He said the difference between a previously cited 127.5 GW advanced pipeline and the 44 GW in Batch Zero reflects stricter requirements under the finalized Batch Zero rules, including completed studies, financial security, site control and contracting-resource attestations. Martin said Sempra Infrastructure is progressing on the planned sale of Ecogas in Mexico after receiving a regulatory approval, with the transaction expected to close later in August. At ECA LNG Phase 1, Sempra Infrastructure CEO Justin Bird said the company identified damage to equipment connected to mixed refrigerant compressors following planned maintenance and inspections after its first cargo export in July. The company is working with its engineering, procurement and construction contractor and the original equipment vendor on the cause and remediation plan. Bird said ECA LNG Phase 1 is expected to reach substantial completion in the fourth quarter of 2026, with sales under long-term sale-and-purchase agreements beginning shortly afterward. He said the company does not anticipate further delays and that ECA’s substantial completion is not a condition precedent for the SI Partners transaction. Management also said Port Arthur LNG Phases 1 and 2 remain on time and on budget. Sedgwick said the SI Partners transaction is central to Sempra’s credit-improvement efforts. She said Moody’s is monitoring the closing of the transaction, associated debt deconsolidation and progress on infrastructure-project milestones. Sedgwick said she expects rating-agency changes could come early next year, while noting the company is meeting regularly with rating agencies. Management said it remains constructive on California legislative discussions regarding wildfire liability and broader affordability and insurance issues, but declined to assess potential proposals before bill language is available. Martin said the company’s California rate base is growing at roughly 5%, compared with utility-platform growth of approximately 11% at the enterprise level. He said Sempra believes its existing California capital plan is appropriately sized to support safety, reliability and affordability. At the end of the call, Martin announced that Sedgwick will become the incoming chief executive officer of Southern California Gas Co. Justin Bird will become Sempra’s incoming chief financial officer. The leadership rotations are expected to take effect around the close of the SI Partners transaction later in the quarter. Sempra Energy is a San Diego–based energy infrastructure company that develops, owns and operates businesses delivering electricity and natural gas. Its operations include regulated utility services that provide electric and gas distribution to residential, commercial and industrial customers, as well as non‑regulated infrastructure businesses that develop and manage large-scale energy assets. The company's product and service portfolio spans electricity and natural gas delivery, transmission and storage, liquefied natural gas (LNG) facilities, power generation and electric transmission projects. This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest reporting and unbiased coverage. Please send any questions or comments about this story to [email protected]. The article "Sempra Energy Q2 Earnings Call Highlights" was originally published by MarketBeat. View MarketBeat's top stocks for August 2026.

Never miss an important update on your stock portfolio and cut through the noise. Over 7 million investors trust Simply Wall St to stay informed where it matters for FREE. Sempra (SRE) has moved into the spotlight after reporting second quarter 2026 results, with net income and earnings per share from continuing operations higher than a year ago while sales stayed broadly flat. The company also updated its full year 2026 GAAP EPS guidance to a range of US$5.02 to US$5.55 and affirmed its 2027 outlook. That keeps investor attention on how closely future reported results align with these targets. See our latest analysis for Sempra. Sempra's share price has been under pressure in recent weeks, with a 7 day share price return of 5.27% and a 30 day share price return of 12.01% that points to fading short term momentum, even as the 1 year total shareholder return of 5.63% and 5 year total shareholder return of 46.68% show a much stronger longer term picture. If Sempra's latest earnings have you thinking about where regulated energy and infrastructure could head next, it can help to widen your search using our screener for 36 power grid technology and infrastructure stocks Sempra's share price has slipped while analyst targets sit much higher, and internal value estimates point the other way again. Where does fair value really sit before you decide how those signals stack up? Sempra's most followed valuation narrative points to a fair value of $103.50 per share compared with the latest close at $83.88, which puts the company on many investors' watchlists as they weigh that gap. Read the complete narrative. Curious what sits behind that projected cash flow lift and higher earnings power? The narrative leans heavily on a carefully paced revenue path, margin expansion, and a lower future earnings multiple than many investors might expect. Result: Fair Value of $103.50 (UNDERVALUED) Have a read of the narrative in full and understand what's behind the forecasts. However, Sempra still faces real swing factors, including potential regulatory shifts in California or Texas, and earnings sensitivity to long term LNG demand and policy changes. Find out about the key risks to this Sempra narrative. While the most popular narrative frames Sempra as 19% undervalued at $103.50 per share, the SWS DCF model tells a very different story. On that approach, Sempra at $83.88 trades well above an estimated future cash flow value of $46.26, which points to an overvalued outcome instead. These two signals pull in opposite directions and rest on very different assumptions about future growth and cash generation. The key question for you is which set of assumptions feels closer to how Sempra is likely to perform, and how much valuation risk you are prepared to carry as a result. Look into how the SWS DCF model arrives at its fair value. With Sempra pulling in both risks and rewards, do you feel the picture is balanced enough for your own portfolio decisions, or does it raise more questions that need answering? To weigh those trade offs quickly and shape your own view, start with the 2 key rewards and 3 important warning signs If Sempra's story has sharpened your thinking, do not stop here. A broader watchlist can help you spot opportunities before they become crowded trades. Spot potential bargains early by scanning screener containing 19 high quality undiscovered gems that pair solid fundamentals with limited current attention. Strengthen your downside protection by reviewing 79 resilient stocks with low risk scores that score well on resilience and financial stability. Build a watchlist of potential value opportunities by checking 51 high quality undervalued stocks that combine quality metrics with marked price discounts. This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned. Companies discussed in this article include SRE. Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email [email protected]

Sempra (SRE) reported $3 billion in revenue for the quarter ended June 2026, representing a year-over-year decline of 0.1%. EPS of $1.16 for the same period compares to $0.89 a year ago. The reported revenue compares to the Zacks Consensus Estimate of $3.22 billion, representing a surprise of -6.83%. The company delivered an EPS surprise of +14.85%, with the consensus EPS estimate being $1.01. While investors closely watch year-over-year changes in headline numbers -- revenue and earnings -- and how they compare to Wall Street expectations to determine their next course of action, some key metrics always provide a better insight into a company's underlying performance. Since these metrics play a crucial role in driving the top- and bottom-line numbers, comparing them with the year-ago numbers and what analysts estimated about them helps investors better project a stock's price performance. Here is how Sempra performed in the just reported quarter in terms of the metrics most widely monitored and projected by Wall Street analysts: Revenue- Sempra Infrastructure: $512 million versus $618.73 million estimated by two analysts on average. Compared to the year-ago quarter, this number represents a -3.4% change. Revenue- Southern California Gas (SoCalGas): $1.19 billion compared to the $1.34 billion average estimate based on two analysts. Revenue- San Diego Gas & Electric (SDG&E): $1.37 billion versus $1.3 billion estimated by two analysts on average. Revenue- Oncor Holdings (TEXAS): $2.06 billion versus $1.96 billion estimated by two analysts on average. Earnings (losses) attributable to common shares- Sempra Infrastructure: $230 million compared to the $184.11 million average estimate based on two analysts. Earnings (losses) attributable to common shares- Parent & Other: $-77 million compared to the $-105.52 million average estimate based on two analysts. Earnings (losses) attributable to common shares- Southern California Gas (SoCalGas): $107 million compared to the $113.76 million average estimate based on two analysts. Earnings (losses) attributable to common shares- San Diego Gas & Electric: $190 million versus $164.5 million estimated by two analysts on average. Earnings (losses) attributable to common shares- Sempra Texas Utilities: $346 million versus $372.83 million estimated by two analysts on average. View all Key Company Metrics for Sempra here>>> Shares of Sempra have returned -10.9% over the past month versus the Zacks S&P 500 composite's +2.3% change. The stock currently has a Zacks Rank #3 (Hold), indicating that it could perform in line with the broader market in the near term. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Sempra (SRE) : Free Stock Analysis Report This article originally published on Zacks Investment Research (zacks.com). Zacks Investment Research

Talen Energy Corporation (TLN) came out with quarterly earnings of $0.16 per share, missing the Zacks Consensus Estimate of $3.2 per share. This compares to a loss of $1.19 per share a year ago. These figures are adjusted for non-recurring items. This quarterly report represents an earnings surprise of -95.00%. A quarter ago, it was expected that this power generation and infrastructure company would post earnings of $5.28 per share when it actually produced earnings of $5.55, delivering a surprise of +5.11%. Over the last four quarters, the company has surpassed consensus EPS estimates two times. Talen Energy Corporation, which belongs to the Zacks Alternative Energy - Other industry, posted revenues of $747 million for the quarter ended June 2026, missing the Zacks Consensus Estimate by 5.75%. This compares to year-ago revenues of $630 million. The company has topped consensus revenue estimates two times over the last four quarters. The sustainability of the stock's immediate price movement based on the recently-released numbers and future earnings expectations will mostly depend on management's commentary on the earnings call. Talen Energy Corporation shares have lost about 9.3% since the beginning of the year versus the S&P 500's gain of 13%. While Talen Energy Corporation has underperformed the market so far this year, the question that comes to investors' minds is: what's next for the stock? There are no easy answers to this key question, but one reliable measure that can help investors address this is the company's earnings outlook. Not only does this include current consensus earnings expectations for the coming quarter(s), but also how these expectations have changed lately. Empirical research shows a strong correlation between near-term stock movements and trends in earnings estimate revisions. Investors can track such revisions by themselves or rely on a tried-and-tested rating tool like the Zacks Rank, which has an impressive track record of harnessing the power of earnings estimate revisions. Ahead of this earnings release, the estimate revisions trend for Talen Energy Corporation was favorable. While the magnitude and direction of estimate revisions could change following the company's just-released earnings report, the current status translates into a Zacks Rank #2 (Buy) for the stock. So, the shares are expected to outperform the market in the near future. You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here. It will be interesting to see how estimates for the coming quarters and the current fiscal year change in the days ahead. The current consensus EPS estimate is $9.84 on $1.21 billion in revenues for the coming quarter and $23.87 on $4.44 billion in revenues for the current fiscal year. Investors should be mindful of the fact that the outlook for the industry can have a material impact on the performance of the stock as well. In terms of the Zacks Industry Rank, Alternative Energy - Other is currently in the bottom 35% of the 250 plus Zacks industries. Our research shows that the top 50% of the Zacks-ranked industries outperform the bottom 50% by a factor of more than 2 to 1. Sempra (SRE), another stock in the same industry, has yet to report results for the quarter ended June 2026. The results are expected to be released on August 6. This natural gas and electricity provider is expected to post quarterly earnings of $1.01 per share in its upcoming report, which represents a year-over-year change of +13.5%. The consensus EPS estimate for the quarter has been revised 0.2% lower over the last 30 days to the current level. Sempra's revenues are expected to be $3.22 billion, up 7.2% from the year-ago quarter. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Talen Energy Corporation (TLN) : Free Stock Analysis Report Sempra (SRE) : Free Stock Analysis Report This article originally published on Zacks Investment Research (zacks.com). Zacks Investment Research

Sempra SRE reported second-quarter 2026 adjusted earnings per share (EPS) of $1.16, which beat the Zacks Consensus Estimate of $1.01 by 14.9%. The bottom line increased 30.3% from the year-ago quarter’s figure of 89 cents.Including one-time items, the company generated GAAP earnings of $1.21 per share compared with 71 cents in the second quarter of 2025. Revenues of $2.997 billion missed the Zacks Consensus Estimate of $3.22 billion by 6.8%. The top line decreased 0.1% from $3 billion in the year-ago quarter. Sempra price-consensus-eps-surprise-chart | Sempra Quote Sempra California: Quarterly earnings amounted to $297 million compared with the year-ago quarter’s level of $259 million.Sempra Texas Utilities: Earnings in this segment increased to $346 million from $208 million in the year-ago quarter. Sempra Infrastructure: The segment recorded earnings of $230 million compared with $72 million in the year-ago quarter.Parent and Other: The segment reported a loss of $77 million, narrower than the prior-year period’s loss of $78 million. As of June 30, 2026, Sempra Energy’s cash and cash equivalents totaled $0.05 billion compared with $0.03 billion as of Dec. 31, 2025.As of the same date, long-term debt and finance leases amounted to $31.02 billion compared with $28.98 billion as of Dec. 31, 2025.Cash flow from operating activities in the first six months of 2026 totaled $3.12 billion compared with $2.27 billion in the year ago period. The company expects its 2026 adjusted earnings to be in the range of $4.80-$5.30 per share. The Zacks Consensus Estimate for 2026 earnings is pegged at $5.12 per share, higher than the midpoint of the company’s guided range.SRE has also provided a full-year 2027 EPS guidance of $5.10-$5.70. Sempra expects a 7-9% long???term EPS growth rate. Sempra Energy currently carries a Zacks Rank #3 (Hold). You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here. TotalEnergies SE TTE reported second-quarter 2026 operating earnings of $2.68 (€2.31) per share, which lagged the Zacks Consensus Estimate of $3.07 by 12.7%. The bottom line improved 70.7% from the year-ago figure of $1.57 (€1.38).TTE’s total revenues for the second quarter were $57.1 billion, which increased from the year-ago reported figure of $47.9 billion by 27.8%. The metric lagged the Zacks Consensus Estimate of $60.18 billion by 5.13%.Energy Transfer LP ET reported second-quarter 2026 earnings of 59 cents per unit, which beat the Zacks Consensus Estimate of 39 cents by 51.28%. The bottom line increased 84.4% from 32 cents a year ago.ET’s revenues of $34.33 billion surpassed the consensus estimate of $31.09 billion by 10.42% and climbed 78.4% year over year.Devon Energy Corporation DVN reported second-quarter 2026 adjusted earnings of $1.57 per share, which beat the Zacks Consensus Estimate of $1.30 by 20.77%. DVN’s revenues of $7.41 billion surpassed the consensus estimate of $6.29 billion by 17.81% and increased 73.1% year over year. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Sempra (SRE) : Free Stock Analysis Report Devon Energy Corporation (DVN) : Free Stock Analysis Report Energy Transfer LP (ET) : Free Stock Analysis Report TotalEnergies SE Sponsored ADR (TTE) : Free Stock Analysis Report This article originally published on Zacks Investment Research (zacks.com). Zacks Investment Research

DALLAS, Aug. 6, 2026 /PRNewswire/ -- Oncor Electric Delivery Company LLC ("Oncor") today reported net income of $428 million for the three months ended June 30, 2026, compared to net income of $259 million in the three months ended June 30, 2025. The increase in net income of $169 million was driven by overall higher revenues primarily attributable to revenues recognized in connection with the surcharge filed pursuant to our comprehensive base rate review, an increase in other regulated revenues recognized related to the Unified Tracker Mechanism ("UTM") and the System Resiliency Plan ("SRP"), higher revenues due to new base rates that went into effect on June 1, 2026, updated interim rates to reflect increases in invested capital, and customer growth. Financial and operational results are provided in Tables A, B, C, D, and E below. "Economic growth cannot occur without responsible infrastructure investment, and nowhere is that more evident than in Texas today," said Oncor CEO Allen Nye. "State leaders have recently asked whether all stakeholders' concerns and the reliability of the grid are being properly considered during this period of unprecedented growth. We share the concerns of ensuring a well-balanced process that meets the needs of both reliability and Texas stakeholders. We look forward to building the infrastructure the state needs to benefit all Texans. Also, as ERCOT set new peak demand records this summer, I want to thank our employees and contractors for all their work in the summer heat to maintain the reliability of the grid and serve our customers." Oncor also reported net income of $640 million for the six months ended June 30, 2026, compared to net income of $440 million in the six months ended June 30, 2025. The increase in net income of $200 million was driven by overall higher revenues primarily attributable to an increase in other regulated revenues recognized related to the UTM and the SRP, revenues recognized in connection with the surcharge filed pursuant to our comprehensive base rate review, higher revenues due to new base rates that went into effect on June 1, 2026, updated interim rates to reflect increases in invested capital, and customer growth. Operational HighlightsIn the second quarter of 2026, Oncor built, rebuilt, or upgraded more than 900 circuit miles of transmission and distribution lines and increased its premise count by approximately 16,200, reflecting ongoing population and business growth in Texas. Active transmission point-of-interconnection ("POI") requests increased 15% year over year. As of August 1, 2026, Oncor held approximately $5.9 billion in customer collateral for active generation and Large Commercial and Industrial ("LC&I") transmission POI requests. This collateral is intended to reduce the risk of rate payers bearing costs for projects that are cancelled after Oncor has expended funds toward building the infrastructure. As of June 30, 2026, Oncor had 552 active generation POI requests in queue, composed of approximately 46% storage, 39% solar, 8% wind, and 7% gas. In addition, Oncor's active transmission LC&I interconnection queue included 737 requests at the end of the second quarter of 2026. Those requests included approximately 282 gigawatts from data centers and over 16 gigawatts of load from various other industrial sectors, demonstrating broad-based industrial growth within Oncor's service territory. During the second quarter of 2026, Oncor continued to execute on projects designed to meet increasing system reliability needs and sustained customer growth. Among other projects, in June, Oncor placed in service its portion of a new 165-mile double-circuit 345 kV transmission line known as the Delaware Basin Stage 2 Project, the first in a series of upgrades needed to resolve urgent electricity import constraints into far west Texas. In June, the Electric Reliability Council of Texas, Inc. ("ERCOT") endorsed several new transmission projects serving the southern Dallas–Fort Worth area and the I-35 corridor. Together with a series of other high voltage upgrades in the southern Dallas-Fort Worth area endorsed by ERCOT in April, these projects are expected to improve customer-serving capacity across Central and North Texas while providing improved reliability benefits to all customers. All together, these projects are expected to require investment of over $7 billion with expected construction windows between 2026 and 2034. Oncor has responsibility to construct the vast majority of these projects, subject to regulatory approvals where needed. To address accelerating demand, the ERCOT board of directors and the Public Utility Commission of Texas ("PUCT") approved a system-wide approach to sequence large-load interconnection requests, the first stage of which is known as the Batch Zero process. While the timeline for Batch Zero remains to be determined, approximately 44 gigawatts of large-load requests are expected to be eligible as base or studied load to be connected to Oncor's transmission system, consisting of approximately 27 gigawatts of base load and approximately 17 gigawatts of studied load. The approximately 44 gigawatts also include approximately 8 gigawatts of existing interconnected large load that is ramping up to its authorized capacity. The projects reflect significant customer commitment through financial security, site control, and other ERCOT qualification requirements, reinforcing the substantial demand for infrastructure investment across Oncor's service territory. Oncor holds approximately $2 billion of large load customer collateral related to the Batch Zero projects, which is part of the approximately $5.9 billion of customer collateral mentioned above. Regulatory UpdateOn August 1, 2026, Oncor implemented a temporary surcharge in accordance with its recently completed comprehensive base rate review to recover the difference between Oncor's rates in effect from January 1, 2026 to June 1, 2026, and the new rates approved by the PUCT in the base rate review, which became effective on June 1, 2026. The surcharge reflects approximately $212 million of deferred revenues to be recovered in rates through the end of the year, $181 million of which were recognized during the second quarter of 2026 in accordance with generally accepted accounting principles. The surcharge will result in an average monthly increase of approximately $3.63 over current rates for a residential customer using 1,000 kWh of electricity per month. Liquidity UpdateAs of August 5, 2026, Oncor's available liquidity totaled approximately $3.6 billion, consisting of cash on hand and available borrowing capacity under its credit facilities, commercial paper program, and accounts receivable facility. Oncor anticipates these resources, combined with projected cash flows from operations and future financing activities, will be sufficient to meet capital expenditures, maturities of long-term debt, and other operational needs for at least the next twelve months. Sempra Internet Broadcast TodaySempra (NYSE: SRE) will broadcast a live discussion of its earnings results over the Internet today at 12 p.m. ET, which will include discussion of second quarter 2026 results and other information relating to Oncor. Oncor executives will also participate in the broadcast. Access to the broadcast is available by logging onto the Investors section of Sempra's website, sempra.com/investors. Prior to the conference call, an accompanying slide presentation will be posted on sempra.com/investors. For those unable to participate during the live webcast, a replay will be available a few hours after its conclusion at sempra.com/investors. Quarterly Report on Form 10-QOncor's Quarterly Report on Form 10-Q for the period ended June 30, 2026 will be filed with the U.S. Securities and Exchange Commission after Sempra's conference call and once filed, will be available on Oncor's website, oncor.com. About OncorHeadquartered in Dallas, Oncor is a regulated electricity transmission and distribution business that uses superior asset management skills to provide reliable electricity delivery to consumers. Oncor (together with its subsidiaries) operates the largest transmission and distribution system in Texas, delivering electricity to more than 4.1 million homes and businesses and operating more than 145,000 circuit miles of transmission and distribution lines in Texas. While Oncor is owned by two investors (indirect majority owner, Sempra, and minority owner, Texas Transmission Investment LLC), Oncor is managed by its Board of Directors, which is comprised of a majority of disinterested directors. Forward-Looking StatementsThis news release contains forward-looking statements relating to Oncor within the meaning of the Private Securities Litigation Reform Act of 1995, which are subject to risks and uncertainties. All statements, other than statements of historical facts, that are included in this news release, as well as statements made in presentations, in response to questions or otherwise, that address activities, events or developments that Oncor expects or anticipates to occur in the future, including such matters as projections, capital allocation, future capital expenditures, business strategy, competitive strengths, goals, future acquisitions or dispositions, development or operation of facilities, market and industry developments and the growth of Oncor's business and operations (often, but not always, through the use of words or phrases such as "intends," "plans," "will likely result," "expects," "are expected to," "will continue," "is anticipated," "estimated," "forecast," "should," "projection," "target," "goal," "objective" and "outlook"), are forward-looking statements. Although Oncor believes that in making any such forward-looking statement its expectations are based on reasonable assumptions, any such forward-looking statement involves risks, uncertainties and assumptions. Factors that could cause Oncor's actual results to differ materially from those projected in such forward-looking statements include: legislation, governmental policies and orders, and regulatory actions; legal and administrative proceedings and settlements, including the exercise of equitable powers by courts; ERCOT protocols, rules, policies, regulations, guidelines, directives, processes, endorsements, approvals, restrictions, and orders applicable to Oncor's business, including relating to transmission or distribution projects and any changes to expected projects; weather conditions and other natural phenomena, including severe weather events, natural disasters or wildfires; cyber-attacks on Oncor or Oncor's third-party vendors; changes in expected ERCOT and service territory growth; changes in, or cancellations of, anticipated projects, including customer requested interconnection projects; physical attacks on Oncor's system, acts of sabotage, wars, terrorist activities, wildfires, fires, explosions, natural disasters, hazards customary to the industry, or other emergency events; Oncor's ability to obtain adequate insurance on reasonable terms and the possibility that it may not have adequate insurance to cover all losses incurred by Oncor or third-party liabilities; adverse actions by credit rating agencies; health epidemics and pandemics, including their impact on Oncor's business and the economy in general; interrupted or degraded service on key technology platforms, facilities failures, or equipment interruptions; economic conditions, including the impact of a recessionary environment, inflation, foreign policy, industrial strain, and global trade restrictions; supply chain disruptions, including as a result of tariffs, war, volatile commodity prices, manufacturing and shipping shortages, global trade disruptions, competition for goods and services, and service provider availability; unanticipated changes in electricity demand in ERCOT or Oncor's service territory; ERCOT grid needs and ERCOT market conditions, including insufficient electricity generation within the ERCOT market or disruptions at power generation facilities that supply power within the ERCOT market; changes in business strategy, development plans or vendor relationships; changes in interest rates, foreign currency exchange rates, or rates of inflation; significant changes in operating expenses, liquidity needs and/or capital expenditures; inability of various counterparties to meet their financial and other obligations to Oncor, including failure of counterparties to timely perform under agreements; general industry and ERCOT trends; significant decreases in demand or consumption of electricity delivered by Oncor, including as a result of increased consumer use of third-party distributed energy resources or other technologies; changes in technology used by and services offered by Oncor; changes in employee and contractor labor availability and cost; significant changes in Oncor's relationship with its employees, and the potential adverse effects if labor disputes or grievances were to occur; changes in assumptions used to estimate costs of providing employee benefits, including pension and other postretirement employee benefits, and future funding requirements related thereto; significant changes in accounting policies or critical accounting estimates material to Oncor; commercial bank and financial market conditions, macroeconomic conditions, access to capital, the cost of such capital, and the results of financing and refinancing efforts, including availability of funds and the potential impact of any disruptions in U.S. or foreign capital and credit markets; financial market volatility and the impact of volatile financial markets on investments, including investments held by Oncor's pension and other postretirement employee benefit plans; circumstances which may contribute to future impairment of goodwill, intangible or other long-lived assets; Oncor's adoption and deployment of artificial intelligence; financial and other restrictions under Oncor's debt agreements; Oncor's ability to generate sufficient cash flow to make interest payments on its debt instruments; and Oncor's ability to effectively execute its operational and financing strategy. Further discussion of risks and uncertainties that could cause actual results to differ materially from management's current projections, forecasts, estimates and expectations is contained in filings made by Oncor with the U.S. Securities and Exchange Commission. Specifically, Oncor makes reference to the section entitled "Risk Factors" in its annual and quarterly reports. Any forward-looking statement speaks only as of the date on which it is made, and, except as may be required by law, Oncor undertakes no obligation to update any forward-looking statement to reflect events or circumstances after the date on which it is made or to reflect the occurrence of unanticipated events. New factors emerge from time to time, and it is not possible for Oncor to predict all of them; nor can it assess the impact of each such factor or the extent to which any factor, or combination of factors, may cause results to differ materially from those contained in any forward-looking statement. As such, you should not unduly rely on such forward-looking statements. The information contained on, or that can be accessed through, any website referenced in this news release, is not, and shall not be deemed to be, part of this document. View original content to download multimedia:https://www.prnewswire.com/news-releases/oncor-reports-second-quarter-2026-results-302844471.html

SAN DIEGO, Aug. 6, 2026 /PRNewswire/ -- Sempra (NYSE: SRE) today reported second-quarter 2026 earnings, prepared in accordance with Generally Accepted Accounting Principles (GAAP), of $796 million or $1.21 per diluted share, compared to second-quarter 2025 GAAP earnings of $461 million or $0.71 per diluted share. On an adjusted basis, second-quarter 2026 earnings were $762 million or $1.16 per diluted share, compared to $583 million or $0.89 per diluted share in 2025. "Across our management team, there is a consistent emphasis on execution, and our progress through the first half of the year is reflected in strong financial performance," said Jeffrey W. Martin, chairman and CEO of Sempra. "I could not be more proud of our employees and their commitment to innovation and continuous improvement, as we look to find new and better ways to serve customers." The reported financial results reflect certain significant items as described on an after-tax basis in the following table of GAAP earnings, reconciled to adjusted earnings, for second-quarter 2026 and 2025. Advancing Value Creation InitiativesDuring the second quarter, Sempra continued executing on a series of value creation initiatives to further its mission of building America's leading utility growth business. Taken together, these initiatives are designed to simplify the company's strategy, strengthen its financial position and support long-term utility growth. In the first half of 2026, Sempra's businesses invested capital expenditures of over $6 billion to support safe, reliable and affordable energy for the communities we serve. These investments are part of Sempra's record five-year 2026-2030 capital plan of approximately $65 billion, with 95% allocated to investments at our Texas and California utilities. Sempra TexasSempra continues to see strong growth opportunities in Texas through its investment in Oncor Electric Delivery Company LLC (Oncor). During the quarter, Oncor's new base rates became effective June 1. In addition, Oncor filed the surcharge that was approved through its recent base rate review. The surcharge, which took effect August 1, recovers the difference between the new base rates and the rates in effect from January 1 to June 1, 2026. The updated base rates better align Oncor's cost structure with today's operating environment, strengthen its financial profile and support continued infrastructure investments to meet Texas' growing energy needs. Texas continues to experience unprecedented growth in electric demand as evidenced by Electric Reliability Council of Texas' (ERCOT) new all-time peak load of 91 gigawatts (GW) set in July. Continued growth in demand is leading to a series of new opportunities to invest in the electric grid. Earlier this year, ERCOT endorsed a series of high-voltage transmission projects expected to require more than $7 billion of incremental investment, supporting approximately 16 GW of new electric demand with anticipated in-service dates between 2026 and 2034. Oncor expects to construct the majority of those projects, which are subject to regulatory approval. Also, the Public Utility Commission of Texas recently approved ERCOT's Batch Zero process, establishing a standardized framework intended to streamline large-load interconnections and support growing demand across the electric grid. While the timeline of the Batch Zero process remains to be determined, approximately 44 GW of large-load requests in Oncor's service territory are expected to be eligible as base or studied load, consisting of approximately 27 GW of base load and 17 GW of studied load. The referenced 44 GW also includes 8 GW of existing interconnected large load that is ramping up to its authorized capacity. The projects reflect significant customer commitment through financial security, site control and other ERCOT qualification requirements, reinforcing the substantial demand for infrastructure investment across Oncor's service territory. For context, if fully realized, these requests would represent over 140% growth relative to Oncor's current system peak load of 31 GW. Sempra CaliforniaIn California, Sempra's utilities remained focused on advancing safety, reliability and affordability for customers. During the quarter, San Diego Gas & Electric (SDGE) and Southern California Gas Company (SoCalGas) filed their 2028 General Rate Case (GRC) applications. Together, these GRC applications demonstrate a balanced approach to advancing critical safety and reliability investments supporting wildfire risk reduction, electric reliability and resilience, and pipeline safety, while maintaining disciplined cost management and a focus on customer affordability. Regulatory momentum continued in the quarter, including the approval by the Federal Energy Regulatory Commission of SDGE's electric transmission rate, or TO6, settlement. The settlement provides a constructive outcome for SDGE's transmission business, including an authorized base return on equity of approximately 10.28% and a supportive regulatory framework for continued transmission investment. Additionally, the California Independent System Operator's 2025–2026 Transmission Plan included over $160 million of reliability-driven projects for SDGE, further supporting grid resilience. Sempra California also continued to advance innovation and deliver meaningful benefits for customers. SoCalGas estimates that its energy efficiency programs helped customers save more than $100 million on their utility bills last year, while SDGE expanded its battery energy storage capacity in the second quarter to support grid reliability. In addition, SDGE launched a collaboration with Qualcomm Technologies, Inc. and the University of California San Diego's Scripps Institution of Oceanography to develop edge-based artificial intelligence technology aimed at enhancing extreme-weather response capabilities. In combination, these efforts reflect Sempra California's broader commitment to safety, innovation and long-term system reliability. Sempra Infrastructure Partners Strategic UpdatesThe transaction to sell a 45% equity interest in Sempra Infrastructure Partners to affiliates of KKR remains on track and is expected to close in the third quarter of 2026, subject to required approvals and customary closing conditions. The planned sale of Ecogas México, S. de R.L. de C.V. continues to advance following the recent approval without condition by Mexico's antitrust authority and is expected to close in August. These transactions further Sempra's capital recycling program with a view toward simplifying the company's strategy, strengthening its financial position and supporting long-term utility growth. Earnings Guidance Sempra is updating its full-year 2026 GAAP earnings-per-common share (EPS) guidance range to $5.02 to $5.55, reflecting actual results through the second quarter, affirming its 2026 adjusted EPS guidance range of $4.80 to $5.30 and affirming its full-year 2027 EPS guidance range of $5.10 to $5.70. Sempra is also affirming a 7% to 9% projected long‑term EPS growth rate. Non-GAAP Financial MeasuresNon-GAAP financial measures include Sempra's adjusted earnings, adjusted EPS and adjusted EPS guidance range. See Table A for additional information regarding these non-GAAP financial measures. Internet BroadcastSempra will broadcast a live discussion of its earnings results over the internet today at 12 p.m. ET with the company's senior management. Access is available by visiting the Investors section of the company's website at sempra.com/investors. The webcast will be available on replay a few hours after its conclusion at sempra.com/investors. About SempraSempra's mission is to build America's leading utility growth business. As owner of one of the largest energy networks on the continent, Sempra is electrifying and improving energy resilience in California and Texas, the two largest economies in the U.S. The company is recognized as a leader in responsible business practices and for its high-performance culture focused on safety and operational excellence, as demonstrated by Sempra's inclusion in The Wall Street Journal's Management Top 250 and Fortune's World's Most Admired Companies. More information about Sempra is available at sempra.com, including investor.sempra.com/corporate-updates which contains important information for investors, and on social media @sempra. We use the investor.sempra.com/corporate-updates webpage as a means of disclosing important information to investors, some of which may be material, and complying with our disclosure obligations under SEC Regulation FD. The information on this webpage is supplemental to the information we disseminate to investors through other channels, including filings with the SEC, press releases, and public conference calls and webcasts, and investors should monitor all these sources for material information about us. This press release contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. Forward-looking statements are based on assumptions about the future, involve risks and uncertainties, and are not guarantees. Future results may differ materially from those expressed or implied in any forward-looking statement. These forward-looking statements represent our estimates and assumptions only as of the date of this press release. We assume no obligation to update or revise any forward-looking statement as a result of new information, future events or otherwise. In this press release, forward-looking statements can be identified by words such as "believe," "expect," "intend," "anticipate," "contemplate," "plan," "estimate," "project," "forecast," "envision," "should," "could," "would," "will," "confident," "may," "can," "potential," "possible," "proposed," "in process," "construct," "develop," "opportunity," "preliminary," "pro forma," "strategic," "initiative," "target," "outlook," "optimistic," "poised," "positioned," "maintain," "continue," "progress," "advance," "goal," "aim," "commit," or similar expressions, or when we discuss our guidance, priorities, strategies, goals, vision, mission, projections, intentions or expectations. Factors, among others, that could cause actual results and events to differ materially from those expressed or implied in any forward-looking statement include: California wildfires, including potential liability for damages regardless of fault and any inability to recover all or a substantial portion of costs from insurance, the wildfire fund established by California Assembly Bill 1054 and the wildfire fund continuation account established by California Senate Bill 254, rates from customers or a combination thereof; decisions, disallowances or denials of cost recovery, audits, investigations, inquiries, ordered studies, regulations, legislative actions, denials or revocations of permits, consents, approvals or other authorizations, renewals of franchises, and other actions, including the failure to honor contracts and commitments, by the (i) Comisión Nacional de Energía, California Public Utilities Commission (CPUC), U.S. Department of Energy, Electric Reliability Council of Texas, Inc., U.S. Federal Energy Regulatory Commission, U.S. Internal Revenue Service, Public Utility Commission of Texas and other regulatory bodies and (ii) U.S., Mexico and states, counties, cities and other jurisdictions therein and in other countries where we do business; the success of business development efforts, construction projects, acquisitions, divestitures, and other significant transactions, such as the planned sale of a portion of our equity interest in Sempra Infrastructure Partners, including risks related to, as applicable, (i) being able to reach a positive final investment decision, (ii) negotiating pricing and other terms in definitive contracts, (iii) completing construction projects or other transactions on schedule and budget, (iv) realizing anticipated benefits from any of these efforts if completed, (v) obtaining regulatory and other approvals and (vi) third parties honoring their contracts and commitments, including with respect to closing or post-closing payments; changes to our capital expenditure plans and their potential impact on rate base or other growth; changes, due to evolving economic, political and other factors and increasing geopolitical instability as a result of wars or other conflicts in various parts of the world, to (i) trade and other foreign policy, including the imposition of tariffs by the U.S. and foreign countries (and uncertainty related to the implementation and enforceability thereof), and (ii) laws and regulations, including those related to tax and the energy industry in the U.S. and Mexico; litigation, arbitration, property disputes and other proceedings; cybersecurity threats, including by nation-state actors, of ransomware or other attacks on our systems, the energy grid or our other infrastructure, or the systems of third parties with which we conduct business; the availability, uses, sufficiency, and cost of capital resources and our ability to borrow money or otherwise raise capital on favorable terms and meet our obligations, which can be affected by, among other things, (i) actions by credit rating agencies to downgrade our credit ratings or place those ratings on negative outlook, (ii) instability in the capital markets, and (iii) fluctuating interest rates and inflation; the impact of efforts to increase affordability of U.S. utility customer rates on our ability to obtain cost recovery from applicable regulators, our capital expenditure and other growth plans and our ability to advance statewide policies; the impact on affordability of customer rates, cost of capital and operating margin due to (i) volatility in inflation, interest rates, commodity prices, tariff rates, and foreign currency exchange rates and (ii) with respect to SDG&E's and SoCalGas' businesses, the cost of meeting the demand for lower carbon and reliable energy in California; the impact of air quality and climate-related policies, laws, rules, regulations, trends and required disclosures, including actions to reduce or eliminate reliance on natural gas, increased uncertainty in the political or regulatory environment for California natural gas distribution companies, the risk of nonrecovery for stranded assets, and uncertainty related to emerging technologies; weather, natural disasters, pandemics, accidents, equipment failures, explosions, terrorism, information system outages or other events, such as work stoppages, that disrupt our operations, damage our facilities or systems, cause the release of harmful materials or fires or subject us to liability for damages, fines and penalties, some of which may not be recoverable through regulatory mechanisms or insurance or may impact our ability to obtain satisfactory levels of affordable insurance; the availability and reliability of electric power, natural gas and natural gas storage and transportation capacity, including disruptions caused by failures in the transmission grid or pipeline and storage systems or limitations on the injection and withdrawal of natural gas from storage facilities; Oncor Electric Delivery Company LLC's (Oncor) ability to reduce or eliminate its quarterly dividends due to regulatory and governance requirements and commitments, including by actions of Oncor's independent directors or a minority member director; and other uncertainties, some of which are difficult to predict and beyond our control. These risks and uncertainties are further discussed in the reports that Sempra has filed with the U.S. Securities and Exchange Commission (SEC). These reports are available through the EDGAR system free-of-charge on the SEC's website, www.sec.gov, and on Sempra's website, www.sempra.com. Investors should not rely unduly on any forward-looking statements. Sempra Infrastructure Partners and its subsidiaries, and the Sempra Texas utilities (Oncor and Sharyland Utilities) are not the same companies as the Sempra California utilities, SDG&E or SoCalGas, nor are they regulated by the California Public Utilities Commission (CPUC). None of the website references in this press release are active hyperlinks, and the information contained on, or that can be accessed through, any such website is not, and shall not be deemed to be, part of this document. SEMPRATable A (Continued) Sempra Adjusted Earnings and Adjusted EPS are non-GAAP financial measures (GAAP represents generally accepted accounting principles in the United States of America). These non-GAAP financial measures exclude significant items that are generally not related to our ongoing business activities and/or are infrequent in nature. These non-GAAP financial measures also exclude the impact from foreign currency and inflation on our monetary positions in Mexico and associated undesignated derivatives and net unrealized gains and losses on commodity and interest rate derivatives, which we expect to occur in future periods, and which can vary significantly from one period to the next. Exclusion of these items is useful to management and investors because it provides a meaningful comparison of the performance of Sempra's business operations to prior and future periods. Non-GAAP financial measures are supplementary information that should be considered in addition to, but not as a substitute for, the information prepared in accordance with GAAP. RECONCILIATION OF SEMPRA ADJUSTED EARNINGS AND ADJUSTED EPS TO SEMPRA GAAP EARNINGS AND GAAP EPS Sempra Adjusted Earnings and Adjusted EPS exclude items (after the effects of income taxes and, if applicable, noncontrolling interests (NCI)) in 2026 and 2025 as follows: Three months ended June 30, 2026: $(71) million impact from foreign currency and inflation on our monetary positions in Mexico and associated undesignated derivatives $82 million net unrealized gains on commodity derivatives $3 million net unrealized gains on interest rate swaps related to the initial phase of the Port Arthur LNG liquefaction project (PA LNG Phase 1 project) $20 million net income tax benefit as a result of classifying Sempra Infrastructure Partners, LP (SI Partners) and Ecogas México, S. de R.L. de C.V. (Ecogas) as held for sale, which such amounts could change in future periods until the dates of sale: Three months ended June 30, 2025: $(25) million impact from regulatory disallowances related to the recovery of coronavirus disease 2019 (COVID-19) costs at Sempra California $(97) million impact from foreign currency and inflation on our monetary positions in Mexico $25 million net unrealized gains on commodity derivatives $1 million net unrealized gains on interest rate swaps related to the PA LNG Phase 1 project $(26) million income tax expense due to the recognition of a Mexican deferred tax liability on the outside basis difference in our investment in Ecogas as a result of classifying the asset as held for sale Six months ended June 30, 2026: $(52) million impact from foreign currency and inflation on our monetary positions in Mexico and associated undesignated derivatives $85 million net unrealized gains on commodity derivatives $(8) million net unrealized losses on interest rate swaps related to the PA LNG Phase 1 project $55 million income tax benefit as a result of classifying SI Partners and Ecogas as held for sale, which such amounts could change in future periods until the dates of sale: Six months ended June 30, 2025: $(25) million impact from regulatory disallowances related to the recovery of COVID-19 costs at Sempra California $(89) million impact from foreign currency and inflation on our monetary positions in Mexico $(10) million net unrealized losses on commodity derivatives $(8) million net unrealized losses on interest rate swaps related to the PA LNG Phase 1 project $(26) million income tax expense due to the recognition of a Mexican deferred tax liability on the outside basis difference in our investment in Ecogas as a result of classifying the asset as held for sale The table below reconciles Sempra Adjusted Earnings and Adjusted EPS to Sempra GAAP Earnings and GAAP EPS, which we consider to be the most directly comparable financial measures calculated in accordance with GAAP. SEMPRATable A (Continued) Sempra 2026 Adjusted EPS Guidance is a non-GAAP financial measure. This non-GAAP financial measure excludes significant items that are generally not related to our ongoing business activities and/or infrequent in nature. This non-GAAP financial measure also excludes the impact from foreign currency and inflation on our monetary positions in Mexico and associated undesignated derivatives and net unrealized gains and losses on commodity and interest rate derivatives for the six months ended June 30, 2026, which we expect to occur in future periods, and which can vary significantly from one period to the next. Exclusion of these items is useful to management and investors because it provides a meaningful comparison of the performance of Sempra's business operations to prior and future periods. Because we cannot reasonably estimate the forward-looking amount or range of amounts of reasonably estimable GAAP amounts, this non-GAAP financial measure does not contemplate the anticipated impacts of each of the following future events: impact from foreign currency and inflation on our monetary positions in Mexico and associated undesignated derivatives net unrealized gains and losses on commodity and interest rate derivatives any potential gain from the agreement to sell an equity interest in SI Partners to the KKR Partners that was entered into in September 2025, as the purchase price is subject to closing adjustments, post-closing adjustments, and tax items related to our outside basis difference in SI Partners, all of which are subject to adjustments based on changes in carrying value, foreign exchange rates and inflation until the date of sale ancillary costs associated with the sale of SI Partners We expect to complete the sale of SI Partners in the third quarter of 2026, which we expect to be accretive. Sempra 2026 Adjusted EPS Guidance Range should not be considered an alternative to Sempra 2026 GAAP EPS Guidance Range. Non-GAAP financial measures are supplementary information that should be considered in addition to, but not as a substitute for, the information prepared in accordance with GAAP. RECONCILIATION OF SEMPRA 2026 ADJUSTED EPS GUIDANCE RANGE TO SEMPRA 2026 GAAP EPS GUIDANCE RANGE Sempra 2026 Adjusted EPS Guidance Range of $4.80 to $5.30 excludes items (after the effects of income taxes and, if applicable, NCI) for the six months ended June 30, 2026 as follows: $(52) million impact from foreign currency and inflation on our monetary positions in Mexico and associated undesignated derivatives $85 million net unrealized gains on commodity derivatives $(8) million net unrealized losses on interest rate swaps related to the PA LNG Phase 1 project $55 million income tax benefit as a result of classifying SI Partners and Ecogas as held for sale, which such amounts could change in future periods until the dates of sale: a gain on sale of Ecogas ranging from approximately $165 million ($57 million after tax and NCI) to $205 million ($77 million after tax and NCI), which SI Partners expects to complete in August 2026 The table below reconciles Sempra 2026 Adjusted EPS Guidance Range to Sempra 2026 GAAP EPS Guidance Range, which we consider to be the most directly comparable financial measure calculated in accordance with GAAP. 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Sempra (SRE) came out with quarterly earnings of $1.16 per share, beating the Zacks Consensus Estimate of $1.01 per share. This compares to earnings of $0.89 per share a year ago. These figures are adjusted for non-recurring items. This quarterly report represents an earnings surprise of +14.85%. A quarter ago, it was expected that this natural gas and electricity provider would post earnings of $1.51 per share when it actually produced earnings of $1.51, delivering no surprise. Over the last four quarters, the company has surpassed consensus EPS estimates three times. Sempra, which belongs to the Zacks Alternative Energy - Other industry, posted revenues of $3 billion for the quarter ended June 2026, missing the Zacks Consensus Estimate by 6.83%. This compares to year-ago revenues of $3 billion. The company has topped consensus revenue estimates just once over the last four quarters. The sustainability of the stock's immediate price movement based on the recently-released numbers and future earnings expectations will mostly depend on management's commentary on the earnings call. Sempra shares have lost about 4.1% since the beginning of the year versus the S&P 500's gain of 12.8%. While Sempra has underperformed the market so far this year, the question that comes to investors' minds is: what's next for the stock? There are no easy answers to this key question, but one reliable measure that can help investors address this is the company's earnings outlook. Not only does this include current consensus earnings expectations for the coming quarter(s), but also how these expectations have changed lately. Empirical research shows a strong correlation between near-term stock movements and trends in earnings estimate revisions. Investors can track such revisions by themselves or rely on a tried-and-tested rating tool like the Zacks Rank, which has an impressive track record of harnessing the power of earnings estimate revisions. Ahead of this earnings release, the estimate revisions trend for Sempra was mixed. While the magnitude and direction of estimate revisions could change following the company's just-released earnings report, the current status translates into a Zacks Rank #3 (Hold) for the stock. So, the shares are expected to perform in line with the market in the near future. You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here. It will be interesting to see how estimates for the coming quarters and the current fiscal year change in the days ahead. The current consensus EPS estimate is $1.13 on $3.35 billion in revenues for the coming quarter and $5.12 on $13.98 billion in revenues for the current fiscal year. Investors should be mindful of the fact that the outlook for the industry can have a material impact on the performance of the stock as well. In terms of the Zacks Industry Rank, Alternative Energy - Other is currently in the bottom 34% of the 250 plus Zacks industries. Our research shows that the top 50% of the Zacks-ranked industries outperform the bottom 50% by a factor of more than 2 to 1. One other stock from the same industry, New Era Energy & Digital, Inc. (NUAI), is yet to report results for the quarter ended June 2026. This company is expected to post quarterly loss of $0.09 per share in its upcoming report, which represents a year-over-year change of +57.1%. The consensus EPS estimate for the quarter has remained unchanged over the last 30 days. New Era Energy & Digital, Inc.'s revenues are expected to be $0.25 million, up 19.1% from the year-ago quarter. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Sempra (SRE) : Free Stock Analysis Report New Era Energy & Digital, Inc. (NUAI) : Free Stock Analysis Report This article originally published on Zacks Investment Research (zacks.com). Zacks Investment Research