2025 Annual Report

Momentum

Building momentum for America's future

Demand for safe, reliable and resilient energy is accelerating — fueled by population growth, industrial expansion, data center development, onshoring and electrification. Sempra's momentum is built through ongoing investment in modern energy networks, positioning us to help meet what communities need now and what they’ll depend on tomorrow. Our 2025 annual report showcases our continued progress in advancing Sempra's mission to build America’s leading utility growth business.

“Disciplined execution continues to position the organization for improved scale and strategic growth.” 

Jeffrey W. Martin, Chairman and CEO

Dear fellow shareholders:

As we reflect on 2025, one word stands above all others: momentum. It was a year in which strategy, execution and our people came together to accelerate progress and value creation across the enterprise. We sharpened our strategic focus, which allowed us to successfully simplify our business model, improve our financial strength and create meaningful value for our stakeholders — driven by employees who deliver safe and reliable energy to nearly 40 million consumers every day.

That momentum took traction amid powerful shifts in the energy landscape. Electrification accelerated, and technologies like artificial intelligence continued to expand at scale. Demand for safe, reliable and resilient energy also increased — fueled by population growth, industrial expansion, data center development, onshoring of manufacturing and the early stages of large-scale transportation and building electrification. At the same time, aging infrastructure, weather-related challenges and mounting expectations around affordability placed new pressures on our industry.

To meet this moment, we refined our corporate strategy to emphasize lower-risk, regulated utility investments, strengthened our position as a leader in major economic markets and shifted capital to meet the growing needs of our U.S. utilities, with a view toward helping power America’s evolving economy.

Framework for Success

To guide our success, we structured our business activities around five value creation initiatives, designed to simplify Sempra’s business model, improve operations and enhance safety and service quality for customers.

We successfully invested approximately $13 billion to modernize energy infrastructure, allocated primarily to our Texas and California utilities. We also saw improving financial returns, driven by greater capital efficiency at Oncor Electric Delivery Company LLC (Oncor), following implementation of the new Unified Tracker Mechanism (UTM) in 2025.

We unlocked value in our liquefied natural gas (LNG) franchise by entering into a definitive agreement to sell a 45% equity stake in Sempra Infrastructure Partners (SI Partners). This is an important transaction. It is expected to reduce enterprise risk and help efficiently fund our record 2026–2030 capital plan, while concurrently improving our balance sheet and credit profile. We also continued efforts to sell non-core assets, entering into a definitive agreement to sell Ecogas México, S. de R.L. de C.V. (Ecogas) to reduce complexity and redeploy capital to our higher-value utility investments.

Across our organization, we paired disciplined cost management with targeted investments in safety, resilience and customer affordability through our Fit for 2025 initiative, which aimed to modernize operations and align our cost structure with the future needs of our businesses.

Moreover, we advanced community safety and operational excellence, including supporting regulatory improvements such as California Senate Bill 254, which strengthened the state’s wildfire fund and improved claims liquidity. It is also noteworthy that San Diego Gas & Electric Company (SDG&E) earned PA Consulting’s ReliabilityOne® Award for Outstanding Reliability Performance in the Western Region for the 20th consecutive year, highlighting the company’s commitment to operational excellence, system modernization and grid hardening. 

2025 Financial Accomplishments

  1. Reported 2025 GAAP earnings per common share (EPS) of $2.75 and record adjusted EPS of $4.69.1
  2. Launched a $56 billion 2025–2029 capital plan.2
  3. Invested $13 billion in capital expenditures, prioritizing utility investments and improved returns.
  4. Entered into a definitive SI Partners sales agreement highlighting an implied equity value of approximately ~$22.2 billion for that business.3
  5. Declared $1.7 billion in common dividends, with our 2026 dividend increase being the 16th consecutive year of dividend increases.4

Strengthening Our Mission to Drive Growth

As part of this strategic shift, we refreshed our mission — to build America’s leading utility growth business. Simplifying our operations, reducing risk in the business and strengthening our financial position has provided the added benefit of improved visibility to future earnings and cash flows.

Below is a series of accomplishments that reflect the momentum that will help power the company’s future success:

  • Improved capital efficiency at Oncor, driven largely by the UTM that helped reduce the impact of regulatory lag on new investments.
  • Built or upgraded nearly 3,100 circuit miles of transmission and distribution lines in Texas at Oncor, growing premise count by over 65,000 and increasing electricity volumes by 6.2%.
  • Announced SDG&E’s plan to build, own and operate a 500‑kilovolt transmission line, Golden Pacific Powerlink, designed to improve resiliency and modernize Southern California’s energy grid.5
  • Signed a definitive agreement to sell a 45% stake in SI Partners, highlighting an implied equity value of approximately $22.2 billion.3
  • Reached a positive final investment decision on the Port Arthur LNG Phase 2 project, a roughly $14 billion LNG export facility being constructed in South Texas.6
  • Achieved mechanical completion at the Energía Costa Azul LNG Phase 1 project, an exciting new LNG export facility expected to come online later in 2026.
  • Proposed measures to save customers at SDG&E more than $300 million from 2026–2031.7
  • Implemented new technologies lowering costs and improving efficiency.

Looking Ahead 

2026 Value Creation Initiatives

  1. Investing nearly $13 billion to modernize and expand energy infrastructure and deliver improved financial returns.2
  2. Efficiently sourcing capital for utility growth, including closing the SI Partners transaction and deconsolidating its debt.
  3. Simplifying Sempra’s business model through capital recycling, including closing the Ecogas transaction.
  4. Executing Fit for 2026 to continue modernizing operations, improving cost structure and advancing our mission to build America’s leading utility growth business.
  5. Improving community safety and operational excellence through innovation, targeting improved service quality and affordability.

The disciplined execution that fueled our progress last year continues through our 2026 value creation initiatives, positioning the organization for improved scale and strategic growth

Our ability to deliver on these initiatives is anchored by three enduring strengths: being a leader of scale in key markets, the quality of the regulatory compacts we operate under and our commitment to disciplined execution in the service of our customers. This foundation supports our recently announced record capital campaign where we expect to invest $65 billion from 2026 through 2030, which is projected to drive 11% compound annual growth in rate base and increase our regulated earnings mix to roughly 95% by the end of the decade.2,8,9 Our capital campaign is also expected to strengthen our balance sheet and support target annual dividend growth of 2–4%, and we do not anticipate needing common equity issuances to fund our 2026–2030 base capital plan.4,10

But it also goes beyond our financial strength. Our employees consistently demonstrate a drive to learn, improve and get better every day — and that matters. At Sempra, each person has the opportunity to connect their personal passion to their work as we bring to life our vision of delivering energy with purpose. Throughout challenging times, we have remained unwavering in our commitment to finding better ways to safely serve our customers and support our communities. I am proud of our company’s resilience and of what our roughly 20,000 employees have achieved, collectively and individually. Today, we serve more Americans’ basic energy needs than any other company. It is a privilege to do so as we look to continue powering America’s potential — the potential that comes from bringing people together, enabling companies and individuals to attain their goals and being a source of energy resilience in difficult times. In many ways, our future will not be defined by what we have built in the past, but by how our future services empower others to build, grow and flourish. That is why I often remind our employees that the work we do matters and has a far-reaching impact on the lives of others.

I want to thank you for your trust and confidence in our mission. We remain deeply committed to earning that trust every day and look forward to continuing to deliver value in the years ahead.

 

Jeffrey Martin signature

Jeffrey W. Martin
Chairman and CEO

About Sempra

Sempra's mission is to build America’s leading utility growth business — delivering energy to nearly 40 million consumers. As owner of one of the largest energy networks on the continent, Sempra is electrifying and improving the energy resilience of some of the world’s most significant economic markets, including California and Texas. 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.


Sempra California

Sempra California is a dual-utility platform that provides safe, reliable and more affordable energy to roughly 25 million consumers in Southern and Central California. With a focus on grid resiliency, reducing emissions and integrating cleaner forms of energy onto its networks, Sempra California is taking deliberate steps to meet the energy needs of our growing communities. California is known for advancing innovation and new technologies, a spirit embraced by our California utilities that are investing in cleaner sources of energy, battery storage, predictive technologies and other tools designed to reduce the impact of severe weather events and help protect the safety of the communities served.

Sempra California

Sempra California is a dual-utility platform that provides safe, reliable and more affordable energy to roughly 25 million consumers in Southern and Central California. With a focus on grid resiliency, reducing emissions and integrating cleaner forms of energy onto its networks, Sempra California is taking deliberate steps to meet the energy needs of our growing communities. California is known for advancing innovation and new technologies, a spirit embraced by our California utilities that are investing in cleaner sources of energy, battery storage, predictive technologies and other tools designed to reduce the impact of severe weather events and help protect the safety of the communities served.

Sempra Texas

Sempra Texas11 includes Oncor, a regulated electric transmission and distribution utility headquartered in Dallas that delivers reliable electricity to a diverse set of business industries and a growing population of approximately 14 million. With more than 145,000 circuit miles of transmission and distribution lines, Sempra Texas is the largest pure-play transmission and distribution platform in Texas, safely connecting communities across the state to Texas' diverse energy supplies.

Sempra Texas

Sempra Texas11 includes Oncor, a regulated electric transmission and distribution utility headquartered in Dallas that delivers reliable electricity to a diverse set of business industries and a growing population of approximately 14 million. With more than 145,000 circuit miles of transmission and distribution lines, Sempra Texas is the largest pure-play transmission and distribution platform in Texas, safely connecting communities across the state to Texas' diverse energy supplies.

Sempra Infrastructure

Sempra Infrastructure12, headquartered in Houston, is focused on delivering energy for a better world by developing, constructing, operating and investing in modern energy infrastructure, such as liquefied natural gas, energy networks and low-carbon solutions that are expected to play a crucial role in the energy systems of the future. Through the combined strength of its assets in North America, Sempra Infrastructure is connecting customers to safe and reliable energy while advancing energy security.

Sempra Infrastructure

Sempra Infrastructure12, headquartered in Houston, is focused on delivering energy for a better world by developing, constructing, operating and investing in modern energy infrastructure, such as liquefied natural gas, energy networks and low-carbon solutions that are expected to play a crucial role in the energy systems of the future. Through the combined strength of its assets in North America, Sempra Infrastructure is connecting customers to safe and reliable energy while advancing energy security.

Comparative Total Returns

Sempra
S&P 500
S&P 500 Utilities

The above graph compares cumulative total shareholder return on Sempra common stock for the 25-year period ended December 31, 2025, with the performance over the same period of the S&P 500 Index and the S&P 500 Utilities Index. These returns were calculated based on a fiscal year ending December 31, and an initial investment of $100 in our common stock, the S&P 500 Index and the S&P 500 Utilities Index on December 31, 2000, assuming the reinvestment of all dividends.

Consolidated Data

In millions, except per‑share amounts202520242023
Revenues$13,702$13,185$16,720
Earnings$1,796$2,817$3,030
Adjusted Earnings(4)$3,066$2,969$2,920
Earnings Per Common Share   
Basic$2.75$4.44$4.81
Diluted$2.75$4.42$4.79
Adjusted Diluted(4)$4.69$4.65$4.61
Diluted Weighted‑Average Number of Common Shares Outstanding653.8637.9632.7
Total Assets$110,878$96,155$87,181
Dividends Declared Per Common Share$2.58$2.48$2.38
Debt‑to‑Total Capitalization Ratio53%49%48%

Endnotes to Shareholders Letter, About Sempra and Financial Highlights

  1. Adjusted Earnings and Adjusted EPS are non-GAAP financial measures. GAAP means generally accepted accounting principles in the United States of America. See below for an explanation and reconciliation of non-GAAP financial measures.
  2. See below for information regarding Sempra’s 2025–2029 and 2026–2030 capital plans and Sempra’s projected 2026 expenditures within its 2026–2030 capital plan.
  3. Implied equity value is calculated before purchaser fee reimbursement of $338 million, development credit of $340 million and other closing and post-closing adjustments. Completion of the sale is subject to closing conditions.
  4. The amount and timing of dividends payable for the remaining quarters of 2026 and future quarters, and the dividend policy are at the sole discretion of the Sempra Board of Directors. Dividends may be in amounts that are less than projected.
  5. The Golden Pacific Powerlink project is subject to California Public Utilities Commission (CPUC) and other regulatory approvals.
  6. This amount includes project contingency and an approximately $2 billion true-up payment related to the Port Arthur LNG Phase 1 project for the acquisition of a 50% interest in shared common facilities.
  7. SDG&E’s request to discontinue several energy efficiency programs is subject to approval by the CPUC.
  8. Represents projected rate base average from 2025–2030 and reflects Sempra’s proportionate share based on 80.25% of Oncor rate base and 50% of Sharyland Utilities, L.L.C. rate base. Sempra California rate base is the value of assets on which  SDG&E and SoCalGas are permitted to earn a specified rate of return in accordance with rules set by regulatory agencies and is calculated using a 13-month weighted-average, in accordance with CPUC methodology as adopted in rate-setting proceedings. Sempra Texas rate base represents total estimated invested capital, as adjusted in accordance with Public Utility  Commission of Texas’ rules, at the end of the previous calendar year.
  9. Targeting 95% regulated business mix in earnings, excluding Parent and other, in 2027 and beyond.
  10. Plan assumes $0.6B of shares issued via direct stock purchase plan (DRIP) and 401(k) plans, which is a projection based on  historical issuances under these plans. Plan also assumes share issuances under existing forward contracts in Sempra’s ATM program that are expected to settle within the plan period.
  11. Sempra Texas is comprised of our equity method investments in Oncor Electric Delivery Holdings Company LLC and Sharyland Holdings, L.P. Oncor Holdings is a wholly owned entity of Sempra that owns an 80.25% interest in Oncor. Sempra owns a 50% interest in Sharyland Holdings, L.P., which owns a 100% interest in Sharyland Utilities L.L.C.
  12. Sempra owns a 70% interest in SI Partners and has entered into an agreement to sell a portion of such interest, which is expected to close in the second or third quarter of 2026, after which Sempra is expected to own a 25% interest. SI Partners, together with its operating companies, primarily comprises the Sempra Infrastructure platform.

Reconciliation of non-GAAP financial measures

Information regarding forward-looking statements

This page 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 February 26, 2026 with respect to information within the Annual Report on Form 10-K and March 27, 2026 with respect to other information in this page. We assume no obligation to update or revise any forward-looking statement as a result of new information, future events or otherwise.

In this page, 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, 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, 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, to (i) trade and other foreign policy, including the imposition of tariffs by the U.S. and foreign countries, 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 climate 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 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, Sempra Infrastructure Partners, Sempra Texas, Sempra Texas Utilities, Oncor and Infraestructura Energética Nova, S.A.P.I. de C.V. (IEnova) are not the same companies as the California utilities, SDG&E or SoCalGas, nor are they regulated by the CPUC

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