SRE US S&P 500Russell 1000 Earnings call
Sempra (SRE) · Q2 2026 results and valuation
Share price: $78.22 · 2026-11-11
Sempra is a holding company that operates regulated electric and gas utilities and energy infrastructure. The company provides energy services to customers in California and Texas, and maintains investments in energy networks and low carbon solutions in the United States and Mexico. Source: 10-K annual report (2026-02-26)
Results Q2 2026 vs Q1 2026 · previous quarter · published 20 Nov 2025 and 7 May 2026
Management sounded about as positive as a typical company call, in its script and in answers to analysts.
1 · Numbers
—
No financial figures for this pair
Outlook given
2 · How management spoke
Typical
More upbeat than 57% of company calls
Answers to analysts: typical, in line with the script.
Similar to last call.
3 · What stood out
Sempra's sales conversion increased to 14.6% from 12.8%, moving closer to the company's long-chased target of 15%.
Valuation
Is Sempra undervalued?
Reverse DCF on net income from the last full fiscal year (no meaningful free cash flow: a bank, insurer or a year of negative cash flow) (2025-12-31), grown for 10 years, discounted back, plus a terminal value. “Implied growth” is the rate the current price assumes.
The projected cash flow doesn't cover the debt, so the price is far above the model's fair value.
Current price
$78.22
close of 2026-11-11
Market implies growth of iThe yearly free-cash-flow growth, for the next 10 years, that today’s share price already assumes. If you believe the company grows faster than this, the stock is cheap under this model; slower, and it is expensive.
+19.4% for 10 yrs
Fair value / share
$-23.93
Buy below
$-17.94
Price vs fair value
n/a
Price vs buy-below price
n/a
Management expects
Sales +15% · from the Q2 2026 report: “Sales conversion increased to 14.6% from 12.8%, bringing the metric closer to the long-chased target of 15%.”
A guidance figure for sales, usually one year ahead, not a 10-year free-cash-flow rate.
Read between the lines
-
Guidance
Sales conversion increased to 14.6% from 12.8%, bringing the metric closer to the long-chased target of 15%.
-
Figure
The company expects to remove current headwinds to return to a 65% growth profile once certain actions are completed.
Source quote
“But once we do, the growth profile of this business will no longer have the headwinds. So therefore, you will really see the top come off it, and we'll then be able to return back to 65% in a very --.”
-
Figure
SRE grew its like-for-like rent roll by more than 5% in the period to September 2025.
Source quote
“In the period to September '25, we successfully grew like-for-like rent roll by more than 5%.”
-
Figure
SRE increased pricing by 4.7% this quarter, which impacted revenue drivers.
Source quote
“We were able to increase pricing by 4.7%.”
-
Figure
SRE will see a EUR 20 million annualized effect reflected in next year's numbers.
Source quote
“So that's a EUR 20 million annualized effect that's going to bake through into next year's numbers.”
4 more
-
Figure
SRE established a minimum 30% return on investment as a requirement for cash return on what they spend.
Source quote
“We put a minimum 30% return on investment. So that's cash return on what we spend.”
-
Figure
The like-for-like underlying rate in the portfolio increased by 4.1% from GBP 14.38 per square foot to GBP 14.97.
Source quote
“We actually dipped below the move-out rate on the move-ins, but we were still successful in that equation in terms of lifting the like-for-like underlying rate in the portfolio by 4.1%, namely from 14.38p (sic) [ GBP 14.38 ] per square foot to GBP 14.97.”
-
Figure
The company earmarked cash and RCF to repay a EUR 400 million debt maturing in June 2026 because the amount is essentially refinanced.
Source quote
“June '26, EUR 400 million comes due. That is essentially refinanced. We have the cash plus RCF to be able to repay that, and we have that cash earmarked for that.”
-
Figure
SRE reported 6.6% FFO growth supported by 5.2% like-for-like rent roll growth and a 15.2% increase in total rent roll as a marker for future direction.
Source quote
“So 6.6% FFO growth, underpinned by that 5.2% like-for-like rent roll, but the 15.2% increase in total rent roll gives you the marker as to where we are heading.”
Tone
How upbeat the language was, compared with other companiesiTone counts positive minus negative finance words, adjusted for length. Executives mostly speak positively, so the labels compare each call with every company's latest call: “typical” is the middle third, “very upbeat” the top tenth, “cautious” the bottom tenth.. Dot: Q2 2026. Ring: Q1 2026.
Script and answers carried a similar tone, so the script's message held up under questioning.
Sentences that drove the tone
“So I think what have we seen in this period, we've seen fantastic strong organic growth as well as acquisitive growth that is in the tank, which has partly come...”
“And what I'd like to finish on is the 10-year track record of performance and growth where this company is concerned, and particularly at the top, the dividend, where we...”
“As we grow the asset base, and we grow the income base, we are keeping a very tight control of our costs and to then improve our margins.”
Topics
Most discussed now
- New As I've mentioned in the past, as Sempra has acquired assets, it is in acquisition mode, very active acquisition mode.
- New The Dresden MicroPolis site is probably going to depend not necessarily a firm pre-let, but at least some very strong...
- From a business planning perspective, it made sense to realize that asset at this time.
- Sempra has got great support from the debt capital markets.
- The Gartenfeld opportunity new build is likely to tangibly start in the new year.
Faded since Q1 2026
- Fading Remember, you have to get CCNs, you have to get rights of way—there are things out there—but Sempra has a...
- Dropped Approximately two weeks ago—Thursday or Friday, I do not remember—ERCOT released those 4 gigawatts of South Dallas projects, and they...
- Dropped Thus far, Sempra has gotten FERC approval, competition approval from Korea, it has reached the end of the HSR period,...
- Dropped Moody’s also wants to see some further progress on Sempra's construction projects, so they are tracking pipe installation...
Latest announcements
Official filings, newest first. Summaries are generated from each filing and its attachment; every figure is checked against the source.
- Results of operations · SEC 8-K
- Other events · SEC 8-K
Southern California Gas Company, an indirect subsidiary of Sempra, closed a public offering and sale of $500,000,000 of its 5.500% First Mortgage Bonds, Series GGG, due 2036.
- Other events · SEC 8-K
On August 17, 2026, Southern California Gas Company, an indirect subsidiary of Sempra, entered into an underwriting agreement with several financial institutions.
- Results of operations · SEC 8-K
Sempra reported GAAP earnings of $796 million or $1.21 per diluted share for the second quarter of 2026, compared to $461 million or $0.71 per diluted share in the second quarter of 2025.
- Director or officer change · SEC 8-K
Sempra appointed Justin C. Bird as Executive Vice President and Chief Financial Officer, effective on a date to be determined in the third quarter of 2026.
- Regulation FD disclosure · SEC 8-K
SDG&E and SoCalGas filed 2028 GRC applications requesting test year revenue requirements of $3,760 million and $5,096 million respectively, with no year-over-year comparison provided in the filing.
- Other events · SEC 8-K
Sempra closed a public offering and sale of $1,000,000,000 aggregate principal amount of its Floating Rate Notes due 2028 on June 9, 2026.
- Other events · SEC 8-K
Southern California Gas Company closed a public offering and sale of $650,000,000 of its 5.900% First Mortgage Bonds, Series FFF, due 2056.
Balance sheet & ownership
From SEC filings; short interest is FINRA data via Yahoo. Collected 2026-10-19.
Cash & runway
Cash & equivalents
$794.0M
2026-03-31
Implied runway
—
operating cash flow positive over the TTM window
Dilution
weighted-average basic shares, per quarter. Change: +0.2% YoY.
| Quarter | Shares |
|---|---|
| Q2 2024 | 633.5M |
| Q3 2024 | 633.8M |
| Q1 2025 | 652.0M |
| Q2 2025 | 652.7M |
| Q3 2025 | 652.9M |
| Q1 2026 | 653.6M |
Insider transactions
Form 4 open-market trades (codes S/P), trailing 12 months. Coverage: newest 50 of 89 filings; 50 filings parsed.
Sold by insiders
16.6K shares
$1.5M · 6 transactions
Bought by insiders
1.0K shares
$93.4K · 1 transactions
Net direction
net selling
Catalyst calendar
management-stated targets — from the latest earnings call; plans, not promises.
-
the next 2 or 3 years
headwinds of finance cost
Source quote
“I'm going to be -- unfortunately, I'm going to continue to talk about headwinds of finance cost, unfortunately, for the next 2 or 3 years.”
-
the second half
valuation gain
Source quote
“I would expect to achieve better than that in the second half.”
-
second half
expected effect from acquisitions
Source quote
“But what you've got is you've got over EUR 9 million of second half effect to come from those acquisitions.”
-
next year's numbers
baked-in effect of acquisitions
Source quote
“So that's a EUR 20 million annualized effect that's going to bake through into next year's numbers.”
-
at least a 3-year runway
growth in the business
Source quote
“And so you have at least a 3-year runway of growth in the business.”