How does Sempra's Q2 2025 profitability and margins compare to its main competitors in the utilities sector?

Answer

Based on the press‑release you provided, Sempra’s second‑quarter 2025 (Q2 2025) results are as follows:

From these figures we can draw a few high‑level observations about Sempra’s Q2 2025 profitability:

1. Revenue & earnings contraction – Net earnings fell ≈ 35 % year‑over‑year (from $713 M to $461 M).
   
2. EPS – At $0.71 per diluted share, the quarter’s earnings are modest for a utility of Sempra’s size; without the Q2 2024 EPS figure we can’t compute the exact percentage change in EPS, but the decline in net earnings suggests a comparable dip in EPS.

What’s missing for a full “profitability‑and‑margin” comparison?

To benchmark Sempra’s profitability and margins against its main utilities peers (e.g., NextEra Energy (NEE), Duke Energy (DUK), Dominion Energy (D), American Electric Power (AEP), etc.), we would typically need the following data for each company:

The press release excerpt you shared does not include:

• Revenue or operating income for Q2 2025 (needed to compute operating or net margins).
  
• Adjusted EBITDA or any other non‑GAAP profitability measures that many utilities report.
  
• Comparable figures for Sempra’s 2024 Q2 beyond net earnings, which would let us calculate the change in margins year‑over‑year.
  
• Any data on Sempra’s peer group (their earnings, margins, or guidance).

How you could obtain a meaningful comparison

1. Gather Sempra’s full earnings release (usually posted on the company’s investor‑relations website). The complete filing will list:

   • Total revenue (or “total operating income”) for the quarter.
     
   • Operating income, net income, and adjusted EBITDA.
     
   • Segment‑level performance (e.g., regulated utility vs. energy‑related businesses).
     

2. Collect the same quarter’s results for the major utilities peers:

   • Look up Q2 2025 earnings releases for NextEra Energy, Duke Energy, Dominion Energy, American Electric Power, and any other utilities you consider “main competitors.”
     
   • Extract the same set of metrics (revenue, operating income, net income, adjusted EBITDA, EPS, and any disclosed margins).

3 Calculate the key profitability ratios for each company:
- Operating margin = Operating income ÷ Revenue.

- Net margin = Net earnings ÷ Revenue.

- EBITDA margin = Adjusted EBITDA ÷ Revenue.

- Return on equity (ROE) = Net earnings ÷ Shareholders’ equity (if equity figures are available).

1. Benchmark the results:
   • Compare Sempra’s margins to the peer median and to the best‑in‑class performer.
     
   • Note any out‑of‑line items (e.g., one‑time gains/losses, regulatory adjustments) that could distort GAAP margins; many utilities also publish “adjusted” or “non‑GAAP” margins for a cleaner view.

A provisional qualitative assessment (based on what we do know)

• Earnings decline: Sempra’s net earnings dropped sharply (≈ 35 % YoY). If peers are reporting stable or growing earnings, Sempra’s profitability would be below theirs for this quarter.
  
• EPS level: $0.71 per diluted share is modest; many large U.S. utilities post Q2 EPS in the range of $0.80–$1.20 (depending on the company and the mix of regulated vs. non‑regulated assets). If Sempra’s EPS is at the lower end of that range, its profitability per share would be behind higher‑earning peers.
  
• Margin context: Utilities typically enjoy net margins of 10–15 % (regulated) and operating margins of 15–25 %. Without Sempra’s revenue figure, we cannot compute its actual margin, but the earnings contraction suggests that either revenue fell, costs rose, or both—potentially compressing its margin relative to peers.

Bottom line

• Current data limitation: The excerpt you provided does not contain the necessary revenue or margin figures, nor any competitor data, to perform a quantitative profitability‑and‑margin comparison.
  
• Next steps: Retrieve Sempra’s full Q2 2025 earnings release and the Q2 2025 releases of its primary utilities competitors. Then compute operating, net, and EBITDA margins for each firm to see where Sempra stands relative to the sector.
  

If you can share the missing pieces (e.g., Sempra’s total revenue, operating income, adjusted EBITDA, or the comparable figures for its peers), I can immediately generate a detailed side‑by‑side table and highlight any significant gaps or advantages in profitability and margins.