SABESP (SBSP3) Q4 2025 earnings summary

Executive summary

• Achieved strong operational and financial results in 4Q25 and FY25, with growth in revenue, EBITDA, and net income on an adjusted basis year-over-year, and continued expansion of water and sewage services toward universalization targets.

• CapEx doubled to R$15.2 billion in FY25, supporting infrastructure expansion, social inclusion, and improved service quality, with 32 major projects delivered and significant progress in water resilience.

• Acquisition of EMAE completed, now holding 98% of common shares, with further integration steps and a tender offer for remaining shares planned for 2026.

• Strategic transformation focused on concession obligations, operational efficiency, and financial discipline delivered measurable improvements.

• 97,000 net incremental connections added, expanding water and sewage access to millions.

Financial highlights

• Adjusted net revenue for 4Q25 was R$5.7 billion, up 2.1% YoY; FY25 reached R$22.2 billion, up 2.2%.

• Adjusted EBITDA for 4Q25 was R$3.4 billion (+13% YoY, margin 60%); FY25 R$13.2 billion (+17% YoY, margin 60%).

• Adjusted net income stable at R$1.9 billion for 4Q25; FY25 R$6.3 billion (+22% YoY).

• Cash flow from operations reached R$3 billion in 4Q25 (+24% YoY); FY25 R$8.1 billion.

• Capex in 4Q25 was R$4.8 billion, up 73% from 4Q24.

Outlook and guidance

• CapEx plan updated for inflation and accelerated investments, with ongoing discussions with the regulator.

• Focus remains on accelerating universal access and infrastructure expansion, with flexibility to increase CapEx pace if execution allows.

• Entering 2026 with strong foundations to accelerate infrastructure investment, operational excellence, and sustainability.