SABESP (SBSP3) Investor Day 2026 summary

Strategic transformation and cultural shift

• Transitioned from state-owned to private, reducing workforce from 11,000 to 9,000 and introducing merit-based incentives and collaborative culture.

• Workforce reduced by 28% through voluntary dismissal programs, with a shift to performance-based compensation and increased investment capacity.

• Implemented new management systems, digital transformation, and bottom-up budgeting for efficiency.

• Launched long-term incentive programs and doubled bonuses for high performers to align interests.

• Emphasized stakeholder engagement, institutional relations, and transparent communication.

Financial performance and investment

• Achieved 60% EBITDA margin and invested BRL 15.2 billion in 2025, ranking third in infrastructure investments in Brazil.

• EPS nearly doubled post-privatization, from 5.9 in 2024 to 10.9 in 2025, and EV/RAB ratio increased to 1.4.

• Raised BRL 36.4 billion in debt, diversified funding sources, and issued the largest blue bond globally.

• 93% TSR since privatization, with 82% from asset prices and significant shareholder value creation.

• ROIC improved by 190bps to 11.7% in 2025.

Universal access and operational excellence

• Committed to universal water and sewage access by 2029, with 2.1 million new sewage units by end-2026 and 6 million additional people served.

• Major CapEx projects underway, including BRL 39 billion planned for 2026 and the Integra Tietê program for metropolitan São Paulo.

• Five-year CAPEX CAGR of ~40%, with BRL 20 billion planned for 2026 and 64% of investments focused on system expansion until 2030.

• Prioritized informal areas and smaller cities for early delivery, with complex urban projects extending through 2029.

• Achieved 99.9% treated water and 98.8% distributed water, exceeding regulatory quality factors.