Sempra (SRE) Reaffirms 2025 Outlook as Texas Data Center Demand Fuels Utility Growth

We recently published 11 Most Profitable Utility Stocks to Buy According to Hedge Funds. Sempra (NYSE:SRE) is one of these profitable utility stocks.

Sempra (NYSE:SRE), based in San Diego, operates regulated utilities in California and Texas along with infrastructure businesses in the U.S., Mexico, and abroad. The company is shifting toward a utility-focused model, prioritizing infrastructure investments and cleaner energy initiatives.

In Q2 2025, Sempra (NYSE:SRE) reported adjusted EPS of $0.89, flat year-over-year, and reaffirmed its full-year guidance, reflecting a focus on long-term growth over short-term fluctuations. Its Texas subsidiary, Oncor, saw a 40% jump in interconnections and added 20,000 new premises, driven largely by demand from data centers and other energy-intensive industries.

New regulatory mechanisms in Texas, like the Unified Tracker, are expected to improve cost recovery and boost returns, reinforcing its position among the most profitable stocks in the utility sector.

The company plans $13 billion in capital investments for 2025, with more than $5 billion already deployed in the first half, largely toward utility operations. Sempra (NYSE:SRE) is also selling non-core assets, including Mexican gas distributor Ecogas and part of Sempra Infrastructure Partners, to reallocate capital into higher-return regulated utilities.

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Major infrastructure projects are advancing, including Cimarrón Wind, ECA LNG Phase 1, and Port Arthur LNG, alongside wildfire mitigation work, which has fully hardened San Diego Gas & Electric’s transmission systems in the highest fire-risk areas.

Sempra (NYSE:SRE) expects its rate base to grow from $57 billion in 2025 to $80 billion by 2029, with utilities driving most of that growth. Long-term adjusted EPS is projected to rise 7–9% annually through 2029, underscoring confidence in its strategy and positioning as a stable, utility-focused growth stock.

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