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 and connections year-over-year.

• EBITDA was BRL 540.3 million, up 0.8% year-over-year, but EBITDA margin declined to 28.4% from 31.4%.

• 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.

• Significant operational resilience planning in response to El Niño and climate risks, leveraging new reservoir capacity and advanced monitoring tools.

Financial highlights

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

• Personnel costs decreased 27.4% year-over-year for the six months, reflecting the impact of a voluntary severance program.

Outlook and guidance

• Expectation of a final regulatory decision within 15-20 days regarding the allocation of regulatory liability, with management committed to pursuing all legal and administrative avenues.

• The company continues to focus on universalization of services and investment in infrastructure, with regulatory and tariff adjustments shaping future revenue streams.

• High reservoir levels and robust investment plan support operational stability and resilience.

• Dividend distribution policy under review, with board decision pending performance in the second half and regulatory outcomes.