Companhia de Saneamento do Paraná - SANEPAR (SAPR4) Q2 2025 earnings summary

Executive summary

• Net revenue grew 2.5% year-over-year in Q2 2025 to BRL 1.705 billion, with net profit down 29.7% to BRL 263.8 million due to higher costs and expenses outpacing revenue growth.

• For 1H25, net revenue increased 4.4% to BRL 3.511 billion, EBITDA rose 16.5% to BRL 1.652 billion, and net profit surged 95% to BRL 1.472 billion.

• Investments reached BRL 1.1 billion year-to-date, with BRL 612 million in Q2, up 26–37% year-over-year, reflecting strong execution capacity.

• Default rate remained low at 0.8%, improved from 1.1% in the prior year.

• 527 employees adhered to the voluntary dismissal program, with new hires from public recruitment to maintain operations.

Financial highlights

• Q2 2025: Net revenue BRL 1,705 million (+2.5% YoY), EBITDA BRL 536 million (down 11–16.8% YoY), net profit BRL 263.8 million (down 29.7% YoY), EBITDA margin 31.4% (down 7.3 p.p. YoY).

• 1H25: Net revenue BRL 3,511 million (+4.4% YoY), EBITDA BRL 1,652 million (+16.5% YoY), net profit BRL 1,472 million (+95% YoY), EBITDA margin 47.1%.

• Operating cash generation in 1H25 was strong, up 15.8–16.2% to BRL 1.428 billion, with high EBITDA-to-cash conversion.

• Default rate at 0.8%, improved from 1.1% in the prior year.

• Financial result impacted by higher financial expenses and present value adjustments.

Outlook and guidance

• No further significant impact expected from the wagon effect in future quarters.

• Investment plan for 2025–2029 totals BRL 11.8 billion, with leverage expected to remain comfortably below the 3x contractual limit.

• Tariff review for 2025–2028 cycle approved, with a 3.7753% correction index and new average tariff of BRL 6.83/m³.

• Ongoing regulatory changes and public consultations may impact future tariff structures and social tariff implementation.

• New business initiatives under development, with seven strategic theses to be disclosed soon.