Companhia de Saneamento do Paraná - SANEPAR (SAPR4) Q1 2025 earnings summary

Executive summary

• Net profit surged 218.4% year-over-year to BRL 1.2 billion, driven by non-recurring Precatórios revenue, operational improvements, and cost management.

• Net operating revenue rose 6.3% year-over-year to BRL 1.8 billion, supported by tariff adjustments and higher invoiced volumes.

• EBITDA reached BRL 1.1 billion, up 44.1%, with margin expanding to 61.8% from 45.6% in 1Q24.

• Operational performance was strong, with billed water volume up 3% and sewage up 4.8% year-over-year.

• All financial covenants were met, and reservoir levels remained robust.

Financial highlights

• Net revenue reached BRL 1,805 million (+6.3% YoY); EBITDA: BRL 1,116 million (+44.1% YoY); Net profit: BRL 1,208 million (+218.4% YoY).

• EBITDA margin improved to 61.8% from 45.6% in 1Q24; EBIT margin rose to 53.4% from 37.7%.

• Net margin expanded to 66.9% from 22% in prior quarters.

• CAPEX increased 14.6% year-over-year to BRL 487 million.

• Cash flow from operations reached BRL 734 million, up 15.5% YoY.

Outlook and guidance

• The 3rd Periodic Tariff Review set the average basic tariff at BRL 6.83/m³ for 2025–2028, a 3.7753% correction.

• Continued focus on universalizing sewage services and maintaining 100% water coverage.

• Expectation of improved default rates in coming quarters due to new payment and collection initiatives.

• Ongoing regulatory developments include public consultations on tariff methodologies and social tariff implementation.

• Reservoir levels are stable, supporting operational continuity.