Canadian Halal Investor.

NYSE Shariah screener · October 2026

Is Sempra (SRE) Halal?

FAIL

Sempra · NYSE: SRE · Utilities

The short answer

Sempra fails this Shariah screener at the debt gate: $36.7 billion of interest-bearing debt is 72.7% of its ~$50.41 billion market cap, well over the 33% ceiling. Its regulated-utility and LNG-infrastructure business passes the business-activity gate, and interest income of about 0.75% of revenue is far under the 5% ceiling.

Gate 1 — Business activity: PASS

Gate 1 — business activity: PASS. Sempra is a regulated energy utility. Per its FY2025 Form 10-K (Item 1), its three segments are Sempra California — SDG&E, 'a regulated public utility that provides electric services to a population of... approximately 3.6 million and natural gas services to approximately 3.3 million' plus SoCalGas, which 'owns and operates a natural gas distribution, transmission and storage system that delivers natural gas to a population of... approximately 21.3 million'; Sempra Texas Utilities — equity investments in Oncor ('a regulated electricity transmission and distribution utility,' the largest T&D system in Texas, 4.1M+ delivery points) and Sharyland Utilities; and Sempra Infrastructure — LNG and natural gas infrastructure in the U.S. and Mexico (50.2% of the Cameron LNG joint venture, ECA LNG, Port Arthur LNG projects), energy networks and low-carbon solutions.

The company is not an interest-based lender and has no alcohol, gambling, pork, tobacco, weapons/defense, or adult-entertainment segments. Interest-like income from cash accounts and financing arrangements is financial, not an operating segment, and is captured at gate 3.

Gate 2 — Debt and cash: FAIL

Gate 2 — interest-bearing debt: FAIL (72.7%, ceiling 33%). Per Sempra's Q2 2026 condensed consolidated balance sheet (June 30, 2026, filed August 6, 2026), interest-bearing debt was short-term debt of $3,566 million, current portion of long-term debt and finance leases of $2,075 million, and long-term debt and finance leases of $31,023 million — $36,664 million total (the balance-sheet lines embed finance leases; operating-lease ROU assets are separate).

$36.7 billion of interest-bearing debt against a market capitalization of about $50.41 billion (Finnhub, October 2, 2026) is 72.7%, more than double the 33% ceiling — so Sempra fails this screener at gate 2. The FY2025 10-K basis ($35,021 million against the same market cap, about 69.5%) also fails. Transparency note: an additional roughly $8.2 billion of interest-bearing debt sat inside held-for-sale liabilities at December 31, 2025 (the KKR Sempra Infrastructure Partners transaction, expected to close Q3 2026); including it would push the ratio toward 85%.

Gate 3 — Non-compliant income: PASS

Gate 3 — non-compliant income: PASS (0.75%, ceiling 5%). Sempra's FY2025 Form 10-K separately discloses interest income as its own income-statement line: $103 million for 2025 (2024: $61 million; 2023: $89 million). Against FY2025 total revenue of $13,702 million that is about 0.75%, far under the 5% ceiling.

The MD&A attributes the 2025 increase mainly to 'interest from interest bearing cash accounts primarily at Sempra Infrastructure' ($33 million) and a fair-value change on the Support Agreement ($14 million). The latest period confirms it: the Q2 2026 10-Q shows interest income of $78 million against six-month revenue of $6,652 million (1.17%).

Key figures used

Frequently asked questions

What does Sempra do?

Sempra (NYSE: SRE) is a regulated energy utility company headquartered in San Diego, California. Its FY2025 Form 10-K (filed February 26, 2026) describes three segments: Sempra California - SDG&E (electric service to about 3.6 million people and natural gas to about 3.3 million in the San Diego area) and SoCalGas (natural gas distribution, transmission and storage serving about 21.3 million people); Sempra Texas Utilities - equity investments in Oncor (a regulated electricity transmission and distribution utility, the largest T&D system in Texas) and Sharyland Utilities; and Sempra Infrastructure - LNG and natural gas infrastructure in the U.S. and Mexico (including a 50.2% interest in the Cameron LNG joint venture, ECA LNG and Port Arthur LNG), plus energy networks and low-carbon solutions. FY2025 total revenue was $13,702 million.

Is Sempra's business Shariah compliant?

Sempra's business passes this screener's first gate. All revenue comes from regulated gas and electric utility service, electricity transmission and distribution, and LNG/energy infrastructure - it is not an interest-based lender and has no alcohol, gambling, pork, tobacco, weapons/defense, or adult-entertainment segments. Ancillary interest-like income from cash accounts and financing arrangements is financial, not an operating segment, and is captured at the income gate below.

How much interest-bearing debt does Sempra have?

Per Sempra's Q2 2026 condensed consolidated balance sheet (June 30, 2026, filed August 6, 2026), interest-bearing debt was short-term debt of $3,566 million, current portion of long-term debt and finance leases of $2,075 million, and long-term debt and finance leases of $31,023 million - $36,664 million total (about $36.7 billion). $36.7 billion against a market cap of about $50.41 billion is 72.7% - well over the 33% ceiling. The FY2025 10-K basis was $35,021 million, about 69.5% - also over. An additional roughly $8.2 billion of interest-bearing debt sat inside held-for-sale liabilities at December 31, 2025 (the pending KKR Sempra Infrastructure Partners transaction), which would push the ratio toward 85%.

How much interest income does Sempra earn?

Sempra's FY2025 Form 10-K separately discloses interest income as its own line on the income statement: $103 million for 2025 (2024: $61 million; 2023: $89 million) - the MD&A attributes the increase mostly to interest from interest-bearing cash accounts at Sempra Infrastructure. Against FY2025 total revenue of $13,702 million that is about 0.75%. The Q2 2026 10-Q shows interest income of $78 million against six-month revenue of $6,652 million (1.17%). Both are far under the 5% ceiling - this gate passes.

What do third-party Shariah screeners say about Sempra?

Zoya publishes a Sempra (SRE) page and currently rates it not Shariah-compliant under AAOIFI guidelines - consistent with this screener's debt-gate finding; its page cites FY2025 interest income of $103 million against revenue of about $13.7 billion (about 0.75%), matching the 10-K. I could not verify a Musaffa rating page for SRE or a ShariaPortfolio rating from public sources. Third-party screeners apply different assumptions and update on different schedules, and their results can change when new financial statements are published - always check the latest screening before investing.

Sources

Screened 2026-10-02 from published company figures and market data. Figures change; this page is educational, not financial advice and not a religious ruling.

Screened with our two-gate Shariah screening methodology (business-activity gate, then AAOIFI-style financial ratios).