Sempra (SRE) is listed on NYSE and operates in the Diversified Utilities industry (Utilities sector).
Sempra operates as an energy-services holding company in the United States and internationally. The company's San Diego Gas & Electric Company segment provides electric services; and supplies natural gas. It offers electric services to approximately 3.6 million population and natural gas services to approximately 3.3 million population that covers 4,100 square miles. Its Southern California Gas Company segment owns and operates a natural gas distribution, transmission, and storage system that supplies natural gas to a population of approximately 22 million covering an area of 24,000 square miles. The company's Sempra Texas Utilities segment engages in the regulated transmission and distribution of electricity serving 3.8 million homes and businesses, and operation of 140,000 miles of transmission and distribution lines. Its transmission system includes 18,249 circuit miles of transmission lines, a total of 1,174 transmission and distribution substations, and interconnection to 130 third-party generation facilities totaling 45,403 megawatts. The company was formerly known as Sempra Energy and changed its name to Sempra in July 2021. Sempra was founded in 1998 and is headquartered in San Diego, California.
| Rating | Analysts |
|---|---|
| Strong Buy | 1 |
| Buy | 20 |
| Hold | 5 |
| Sell | 0 |
| Strong Sell | 0 |
Sempra is a utilities holding company based in San Diego, California, operating both in the United States and internationally. It was founded in 1998 and was formerly known as Sempra Energy until its name change in July 2021. The company operates through several key segments. The San Diego Gas & Electric Company segment provides electric and natural gas services to approximately 3.6 million and 3.3 million people, respectively, across 4,100 square miles. The Southern California Gas Company segment manages a natural gas distribution, transmission, and storage system, serving around 22 million people over 24,000 square miles. Sempra Texas Utilities focuses on the regulated transmission and distribution of electricity, serving 3.8 million homes and businesses. This segment operates 140,000 miles of transmission and distribution lines, with a transmission system comprising 18,249 circuit miles, 1,174 substations, and connections to 130 third-party generation facilities totaling 45,403 megawatts. Sempra's diverse operations position it as a significant player in the energy services sector.
Over the past three fiscal years, the company has faced a challenging environment, marked by a decline in revenue from $15.8 billion in 2023 to $13.7 billion in 2025, reflecting a -6.8% CAGR. Despite this revenue contraction, the company managed to improve its gross and operating margins, with gross margin expanding by 5.4pp to 29.1% and operating margin increasing by 4.3pp to 23.7%. However, net margin showed volatility, ultimately decreasing by 6.1pp to 13.4%, indicating potential pressures on the bottom line. Earnings per share (EPS) consistently decreased, with a significant -24.2% CAGR, dropping from $4.79 to $2.75, which suggests that profitability per share has been under strain. Cash flow from operations also declined consistently, from $6.2 billion to $4.6 billion, while free cash flow (FCF) worsened, with a margin dropping from -13.8% to -44.1%, highlighting a significant cash burn. The company's net debt increased from $30.8 billion to $36.3 billion, reflecting a growing leverage position. Despite these challenges, the cash conversion ratio improved to 5.27, indicating that earnings are increasingly backed by actual cash, although the interest coverage remains thin at 2.8x, suggesting limited buffer to cover interest obligations. The increase in capex intensity to 77.4% suggests a focus on capital investments, which may be straining cash flows further. Overall, the company is navigating a period of financial pressure, with declining revenues and EPS, increased leverage, and significant cash flow challenges.