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

Executive summary

• Net operating revenue for 3Q25 rose 5.5% year-over-year to R$1,804.2 million, with 9M25 revenue up 4.8% to R$5,315 million, driven by tariff adjustments and increased billed sewage volume.

• Net profit for 3Q25 declined 34.7% year-over-year to R$246.4 million, mainly due to a 15% increase in total costs and expenses, while 9M25 net profit surged 51.7% to R$1,718 million, supported by judicial receivables.

• Investments in 3Q25 reached R$765.1 million, up 52.1% year-over-year, with accumulated investments slightly below provision.

• Extraordinary gain of R$4.05 billion from a judicial tax credit (IRPJ) was recognized, with 75% provisioned as regulatory liability pending final regulatory decision.

• National recognition received for transparency, governance, and ESG performance, including a Gold Seal for GHG inventory and inclusion in the ESG Integrity Yearbook.

Financial highlights

• EBITDA for 3Q25 was R$555.6 million (margin 30.8%), down from R$758.5 million (44.4%) in 3Q24; 9M25 EBITDA margin was 41.5%, down 1.4 percentage points year-over-year.

• Net margin for 3Q25 was 13.7%, with 9M25 net margin at 32.3%.

• Net debt dropped 71.2% year-over-year to R$1,375.7 million, with leverage at 0.5x EBITDA, mainly due to judicial receivables inflow.

• Cost and expenses rose 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 a total of 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 within 120 days.

• 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 review of the allocation of the judicial tax gain is ongoing, with potential impacts on future results.