Companhia de Saneamento do Paraná - SANEPAR (SAPR4) Q3 2025 earnings summary

Executive summary

• Net revenue for 3Q25 rose 5.5% year-over-year to R$1.804 billion, with accumulated 9M25 revenue up 4.8% to R$5.315 billion, driven by tariff adjustments and increased water and sewage connections.

• Net profit for 3Q25 declined 34.7% year-over-year to R$246 million, mainly due to higher costs and new PPP expenses, while 9M25 net profit surged 51.7% to R$1.718 billion, boosted by judicial gains.

• Investments in 3Q25 reached R$765 million, up 52% year-over-year, with 9M25 capex totaling R$1.864 billion, focused on water and sewage infrastructure.

• Universalization of water achieved (100%), sewage coverage at 81.9%, with a target of 90% by 2033.

• National recognition received for transparency, governance, and ESG performance.

Financial highlights

• EBITDA margin for 3Q25 was 30.8%–44.4%, with 9M25 margin at 41.5%, both down year-over-year due to higher costs.

• Net margin for 3Q25 was 13.7%, and for 9M25, 32.3%, reflecting judicial gains.

• Net debt dropped 71.2% year-over-year to R$1.376 billion, with leverage at 0.5x EBITDA.

• Cost and expenses rose 15–31% in the quarter, mainly from third-party services, PPPs, and provisions.

• Personnel costs reduced 2.1% in the quarter, with a R$174 million provision for voluntary dismissals.

Outlook and guidance

• CAPEX for 2025 planned at R$2.361 billion, with R$11.8 billion for 2025–2029, focused on water, sewage, and environmental compliance.

• Tariff structure updated with a 3.7753% increase effective May 2025; Social Tariff with a 50% discount for eligible users to be implemented.

• Ongoing efforts to reach 90% sewage universalization by 2033, leveraging PPPs and infrastructure expansion.

• Company open to new markets and partnerships, including potential expansion outside Paraná and Brazil.

• Regulatory changes and tariff reviews expected to impact future revenue and cost structures.