Sempra reaffirms 7%-9% EPS growth target

Sempra reaffirmed a long-term earnings-per-share growth target of 7% to 9% during its Q2 2026 earnings call, officials said. On the same call, the company outlined a plan to sell SI Partners, a transaction that officials said would reduce roughly $9 billion of debt.

The immediate response in equities was not clear following the update. Officials did not provide new numeric guidance for 2026 results as part of the Q2 2026 discussion.

Texas utilities positioned as the largest share of 2030 rate base Officials said Sempra is aiming for its Texas utilities to represent more than 60% of the company’s 2030 rate base. They pointed to growth catalysts at Oncor in describing why Texas is central to the company’s longer-term positioning.

Data referenced in the discussion indicated that the Texas emphasis is a key element of Sempra’s capital-allocation narrative and its projected earnings trajectory. The company’s framing ties the long-term EPS growth range to regulated earnings expansion through the decade.

SI Partners sale plan and the balance sheet focus Officials said proceeds from a sale of SI Partners would be directed toward debt reduction. If completed, they said, the debt paydown would lower leverage metrics and could improve credit flexibility.

Officials also described the transaction timing as a near-term point of focus for investors. Investors are expected to watch whether the SI Partners sale closes by December 31, 2026, because that timeline would shape the near-term effect on leverage and the company’s financing plans.

The company’s update also highlighted a set of risks that investors are likely to track as the strategy unfolds. Officials said the growing concentration in Texas makes state regulatory dynamics and construction execution areas of particular attention.

Officials said that if the SI Partners sale completes as planned, equity investors would see a shift in the balance sheet profile. They said that if the sale does not proceed as expected, leverage would remain higher and could weigh on valuation compared with peers.