Companhia de Saneamento de Minas Gerais (CSMG3) Q3 2025 earnings summary

Executive summary

• Achieved record investments of BRL 2.0 billion in CapEx for 9M25, a 26% increase year-over-year, with market recognition of growth potential and strategic transformation underway.

• EBITDA for 9M25 reached BRL 2.2 billion, up 3.3% year-over-year, with a margin of 40.2%.

• Net income for 3Q25 was R$360.8 million, a 2% decrease year-over-year, mainly due to higher depreciation.

• Operating cash flow in 3Q25 was BRL 701 million, 26% higher than 3Q24.

• Progressed in de-statization and privatization, with legislative approval and universalization of sanitation services.

Financial highlights

• CapEx investments reached nearly BRL 2 billion, up 26% year-over-year and 65% over 2023, nearing the 2025 target of BRL 2.5 billion.

• Consolidated net revenue for 9M25 totaled R$6.16 billion, a 4.8% increase year-over-year.

• EBITDA margin for 3Q25 was 39.3%, with net income for 9M25 at R$1.08 billion, up 3.2% year-over-year.

• Net debt/EBITDA ratio at 2.1x as of September 2025.

• Dividend payout policy maintained at 50%, with BRL 345 million paid in H1 2025 and BRL 170 million planned for November.

Outlook and guidance

• Multi-year investment program (2025–2029) targets BRL 3.2–3.8 billion annually, with investment guidance of BRL 17 billion through 2029.

• Third tariff review progressing, with a preliminary 5.5% increase set for January 2026.

• Leverage expected to approach 3x in coming years to support investment and maintain competitive dividends.