Sempra

Strong quarterly + YTD performance; 2026 high-end EPS guidance reaffirmed - Q3 2026 GAAP: $877m / $1.34 EPS vs Q3 2025 $77m / $0.12 EPS. - Q3 2026 adjusted: $917m / $1.40 EPS, +26% YoY vs Q3 2025 $728m / $1.11 EPS. - Full-year 2026 adjusted EPS guidance: $4.80–$5.30, guiding to the high end. - 2027 adjusted EPS guidance reaffirmed: $5.10–$5.70 (with note: regulatory outcomes could push toward the lower half). - Long-term EPS growth target affirmed: 7%–9%.

Texas / Oncor is the main earnings growth engine (and key driver of future outlook) - Management attributes growth primarily to Sempra Texas, driven by: - Higher capital investment - Completion of Oncor’s rate case (cost structure update) - Unified tracker mechanism - Plus demand strength: Oncor hit a new peak of 33 GW (+6% vs prior record), underscoring demand exceeding expectations. - Base capital plan expectation (important forecast): Oncor expected to see an ~20% increase in its 2027–2031 base capital plan vs the prior plan. - Planned 5-year capital disclosure: Company expects to announce 2027–2031 base capital plan in February.

Transmission investment opportunity, but with political/legislative uncertainty (surprising emphasis on “confidence” despite risk) - Jeff Martin addressed Texas political change concerns (e.g., data center rhetoric) and framed execution focus: “work with the new administration” and keep customer/reliability fundamentals central. - Counterbalance to risk: Despite political uncertainty, management says it is highly confident in the capital plan mechanics because: - The expected +20% roll-forward to base plan is disciplined and based on approved/endorsed projects. - The 20% step-up is not expected to include certain “incremental” items: SRP and Eastern Step 765 projects are explicitly excluded from the expected base roll-forward. - Surprising detail: Management referenced “Batch Zero” not entering the February plan period (limits upside appearing earlier than 2027).