Companhia de Saneamento de Minas Gerais (CSMG3) Q4 2024 earnings summary

Executive summary

• Net revenue reached R$6.97 billion in 2024, up 6.8% year-over-year, with adjusted EBITDA of R$2.8 billion (39.7% margin) and net income of R$1.32 billion, slightly down due to non-cash FX impacts.

• Record investments totaled R$2.22 billion in 2024, a 33.9% increase, supporting universalization goals and robust asset growth.

• Dividend payout reached R$906 million (R$605.8 million regular, R$300 million extraordinary), yielding 11.5%.

• Water coverage exceeded 99% and sewage coverage reached 77.3%, both above national averages and regulatory requirements.

• International ESG recognition, including top global rankings and ISO 37.301 certification.

Financial highlights

• Net revenue for 2024 was R$6.97 billion, up 6.8% year-over-year, with Q4 revenue at R$1.76 billion.

• Adjusted EBITDA for 2024 was R$2.8 billion (39.7% margin); Q4 EBITDA was R$641 million (36% margin).

• Net income for 2024 was R$1.32 billion, down 4.5% year-over-year, mainly due to FX impacts.

• Cash flow from operations was R$2.1 billion in 2024; Q4 contributed R$480 million.

• Costs and expenses rose 4.5% in 2024, mainly from third-party services and non-manageable costs.

Outlook and guidance

• Multi-year investment plan of R$16.9 billion for 2025-2029, focusing on universalization, water quality, and regulatory compliance.

• 2025 capex budget set at R$2.32 billion, with R$226 million in capitalizations.

• Tariff review process underway, with new structure effective January 2026; WACC preliminarily increased to 9.15%.

• Dividend policy targets 50% of adjusted net income; extraordinary dividends to be discussed.

• 6.42% tariff increase authorized for 2025, effective January 1.