Sempra (SRE) FY2025 10-K Annual Report
Sempra (SRE) 10-K annual report for fiscal year 2025, filed with SEC EDGAR on Feb 26, 2026. 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 FY2025 10-K Analysis
Business Overview
- • Holding company owning CA/TX regulated utilities (SDG&E, SoCalGas, 80.25% Oncor) plus LNG and energy infrastructure via Sempra Infrastructure
- • Landmark portfolio restructuring: agreed Sept 2025 to sell 45% SI Partners stake to KKR for $9.99B, reducing Sempra ownership from 70% to 25% with KKR assuming control; Ecogas sale separately agreed for ~$500M (9.0B Mexican pesos)
- • PA LNG Phase 2 FID reached Sept 2025 — construction commenced on 2-train, ~13 Mtpa nameplate facility with offtake SPAs to ConocoPhillips, EQT, and JERA; ECA LNG Phase 1 achieved mechanical completion Dec 2025, first LNG cargoes targeted spring 2026
- • Texas UTM legislation signed 2025 enabling Oncor to file single annual interim rate update through 2035 for T&D capital recovery — Oncor's first filing anticipated March 2026 for assets placed in service 2025
- • Total Sempra headcount 15,938 (excluding equity method investees), with 3,048 employees inside the SI Partners disposal group classified as held for sale
Management Discussion & Analysis
- • Earnings attributable to common shares fell to $1,796M vs $2,817M in 2024, down 36% YoY, hit by $703M tax charge from SI Partners/Ecogas held-for-sale classification
- • Worst segment: Sempra Infrastructure swung to $(160)M loss vs $911M earnings in 2024; best segment: Sempra Texas Utilities up 10% to earnings growth driven by UTM, rate updates and customer growth
- • Sempra California earnings dropped $418M (23%) to $1,428M, primarily from $432M after-tax regulatory disallowance charge tied to 2024 GRC Track 2 WMP cost ruling
- • Capex $10.6B for PP&E in 2025 vs $8.2B in 2024; total capital including investments $12.6B; dividends paid $1,603M common + $40M preferred; $900M preferred stock redeemed; common stock buybacks only $58M
- • Forward: $8.6B capex planned 2026, $38.7B over 2026–2030; key risks include Wildfire Fund depletion (LA Fires claims from other IOUs ~$1.4B), Oncor rate case settlement seeking ~$560M annualized revenue increase pending PUCT approval in H1 2026
Risk Factors
- • California Wildfire Legislation (2019 & 2025) creates strict inverse condemnation liability for SDG&E/SoCalGas; Wildfire Fund potentially near exhaustion after ~$1.26B in prior IOU claims
- • U.S. tariffs on steel, aluminum, copper, and threatened tariffs on power grid equipment directly impact LNG construction costs; China retaliatory tariff on U.S. LNG threatens SI Partners export demand
- • Mexico's 2025 Energy Laws grant broad permit revocation powers and preferential treatment to CFE/PEMEX, threatening SI Partners' $9.99B asset base and development pipeline
- • Sempra holding-company structure dependent on subsidiary distributions; S&P revised outlook to negative Jan 2025, Moody's followed Mar 2025, citing SoCalGas credit downgrade and wildfire exposure
- • 4,996,591 shares outstanding under ATM forward sale agreements subject to forced physical settlement at counterparty discretion, risking EPS dilution outside Sempra's control
Sempra FY2025 Key Financial MetricsXBRL
Revenue
$12.4B
▲ +5.1% YoY
Net Income
$1.8B
▼ -35.8% YoY
Net Margin
14.8%
▼ -942bp YoY
ROE
5.8%
▼ -335bp YoY
Total Assets
$110.9B
▲ +15.3% YoY
EPS (Diluted)
$2.75
▼ -37.8% YoY
Operating Cash Flow
$4.6B
▼ -7.0% YoY
Source: XBRL data from Sempra FY2025 10-K filing on SEC EDGAR. All figures in USD.
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