Companhia de Saneamento do Paraná - SANEPAR (SAPR4) Q4 2024 earnings summary

Executive summary

• Net profit for 2024 reached BRL 1,545.3 million, up 2.8% year-over-year, with net revenue up 8.8% to BRL 6,848.2 million and EBIT up 42.8%.

• Service coverage achieved 100% for water and 81.4% for sewage, progressing toward legal targets across 346 municipal concessions.

• Recognized with international and national awards, including the ANEFAC Transparency Award and ODS 6 Champions Award.

• Invested BRL 1.9 billion in infrastructure, focusing on water and sewage expansion.

• Net profit for 4Q24 was BRL 412.9 million, up 13.2% year-over-year, with a stable EBITDA margin of 42.8%.

Financial highlights

• Net revenue for 2024: BRL 6,848.2 million (+8.8% YoY); EBITDA: BRL 2,936.6 million (+3.9% YoY), margin 42.9%.

• Net profit for 2024: BRL 1,545.3 million (+2.8% YoY), net margin 22.6%.

• Operating costs and expenses increased 11.7% in 2024, totaling BRL 3.91 billion.

• Cash generation improved 16.5% to BRL 2,775.0 million, with a 94.5% EBITDA-to-cash conversion rate.

• Net debt at year-end: BRL 4,830.5 million; gross debt: BRL 6,631.3 million; leverage stable at 1.6x EBITDA.

Outlook and guidance

• Targeting universalization of sewage ahead of the 2032 legal deadline, supported by PPPs and robust investment plans.

• Continued focus on innovation, operational efficiency, and expansion into new markets post-2025.

• Monitoring climate impacts and adapting infrastructure to ensure water supply resilience.

• 2024 annual tariff adjustment index set at 2.9577%, effective May 17, 2024; 3rd Periodic Tariff Review scheduled for May 2025.