Companhia de Saneamento de Minas Gerais (CSMG3) Q1 2025 earnings summary

Executive summary

• Achieved record Q1 2025 results with net revenue of R$1.86 billion, up 10.2% year-over-year, and historical highs in EBITDA (R$814 million, 43.3% margin) and net income (R$429 million, up 21.9%).

• Fitch upgraded the credit rating to AAA (bra) in April 2025, with Moody’s confirming AAA.br, reflecting strong fundamentals and robust cash generation.

• Confirmed inclusion in B3's Industrial Sustainability Index and ISE portfolio, highlighting ESG and governance commitment.

• Investments reached R$543 million in Q1 2025, up 45.9% year-over-year, supporting expansion and modernization.

• Delinquency rate dropped to a record low of 2.86%.

Financial highlights

• EBITDA reached R$814 million (43.3% margin), the highest in company history, with net income up 21.9% to R$429 million.

• Net revenue grew 10.2% year-over-year, driven by a 6.42% tariff adjustment and higher volumes.

• Operating cash generation exceeded R$560 million, up 20% year-over-year.

• Dividend payout for Q1 was R$181 million, with an additional R$154 million scheduled for June 30.

• CapEx for the quarter was R$543 million, in line with aggressive investment plans.

Outlook and guidance

• Multi-year investment plan totals R$16.9 billion through 2029, focusing on universalization, quality improvements, and water security.

• Ongoing third tariff review (2026–2029) with preliminary WACC increase and annual investment recognition.

• Dividend payout policy set at 50% for 2025, with potential for extraordinary dividends.