Sempra on Tuesday lowered its 2025 profit forecast and gave an outlook for earnings next year that was below Wall Street estimates, as the San Diego-based utility firm said it faced challenges with high costs.
Shares of the company, which is the parent of San Diego Gas & Electric, fell 11.7% in premarket trading as it lowered its 2025 profit forecast to be between $4.30 per share and $4.70 per share, from a range of $4.90 per share to $5.25 per share earlier.
The company also issued a forecast of $4.80 to $5.30 per share for 2026 profit, which was lower than Wall Street expectations of $5.56 per share, according to data compiled by LSEG.
Sempra’s fourth-quarter earnings also missed Wall Street estimates due to weak demand at its Texas unit amid a milder winter. Earnings from its Texas utilities fell about 7.5% to $135 million compared with a year ago.
U.S. Energy Information Administration had indicated that during the fourth quarter, the country experienced fewer heating degree days — a metric used to assess energy demand for space heating — compared to a year ago.
The utility firm also increased its capital expenditure plan for 2025-29 by 16% to $56 billion to focus on regulated utility investments in Texas and California.
Utilities are ramping up investments in projects to improve grid resiliency amid rising demand from data centers to cater to the artificial intelligence wave.
Sempra reported an adjusted profit of $1.50 per share for the quarter ended Dec. 31, missing analysts estimate of $1.60 per share.
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