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

Executive summary

• Net revenue for Q3 2025 rose 5.5% year-over-year to R$1.804 billion, with accumulated nine-month revenue up 4.8% to R$5.315 billion, driven by tariff adjustments and increased billed sewage volume.

• Net profit for Q3 2025 declined 34.7% year-over-year to R$246 million, mainly due to higher costs and new PPP expenses, but nine-month net profit surged 51.7% to R$1.718 billion.

• Investments increased 52% in Q3 2025, reaching R$765 million, with accumulated investments slightly below provision.

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

• National and ESG recognition received for transparency, governance, and sustainability initiatives.

Financial highlights

• Q3 2025 EBITDA margin was 41.5%–44.4%, with a net margin of 13.7%; EBITDA margin for nine months was 41.5%, down 1.4 percentage points year-over-year.

• Net debt dropped 65.9%–71.2% to R$1–1.754 billion, with leverage at 0.5x EBITDA, due to judicial receivables inflow.

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

• Default rate remained low at 0.5%, reflecting strong credit control.

• ROE at 18.6%–18.7% and ROIC at 13.1% (annualized).

Outlook and guidance

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

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

• Tariff structure updated with a 3.7753% increase effective May 2025; Social Tariff with a 50% discount for eligible users to be implemented within 120 days.

• Regulatory environment evolving with the 3rd Periodic Tariff Review, impacting future revenue and investment planning.

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