Companhia de Saneamento de Minas Gerais (CSMG3) Q2 2026 earnings summary

Executive summary

• Net revenue reached R$2,271.4 million in 2Q26, up 14.7% year-over-year, driven by tariff adjustments and higher volumes in water and sewage services.

• Adjusted EBITDA was R$762.1 million in 2Q26, with a margin of 39.0%.

• Net income for 2Q26 was R$227.1 million, a decrease of 21.5% compared to 2Q25, mainly due to higher costs and non-recurring expenses.

• The company completed its privatization process, with Equatorial acquiring a 30% stake and the State of Minas Gerais divesting control.

• Capex for 1H26 totaled R$1.5 billion, a 27% increase, focused on water/sewage infrastructure and loss reduction.

Financial highlights

• Consolidated net revenue for 1H26 was R$4,399.5 million, up 8.9% year-over-year.

• Operating costs and expenses rose 14.1% year-over-year, totaling R$1,692.3 million in 2Q26.

• Financial expenses increased 81.7% year-over-year, impacting net income.

• Cash and equivalents at 2Q26 end were R$1,170.0 million, up from R$503.7 million at 2025 year-end.

• Net financial result: negative R$168.1 million (vs. -R$102.4 million in 2Q25), reflecting higher interest and financial expenses.

Outlook and guidance

• New concession contracts in Contagem and Betim, effective until 2073, add 9.3% to revenue base and require R$520 million in infrastructure investments over 10 years.

• 43 contracts under new regulatory model now represent 37.5% of annual net revenue, all expiring in 2073.

• The company expects continued regulatory stability and investment in universalization of services, supported by long-term contracts and tariff mechanisms.