Aguas Andinas (AGUAS) Q4 2024 earnings summary

Executive summary

• Achieved a positive close to the tariff process for 2025–2030, securing agreements with the Superintendency of Sanitary Services and staged tariff increases for climate resilience investments.

• Maintained stable water supply despite adverse weather, supported by a sustainable water security plan.

• Completed the Avanza+ transformation plan and launched new efficiency and profitability initiatives, generating CLP 3,451 million in savings.

• EBITDA rose 2.2% year-over-year to CLP 325,436 million, driven by higher tariffs and volumes.

• Net income decreased 6.8% year-over-year to CLP 124,340 million, mainly due to lower financial income and higher depreciation.

Financial highlights

• Ordinary revenues increased 3.4% year-over-year to CLP 662,701 million, with sanitation revenues up 4.4% for drinking water and 3.7% for wastewater.

• EBITDA margin remained strong at 49.1%, with improvements in uncollectible accounts (1.1% of revenue vs. 1.9% in 2023).

• Operating costs and expenses rose 4.6% year-over-year, mainly from inflation, labor, and maintenance.

• Free cash flow rose to CLP 100,656 million, up from CLP 84,644 million in the prior year.

• Cash and cash equivalents at year-end were CLP 108,758 million.

Outlook and guidance

• New tariffs effective from March 2025, with further increases in December 2025 and March 2026, including an additional 7.4% tariff for climate adaptation projects under the Biociudad plan.

• Investment plan focuses on climate change adaptation, network maintenance, and operational continuity, with average annual investment for 2025–2030 projected at CLP 200–250 billion.

• Normal water availability expected in 2025 due to favorable rainfall and high reservoir levels.

• Proposed dividend payout of 70% of 2024 earnings to support growth investments.