Sempra SRE is strengthening operational reliability and improving customer service through strategic infrastructure investments while continuing to grow its renewable energy portfolio.
However, this Zacks Rank #3 (Hold) company continues to face risks associated with wildfires.
Factors Supporting SRE’s Growth
Sempra is solidifying its position in global LNG markets through a portfolio designed to meet growing international energy demand. As North American liquefaction capacity expands, Sempra Infrastructure is advancing key LNG projects, including the start-up of the Energía Costa Azul LNG Phase 1 facility, with first production expected soon and contracted revenue generation to follow. The company is also progressing Port Arthur LNG Phases 1 and 2 on schedule and within budget, supporting long-term growth opportunities.
Sempra is investing heavily in energy infrastructure to meet rising electricity demand, including growth driven by AI-powered data centers. The company invested $3 billion in the first quarter of 2026 and plans to spend $13 billion this year, with more than $10 billion allocated to its U.S. utilities for transmission, distribution and grid modernization projects. Sempra expects to invest nearly $65 billion between 2026 and 2030 to support long-term energy demand growth and infrastructure expansion.
Sempra continues to expand its renewable energy portfolio as demand for cleaner energy sources grows. As of Dec. 31, 2025, Sempra Infrastructure had 1,044 megawatts (MW) of fully contracted wind and solar generation capacity in operation, while rooftop solar installations across SDG&E’s service territory totaled 2,452 MW. In March 2026, the company also commenced commercial operations at the nearly 320 MW Cimarrón Wind project in Baja California, Mexico. These investments support Sempra’s long-term clean energy strategy and its goal of achieving net-zero carbon emissions by 2050.
Factors That Could Pressure SRE’s Growth
In recent years, California has experienced some of its most severe wildfire seasons, which could result in temporary power outages across SDG&E and SoCalGas service territories. These events also pose a threat to Sempra’s electric and natural gas infrastructure and may lead to substantial financial losses.
Sempra Infrastructure is additionally subject to risks associated with its partnerships with Mexico’s state-owned entities, PEMEX and CFE. Factors such as their financial condition, regulatory challenges and ability to fulfill contractual obligations could impact Sempra’s operations and financial performance if these counterparties fail to meet their commitments.
SRE Stock Price Movement
Over the past six months, Sempra shares have risen 2.9% compared with the industry’s growth of 1.3%.
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Stocks to Consider
Some better-ranked stocks from the same industry are Crescent Energy Company CRGY and Bloom Energy BE, which sport a Zacks Rank #1 (Strong Buy), and Alvopetro Energy ALVOF, carrying a Zacks Rank #2 (Buy) at present. You can see the complete list of today’s Zacks #1 Rank stocks here.
The Zacks Consensus Estimate for CRGY’s 2026 sales is pinned at $4.88 billon, which indicates a year-over-year increase of 36.4%. The Zacks Consensus Estimate for its 2026 EPS is pegged at $2.51, which implies a year-over-year jump of 39.4%.
The Zacks Consensus Estimate for BE’s 2026 sales is pinned at $3.65 billon, which calls for a year-over-year surge of 80.3%. The Zacks Consensus Estimate for its 2026 EPS is pegged at $1.91, which implies a massive year-over-year jump of 151.3%.
The Zacks Consensus Estimate for ALVOF’s 2026 sales stands at $77.7 million, which suggests a year-over-year rise of 34.1%. The Zacks Consensus Estimate for its 2026 EPS is pegged at 89 cents, which indicates a year-over-year increase of 45.9%.
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Sempra (SRE): Free Stock Analysis Report
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Crescent Energy Company (CRGY): Free Stock Analysis Report
This article originally published on Zacks Investment Research (zacks.com).