Sempra stock draws valuation focus after utility reshaping

Sempra completed the sale of a 45% equity interest in Sempra Infrastructure Partners to affiliates of KKR on Thursday, Nov. 12, according to the company's press release. The KKR-led consortium now holds 65% of SI Partners, while Sempra retains a 25% stake alongside a 10% interest held by an Abu Dhabi Investment Authority affiliate.

The transaction advances Sempra's capital recycling strategy and sharpens its focus on regulated utilities in Texas and California. Chief Executive Jeffrey W. Martin said the deal should simplify the business model, strengthen the financial position and support utility growth. The release did not present the closing as a change to the company's existing 2026 earnings guidance.

Texas growth shapes the outlook

Sempra's latest earnings update points to electricity demand as a central growth driver. Oncor's projected 2027-2031 base capital plan is expected to increase by about 20% compared with its 2026-2030 plan, reflecting reliability investments and load growth in the Electric Reliability Council of Texas market. Sempra expects to finalize the plan with its fourth-quarter results in February 2027.

In the third quarter, Oncor recorded a system peak demand of 33.3 gigawatts, up from 31.4 gigawatts a year earlier. The company said large-load projects in Oncor's service territory included about 24 gigawatts classified as base load and 21 gigawatts classified as studied load, supporting the case for continued transmission investment.

Regulatory risk remains visible

California remains the main counterweight to the Texas expansion story. A proposed decision by the California Public Utilities Commission on Oct. 29 denied a request involving the 2024 General Rate Case capital attrition mechanism. Sempra said an unfavorable outcome could place 2027 earnings at the lower end of its segment guidance range unless offset by other measures.

Sempra reported third-quarter 2026 adjusted earnings of 917 million US dollars, or 1.40 US dollars per diluted share, compared with 728 million US dollars, or 1.11 US dollars per share, a year earlier. The company guided to the high end of its 2026 adjusted EPS range of 4.80 to 5.30 US dollars and affirmed its 2027 range of 5.10 to 5.70 US dollars. The adjusted figures exclude significant items including regulatory disallowances and transaction-related effects.

Valuation tests the growth case

In an analysis published Friday, Nov. 13, Simply Wall St said Sempra traded on a price-to-earnings multiple of about 16.9, below the integrated utilities sector at roughly 17.8 and a broader peer group at around 21.0. The analysis described the discount as a sign that investors continue to weigh execution and regulatory risks against the longer-term Texas investment runway.

Sempra stock traded at 71.63 euros on Lang & Schwarz at 1:59:55 p.m. CET on Friday, Nov. 13, 2026. The quote provides a current trading reference, while the next scheduled investor milestones are the fourth-quarter results and the updated Oncor capital plan in February 2027.

The broader U.S. market context is available in the S&P 500 market coverage.

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