Aguas Andinas (AGUAS) Q2 2025 earnings summary

Executive summary

• Revenue for the first half of 2025 increased 6.7% year-over-year, driven by tariff indexation, higher average rates, and increased consumption, with a 1.2% rise in demand and a 0.5% increase in water volume supplied.

• EBITDA grew 6.0% year-over-year (7.1% adjusted for leap day), maintaining margins above 51%, supported by tariff adjustments and operational efficiencies.

• Net profit/net income decreased by 1.0% compared to the same period last year, mainly due to higher financial costs, absence of asset sales, and inflation effects.

• Strong cash generation, with free cash flow of 92,848 MCLP, nearly doubling year-over-year, and cash and cash equivalents at $186.24 million by June 2025.

• Significant investments of $68.42 million were made to strengthen infrastructure, aligned with the Biocity plan and new tariff agreements.

Financial highlights

• Revenue reached 362,460 MCLP, up from 339,842 MCLP in 6M24, with ordinary revenue up 6.7% year-over-year.

• EBITDA was 186,930 MCLP, up from 176,418 MCLP in 6M24, with margin stability at 51.9%.

• Net income was 75,768 MCLP, slightly down from 76,507 MCLP in 6M24.

• Operating costs and expenses increased 7.4%, mainly due to inflation, exchange rates, higher labor, energy, and maintenance costs.

• Free cash flow improved to 92,848 MCLP from 47,112 MCLP in 6M24.

Outlook and guidance

• New tariffs and retroactive income to be implemented in the coming weeks, with further adjustments pending regulatory approval.

• Alternative supply plan pending regulatory approval, expected to add a 0.5% tariff increase for Aguas Andinas.

• Projected annual investments of $200–250 million for 2025–2030 to support infrastructure and climate resilience.

• Anticipated efficiency gains from migration to free energy tariffs by early 2026.

• No significant property sales expected for the remainder of 2025.