SABESP (SBSP3) Q4 2025 earnings summary

Executive summary

• Achieved strong operational and financial results in 4Q25 and FY25, with growth in revenue, EBITDA, and net income on an adjusted basis year-over-year, and continued expansion of water and sewage services.

• Strategic transformation focused on concession obligations, operational efficiency, and financial discipline delivered measurable improvements.

• Capex doubled to R$15.2 billion in FY25, supporting infrastructure expansion, water resilience, and social inclusion.

• Acquisition of EMAE completed, now holding 98% of common shares, with further integration steps and a tender offer for remaining shares planned.

• FY25 adjusted EPS reached R$12.37, with efficiency gains and volume growth contributing to performance.

Financial highlights

• Adjusted net revenue for 4Q25 was R$5.7 billion, up 2.1% year-over-year; FY25 reached R$22.2 billion, up 2.2%.

• Adjusted EBITDA for 4Q25 was R$3.4 billion (+13% YoY, margin 60%); FY25 R$13.2 billion (+17% YoY, margin 60%).

• Adjusted net income stable at R$1.9 billion for the quarter; FY25 R$6.3 billion (+22% YoY).

• Cash flow from operations reached R$3 billion in 4Q25 (+24% YoY); FY25 R$8.1 billion.

• Operating costs and expenses fell 13% year-over-year, reflecting efficiency gains and headcount reduction.

Outlook and guidance

• Capex plan updated for inflation and accelerated investments, with ongoing discussions with the regulator.

• Universalization targets for 2025 achieved ahead of schedule; strong start to 2026 targets.

• Continued focus on expanding service coverage, affordability, and operational efficiency.