SABESP (SBSP3) Q2 2026 earnings summary

Executive summary

• Adjusted net revenue grew 6.7% year-over-year in 2Q26, driven by price increases and new units, but offset by customer mix and weather impacts.

• Adjusted EBITDA for 2Q26 was R$3,503 million, down 3.2% year-over-year, reflecting higher personnel, services, and energy costs, as well as investments in customer experience and ERP transition.

• Adjusted net income was R$1,150 million in 2Q26, down 41.2% year-over-year, impacted by higher depreciation, amortization, and financial expenses.

• CapEx reached R$7.5 billion in 1H26, up 15.6% year-over-year, supporting universalization and major infrastructure projects.

• Transformation plan execution continued, with investments in digital platforms and customer service, despite higher upfront costs.

Financial highlights

• Net operating revenue for 2Q26 was R$10,209 million, up 13.9% year-over-year; adjusted net revenue was R$6,013 million (+6.7% YoY).

• Adjusted EBITDA margin for 2Q26 was 21% (down from 27% in 2Q25); EBITDA margin was 38% (down from 43% in 2Q25).

• Net income for 2Q26 was R$1,464 million (margin 14%), down 31.4% year-over-year.

• Operating costs and expenses rose 24.5% year-over-year in 2Q26, mainly due to higher service, legal, and treatment supply costs.

• Net debt increased to R$34 billion in 2Q26 from R$23 billion in 2Q25.

Outlook and guidance

• CapEx target for 2026 is nearly R$20 billion, focusing on universalization, service quality, and operational resilience.

• Confident in delivering U-Factor and universalization targets for the year.

• Price increases are expected to continue supporting revenue, with mix and weather impacts to be recovered in the 2028 rate cycle.