Analysis for SRE

📈 Growth & Financial Trajectory

From 2024 Q4 through 2026 Q1, SEMPRa's revenue declined from about $3.76B to $3.43B, a drop of roughly -9%, while net income rose from about $0.99B to $1.15B (+≈ 16%). The sequence includes a late-2025 revenue peak near $4.57B with modest $0.48B net income, followed by a Q1 2026 earnings read. Overall, margins show resilience despite cyclical revenue swings, with positive operating income in most quarters and robust cash generation.

💰 Margins & Cash Flow

• Net income margins hover around mid-20s to low-30s% (e.g., Q1 2026 ~ 33%; Q4 2024 ~ 26%; Q2 2025 ~ 28%).
• Operating cash flow (continuing) remains robust: ~$1.11B (Q3 2025), $1.19B (Q4 2025), and $1.81B (Q1 2026). Investing cash flow is typically negative due to ongoing capex, while financing activity fluctuates but supports overall cash generation.

🛡️ Balance Sheet & Liquidity

Total assets run around $110B–$114B across quarters, with liabilities near $70B and equity generally in the $31B–$40B range. The mix indicates solid balance sheet leverage for a regulated utility company, supported by steady operating cash flow and manageable near-term liquidity needs.

⚠️ Key Drivers & Risks

• Drivers: Regulated utility framework delivering stable cash flows; large-scale infrastructure and renewables investments.
• Risks: Interest-rate and capex sensitivity; regulatory/rate-case exposure; revenue volatility from commodity cycles.