Sabesp Q4 Surges; Full-Year Shows Mixed Picture as Adjusted and Statutory Metrics Diverge

Overview

• Statutory fourth-quarter net income rose 87.1% year over year to R$2.68 billion, with EBITDA up 92.8% to R$4.42 billion.
• Adjusted fourth-quarter results showed net income of R$1.9 billion and EBITDA of R$3.4 billion, underscoring the gap with statutory figures.
• For 2025, adjusted net income reached R$6.3 billion, up 22.1%, while statutory net income fell 11.7% to R$8.46 billion.
• The company cited higher billed volume from new connections, tariff gains and the end of discounts for large clients, offset by a customer mix shift that now includes about 20% of residential users on subsidized tariffs.
• Costs declined roughly 10% in the quarter and 13% for the year, supported by energy procurement optimization through migration to the free market, and the board approved a R$169.2 million capital increase via profit-reserve capitalization with shares to be distributed to shareholders.