Revenue growth has been flat at -0.1% in 2026Q2 despite rate base expansion, but operating margins remain strong at 27.8%, supported by fuel pass-through mechanisms and earned returns near authorized levels.
Sempra (SRE) annual income statement — 30-year revenue, gross profit & net income history
| 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 | 13.6B | 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 % | 2.82% | 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 | 7.93B | 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 | 5.67B | 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 % | 41.71% | 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 | 2.02B | 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 | 6.16B | 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 % | 45.27% | 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 % | 11.44% | 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 | 2.5B | 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 % | 18.4% | 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) | 3.65B | 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 % | 26.86% | 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 | 3.38B | 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 % | 24.81% | 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 | 649M | 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 % | 19.23% | 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 | 2.28B | 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 % | 16.77% | 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 % | -15.99% | -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) | 3.48 | 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 % | -16.55% | -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 | 655.95M | 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 |
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.
Key Metrics
Top Statement Risk
LNG execution and financing costs
Metrics are mathematically derived from official filings.
Rate Base Growth Drives Mixed Revenue
Revenue growth has been uneven, with 2026Q2 flat year-over-year despite rate base expansion, as reported in quarterly filings. Decoupling in California and Texas transmission growth underpin stability, but timing of rate cases creates volatility.
Revenue in 2026Q2 was $3.0B, essentially unchanged from the prior year, while 2025Q3 saw an 18.9% surge, indicating that growth is lumpy and tied to rate case timing and weather. The California utilities benefit from decoupling, which insulates revenue from volume swings, but the Texas segment's growth is more dependent on transmission expansion. Investors should monitor the pace of rate case approvals, as delays could compress near-term revenue despite the underlying rate base growth.
Earned Returns Near Authorized Levels
Operating margins have remained robust, averaging 23.7% over the last four quarters, as per financial statements. This suggests Sempra is earning close to its authorized ROE, though regulatory lag in California could pressure future margins.
The operating margin of 27.8% in 2026Q2 is above the peer average of 24.6%, indicating efficient cost management and favorable regulatory outcomes. However, the gap between authorized and earned ROE may widen if interest costs rise, as seen in the Parent & Other segment's net income decline. The stability of margins depends on continued constructive rate case decisions, particularly in California where wildfire mitigation costs are escalating.
Fuel Pass-Through Shields Earnings
Fuel and purchased power costs are largely pass-through, as evidenced by stable gross margins despite commodity price volatility, according to SEC filings. This mechanism protects earnings power but inflates revenue, requiring analysts to focus on operating income rather than top-line growth.
The gross margin of 29.15% is consistent with a pass-through model, where Sempra earns a return on infrastructure, not the energy commodity. This means that fluctuations in natural gas prices, which affect SoCalGas and SDG&E, do not directly impact profitability, but they can create working capital strain if recovery is delayed. The regulatory construct appears to provide timely recovery, as evidenced by the stable operating margins, though investors should watch for any changes in adjustment mechanisms.
Non-Cash Items Obscure Core Earnings
Reported EPS of $1.21 in 2026Q2 includes AFUDC and other non-cash regulatory items, which may overstate sustainable earnings, as noted in financial disclosures. Adjusting for these items reveals a more modest growth trajectory.
The 70.4% year-over-year EPS growth in 2026Q2 is flattered by a low base in 2025Q2, when EPS was $0.71, and by non-cash AFUDC credits from the heavy CAPEX program. Excluding these items, core regulated earnings growth appears more in line with rate base expansion, likely in the high single digits. Investors should adjust for AFUDC and one-time items to assess the durability of earnings, especially as the CAPEX cycle matures.
CAPEX Cycle Supports Future EPS
Sempra's aggressive CAPEX program, focused on Texas transmission and LNG, is expected to drive rate base growth of 8-10% annually, as per management guidance. This should translate into EPS growth, but execution risks and financing costs could dilute returns.
The company's capital plan, which includes significant investment in Oncor and Port Arthur LNG, is designed to expand rate base and generate incremental earnings. However, the increase in net interest expenses in the Parent & Other segment suggests that financing costs are rising, which could offset some of the benefits. The success of this strategy hinges on timely project execution and favorable regulatory outcomes, particularly in Texas where ERCOT reforms could impact returns.
Texas Expansion Marks Key Shift
The acquisition of Oncor and the pivot toward Texas transmission represent a major inflection point, diversifying Sempra's earnings away from California, as reported in annual filings. This shift reduces regulatory concentration risk but introduces new execution challenges.
Historically, Sempra's earnings were heavily dependent on California, but the Oncor acquisition has created a second growth engine in Texas, where transmission investment is booming. This diversification has been well-received by the market, as evidenced by the premium valuation relative to peers. However, the integration of Oncor and the simultaneous development of LNG projects increase operational complexity, and any missteps could undermine the benefits of this strategic shift.
LNG and Financing Risks Cloud Outlook
Despite strong utility performance, rising interest costs and LNG project delays could pressure consolidated earnings, as indicated by the Parent & Other segment's net income decline. Investors should monitor debt refinancing and Port Arthur progress.
The 2026Q2 earnings beat was driven by utility strength, but the Parent & Other segment saw a significant decline in net income due to higher interest expenses, suggesting that the capital structure is becoming more leveraged. Additionally, LNG development risks, including cost overruns and delays, remain material given the scale of the Port Arthur project. If financing costs continue to rise or LNG projects face setbacks, the consolidated earnings growth could be tempered, challenging the current premium valuation.