Sempra (SRE) FY2024 10-K Annual Report

Filed: Feb 25, 2025
Utilities
Gas & Other Services CombinedSEC EDGAR

Sempra (SRE) 10-K annual report for fiscal year 2024, filed with SEC EDGAR on Feb 25, 2025. This page provides AI-powered analysis including business overview, management discussion & analysis (MD&A), risk factors, and key financial data such as revenue, net income, gross margin, operating margin, and return on equity (ROE) extracted from XBRL.

Sempra FY2024 10-K Analysis

Business Overview

  • Core business model: Energy infrastructure company focusing on regulated utilities and energy services across North America
  • No new products, services, or segments explicitly introduced or emphasized in 2025 filing
  • Continued emphasis on robust equity compensation plan with 4.2 million shares under 2019 LTIP and 7.6 million available for future issuance
  • Audit fees for 2024 totaled $15.5 million, up slightly from $15.2 million in 2023, reflecting consistent investment in financial oversight
  • Amended and Restated Articles of Incorporation updated May 2023, affecting shareholder rights and corporate governance arrangements

Management Discussion & Analysis

  • No revenue or net income figures disclosed; focus on currency and inflation impact
  • Inflationary pressure on SDG&E, SoCalGas and Sempra Texas Utilities increasing costs; partial rate recovery risks noted
  • Sempra Infrastructure faces inflation effects but secured mostly U.S. dollar contracts; some risk from lump-sum construction contracts
  • $89M hypothetical earnings reduction from 10% Mexican inflation increase due to higher tax expense and lower JV equity earnings
  • No explicit cash flow, capital allocation or forward guidance information provided in this section

Risk Factors

  • Regulatory risk from CPUC and FERC rulings affecting rate base recovery for SDG&E and SoCalGas, with weighted-average rate base rising $2.2B in 2024
  • Macroeconomic exposure to escalation in SONGS nuclear decommissioning costs, with $471M ARO liability increasing $62M per 1% cost escalation rise
  • Operational risk from reliance on large capital investments to sustain rate base growth: SDG&E $16.8B, SoCalGas $12.4B, Oncor $26.6B at year-end 2024
  • Competitive/market disruption risk from rising interest rates potentially requiring interim goodwill impairment tests on Mexico reporting units with significant goodwill
  • Financial risk from dividend restrictions imposed by CPUC limiting dividend loans from SDG&E ($672M) and SoCalGas ($457M) to Sempra under current capital structures

Sempra FY2024 Key Financial Metrics
XBRL

Revenue

$11.8B

-20.4% YoY

Net Income

$2.9B

-6.9% YoY

Net Margin

24.2%

+351bp YoY

ROE

9.2%

-156bp YoY

Total Assets

$96.2B

+10.3% YoY

EPS (Diluted)

$4.42

-7.7% YoY

Operating Cash Flow

$4.9B

-21.1% YoY

Source: XBRL data from Sempra FY2024 10-K filing on SEC EDGAR. All figures in USD.

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