SABESP (SBSP3) Q4 2025 earnings summary

Executive summary

• 2025 marked the first full year post-privatization, with accelerated investments, operational modernization, and strengthened governance, focusing on universalization, efficiency, and financial discipline.

• Achieved strong operational and financial results in 4Q and FY25, with growth in revenue, EBITDA, and net income on an adjusted basis year-over-year.

• R$15.2 billion was invested in water and sewage infrastructure, supporting universal access, operational efficiency, and major project deliveries.

• Strategic acquisitions, including EMAE, enhanced water security and integrated energy assets, with further integration steps planned.

• Workforce optimization and cultural transformation included a 13% reduction in employees and new talent programs.

Financial highlights

• FY25 net revenue grew 5.4% year-over-year to R$38.1 billion; adjusted net revenue from sanitation services rose 2.2%.

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

• Adjusted net income for FY25 was R$6.3 billion (+22% YoY); reported net income was R$8.5 billion.

• Capex totaled R$15.2 billion in FY25, up 120% from 2024; 4Q25 capex was R$4.8 billion.

• Cash flow from operations reached R$8.1 billion for FY25; free cash flow from operations was negative R$1.0 billion in 4Q25 due to high investments.

Outlook and guidance

• By 2029, approximately R$70 billion in investments are planned to achieve universalization across 371 municipalities.

• CapEx plan updated for inflation and accelerated investments, with R$39 billion in contracted investments through 2029.

• Energy transition and decarbonization targets set for 2035 include a 41% reduction in emissions intensity and 43% reduction in Scope 2 emissions.

• Expansion of smart metering and water security projects, including integration of new assets and increased storage capacity.

• Focus remains on accelerating universal access and infrastructure expansion, with flexibility to increase CapEx pace if execution allows.