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

Executive summary

• Net profit increased 13.2% in 4Q24 year-over-year and 2.8% for 2024 compared to 2023, with net revenue up 8.8% and operational results exceeding BRL 1.5 billion.

• Service coverage reached 100% for water and 81.4% for sewage, supported by four new PPPs and robust investment plans.

• Received ANEFAC Transparency Award, ODS 6 Champions Award, and international recognition for governance and compliance.

Financial highlights

• Net revenue grew 8.8% to BRL 6.85 billion in 2024; 4Q24 net revenue was BRL 1.77 billion (+4.7% YoY).

• EBITDA for 2024 was BRL 2.94 billion (+3.9% YoY), margin at 42.9%; 4Q24 EBITDA was BRL 759.8 million (+5.2% YoY).

• Net profit for 2024 was BRL 1,545.3 million (+2.8% YoY); 4Q24 net profit was BRL 412.9 million (+13.2% YoY).

• Cash generation reached BRL 2.78 billion, with a 94.5% EBITDA-to-cash conversion rate.

• Net debt at year-end was BRL 4.83 billion, leverage stable at 1.6x.

Outlook and guidance

• Targeting universalization of sewage ahead of the 2032 legal deadline, with continued investment in infrastructure.

• Ongoing regulatory tariff review expected to conclude by May 2025, with tariff repositioning in May.

• Exploring expansion into new markets after achieving universalization in Paraná.

• Forward-looking statements depend on market, regulatory, and economic conditions.