Company: SREA
Filing Date: 2025-08-07
Form Type: 10-Q
Source: 0001032208-25-000048
Chunk: 103

Company: SEMPRA
Filing Date: 2025-08-07
Form: 10-Q
Item: Item 1
Chunk 103
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�$34 million at Parent and other from higher debt balances from debt issuances

▪$19 million at Sempra California from higher debt balances from debt issuances

Offset by:

▪$6 million at Sempra Infrastructure primarily from $9 million in unrealized gains in 2025 on interest rate swaps related to the PA LNG Phase 1 project

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Table of Contents

In the six months ended June 30, 2025 compared to the same period in 2024, Sempra’s interest expense increased by $176 million (29%) to $792 million primarily due to:

▪$71 million at Sempra Infrastructure primarily from $56 million in unrealized losses in 2025 on interest rate swaps related to the PA LNG Phase 1 project

▪$65 million at Parent and other from higher debt balances from debt issuances offset by lower borrowings on commercial paper and higher capitalization of interest expense on projects under construction at Sempra Infrastructure

▪$39 million at Sempra California from higher debt balances from debt issuances

Income Taxes

INCOME TAX EXPENSE (BENEFIT) AND EFFECTIVE INCOME TAX RATES(Dollars in millions)Three months ended June 30,Six months ended June 30,2025202420252024Sempra:Income tax expense (benefit)$172 $(130)$229 $42 Income before income taxes and equity earnings$298 $308 $949 $1,013 Equity earnings, before income tax(1)169 160 310 294 Pretax income$467 $468 $1,259 $1,307 Effective income tax rate37 %(28)%18 %3 %

(1)    We discuss how we recognize equity earnings in Note 5 of the Notes to Consolidated Financial Statements in the Annual Report.

We report as part of our pretax results the income or loss attributable to NCI. However, we do not record income taxes for a portion of this income or loss, as some of our entities with NCI are currently treated as partnerships for U.S. income tax purposes, and thus we are only liable for income taxes on the portion of the earnings that are allocated to us. Our pretax income, however, includes 100% of these entities. If our entities with NCI grow, and if we continue to invest in such entities, the impact on our ETR may become more significant.

In the