Company: SREA
Filing Date: 2025-11-05
Form Type: 10-Q
Source: 0001032208-25-000065
Chunk: 120

Company: SEMPRA
Filing Date: 2025-11-05
Form: 10-Q
Item: Item 1
Chunk 120
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$39 million at Parent and other from higher debt balances from debt issuances

▪$21 million at Sempra California from higher debt balances from debt issuances

▪$16 million at Sempra Infrastructure primarily from higher interest expense related to a customer’s early termination of firm transportation agreements

In the nine months ended September 30, 2025 compared to the same period in 2024, Sempra’s interest expense increased by $251 million (27%) to $1.2 billion due to:

▪$104 million at Parent and other from higher debt balances from debt issuances offset by higher capitalization of interest expense in 2025 from projects under construction at Sempra Infrastructure

▪$87 million at Sempra Infrastructure primarily from $60 million in unrealized losses in 2025 on interest rate swaps related to the PA LNG Phase 1 project and higher interest expense related to a customer’s early termination of firm transportation agreements offset by higher capitalization of interest expense in 2025 from projects under construction

▪$60 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 September 30,Nine months ended September 30,2025202420252024Sempra:Income tax expense (benefit)$482 $(105)$711 $(63)Income before income taxes and equity earnings$160 $200 $1,109 $1,213 Equity earnings, before income tax(1)133 132 443 426 Pretax income$293 $332 $1,552 $1,639 Effective income tax rate165 %(32)%46 %(4)%

(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