Company: SREA
Filing Date: 2025-08-07
Form Type: 10-Q
Source: 0001032208-25-000048
Chunk: 104

Company: SEMPRA
Filing Date: 2025-08-07
Form: 10-Q
Item: Item 1
Chunk 104
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 three months ended June 30, 2025 compared to the same period in 2024, Sempra had an income tax expense in 2025 compared to an income tax benefit in 2024 primarily due to:

▪$308 million from $122 million income tax expense in 2025 compared to $186 million income tax benefit in 2024 from foreign currency and inflation effects on our monetary positions in Mexico

▪$38 million income tax expense in 2025 due to the recognition of a Mexican deferred tax liability on our outside basis difference in Ecogas as a result of management’s decision to hold the asset for sale

Offset by:

▪higher income tax benefit in 2025 from higher ITCs from standalone energy storage projects

In the six months ended June 30, 2025 compared to the same period in 2024, Sempra’s income tax expense increased by $187 million primarily due to:

▪$245 million from $112 million income tax expense in 2025 compared to $133 million income tax benefit in 2024 from foreign currency and inflation effects on our monetary positions in Mexico

▪$38 million income tax expense in 2025 due to the recognition of a Mexican deferred tax liability on our outside basis difference in Ecogas as a result of management’s decision to hold the asset for sale

Offset by:

▪higher income tax benefit in 2025 from higher ITCs from standalone energy storage projects

▪higher income tax benefits from flow-through items

▪lower pretax income

We discuss the impact of foreign currency exchange rates and inflation on income taxes below in “Impact of Foreign Currency and Inflation Rates on Results of Operations.” See Note 1 of the Notes to Condensed Consolidated Financial Statements in this report and Notes 1 and 7 of the Notes to Consolidated Financial Statements in the Annual Report for further details about our accounting for income taxes and items subject to flow-through treatment.

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Table of Contents

Equity Earnings

In the three months ended June 30, 2025 compared to the same period in 2024, Sempra’s equity earnings decreased by $40 million (9%) to $393 million primarily due to:

▪$51 million at IMG due to income tax expense in 2025 compared to an income tax benefit in 2024 primarily from foreign currency and inflation effects

▪$5 million at TAG Norte due to income tax expense in 2025 compared to an