Companhia de Saneamento do Paraná (SAPR4) investor relations material

Executive summary

• Net revenue grew 2.5% in Q2 2025 year-over-year, with net profit for Q2 down 29.7% due to higher costs and expenses outpacing revenue growth.

• For 1H25, net revenue increased 4.4% and net profit surged 95% year-over-year, with investments exceeding BRL 1.1 billion, up 26% from 1H24.

• Service coverage remains high: 99.9% for water and 82% for sewage, reinforcing universalization targets.

• Default levels remained low at 0.8% in 1H25, reflecting efficient management.

• Major highlights include strong adherence to voluntary dismissal program, digital metering initiatives, and ESG recognition for sustainability projects.

Financial highlights

• Q2 2025: Net revenue BRL 1,705 million (+2.5% YoY), net profit BRL 263.8 million (-29.7% YoY), EBITDA BRL 536 million (-11% YoY), EBITDA margin 31.4% (-7.3 p.p. YoY).

• 1H25: Net revenue BRL 3,511 million (+4.4% YoY), net profit BRL 1,472 million (+95% YoY), EBITDA BRL 1,652 million (+16.5% YoY), EBITDA margin 47.1% (+4.9 p.p. YoY).

• Capex reached BRL 1.1 billion in 1H25 (+26% YoY), with Q2 capex at BRL 612.1 million (+37% YoY).

• Cash generation increased 15.8% to BRL 1,428 billion, with a conversion rate of 83%.

• Financial result impacted by higher expenses and present value adjustments.

Outlook and guidance

• Tariff review for 2025–2028 cycle approved, with a 3.7753% correction index and new average tariff of BRL 6.83/m³.

• Ongoing focus on universalization, cost control, and efficiency, with a five-year investment plan of BRL 11.8 billion.

• Management expresses comfort with capital structure and covenant compliance; conservative leverage at 1.7x EBITDA.

• New business initiatives and asset leasing studies for regional expansion underway.

• Regulatory changes and public consultations may impact future tariff structures and social tariff implementation.