Citi Research Global Technology, Communications, Real Estate, Energy, and Industrials February 23, 2026 Data Center GAINs (Gen AI Names) Multi-Asset Strong Absorption Supports Solid 2026 and LT Data Center Demand | Equities | | | | | ABS | | --- | --- | --- | --- | --- | --- | | Michael Rollins, CFAAC +1 212 816-3116 | Heath TerryAC +1 212 723-4624 | Caitlyn Walsh caitlyn.walsh@citi.com | | | | | michael.rollins@citi.com | heath.terry@citi.com | | | | | | Siraj Ahmed AC | AC Scott Gruber | Andrew KaplowitzA ...

Key Takeaways Sempra Energy is set to report Q4 results, with earnings seen down 24.7% year over year.New interim rates and rate-based growth likely supported regulated earnings and top-line performance.SRE is expected to face headwinds from mild weather, higher operating costs and increased interest expenses.Sempra Energy (SRE) is scheduled to release fourth-quarter 2025 results on Feb. 26, before market open. The company delivered an earnings surprise of 19.35% in the last reported quarter. Let’s discuss ...

Sempra (NYSE:SRE) is one of the best infrastructure stocks to buy right now. On January 26, Jefferies’ Julian Dumoulin-Smith lowered his price target on Sempra (NYSE:SRE) to $89 from $95 and kept the Hold recommendation intact. The analyst cited California risks as the reason for the price target reduction. Sempra (SRE) Confronts Legal Uncertainty, Analysts Adjust Targets The adjustment stems from new legal challenges facing SoCalGas, a Sempra unit, over its response to the Eaton fire. This challenge, sa ...

Group 1 - The core viewpoint of the articles indicates that Sempra Energy is receiving significant attention from institutions, with an average target price of $100.43 and a maximum target price of $112.00, reflecting a positive sentiment where 63% of ratings are "buy" or "hold" [1] - The company announced the sale of its Mexican energy infrastructure assets and a minority stake in Sempra Infrastructure, with the transaction expected to be completed by mid-2026, which may impact its future business structure [1] - Earnings forecasts suggest that several institutions predict a decline in earnings per share to $1.172 for Q4 2025, a year-over-year decrease of 26.84%, while Q3 2025 net profit is expected to grow by 28.62%, indicating long-term growth potential [1] Group 2 - As of February 11, 2026, Sempra Energy's stock price is reported at $90.24, with a daily increase of 0.60% and a 7-day increase of 4.17%, showing a price fluctuation of 5.75% [2] - During the same period, the U.S. utility sector rose by 0.93%, providing support for Sempra Energy's stock price [2]

Group 1 - Sempra Energy plans to sell its Mexican energy infrastructure assets and a minority stake in Sempra Infrastructure, with the transaction expected to be completed by mid-2026 [1][2] - This action is part of a trend in the U.S. utility sector aimed at optimizing asset structures [2] Group 2 - During the Q3 2025 earnings call, the company's management confirmed the adjusted earnings per share (EPS) guidance for 2026 to be in the range of $4.80 to $5.30, as part of its long-term strategy [3]

Company Developments - Sempra Energy plans to sell 15%-30% of its stake in Sempra Infrastructure to optimize its capital structure [1] - The company is advancing the final investment decision for the second phase of the Port Arthur LNG project and aims to achieve the commissioning of the ECA LNG and Cimarron Wind projects [1] Strategic Initiatives - The company's mid-to-long-term strategy focuses on transitioning to a utility-led model, with a potential additional investment of approximately $12 billion in Texas capital plans [2] - The company intends to optimize Oncor's capital returns through the UTM mechanism [2] Financial Performance - For the third quarter of fiscal year 2025 (ending September 30, 2025), Sempra Energy reported a revenue increase of 5.58% to $9.953 billion, while net profit decreased by 36.76% year-on-year [3]

Core Viewpoint - Sampra Energy (SRE) has garnered attention from institutions, with a positive outlook reflected in target price predictions and institutional ratings [1] Institutional Price Targets - As of February 11, 2026, 14 institutions have provided target price forecasts, with an average target price of $100.43, indicating potential upside from the current stock price [1] - The highest target price is $112.00, while the lowest is $89.00 [1] Institutional Ratings - In February 2026, 19 institutions released their views, with 63% recommending "buy" or "hold," and 37% suggesting "hold," with no "sell" ratings, indicating a generally positive sentiment among institutions [1] Earnings Forecast - Multiple institutions predict that the earnings per share (EPS) for Q4 2025 will be $1.172, which may represent a year-over-year decline of 26.84% [1] - However, the net profit forecast for Q3 2025 is expected to grow by 28.62% year-over-year, reflecting long-term growth potential [1] Stock Performance - Over the past week, Sampra Energy's stock price has shown a volatile upward trend, with a range increase of 4.17% and a fluctuation of 5.75% [1] - The latest stock price on February 11 is $90.24, up by $0.60 from the previous day, with a low trading volume and a turnover rate of only 0.02% [1] Market Context - During the same period, the U.S. utility sector rose by 0.93%, while major indices like the Dow Jones and Nasdaq increased by 0.27% and 0.45%, respectively, providing support for the stock price [1]

Core Viewpoint - Oncor Electric Delivery Company LLC is set to release its fourth quarter and year-end 2025 results on February 26, 2026, prior to Sempra's own results conference call [1] Group 1: Financial Results Announcement - Oncor's earnings release will be available on its website [1] - Sempra executives will host a conference call at 12 p.m. ET on February 26 to discuss Oncor's operational and financial results [1] - An accompanying slide presentation will be posted on Sempra's investor section prior to the conference call [1] Group 2: Accessibility of Information - The live webcast of the conference call can be accessed by registering on Sempra's website [1] - A replay of the webcast will be available a few hours after its conclusion [1] - Oncor's Annual Report on Form 10-K for the year ended December 31, 2025, will be filed with the U.S. Securities and Exchange Commission after Sempra's conference call [1] Group 3: Company Overview - Oncor is headquartered in Dallas and operates the largest transmission and distribution system in Texas [1] - The company delivers electricity to over 4.1 million homes and businesses and manages more than 145,000 circuit miles of transmission and distribution lines in Texas [1] - Oncor is owned by Sempra (indirect majority owner) and Texas Transmission Investment LLC (minority owner), with management by a Board of Directors comprising a majority of disinterested directors [1]

Core Viewpoint - Sempra is set to announce its fourth-quarter and full-year 2025 earnings results on February 26, 2026, along with an update on its five-year financial plan [1]. Group 1: Earnings Announcement - The earnings results will be released by 8 a.m. ET on February 26, 2026 [1]. - A conference call with a slide presentation will be hosted by senior leaders at 12 p.m. ET on the same day [1]. - Related materials will be published prior to market open on February 26 [1]. Group 2: Company Overview - Sempra aims to build America's leading utility growth business and owns one of the largest energy networks in North America [3]. - The company is focused on enhancing energy resilience in California and Texas, the two largest economies in the U.S. [3]. - Sempra is recognized for its responsible business practices and high-performance culture, as evidenced by its inclusion in The Wall Street Journal's Management Top 250 and Fortune's World's Most Admired Companies [3].

Core Insights - Southern California Gas Co. (SoCalGas) is participating in the World Ag Expo to provide information on safety, energy affordability, and reliability programs to customers in the San Joaquin Valley [1][2] - The company will showcase various customer resources, including bill assistance programs, energy efficiency rebates, and pipeline safety tips [1][2] - SoCalGas is collaborating with BSD Builders, Inc. on 10 active development projects focused on onsite microgrid and combined heat and power (CHP) solutions, which are designed to ensure continuous power for critical facilities [2][3] Company Overview - SoCalGas is the largest gas distribution utility in the U.S., serving over 21 million consumers across approximately 24,000 square miles in Central and Southern California [5] - The company has been recognized for its community involvement, being named Corporate Member of the Year by the Los Angeles Chamber of Commerce [5] - SoCalGas has participated in every World Ag Expo since its inception in 1968, demonstrating its long-standing commitment to the agricultural community [3][4] Industry Context - Microgrids are increasingly viewed as a cost-effective and reliable solution for businesses requiring continuous power, aligning with state reliability goals [2][3] - The collaboration between SoCalGas and BSD Builders aims to support growth in critical sectors such as healthcare, agriculture, and food processing [3] - The presence of SoCalGas at the World Ag Expo provides attendees with valuable access to resources and expertise, reflecting the company's commitment to the communities it serves [4]