Aguas Andinas (AGUAS) Q4 2024 earnings summary

Executive summary

• 2024 saw stable water supply despite significant rainfall and operational blackouts, supported by a sustainable water security plan and the completion of the Avanza+ transformation plan, with new efficiency initiatives launched.

• Achieved a positive close to the tariff process, securing agreements with the Superintendency of Sanitary Services, with rates for Aguas Andinas and Aguas Manquehue set for the next five years.

• Board approved a 70% dividend payout for 2024, balancing investment needs and shareholder returns.

• EBITDA rose 2.2% year-over-year to CLP 325,436 million, driven by higher tariffs and volumes, while net income declined 6.8% due to lower financial income and higher depreciation.

• Major transformation and efficiency initiatives generated CLP 3,451 million in savings.

Financial highlights

• Revenue grew 3.4% year-over-year to CLP 662,701 million, with sanitation revenues up 4.4% for drinking water and 3.7% for wastewater.

• EBITDA margin remained strong at 49.1%, with improvements in uncollectible accounts (1.1% of revenue vs. 1.9% in 2023).

• Free cash flow rose to CLP 100,656 million, up from CLP 84,644 million in the prior year.

• Net financial debt/EBITDA at 3.6x; leverage at 1.34x (pro forma 1.85x); EV/EBITDA at 9.87x as of March 27, 2025.

• CapEx for 2024 aligned with historical execution; 2025 CapEx estimated at CLP 220–250 billion, subject to project timing.

Outlook and guidance

• Annual CapEx for 2025–2030 projected at CLP 200–250 billion, focused on climate adaptation, network maintenance, and operational continuity.

• New tariffs effective from March 2025, with further increases in December 2025 and March 2026, including an additional 7.4% tariff for climate adaptation projects.

• Consumption volumes expected to grow around 1% annually, depending on demographics and resource availability.

• Cost pressures anticipated in 2025 from energy price hikes and labor reforms, partially mitigated by efficiency initiatives.

• Normal water availability expected in 2025 due to favorable rainfall and high reservoir levels.