SABESP (SBSP3) Q3 2025 earnings summary

Executive summary

• Adjusted EPS for 3Q25 was R$1.88, up from R$1.72 in 3Q24, with a 15% YoY increase in adjusted EBITDA, reflecting operational discipline and structural improvements.

• Investments reached a record R$4.0 billion in 3Q25, up 175% year-over-year, focused on universalization and infrastructure, with R$10.4 billion invested in 9M25.

• 148,000 new active connections were added in 3Q25, with potable water delivered to over 616,264 new units YTD, surpassing annual targets.

• Operational efficiency improved, with reductions in general and administrative expenses, power consumption, and workforce.

• Court-ordered debt payments totaling R$1.95 billion were approved, with R$1.12 billion already received.

Financial highlights

• Adjusted net revenue from sanitation services was R$5,468 million, up 0.1% year-over-year; adjusted EBITDA increased 15% to R$3,206 million (59% margin); adjusted net income rose 9.5% to R$1,284 million.

• Net revenue for 3Q25 was R$9,425 million, down 37% YoY due to the prior year’s financial asset bifurcation.

• OPEX decreased 15% YoY in 3Q25, driven by lower personnel, electricity, and general expenses.

• Cash flow from operations increased 22% YoY to R$1.7 billion; net cash from operating activities was R$3.17 billion in 3Q25.

• CapEx accelerated 175% YoY to R$4.0 billion in 3Q25, with R$10.4 billion invested YTD.

Outlook and guidance

• Universalization targets are on track, with potable water and sewage treatment connections exceeding annual goals and only 3% remaining to meet the 95% sewage treatment threshold.

• Smart metering rollout to install 4.4 million IoT meters by 2029, with 1 million installed in 9M25.

• Water system resilience projects to add 22 m³/s capacity by 2030, with BRL 6.3 billion CapEx planned.

• Decarbonization roadmap targets 15% total emissions reduction and 41% cut in emission intensity by 2035.

• Capex backlog of R$39 billion through 2029, supporting continued infrastructure expansion.