Sempra: 2Q26 Preview: Texas Capital (Still) Accelerating

Research evidence excerpt

Sempra: 2Q26 Preview: Texas Capital (Still) Accelerating

Equity Research

North America Power & Utilities

8 July 2026

Sempra

2Q26 Preview: Texas Capital (Still)

Accelerating

We preview 2Q for SRE: historically quiet, but Oncor's CapEx SRE OVERWEIGHT

momentum is continuing & Batch Zero is incremental to Unchanged

North America Power &

Oncor's already identified $10bn upside capital plan. Quarter Utilities POSITIVE

Unchanged

EPS looks in-line and SIP / EcoGas close on track. PT to $103 Price Target USD 103.00

lowered -2% from USD 105.00& Maintain OW rating.

Price (07-Jul-26) USD 94.59

Potential Upside/Downside +8.9%What we expect on the 2Q26 call: We expect guidance re-affirmation, including: FY26/FY27 EPS

Source: Bloomberg, Barclays Research

guidance of $4.80-5.30/$5.10-5.70, and long-term EPS guidance outlook of $6.70-7.50 in 2030

along with the 7-9% LT EPS growth trajectory. We think mgmt will reaffirm its 5yr capital plan of

Market Cap (USD mn) 61832$65bn, with $10bn of incremental capital opportunities beyond the base capital plan, and

Shares Outstanding (mn) 653.69growing at Oncor through the Batch Zero process that will continue to evolve through Summer.

Free Float (%) 99.96SIP was targeted to close in Q2/Q3, which we think remains on track along with the EcoGas sale.

52 Wk Avg Daily Volume (mn) 3.8We see an inline quarter for SRE, as we estimate 2Q26 EPS of $1.04 (Cons $1.03), driven by flat

Dividend Yield (%) 2.78CA earnings and positive TX earnings through the UTM and new rate true-ups at Oncor. From a

Return on Equity TTM (%) 6.12valuation perspective, shares look increasingly attractive to us, trading at an -8% P/E discount to

Current BVPS (USD) 49.34large caps on 2028E. Sempra's capital opportunity in Texas continues to grow, with duration into