Aguas Andinas (AGUAS) Q1 2025 earnings summary

Executive summary

• Revenue for Q1 2025 rose 4.4% year-over-year to CLP 197,437 million, driven by higher tariffs, increased water volumes, and consumption.

• EBITDA increased 4.1% (5.8% adjusted for leap year), maintaining margin stability.

• Net income declined 7.3% to CLP 50,921 million, mainly due to higher financial costs, lower non-sanitation revenues, and absence of asset sales.

• Cash position increased to CLP 181,996 million after a local bond issue and partial debt amortization.

• Leadership changes included a new CEO, Director of Strategy, and Board composition.

Financial highlights

• Ordinary revenue reached CLP 197,437 million (+4.4% YoY), with drinking water revenue up 8.0% and wastewater revenue up 5.7%.

• EBITDA was CLP 111,532 million, up from CLP 107,153 million, with a margin of 56.5%.

• Operating costs and expenses increased 4.8% to CLP 85,905 million, mainly due to inflation, labor, and energy costs.

• Net profit for the quarter was nearly CLP 51 billion, down 7.3% year-over-year, impacted by currency corrections and absence of asset sales.

• Free cash flow improved, closing at CLP 24,844 million after dividend payments and CapEx.

Outlook and guidance

• Tariff agreements for 2025–2030 foresee gradual increases, supporting investment in climate adaptation and water security.

• Water availability is expected to remain normal in 2025, with El Yeso Reservoir at 94% capacity.

• Projected annual investments of CLP 200,000–250,000 million through 2030, with CapEx for 2024 expected below this range.

• Debt target set to remain below 3.5x EBITDA by 2030.

• Dividend policy under continuous review, with 70% of profits approved for distribution.