Operating margins reached 29.8% in 2026Q1, though earnings quality remains obscured by significant volatility, evidenced by a 26.9% EPS growth following an 88% decline in 2025Q3.
| 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 |
|---|
| Revenue | 13.61B | 13.71B | 12.96B | 15.8B | 15.55B | 13.06B | 11.35B | 10.81B | 10.08B | 11.2B | 10.2B | 10.18B | 11.01B | 10.56B | 9.64B | 10.01B | 8.96B | 8.04B | 10.77B | 11.21B | 11.5B | 11.51B | 9.43B | 7.89B | 6.02B | 7.73B | 7.04B | 5.36B | 5.48B | 2.22B | 1.99B |
| Revenue Growth % | 3.09% | 5.83% | -18% | 1.59% | 19.09% | 15.04% | 5.02% | 7.27% | -10.01% | 9.84% | 0.2% | -7.58% | 4.28% | 9.52% | -3.66% | 11.72% | 11.43% | -25.38% | -3.96% | -2.45% | -0.14% | 22.03% | 19.61% | 31.01% | -22.12% | 9.85% | 31.29% | -2.21% | 147.23% | 11.21% | 6.57% |
| Cost of Revenue | 9.44B | 9.71B | 9.43B | 12.05B | 11.39B | 9.42B | 8.07B | 7.57B | 7.85B | 8.47B | 8.08B | 7.67B | 8.83B | 8.35B | 7.77B | 7.9B | 7.01B | 6.39B | 9.22B | 9.39B | 9.64B | 7.07B | 5.53B | 2.61B | 1.68B | 3.28B | 2.92B | 1.7B | 937M | 788.5M | 597.5M |
| Gross Profit | 4.16B | 4B | 3.52B | 3.75B | 4.16B | 3.64B | 3.28B | 3.24B | 2.23B | 2.73B | 2.12B | 2.51B | 2.18B | 2.2B | 1.87B | 2.11B | 1.95B | 1.65B | 1.55B | 1.82B | 1.86B | 4.44B | 3.9B | 5.28B | 4.34B | 4.45B | 4.11B | 3.66B | 4.54B | 1.43B | 1.4B |
| Gross Margin % | 30.61% | 29.15% | 27.2% | 23.71% | 26.75% | 27.9% | 28.87% | 29.98% | 22.12% | 24.34% | 20.75% | 24.67% | 19.76% | 20.88% | 19.39% | 21.07% | 21.76% | 20.49% | 14.39% | 16.25% | 16.17% | 38.59% | 41.37% | 66.88% | 72.13% | 57.54% | 58.43% | 68.28% | 82.9% | 64.43% | 70.03% |
| Gross Profit Growth % | - | 13.42% | -5.95% | -9.95% | 14.19% | 11.17% | 1.14% | 45.4% | -18.23% | 28.89% | -15.74% | 15.35% | -1.27% | 17.92% | -11.34% | 8.16% | 18.34% | 6.26% | -14.93% | -1.99% | -58.15% | 13.81% | -26.01% | 21.49% | -2.38% | 8.17% | 12.35% | -19.45% | 218.1% | 2.33% | 6.14% |
| Operating Expenses | 758M | 744M | 693M | 677M | 635M | 596M | 543M | 496M | 472M | 436M | 426M | 423M | 408M | 374M | 359M | 343M | 327M | 296M | 312M | 295M | 275M | 3.38B | 2.63B | 4.34B | 3.35B | 3.4B | 3.21B | 2.92B | 3.94B | 2.4B | 3.13B |
| Other Operating Expenses | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - |
| EBITDA | 5.95B | 5.82B | 5.27B | 5.3B | 5.54B | 4.9B | 4.4B | 4.31B | 3.25B | 3.78B | 3B | 3.34B | 2.92B | 2.94B | 2.6B | 2.74B | 2.49B | 2.13B | 1.93B | 2.21B | 2.24B | 1.69B | 1.9B | 1.55B | 1.58B | 1.58B | 1.47B | 1.64B | 1.55B | 808.6M | 778.3M |
| EBITDA Margin % | 43.73% | 42.42% | 40.66% | 33.52% | 35.65% | 37.54% | 38.77% | 39.91% | 32.23% | 33.76% | 29.44% | 32.8% | 26.56% | 27.87% | 26.97% | 27.41% | 27.79% | 26.45% | 17.87% | 19.73% | 19.49% | 14.66% | 20.09% | 19.7% | 26.3% | 20.39% | 20.86% | 30.63% | 28.37% | 36.47% | 39.04% |
| EBITDA Growth % | 9.44% | 10.4% | -0.55% | -4.47% | 13.09% | 11.41% | 2.02% | 32.82% | -14.07% | 25.96% | -10.07% | 14.12% | -0.65% | 13.19% | -5.21% | 10.2% | 17.07% | 10.44% | -13.01% | -1.25% | 32.76% | -10.92% | 21.94% | -1.83% | 0.44% | 7.36% | -10.6% | 5.59% | 92.31% | 3.89% | 4.71% |
| Depreciation & Amortization | 2.54B | 2.56B | 2.44B | 2.23B | 2.02B | 1.85B | 1.67B | 1.57B | 1.49B | 1.49B | 1.31B | 1.25B | 1.16B | 1.11B | 1.09B | 978M | 867M | 775M | 687M | 686M | 657M | 626M | 621M | 615M | 596M | 579M | 563M | 879M | 929M | 304.2M | 291.5M |
| D&A / Revenue % | 18.7% | 18.69% | 18.81% | 14.09% | 12.98% | 14.2% | 14.67% | 14.51% | 14.8% | 13.31% | 12.87% | 12.29% | 10.5% | 10.54% | 11.31% | 9.77% | 9.68% | 9.64% | 6.38% | 6.12% | 5.72% | 5.44% | 6.58% | 7.8% | 9.9% | 7.49% | 8% | 16.4% | 16.95% | 13.72% | 14.62% |
| Operating Income (EBIT) | 3.41B | 3.25B | 2.83B | 3.07B | 3.53B | 3.05B | 2.73B | 2.75B | 1.76B | 2.29B | 1.69B | 2.09B | 1.77B | 1.83B | 1.51B | 1.76B | 1.62B | 1.35B | 1.24B | 1.53B | 1.58B | 1.06B | 1.27B | 939M | 987M | 997M | 905M | 763M | 626M | 504.4M | 486.8M |
| Operating Margin % | 25.03% | 23.72% | 21.85% | 19.43% | 22.67% | 23.34% | 24.09% | 25.39% | 17.44% | 20.45% | 16.57% | 20.51% | 16.06% | 17.33% | 15.66% | 17.64% | 18.11% | 16.81% | 11.49% | 13.62% | 13.78% | 9.23% | 13.5% | 11.91% | 16.4% | 12.9% | 12.86% | 14.24% | 11.42% | 22.75% | 24.42% |
| Operating Income Growth % | - | 14.91% | -7.79% | -12.93% | 15.68% | 11.44% | -0.36% | 56.23% | -23.28% | 35.58% | -19.07% | 18.04% | -3.39% | 21.19% | -14.45% | 8.82% | 20.06% | 9.13% | -18.93% | -3.6% | 49.15% | -16.64% | 35.68% | -4.86% | -1% | 10.17% | 18.61% | 21.88% | 24.11% | 3.62% | 1.4% |
| Interest Expense | 4M | 1.53B | 1.3B | 1.26B | 1.05B | 1.19B | 1.07B | 1.07B | 886M | 655M | 539M | 549M | 541M | 556M | 490M | 466M | 434M | 384M | 253M | 272M | 351M | 310M | 322M | 308M | 0 | 120M | 286M | 0 | 0 | 0 | 0 |
| Interest Coverage | - | 2.81x | 2.62x | 3.08x | 2.27x | 1.18x | 2.39x | 2.61x | 1.81x | 3.37x | 4.40x | 4.10x | 3.82x | 3.57x | 2.92x | 4.69x | 2.81x | 4.84x | 6.92x | 6.74x | 6.48x | 3.88x | 4.30x | 3.05x | - | 8.31x | 3.09x | - | - | - | - |
| Interest / Revenue % | 0.03% | 11.17% | 10.06% | 7.99% | 6.78% | 9.08% | 9.43% | 9.94% | 8.79% | 5.85% | 5.29% | 5.4% | 4.91% | 5.27% | 5.08% | 4.66% | 4.85% | 4.78% | 2.35% | 2.43% | 3.05% | 2.69% | 3.41% | 3.91% | 0% | 1.55% | 4.06% | 0% | 0% | 0% | 0% |
| Non-Operating Income | 2M | -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 |
| Pretax Income | 3.01B | 2.77B | 3.72B | 4.11B | 2.84B | 1.56B | 2.5B | 2.31B | 889M | 1.63B | 1.91B | 1.79B | 1.56B | 1.45B | 979M | 1.77B | 835M | 1.54B | 1.56B | 1.66B | 1.74B | 947M | 1.06B | 742M | 721M | 731M | 699M | 573M | 432M | 733M | 727M |
| Pretax Margin % | 22.14% | 20.22% | 28.7% | 26% | 18.27% | 11.96% | 22.06% | 21.41% | 8.82% | 14.53% | 18.72% | 17.58% | 14.19% | 13.77% | 10.16% | 17.72% | 9.32% | 19.21% | 14.49% | 14.79% | 15.15% | 8.23% | 11.25% | 9.41% | 11.98% | 9.46% | 9.93% | 10.69% | 7.88% | 33.06% | 36.47% |
| Income Tax | 709M | 701M | 219M | 490M | 556M | 99M | 249M | 315M | -49M | 1.28B | 389M | 341M | 300M | 366M | 59M | 366M | 102M | 422M | 438M | 524M | 641M | 34M | 193M | 47M | 146M | 213M | 270M | 179M | 138M | 301M | 300M |
| Effective Tax Rate % | 23.54% | 25.28% | 5.89% | 11.93% | 19.57% | 6.34% | 9.94% | 13.61% | -5.51% | 78.43% | 20.39% | 19.06% | 19.21% | 25.17% | 6.03% | 20.64% | 12.22% | 27.33% | 28.06% | 31.59% | 36.8% | 3.59% | 18.19% | 6.33% | 20.25% | 29.14% | 38.63% | 31.24% | 31.94% | 41.06% | 41.27% |
| Net Income | 2.07B | 1.84B | 2.86B | 3.08B | 2.14B | 1.32B | 3.93B | 2.2B | 1.05B | 257M | 1.37B | 1.35B | 1.16B | 1.01B | 865M | 1.36B | 749M | 1.13B | 1.11B | 1.12B | 1.06B | 913M | 930M | 649M | 591M | 518M | 429M | 394M | 294M | 432M | 427M |
| Net Margin % | 15.21% | 13.4% | 22.09% | 19.46% | 13.75% | 10.09% | 34.64% | 20.33% | 10.42% | 2.3% | 13.45% | 13.27% | 10.55% | 9.53% | 8.97% | 13.64% | 8.36% | 14.05% | 10.33% | 10.01% | 9.26% | 7.93% | 9.86% | 8.23% | 9.82% | 6.7% | 6.1% | 7.35% | 5.36% | 19.49% | 21.42% |
| Net Income Growth % | -30.23% | -35.81% | -6.93% | 43.76% | 62.29% | -66.49% | 78.94% | 109.33% | 308.56% | -81.25% | 1.56% | 16.18% | 15.51% | 16.3% | -36.63% | 82.24% | -33.66% | 1.44% | -0.89% | 5.55% | 16.54% | -1.83% | 43.3% | 9.81% | 14.09% | 20.75% | 8.88% | 34.01% | -31.94% | 1.17% | 89.19% |
| EPS (Diluted) | 3.17 | 2.75 | 4.42 | 4.79 | 3.31 | 2.00 | 6.44 | 3.64 | 1.71 | 0.51 | 2.73 | 2.69 | 2.32 | 2.01 | 1.74 | 2.81 | 1.49 | 2.26 | 2.22 | 2.13 | 2.04 | 1.81 | 1.97 | 1.52 | 1.44 | 1.26 | 2.06 | 0.83 | 1.24 | 1.82 | 1.98 |
| EPS Growth % | -31.13% | -37.78% | -7.7% | 44.71% | 65.22% | -68.9% | 76.76% | 112.8% | 239.01% | -81.48% | 1.46% | 16.12% | 15.46% | 15.23% | -38.08% | 88.59% | -34.07% | 2.03% | 4.14% | 4.5% | 12.45% | -7.89% | 29.28% | 5.56% | 14.29% | -38.83% | 148.19% | -33.06% | -31.87% | -8.08% | 2.06% |
| EPS (Basic) | - | 2.75 | 4.44 | 4.81 | 3.32 | 2.01 | 6.47 | 3.70 | 1.72 | 0.51 | 2.74 | 2.72 | 2.36 | 2.05 | 1.78 | 2.83 | 1.51 | 2.30 | 2.25 | 2.17 | 2.07 | 1.86 | 2.02 | 1.54 | 2.88 | 1.27 | 2.06 | 1.66 | 1.24 | 1.83 | 1.98 |
| Diluted Shares Outstanding | 653.59M | 652.7M | 637.94M | 632.73M | 632.76M | 626.07M | 584.5M | 564.07M | 539.7M | 504.6M | 502.31M | 501.85M | 501.31M | 498.66M | 493.39M | 483.05M | 495.88M | 494.77M | 502.32M | 528.01M | 522.74M | 504.18M | 467.7M | 214.19M | 205.92M | 205.56M | 416.5M | 237.55M | 474.19M | 228.72M | 231.71M |
Elevated due to regulatory and capital intensity
As reported in recent financial statements, Sempra’s quarterly revenue experienced a 3.8% contraction in 2026Q1, highlighting the inherent lumpiness of a business model increasingly reliant on project-based infrastructure milestones rather than purely predictable, weather-normalized volumetric growth across its diversified California and Texas utility rate bases.
The revenue trajectory appears heavily influenced by the timing of large-scale infrastructure commissioning and regulatory rate case outcomes rather than organic demand. Investors should monitor whether the recent revenue decline reflects a temporary lull in rate base expansion or a more structural shift in the recovery of capital expenditures within the CPUC and PUCT jurisdictions.
Based on Sempra’s reported figures, the operating margin reached 29.8% in 2026Q1, suggesting that the company is successfully navigating the cost-recovery mechanisms inherent in its regulated footprint despite the persistent pressure of wildfire mitigation expenses and rising insurance premiums that continue to challenge the underlying profitability of its California segments.
The ability to maintain operating margins near the 30% level indicates that regulatory mechanisms are effectively insulating the firm from direct commodity price volatility. However, the gap between authorized and earned ROE warrants further investigation, as any sustained compression would suggest that regulatory lag is beginning to erode the value of the company's capital investments.
According to SEC filings, Sempra’s cost structure remains dominated by fixed infrastructure expenses, with fuel and purchased power costs largely treated as pass-through items, which protects the company from commodity price spikes but leaves it exposed to the regulatory scrutiny that often accompanies significant customer bill increases.
The reliance on automatic adjustment mechanisms appears to provide a buffer against short-term inflationary pressures in energy markets. Nevertheless, the company remains vulnerable to political pushback if rising pass-through costs lead to affordability concerns, which could complicate future rate case negotiations and limit the timely recovery of necessary grid hardening investments.
As indicated by the 26.9% EPS growth in 2026Q1 following a sharp 88% decline in 2025Q3, Sempra’s reported earnings appear highly sensitive to non-recurring items and accounting adjustments, making it difficult for investors to isolate the underlying, sustainable earnings power of the core regulated utility and infrastructure segments.
The significant quarterly fluctuations in EPS suggest that AFUDC and other non-cash regulatory accounting treatments may be distorting the true earnings trajectory. Analysts should adjust for these items to determine whether the core regulated business is generating sufficient cash flow to support the company's aggressive capital expenditure pipeline without excessive reliance on external financing.
Based on the provided data, Sempra’s aggressive capital expenditure cycle, particularly in Texas transmission and LNG export capacity, appears to be driving long-term growth potential while simultaneously creating a liquidity profile that warrants skepticism, given the reported cash position of only $2 million in the most recent period.
The massive investment in infrastructure is intended to expand the rate base, yet the current balance sheet configuration suggests a high degree of reliance on revolving credit facilities. Investors should monitor whether the conversion of construction work in progress into rate base assets will provide the expected earnings uplift or if financing costs will continue to compress net margins.
Analysis of the income statement suggests that Sempra may be masking long-term structural risks, such as the potential for stranded assets within the SoCalGas segment as California accelerates its electrification mandates, which are not yet fully reflected in the current depreciation schedules or the reported earnings power.
The market may be underestimating the risk that future regulatory environments will prioritize consumer cost-cutting over the returns currently enjoyed by transmission and distribution providers. Furthermore, the reliance on international gas spreads for the Infrastructure segment introduces a layer of geopolitical and market risk that is fundamentally different from the stability typically associated with a regulated utility.
Quick answers to the most common questions about buying SRE stock.
For fiscal year 2025, Sempra (SRE) reported total revenue of $13.71B. This represents a 587.8% increase compared to $1.99B in 1996.
Sempra (SRE) is profitable, generating $1.84B in net income for the fiscal year ending 2025 with a net profit margin of 13.4%.
Sempra (SRE) reported an operating income of $3.25B, resulting in an operating profit margin of 23.7%. This margin reflects the operational efficiency of the business before interest and taxes.
Sempra (SRE) generated $4.00B in gross profit for the year, representing a gross profit margin of 29.1%. This demonstrates the company's core pricing power and production efficiency.