SEMPRA

Red flags

• 2025 operating cash flow fell $342 million to $4.565 billion, while investing cash outflow increased to $12.537 billion; financing provided $9.930 billion, highlighting reliance on external capital.
• Sempra expects $38.7 billion of 2026–2030 PP&E and investment spending, including $23.5 billion in California and $11.1 billion in Texas Utilities; the company explicitly warns financing may not preserve investment-grade ratings and capital structure.
• At February 26, 2026, 4,996,591 shares remained subject to forward-sale agreements; physical settlement could dilute EPS, while cash or net-share settlement could require significant cash or additional shares.
• Sempra had 653.3 million common shares outstanding at February 19, 2026 and states that future equity or convertible-debt issuance may materially dilute existing holders.
• SoCalGas faces pending Palisades and Eaton fire litigation; the company cannot estimate losses beyond accrued amounts, while total probable and estimable legal accruals were only $38 million, including $22 million for SoCalGas.
• Credit-loss allowances remained $298 million at Sempra, including $214 million at SoCalGas, despite declining from $519 million in 2024; California customer repayment plans and utility affordability pressures remain relevant.