Capital expenditure of $2.5 billion in 2026Q1 consistently outpaces operating cash flow, necessitating external financing and resulting in a free cash flow deficit of $652 million.
| Metric | TTM | Dec'25 | Dec'24 | Dec'23 | Dec'22 | Dec'21 | Dec'20 | Dec'19 | Dec'18 | Dec'17 | Dec'16 | Dec'15 | Dec'14 | Dec'13 | Dec'12 | Dec'11 | Dec'10 | Dec'09 | Dec'08 | Dec'07 | Dec'06 | Dec'05 | Dec'04 | Dec'03 | Dec'02 | Dec'01 | Dec'00 | Dec'99 | Dec'98 | Dec'97 | Dec'96 |
|---|
| Cash from Operations | 4.89B | 4.57B | 4.91B | 6.22B | 1.14B | 3.84B | 2.59B | 3.09B | 3.52B | 3.63B | 2.34B | 2.9B | 2.16B | 1.78B | 2.02B | 1.87B | 2.15B | 1.88B | 1.18B | 2.09B | 1.63B | 521M | 1B | 1.12B | 1.37B | 732M | 882M | 1.19B | 1.32B | 539.1M | 559.4M |
| Operating CF Growth % | 34.97% | -6.97% | -21.08% | 444.48% | -70.28% | 48.28% | -16.09% | -12.17% | -3.01% | 54.65% | -19.12% | 34.1% | 21.13% | -11.6% | 8.09% | -13.32% | 14.88% | 58.76% | -43.44% | 28.18% | 212.67% | -47.95% | -10.7% | -18.23% | 87.3% | -17.01% | -25.76% | -10.2% | 145.41% | -3.63% | -9.23% |
| Operating CF / Revenue % | 35.96% | 33.29% | 37.87% | 39.35% | 7.34% | 29.42% | 22.82% | 28.57% | 34.89% | 32.37% | 22.99% | 28.48% | 19.63% | 16.9% | 20.93% | 18.66% | 24.05% | 23.33% | 10.97% | 18.62% | 14.17% | 4.53% | 10.61% | 14.21% | 22.77% | 9.47% | 12.53% | 22.16% | 24.14% | 24.32% | 28.06% |
| Net Income | 2.07B | 866M | 3.5B | 3.62B | 2.29B | 1.46B | 4.11B | 2B | 1.05B | 382M | 1.52B | 1.45B | 1.16B | 1.09B | 920M | 1.38B | 733M | 1.12B | 1.07B | 1.13B | 1.09B | 920M | 895M | 649M | 591M | 518M | 429M | 394M | 294M | 251.6M | 230.9M |
| Depreciation & Amortization | 3.47B | 2.56B | 2.44B | 2.23B | 2.02B | 1.85B | 1.67B | 1.57B | 1.49B | 1.44B | 1.31B | 1.25B | 1.16B | 1.11B | 1.09B | 978M | 867M | 775M | 687M | 686M | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Deferred Taxes | 176M | 533M | -20M | 249M | 392M | -78M | 159M | 189M | -182M | 889M | 217M | 239M | 146M | 334M | -43M | 3M | 37M | 295M | 324M | 149M | 77M | -283M | 13M | -73M | -92M | 106M | 258M | -43M | -199M | 18.7M | -6.9M |
| Other Non-Cash Items | -2M | 458M | -484M | -791M | 397M | -44M | -3.1B | -184M | 671M | 836M | -756M | -279M | 9M | -81M | 292M | -300M | 410M | -106M | -326M | 2M | 582M | 575M | 642M | 840M | 581M | 427M | -215M | 423M | 749M | 366.6M | 368.6M |
| Working Capital Changes | -505M | 145M | -612M | 835M | -4.02B | 583M | -306M | -560M | 404M | 0 | 0 | 188M | -311M | -708M | -281M | -195M | 107M | -211M | -572M | 126M | -121M | -691M | -549M | -295M | 291M | -319M | 410M | 414M | 479M | -97.8M | -33.2M |
| Capital Expenditures | -14.28B | -10.61B | -8.21B | -8.4B | -5.36B | -5.01B | -4.68B | -3.71B | -3.78B | -3.71B | -4.21B | -3.16B | -3.12B | -2.57B | -2.96B | -2.84B | -2.06B | -1.91B | -2.06B | -2.01B | -1.91B | -1.38B | -1.08B | -1.05B | -1.21B | -1.07B | -759M | -589M | -679M | -340.9M | -208.9M |
| CapEx / Revenue % | 104.96% | 77.39% | 63.4% | 53.14% | 34.44% | 38.4% | 41.19% | 34.3% | 35.22% | 35.27% | 41.33% | 31.02% | 28.37% | 24.36% | 30.66% | 28.42% | 23.02% | 27.11% | 23.64% | 17.93% | 16.59% | 12.2% | 11.48% | 13.3% | 20.17% | 13.82% | 10.79% | 10.99% | 12.39% | 15.38% | 10.48% |
| CapEx / D&A | 4.11x | 4.14x | 3.37x | 3.77x | 2.65x | 2.70x | 2.81x | 2.36x | 2.38x | 2.75x | 3.21x | 2.52x | 2.70x | 2.31x | 2.71x | 2.91x | 2.38x | 2.81x | 3.71x | 2.93x | - | - | - | - | - | - | - | - | - | - | - |
| CapEx Coverage (OCF/CapEx) | 0.34x | 0.43x | 0.60x | 0.74x | 0.21x | 0.77x | 0.55x | 0.83x | 0.99x | 0.92x | 0.56x | 0.92x | 0.69x | 0.69x | 0.68x | 0.66x | 1.04x | 0.86x | 0.46x | 1.04x | 0.85x | 0.37x | 0.92x | 1.07x | 1.13x | 0.69x | 1.16x | 2.02x | 1.95x | 1.58x | 2.68x |
| Cash from Investing | -16.02B | -12.21B | -9.12B | -8.72B | -5.04B | -5.51B | 553M | -4.59B | -1.54B | -4.7B | -4.83B | -2.87B | -3.34B | -1.69B | -3.16B | -3.07B | -1.28B | -2.67B | -2.39B | -2.07B | -866M | -1.19B | -611M | -1.25B | -1.66B | -1.04B | -924M | -789M | -679M | -340.9M | -227.6M |
| Acquisitions | 285M | 327M | 0 | 0 | 0 | 0 | -652M | -1.8B | -10.38B | -148M | -1.5B | 173M | -240M | -22M | -445M | -941M | -611M | -939M | -2.67B | -121M | -257M | -86M | -74M | -202M | -442M | -111M | -243M | -639M | -191M | -206M | 0 |
| Purchase of Investments | -3.14B | -3.05B | -1.88B | -992M | -1.08B | -1.59B | -2.09B | -2.71B | -11.06B | -1.58B | -1.2B | -531M | -853M | -697M | -738M | 0 | -982M | -267M | -2.67B | -646M | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Sale of Investments | 769M | 1.1B | 942M | 661M | 762M | 999M | 1.44B | 914M | 890M | 1.31B | 1.13B | 577M | 601M | 933M | 733M | 753M | 372M | 23M | 34M | 18M | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Other Investing | -3.19B | 23M | 32M | 12M | 632M | 102M | 6.53B | 2.71B | 22.55B | -334M | 947M | 69M | 273M | 669M | 248M | -38M | 2B | 690M | 5.48B | 687M | 1.3B | 305M | 546M | 3M | -3M | 140M | 78M | 439M | -50M | 62.3M | -18.7M |
| Cash from Financing | 13.32B | 9.6B | 5.42B | 2.42B | 3.78B | 1.26B | -2.37B | 1.48B | 8.85B | 1.19B | 2.5B | -173M | 854M | 338M | 1.35B | 534M | -69M | 576M | 868M | -296M | -612M | 1.02B | -380M | 89M | 138M | 275M | 192M | -336M | -1.03B | 253M | -255.2M |
| Dividends Paid | -1.67B | -1.64B | -1.54B | -1.53B | -1.47B | -1.43B | -1.33B | -1.14B | -966M | -756M | -686M | -629M | -599M | -606M | -556M | -448M | -374M | -351M | -349M | -316M | -283M | -268M | -195M | -182M | -205M | -203M | -244M | -368M | -325M | -301M | -181.8M |
| Dividend Payout Ratio % | - | 87.26% | 52.38% | 48.23% | 66.85% | 100.99% | 29.85% | 45.18% | 83.52% | 293.77% | 50.04% | 46.52% | 51.46% | 60.24% | 63.58% | 32.23% | 48.6% | 30.2% | 30.46% | 28.14% | 26.6% | 29.35% | 20.97% | 28.04% | 34.69% | 39.19% | 56.88% | 93.4% | 110.54% | 69.68% | 42.58% |
| Debt Issuance (Net) | 4M | 1000K | 1000K | 1000K | 1000K | 1000K | -1000K | 1000K | 1000K | 1000K | 1000K | 1000K | 1000K | 1000K | 1000K | 1000K | 1000K | 1000K | 1000K | 1000K | -1000K | 1000K | -1000K | -1000K | 1000K | 1000K | 1000K | 1000K | -1000K | -1000K | -1000K |
| Stock Issued | 31M | 32M | 1.22B | 145M | 4M | 5M | 11M | 1.83B | 2.27B | 47M | 51M | 52M | 56M | 62M | 78M | 28M | 40M | 73M | 18M | 40M | 97M | 694M | 110M | 505M | 13M | 41M | 12M | 3M | 34M | 17M | 0 |
| Share Repurchases | -921M | -958M | -43M | -32M | -478M | -339M | -566M | -26M | -21M | -15M | -56M | -74M | -38M | -45M | -16M | -18M | -502M | -22M | -1.02B | -185M | -37M | -95M | -5M | -7M | -16M | 0 | -725M | 0 | -76M | -122M | -15.7M |
| Other Financing | 8.2B | 4.85B | 1.01B | 2.05B | 1.52B | 2.83B | 194M | 1.35B | -194M | 282M | 1.66B | -38M | -159M | 460M | -89M | -66M | -21M | -81M | 26M | 21M | 113M | -6M | -14M | -8M | -18M | 134M | 188M | 0 | 0 | 843M | 100K |
| Net Change in Cash | -963M | -1.55B | 1.2B | -73M | -119M | -404M | 768M | -29M | -118M | -61M | -25M | -160M | -334M | 429M | 223M | -660M | 802M | -221M | -337M | -252M | 151M | 354M | 10M | -23M | -150M | -32M | 150M | 63M | -390M | 451.3M | 76.7M |
| Exchange Rate Effect | -3.16B | -3.51B | -13M | 6M | -1M | 2M | -3M | 1M | -14M | 7M | -3M | -14M | -7M | -4M | 8M | 9M | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 100K | 100K |
| Cash at Beginning | 31M | 1.59B | 389M | 462M | 581M | 985M | 217M | 246M | 364M | 425M | 403M | 570M | 904M | 475M | 252M | 912M | 110M | 331M | 668M | 920M | 769M | 419M | 409M | 455M | 605M | 637M | 487M | 424M | 814M | 173.1M | 96.4M |
| Cash at End | 796M | 31M | 1.59B | 389M | 462M | 581M | 985M | 217M | 246M | 364M | 425M | 403M | 570M | 904M | 475M | 252M | 912M | 110M | 331M | 668M | 920M | 769M | 419M | 432M | 455M | 605M | 637M | 487M | 424M | 624.4M | 173.1M |
| Free Cash Flow | -9.39B | -6.05B | -3.31B | -2.18B | -4.21B | -1.17B | -2.08B | -620M | -28M | -324M | -1.9B | -258M | -962M | -788M | -938M | -977M | 92M | -37M | -870M | 106M | -278M | -853M | -82M | 72M | 157M | -336M | 123M | 599M | 644M | 198.2M | 350.5M |
| FCF Growth % | -130.1% | -82.8% | -51.81% | 48.3% | -259.33% | 43.74% | -236.29% | -2114.29% | 91.36% | 82.97% | -637.6% | 73.18% | -22.08% | 15.99% | 3.99% | -1161.96% | 348.65% | 95.75% | -920.75% | 138.13% | 67.41% | -940.24% | -213.89% | -54.14% | 146.73% | -373.17% | -79.47% | -6.99% | 224.92% | -43.45% | -13.07% |
| FCF Margin % | -69% | -44.1% | -25.53% | -13.79% | -27.1% | -8.98% | -18.37% | -5.74% | -0.28% | -2.89% | -18.67% | -2.54% | -8.74% | -7.46% | -9.73% | -9.76% | 1.03% | -0.46% | -8.08% | 0.95% | -2.42% | -7.41% | -0.87% | 0.91% | 2.61% | -4.35% | 1.75% | 11.18% | 11.75% | 8.94% | 17.58% |
| FCF / Net Income % | -453.53% | -329.18% | -115.58% | -70.86% | -197.05% | -89% | -53.01% | -28.21% | -2.67% | -126.07% | -138.8% | -19.11% | -82.79% | -78.33% | -108.44% | -71.58% | 12.28% | -3.28% | -78.17% | 9.44% | -26.13% | -93.43% | -8.82% | 11.09% | 26.57% | -64.86% | 28.67% | 152.03% | 219.05% | 45.88% | 82.08% |
Aggressive Capital Intensity
As reported in the quarterly cash flow data, Sempra’s capital expenditure reached $2.5 billion in 2026Q1, consistently exceeding operating cash flow and reflecting a structural reliance on external financing to fund the massive grid hardening and LNG infrastructure projects currently underway across its primary operating jurisdictions.
The persistent gap between CAPEX and operating cash flow is a deliberate feature of the company's growth strategy rather than an operational failure. Investors should monitor whether the rate base expansion in Texas and California continues to provide sufficient regulatory return to justify this sustained period of negative free cash flow.
Based on the provided financial statements, the company’s free cash flow deficit reached $652 million in 2026Q1, necessitating a reliance on external capital markets that appears increasingly sensitive to the company's reported liquidity position and the broader interest rate environment impacting utility sector debt costs.
The reliance on external financing to bridge the gap between massive infrastructure investment and internal cash generation suggests that Sempra’s balance sheet may be stretched. The reported cash position of $2 million warrants further investigation, as it may indicate a reliance on revolving credit facilities to manage short-term liquidity needs.
According to the cash flow data, the OCF-to-dividend coverage ratio fluctuated significantly, reaching 4.4x in 2026Q1, which suggests that while the dividend remains supported by operating cash flow, the margin of safety is compressed by the company's aggressive commitment to long-term infrastructure development and capital recycling.
While the dividend appears sustainable based on current operating cash flow, the high capital intensity of the LNG and transmission segments may eventually force a trade-off between shareholder distributions and growth investment. Investors should monitor whether regulatory rate case outcomes provide the necessary cash flow uplift to maintain this payout ratio without further increasing leverage.
As indicated by the discrepancy between net income and operating cash flow in recent periods, Sempra’s earnings appear to be bolstered by non-cash AFUDC accruals, which may obscure the underlying cash-generating capacity of the business during this intensive phase of multi-billion dollar infrastructure construction and project commissioning.
The reliance on non-cash accounting adjustments to support reported earnings suggests that the quality of income may be lower than headline figures imply. Analysts should adjust for these accruals to determine the true cash-from-operations available for debt service and dividend payments, particularly as large-scale projects move toward completion.
Quick answers to the most common questions about buying SRE stock.
Sempra (SRE) generated $4.57B in net cash from operating activities in 2025. This reflects the cash generated directly from core business operations.
Sempra (SRE) reported negative free cash flow of $6.05B in 2025, indicating capital requirements exceeded cash from operations.
Sempra (SRE) spent $10.61B on capital expenditures in 2025. CapEx represents the cash invested in physical assets like property, plant, and equipment to maintain or grow the business.
In 2025, Sempra (SRE) returned $1.64B to shareholders via cash dividends and spent $958.0M on share repurchases. This shows the company's commitment to returning capital to its equity investors.