Analysis for SRE

📈 Growth & Financial Trajectory

Over eight quarters, Revenue trends show modest growth with quarterly volatility. Starting at about $2.70B in 2024-Q2, it edges up through 2024 and spikes to around $3.68B in 2025-Q1, then to a rare $4.57B in 2025-Q4 before settling near $2.80B in 2026-Q2. Net income climbs from roughly $0.76B in 2024-Q3 to about $0.93–$1.0B in 2025–2026, with a mid-2025 dip around $0.48B. The overall pattern is modest growth with episodic, item-driven swings.

💰 Margins & Cash Flow

Operational margins swing: the strongest quarters approach the high teens to low-30s, e.g., 2026-Q1 ~29% and 2026-Q2 ~24%, while 2025-Q4 was lower (~5%). Net cash from operating activities remains positive across periods; investing cash flow is consistently negative, causing periodic free-cash-flow variability. Cash flow from financing helps offset outflows in several quarters.

🛡️ Balance Sheet & Liquidity

Total assets run near $110B–$116B; liabilities around $66B–$72B with equity near $31B–$40B. Current assets exceed current liabilities in most quarters, giving a healthy liquidity cushion and a solid balance-sheet fortress for a regulated utility.

⚠️ Key Drivers & Risks

• Drivers: Regulated rate-base growth, transmission/infrastructure expansion.
• Risks: Regulatory/return changes, interest-rate sensitivity and cash-flow volatility from large capex.