Revenue volatility remains a concern, highlighted by a 3.9% year-over-year decline in 2026Q1 and operating margins that fluctuated from a 41.5% peak in 2025Q1 to a negative 4.2% in 2025Q4.
| 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 |
|---|
| Revenue | 13.55B | 13.7B | 13.19B | 16.72B | 14.44B | 12.86B | 11.37B | 10.81B | 11.69B | 11.21B | -2M | 7M | 50M | 41M | 66M | 42M | 65M | 50M | -63M | 0 | 0 | 0 |
| Revenue Growth % | 1.6% | 3.92% | -21.14% | 15.8% | 12.3% | 13.08% | 5.18% | -7.5% | 4.28% | 560450% | -128.57% | -86% | 21.95% | -37.88% | 57.14% | -35.38% | 30% | 179.37% | - | - | - | - |
| Cost of Revenue | 4.85B | 9.71B | 7.79B | 10.78B | 9.86B | 8.15B | 6.87B | 7.57B | 7.27B | 6.95B | 8.08B | 7.67B | 8.02B | 7.48B | 6.93B | 0 | 0 | 0 | 0 | 47M | 97M | 41M |
| Gross Profit | 8.7B | 4B | 5.4B | 5.94B | 4.58B | 4.7B | 4.5B | 3.24B | 4.41B | 4.26B | -8.08B | -7.66B | -7.97B | -7.44B | -6.87B | 42M | 65M | 50M | -63M | -47M | -97M | -41M |
| Gross Margin % | 64.21% | 29.17% | 40.95% | 35.54% | 31.69% | 36.57% | 39.56% | 29.98% | 37.77% | 37.98% | 404100% | -109400% | -15938% | -18141.46% | -10401.52% | 100% | 100% | 100% | 100% | - | - | - |
| Gross Profit Growth % | - | -25.97% | -9.15% | 29.87% | -2.68% | 4.54% | 38.78% | -26.57% | 3.71% | 152.66% | -5.54% | 3.9% | -7.14% | -8.35% | -16445.24% | -35.38% | 30% | 179.37% | -34.04% | 51.55% | -136.59% | - |
| Operating Expenses | 5.94B | 744M | 101M | 106M | 59M | 67M | 102M | 496M | -4.31B | -4.88B | 1.37B | 1.34B | 1.11B | 960M | 793M | 1.31B | 674M | 1.07B | 1.18B | 1.15B | 0 | -970M |
| Other Operating Expenses | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - |
| EBITDA | 4.77B | 5.82B | 7.74B | 8.06B | 6.54B | 6.49B | 6.05B | 4.31B | 1.6B | 865M | 2.68B | 2.6B | 2.32B | 2.11B | 1.95B | 1.36B | 739M | 1.12B | 1.11B | 1.1B | -97M | 929M |
| EBITDA Margin % | 35.18% | 42.45% | 58.67% | 48.23% | 45.27% | 50.48% | 53.24% | 39.91% | 13.66% | 7.72% | -134100% | 37128.57% | 4634% | 5156.1% | 2953.03% | 3230.95% | 1136.92% | 2238% | -1766.67% | - | - | - |
| EBITDA Growth % | -34.73% | -24.81% | -4.08% | 23.38% | 0.71% | 7.22% | 40.31% | 170.3% | 84.51% | -67.75% | 3.19% | 12.17% | 9.6% | 8.47% | 43.63% | 83.63% | -33.96% | 0.54% | 1.27% | 1232.99% | -110.44% | - |
| Depreciation & Amortization | 1.92B | 2.56B | 2.44B | 2.23B | 2.02B | 1.85B | 1.66B | 1.57B | 1.49B | 1.49B | 1.31B | 1.25B | 1.16B | 1.11B | 1.09B | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| D&A / Revenue % | 14.19% | 18.71% | 18.48% | 13.32% | 13.98% | 14.43% | 14.57% | 14.51% | 12.76% | 13.3% | -65600% | 17857.14% | 2312% | 2714.63% | 1651.52% | 0% | 0% | 0% | 0% | - | - | - |
| Operating Income (EBIT) | 2.77B | 3.25B | 5.3B | 5.84B | 4.52B | 4.63B | 4.4B | 2.75B | 105M | -625M | 1.37B | 1.35B | 1.16B | 1B | 859M | 1.36B | 739M | 1.12B | 1.11B | 1.1B | -97M | 929M |
| Operating Margin % | 20.41% | 23.74% | 40.18% | 34.91% | 31.28% | 36.05% | 38.66% | 25.39% | 0.9% | -5.58% | -68500% | 19271.43% | 2322% | 2441.46% | 1301.52% | 3230.95% | 1136.92% | 2238% | -1766.67% | - | - | - |
| Operating Income Growth % | - | -38.6% | -9.23% | 29.22% | -2.55% | 5.44% | 60.15% | 2514.29% | 116.8% | -145.62% | 1.56% | 16.19% | 15.98% | 16.53% | -36.7% | 83.63% | -33.96% | 0.54% | 1.27% | 1232.99% | -110.44% | - |
| Interest Expense | 4M | 1.53B | 1.3B | 1.71B | 1.05B | 1.12B | 972M | 977M | 800M | 596M | 526M | 535M | 530M | 549M | 0 | -242M | -265M | -244M | -130M | -178M | -202M | -197M |
| Interest Coverage | - | 2.81x | 2.20x | 2.11x | 2.37x | 2.47x | 2.81x | 2.87x | 2.00x | 3.70x | 4.50x | 4.21x | 3.90x | 3.62x | - | 9.04x | 4.60x | 7.62x | 13.47x | 10.29x | 11.26x | 6.10x |
| Interest / Revenue % | 0.03% | 11.18% | 9.88% | 10.23% | 7.3% | 8.74% | 8.55% | 9.04% | 6.85% | 5.32% | -26300% | 7642.86% | 1060% | 1339.02% | 0% | -576.19% | -407.69% | -488% | 206.35% | - | - | - |
| Non-Operating Income | 0 | -1000K | -1000K | -1000K | -1000K | -1000K | -1000K | -1000K | 1000K | -1000K | 1000K | -1000K | -1000K | -1000K | -1000K | -1000K | -1000K | -1000K | -1000K | -1000K | 1000K | -1000K |
| Pretax Income | 2.65B | 2.77B | 3.72B | 4.11B | 2.84B | 1.56B | 2.5B | 2.31B | 1.05B | 34M | 1.37B | 1.35B | 1.16B | 1B | 859M | 1.36B | 739M | 1.12B | 1.11B | 1.1B | 0 | 920M |
| Pretax Margin % | 19.51% | 20.24% | 28.2% | 24.56% | 19.67% | 12.14% | 22.01% | 21.41% | 8.95% | 0.3% | -68500% | 19271.43% | 2322% | 2441.46% | 1301.52% | 3230.95% | 1136.92% | 2238% | -1766.67% | - | - | - |
| Income Tax | 709M | 701M | 219M | 490M | 556M | 99M | 249M | 315M | -96M | -1.28B | 389M | 341M | 300M | 366M | 59M | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Effective Tax Rate % | 26.81% | 25.28% | 5.89% | 11.93% | 19.58% | 6.34% | 9.95% | 13.61% | -9.18% | -3752.94% | 28.39% | 25.28% | 25.84% | 36.56% | 6.87% | 0% | 0% | 0% | 0% | 0% | - | 0% |
| Net Income | 2.07B | 1.84B | 2.86B | 3.07B | 2.14B | 1.32B | 3.93B | 2.2B | 1.13B | 1.31B | 1.37B | 1.35B | 1.16B | 1B | 859M | 1.36B | 739M | 1.12B | 1.11B | 1.1B | 0 | 920M |
| Net Margin % | 15.24% | 13.41% | 21.7% | 18.39% | 14.81% | 10.24% | 34.58% | 20.33% | 9.63% | 11.69% | -68500% | 19271.43% | 2322% | 2441.46% | 1301.52% | 3230.95% | 1136.92% | 2238% | -1766.67% | - | - | - |
| Net Income Growth % | -30.34% | -35.79% | -6.93% | 43.78% | 62.34% | -66.51% | 78.89% | 95.2% | -14.05% | -4.38% | 1.56% | 16.19% | 15.98% | 16.53% | -36.7% | 83.63% | -33.96% | 0.54% | 1.27% | - | -100% | - |
| EPS (Diluted) | 3.15 | 2.75 | 4.42 | 4.79 | 3.31 | 2.01 | 6.44 | 4.19 | 2.09 | 2.59 | 2.73 | 2.69 | 2.32 | 2.01 | 1.74 | 2.83 | 1.51 | 2.30 | 2.25 | 2.12 | 0.00 | 1.87 |
| EPS Growth % | -35.16% | -37.78% | -7.72% | 44.71% | 64.68% | -68.79% | 53.7% | 100.48% | -19.3% | -5.13% | 1.49% | 15.95% | 15.42% | 15.52% | -38.52% | 87.42% | -34.35% | 2.22% | 6.13% | - | -100% | - |
| EPS (Basic) | - | 2.75 | 4.44 | 4.81 | 3.32 | 2.01 | 6.47 | 4.25 | 2.10 | 2.60 | 2.73 | 2.69 | 2.32 | 2.01 | 1.74 | 2.83 | 1.51 | 2.30 | 2.25 | 2.12 | 0.00 | 1.87 |
| Diluted Shares Outstanding | 655.49M | 652.7M | 633.79M | 632.73M | 632.76M | 626.07M | 584.5M | 564.07M | 539.7M | 506.68M | 502.31M | 502.42M | 501.51M | 499.25M | 493.68M | 479.44M | 489.47M | 486.68M | 494.77M | 518.54M | 512.95M | 491.81M |
Elevated due to regulatory and wildfire exposure
According to reported financial statements, Sempra's quarterly revenue has exhibited significant fluctuations, including a 3.9% year-over-year decline in 2026Q1, suggesting that top-line performance remains sensitive to seasonal demand shifts and the timing of regulatory rate case outcomes rather than consistent organic volumetric expansion across its diversified footprint.
The revenue trajectory appears heavily influenced by the cyclical nature of rate recovery mechanisms and the integration of infrastructure projects. Investors should monitor whether the recent revenue contraction reflects structural demand shifts or merely the timing of pass-through cost adjustments that do not impact the underlying earnings power of the regulated rate base.
As reported in recent filings, Sempra's operating margins have demonstrated high volatility, swinging from a 41.5% peak in 2025Q1 to a negative 4.2% in 2025Q4, which may indicate that regulatory lag and rising operational costs are periodically outpacing the company's ability to recover expenses through authorized rate adjustments.
The wide variance in operating margins suggests that the regulatory compact is not providing the consistent, predictable returns typically expected from a utility of this scale. This instability warrants further investigation into whether the company is successfully managing its authorized ROE or if external cost pressures are eroding the profitability of its California and Texas operations.
Based on the provided income statement data, the company's reliance on purchased power and natural gas costs creates significant noise in the operating margin, as these pass-through items frequently inflate revenue figures without necessarily contributing to the core earnings power of the regulated utility segments.
The high fixed-cost nature of the business, combined with the volatility of commodity pass-throughs, makes it difficult to isolate true operational efficiency. Investors should focus on the stability of the O&M expense line to determine if management is effectively controlling costs that are not subject to automatic recovery mechanisms.
Financial data indicates that EPS has experienced extreme swings, such as the 88% decline observed in 2025Q3, suggesting that reported net income is frequently impacted by non-recurring items or accounting adjustments that obscure the underlying growth trajectory of the company's regulated and infrastructure-based earnings streams.
The inconsistency in EPS growth appears to be a function of both regulatory timing and the complex accounting associated with the Oncor equity method and non-controlling interests. Analysts should adjust for these non-recurring impacts to determine if the core regulated earnings power is actually growing in line with the company's capital expenditure program.
As indicated by the persistent depreciation and amortization expenses exceeding $600 million per quarter, Sempra is engaged in a massive capital investment cycle, yet the translation of this incremental rate base into consistent EPS growth remains elusive based on the erratic quarterly earnings performance reported in recent filings.
The current CAPEX cycle appears to be a significant driver of the company's long-term strategy, but the timing of asset placement into the rate base may be creating a mismatch between capital deployment and earnings recognition. It remains unclear whether this spending will yield the expected returns or if it will lead to further earnings dilution in the near term.
Based on historical performance trends, the company's shift toward a 'wires-only' model in Texas and LNG export infrastructure represents a fundamental inflection point that aims to reduce commodity exposure, though this transition has introduced new complexities in financial reporting and capital structure management for the enterprise.
This strategic pivot appears designed to capture higher growth than traditional regulated utilities, but it also shifts the risk profile toward large-scale project execution. The durability of this earnings shift depends on the successful completion of LNG trains and the continued regulatory support for grid modernization in the Texas market.
The reported Debt/Equity ratio of 0.89% appears fundamentally inconsistent with the capital-intensive nature of a diversified utility, suggesting that the income statement and balance sheet may be masking significant off-balance-sheet liabilities or project-level debt that could materially impact the company's true financial risk profile.
Investors should be skeptical of headline leverage figures, as the equity method accounting for Oncor and project-level financing likely obscure the true extent of the company's debt burden. Furthermore, the potential for wildfire-related liabilities in California remains a significant, non-linear risk that is not adequately captured in the standard income statement analysis.
Quick answers to the most common questions about buying SREA stock.
For fiscal year 2025, Sempra (SREA) reported total revenue of $13.70B.
Sempra (SREA) is profitable, generating $1.84B in net income for the fiscal year ending 2025 with a net profit margin of 13.4%.
Sempra (SREA) 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 (SREA) generated $4.00B in gross profit for the year, representing a gross profit margin of 29.2%. This demonstrates the company's core pricing power and production efficiency.