SABESP (SBSP3) Q4 2025 earnings summary

Executive summary

• Achieved strong operational and financial results in 4Q25 and FY25, with growth in revenue, EBITDA, and net income, supported by accelerated investments and progress toward universalization targets.

• CapEx doubled to R$15.2 billion in 2025, supporting infrastructure expansion, universal access, and job creation, with over 40,000 jobs generated.

• Strategic acquisitions, including EMAE and Sanessol, and energy transition projects reinforced long-term resilience and financial sustainability.

• Customer experience improved, with NPS rising and the launch of a large-scale smart metering project.

• Sustainability ambitions increased, with formalized decarbonization targets and improved CDP climate rating.

Financial highlights

• Adjusted net revenue for FY25 was R$22.2 billion (+2.2% YoY); net revenue reached up to R$38.1 billion (+5.4% YoY).

• Adjusted EBITDA for FY25 was R$13.2 billion (+17% YoY, margin 60%); adjusted net income was R$6.3 billion (+22% YoY).

• Reported net income for FY25 was R$8.5 billion; adjusted EPS was R$12.37.

• Operating costs and expenses fell 13% YoY, reflecting efficiency gains and headcount reduction.

• Cash position of R$12.4 billion, covering over three years of amortizations.

Outlook and guidance

• Continued focus on universalization, efficiency, and ESG targets, with R$70 billion in investments planned through 2029.

• CapEx plan updated for inflation and accelerated investments, with flexibility to increase pace if execution allows.

• Decarbonization targets set for 2035: 41% reduction in emission intensity, 15% total emissions cut, and 43% reduction in scope 2 emissions.

• Water safety projects, metering upgrades, and energy self-production prioritized.