Sempra faces persistent cash burn, evidenced by a $6.4 billion free cash flow deficit in 2025Q4 and a significant reduction in cash reserves from $1.8 billion in 2025Q1 to $176 million by 2026Q1.
| 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 |
|---|
| Cash from Operations | 4.89B | 4.57B | 4.91B | 6.22B | 1.14B | 4.21B | 3.35B | 3.09B | 3.52B | 3.65B | 2.34B | 2.92B | 2.16B | 1.78B | 2.02B | -287M | -9M | -7M | 173M | 240M | 322M | -7M |
| Operating CF Growth % | 34.97% | -6.97% | -21.08% | 444.48% | -72.86% | 25.54% | 8.55% | -12.17% | -3.7% | 55.76% | -19.73% | 35.12% | 21.13% | -11.6% | 803.14% | -3088.89% | -28.57% | -104.05% | -27.92% | -25.47% | 4700% | - |
| Operating CF / Revenue % | 36.09% | 33.32% | 37.22% | 37.19% | 7.91% | 32.73% | 29.48% | 28.57% | 30.08% | 32.58% | -117200% | 41714.29% | 4322% | 4351.22% | 3057.58% | -683.33% | -13.85% | -14% | -274.6% | - | - | - |
| Net Income | 2.07B | 1.84B | 2.86B | 3.08B | 2.14B | 1.32B | 2.08B | 1.83B | 862M | 257M | 1.37B | 1.35B | 1.16B | 1B | 859M | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Depreciation & Amortization | 2.45B | 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 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Deferred Taxes | 558M | 533M | -20M | 249M | 392M | -78M | 159M | 189M | -242M | 1.16B | 217M | 239M | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Other Non-Cash Items | 697M | -513M | -853M | -1.08B | -240M | -474M | -901M | 55M | 4.04B | 3.36B | 2.42B | 2.54B | 280M | 340M | 69M | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Working Capital Changes | 65M | 145M | 481M | 1.75B | -3.17B | 1.52B | 345M | -560M | 404M | 124M | -131M | 188M | -482M | -708M | -42M | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Capital Expenditures | -12.43B | -10.61B | -8.21B | -8.4B | -5.36B | -5.01B | -4.68B | -3.71B | -12.38B | -3.95B | -4.21B | -3.16B | -3.34B | -2.57B | -2.96B | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| CapEx / Revenue % | 91.69% | 77.45% | 62.31% | 50.22% | 37.1% | 39.01% | 41.13% | 34.3% | 105.93% | 35.24% | -210700% | 45085.71% | 6674% | 6273.17% | 4478.79% | 0% | 0% | 0% | 0% | - | - | - |
| CapEx / D&A | 5.08x | 4.14x | 3.37x | 3.77x | 2.65x | 2.70x | 2.81x | 2.36x | 8.30x | 2.65x | 3.21x | 2.52x | 2.89x | 2.31x | 2.71x | - | - | - | - | - | - | - |
| CapEx Coverage (OCF/CapEx) | 0.39x | 0.43x | 0.60x | 0.74x | 0.21x | 0.84x | 0.72x | 0.83x | 0.28x | 0.92x | 0.56x | 0.93x | 0.65x | 0.69x | 0.68x | - | - | - | - | - | - | - |
| Cash from Investing | -13.43B | -12.21B | -7.88B | -5.93B | -3.31B | -2.67B | -182M | -4.59B | -12.38B | -4.53B | -3.22B | -2.9B | -3.34B | -1.69B | -3.16B | -65M | 113M | 11M | 30M | 627M | -145M | -105M |
| Acquisitions | 293M | 327M | 1.24B | 2.41B | 1.36B | 2.61B | -607M | -893M | -8.5B | -57M | 873M | 173M | 0 | -2M | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Purchase of Investments | -2.27B | -3.05B | -1.88B | -610M | -700M | -969M | -1.53B | -930M | -985M | -1.84B | -1.2B | -662M | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Sale of Investments | 769M | 1.1B | 951M | 661M | 1.39B | 999M | 1.45B | 917M | 893M | 1.32B | 1.32B | 670M | 0 | 0 | 0 | 0 | 0 | 0 | 488M | 0 | 0 | 0 |
| Other Investing | -11.35B | 23M | 23M | 9M | 6M | -294M | 5.19B | 26M | -246M | -2M | 720M | 75M | -5M | 885M | -202M | -65M | 113M | 11M | -458M | 627M | -145M | -105M |
| Cash from Financing | 10.73B | 9.6B | 4.19B | -370M | 2.05B | -1.95B | -2.4B | 1.47B | 8.76B | 811M | 821M | -173M | 854M | 338M | 1.35B | 206M | -104M | -4M | -197M | -1.29B | 67M | 76M |
| Dividends Paid | -1.67B | -1.64B | -1.54B | -1.53B | -1.47B | -1.43B | -1.33B | -1.14B | -966M | -756M | -687M | -629M | -598M | -606M | -550M | -50M | -100M | -4M | -350M | -150M | -150M | -200M |
| Dividend Payout Ratio % | - | 87.26% | 52.39% | 48.24% | 66.88% | 108.58% | 29.86% | 45.18% | 85.79% | 57.63% | 50.07% | 46.55% | 51.51% | 60.54% | 64.03% | 32.42% | 49.26% | 30.47% | 31.45% | 13.65% | - | 111.41% |
| Debt Issuance (Net) | 3M | 1000K | 1000K | 1000K | 1000K | 1000K | -1000K | 1000K | 1000K | 1000K | 1000K | 1000K | 1000K | 1000K | 1000K | 1000K | 1000K | 1000K | 1000K | 1000K | -1000K | 1000K |
| Stock Issued | 22M | 32M | 1.22B | 145M | 4M | 5M | 902M | 1.83B | 4.53B | 47M | 51M | 52M | 56M | 62M | 78M | 28M | 0 | 0 | 18M | 40M | 97M | 110M |
| Share Repurchases | -921M | -958M | -43M | -32M | -478M | -339M | -566M | -26M | -21M | -15M | -56M | -74M | -38M | -45M | -16M | -18M | 0 | 0 | -1.02B | -185M | -37M | -5M |
| Other Financing | 8.6B | 4.85B | -222M | -883M | -213M | -379M | 168M | -484M | -284M | -138M | -585M | 598M | 252M | 696M | -89M | -146M | -21M | -761M | 27M | -1.14B | -20M | -190M |
| Net Change in Cash | -1.32B | -1.55B | 1.3B | -125M | -168M | -404M | 843M | 2M | -213M | -65M | -35M | -140M | -334M | 429M | 223M | -146M | 0 | 0 | 6M | -421M | 244M | -36M |
| Exchange Rate Effect | -3.52B | -3.51B | 88M | -46M | -50M | 2M | 72M | 32M | -14M | 7M | -3M | -14M | -7M | -4M | 8M | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Cash at Beginning | 0 | 1.59B | 285M | 410M | 578M | 982M | 139M | 137M | 350M | 415M | 450M | 570M | 904M | 475M | 252M | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Cash at End | 0 | 31M | 1.59B | 285M | 410M | 578M | 982M | 139M | 137M | 350M | 415M | 430M | 570M | 904M | 475M | -146M | 0 | 0 | 6M | -421M | 244M | -36M |
| Free Cash Flow | -7.54B | -6.05B | -3.31B | -2.18B | -4.21B | -807M | -1.32B | -620M | -8.86B | -298M | -1.87B | -236M | -1.18B | -788M | -938M | -287M | -9M | -7M | 173M | 240M | 322M | -7M |
| FCF Growth % | -84.71% | -82.8% | -51.81% | 48.3% | -422.3% | 39.05% | -113.55% | 93.01% | -2874.5% | 84.06% | -692.37% | 79.93% | -49.24% | 15.99% | -226.83% | -3088.89% | -28.57% | -104.05% | -27.92% | -25.47% | 4700% | - |
| FCF Margin % | -55.6% | -44.13% | -25.09% | -13.03% | -29.19% | -6.28% | -11.64% | -5.74% | -75.84% | -2.66% | 93500% | -3371.43% | -2352% | -1921.95% | -1421.21% | -683.33% | -13.85% | -14% | -274.6% | - | - | - |
| FCF / Net Income % | -364.76% | -329.18% | -115.62% | -70.88% | -197.15% | -61.28% | -33.67% | -28.21% | -787.21% | -22.75% | -136.5% | -17.49% | -101.29% | -78.72% | -109.2% | -21.15% | -1.22% | -0.63% | 15.54% | 21.84% | - | -0.76% |
Regulatory and capital intensity
As reported in recent financial statements, Sempra's capital expenditure reached a peak of $7.6 billion in 2025Q4, reflecting an intense investment phase that consistently outpaces operating cash flow and underscores the company's commitment to expanding its regulated rate base and infrastructure footprint across North America.
The data reveals a pattern of heavy capital intensity where quarterly CAPEX frequently dwarfs operating cash flow, a common characteristic for utilities undergoing significant grid modernization and LNG infrastructure development. Investors should monitor whether this sustained high level of investment translates into commensurate rate base growth or if regulatory lag will continue to suppress the cash conversion efficiency of these projects.
Based on the provided cash flow data, Sempra consistently records negative free cash flow, with a deficit reaching $6.4 billion in 2025Q4, necessitating a reliance on external capital markets to fund its massive infrastructure build-out and maintain its current dividend payout obligations to shareholders.
The persistent free cash flow deficit is an expected outcome of the company's current growth strategy, yet it highlights a structural dependence on debt and equity markets. The ability to secure this financing on reasonable terms remains a critical variable, particularly given the potential for interest rate volatility to impact the cost of servicing this ongoing capital requirement.
According to quarterly filings, Sempra's dividend coverage ratio has fluctuated significantly, ranging from 1.7x to 5.1x, which suggests that while the dividend is currently supported by operating cash flow, the company's aggressive capital spending profile leaves little margin for error in cash flow generation.
While the dividend appears sustainable based on current OCF-to-dividend metrics, the underlying cash burn from CAPEX means that the payout is effectively being funded by external financing rather than organic free cash flow. Analysts should evaluate whether the regulatory construct in California and Texas provides sufficient protection to maintain these distributions during periods of heightened infrastructure investment.
Financial data indicates a notable disconnect between net income and operating cash flow, as evidenced by the 2025Q4 period where net income of $349 million contrasted sharply with $1.2 billion in operating cash flow, suggesting significant non-cash items or timing differences in regulatory recovery.
This divergence often stems from the accounting treatment of AFUDC and other regulatory assets that do not immediately manifest as cash. Investors should interpret these GAAP figures with caution, as they may not accurately reflect the company's immediate liquidity position or its ability to fund ongoing operations without tapping capital markets.
Quick answers to the most common questions about buying SREA stock.
Sempra (SREA) generated $4.57B in net cash from operating activities in 2025. This reflects the cash generated directly from core business operations.
Sempra (SREA) reported negative free cash flow of $6.05B in 2025, indicating capital requirements exceeded cash from operations.
Sempra (SREA) 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 (SREA) 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.