Companhia de Saneamento de Minas Gerais (CSMG3) Q4 2025 earnings summary

Executive summary

• Net revenue reached BRL 1.88 billion in 4Q25 (+6.9% YoY) and BRL 7.36 billion in 2025 (+5.6% YoY), driven by tariff adjustments and higher water/sewage volumes.

• EBITDA was BRL 731 million in 4Q25 (+14.1% YoY, 38.5% margin) and BRL 2.95 billion in 2025 (+5.7% YoY, 39.8% margin).

• Net income rose to BRL 337 million in 4Q25 (+23.9% YoY) and BRL 1.42 billion in 2025 (+7.5% YoY), supported by operational efficiency and cost control.

• Record CapEx of BRL 2.9 billion in 2025 (+32% YoY), focused on universalization, modernization, and service improvement.

• Strategic focus on privatization execution, regulatory predictability, and ESG, with inclusion in the Ibovespa and Carbon Efficient Index.

Financial highlights

• 4Q25 net revenue: BRL 1.88 billion (+6.9% YoY); 2025 net revenue: BRL 7.36 billion (+5.6% YoY).

• 4Q25 EBITDA: BRL 731 million (+14.1% YoY, 38.5% margin); 2025 EBITDA: BRL 2.95 billion (+5.7% YoY, 39.8% margin).

• Net income: BRL 337 million in 4Q25 (+23.9% YoY); BRL 1.42 billion in 2025 (+7.5% YoY).

• Operating cash generation: BRL 505 million in 4Q25 (+5.2% YoY); BRL 2.3 billion in 2025 (+12.8% YoY).

• Leverage at 2.3x Net Debt/EBITDA; net debt at BRL 6.87 billion as of Dec/2025.

Outlook and guidance

• CapEx guidance for 2026–2030 is BRL 21 billion, focused on sewage universalization, water security, and loss reduction.

• Tariff review effective January 2026, with a 6.56% average tariff increase and pre-tax WACC of 13.7%.

• Board set a 50% payout policy for dividends in 2026, maintaining predictability.