Aguas Andinas (AGUAS) Q1 2026 earnings summary

Executive summary

• Revenue for Q1 2026 rose 6.6% year-over-year to CLP 210,509 million, with EBITDA up 7.5% to CLP 119,935 million and net income increasing 22.1% to CLP 62,157 million, driven by tariff increases, stable consumption, and improved receivables management.

• Growth was supported by higher rainfall, increased consumption, and positive non-sanitation income, despite ongoing geopolitical and climate uncertainties.

• Shareholders approved a 75% earnings distribution, with dividends paid in April 2026, supporting reinvestment in climate adaptation and infrastructure projects.

• Operational resilience and climate adaptation remain strategic priorities, with robust investment in water security, infrastructure renewal, and sustainability.

Financial highlights

• Revenue grew 6.6% year-over-year to CLP 210,509 million, mainly due to gradual rate increases, additional service charges, and improved consumption patterns.

• EBITDA margin improved to 57.0%, with EBITDA at CLP 119,935 million, supported by rate adjustments, improved bad debt management, and non-sanitation margins.

• Net income rose 22.1% year-over-year to CLP 62,157 million, driven by higher EBITDA and favorable financial results.

• Free cash flow reached CLP 43,713 million, with strong operational flows and lower tax payments.

• Net debt/EBITDA at 3.46x, with liquidity and leverage ratios stable and above industry standards.

Outlook and guidance

• CapEx execution is on track with annual guidance, with CLP 42,565 million invested and further increases expected in subsequent quarters.

• Inflation and indexation mechanisms are expected to drive further rate adjustments, with a polynomial indexation of 9.1% as of May.

• El Niño conditions projected for winter 2026 may bring increased precipitation and temperature volatility, requiring adaptation measures such as enhanced storage and emergency supply plans.

• Non-sanitation income and logistics activities are projected to remain stable throughout the year.

• Active monitoring of geopolitical and hydrological risks continues, with contingency plans for drought and supply disruptions.