Companhia de Saneamento de Minas Gerais (CSMG3) investor relations material

Executive summary

• 3Q26 net revenue excluding construction rose 9.8% to R$2.032bn; consolidated revenue increased 13.4% to R$2.398bn.

• Adjusted EBITDA rose 14.0% to R$828.4m; adjusted net income fell 6.0% to R$339.2m, while statutory net income declined 7.0% to R$335.7m.

• Management’s 100-day plan focuses on universalization, operating efficiency, regulatory engagement, process simplification and financing for the next investment cycle.

Financial highlights

• Net revenue excluding construction reached R$2.032bn, up 9.8%, supported by the 6.56% tariff adjustment and higher measured water and sewage volumes.

• Adjusted EBITDA margin expanded to 40.8% from 39.3%; adjusted EBITDA excludes R$5.1m of D&O insurance expense related to the share offering.

• Net financial expense was R$104.7m versus R$31.9m in 3Q25; derivatives and foreign-exchange variation had a negative R$52.0m YoY effect.

• Net operating cash generation was R$704m, down 1.1% YoY; 9M operating cash flow was R$1.686bn.

Outlook and guidance

• Annual tariff adjustment results were expected by Dec. 23, 2026, with the new tariffs scheduled to take effect Jan. 22, 2027.

• The 2026–2029 tariff cycle recognizes delivered investments annually; the current cycle’s X Factor is 2.74%.

• 2033 coverage goals are 99% for water and 90% for sewage; management is reviewing processes, contracts, operating indicators, capital structure and financing alternatives.

• The Paraopeba reservoir system was at 71.1% capacity on Nov. 6, 2026; no municipality was under rationing.