Companhia de Saneamento do Paraná - SANEPAR (SAPR4) Q2 2026 earnings summary

Executive summary

• Net operating revenue rose 11.5% year-over-year to BRL 1,901.1 million, driven by tariff adjustments and increased water and sewage volumes, but a net loss of BRL 505.2 million was reported due to a significant regulatory liability provision related to a court-ordered IRPJ tax refund.

• Achieved strong operational growth in both water and sewage segments, with increases in measured and invoiced volumes year-over-year and sequentially from the previous quarter.

• The regulatory decision required 100% of the IRPJ gain to be allocated to users, impacting both results and the ability to distribute interest on equity for the period.

Financial highlights

• Net operating revenue: BRL 1,901.1 million in 2Q26 (up 11.5% YoY); 6M26: BRL 3,847.5 million (up 9.6% YoY).

• EBITDA: BRL 540.3 million in 2Q26 (margin 28.4%), nearly flat YoY; 6M26: BRL 1,383.8 million.

• Net loss: BRL 505.2 million in 2Q26 (vs. net profit of BRL 263.8 million in 2Q25); 6M26: net loss of BRL 152.5 million.

• Adjusted net profit (excluding non-recurring items): BRL 447.5 million in 2Q26 (margin 23.5%).

• Net debt/EBITDA: 1.0x in 2Q26 (improved from 1.7x YoY).

Outlook and guidance

• Continued focus on expanding water and sewage connections, with significant year-over-year growth in both segments.

• Tariff adjustments of 2.4993% (May 2026) and 3.7753% (May 2025) support future revenue.

• Ongoing legal and regulatory disputes regarding the allocation of IRPJ court-ordered payment proceeds may impact future results.