Q3 2025 Companhia de Saneamento de Minas Gerais COPASA MG Earnings Call (English, Portuguese) Transcript
Key Points
- Compania de Saneamento de Minas Gerais - COPASA MG (BSP:CSMG3) reported solid financial results for the third quarter of 2025, with significant advancements in strategic fronts.
- The company is implementing a daring investment plan, nearing 2 billion reais, marking a 26% increase compared to the same period last year.
- COPASA MG is on track to meet its 2025 investment target of 2.5 billion reais, which is a key pillar of its sustainable growth plan.
- The company has a comfortable leverage level of 2.1 times, providing room for further investments and dividend payments.
- COPASA MG is making progress in operational efficiency, with a reduction in losses and a focus on zero-based budgeting to further reduce costs.
- The company experienced a decrease in revenue due to low temperatures affecting water and sewage volumes, with a 1.7% reduction in water volume and 0.9% in sewage.
- Personnel costs increased, although below inflation levels, and there was a reduction of nearly 200 employees over the last 12 months.
- Electric energy costs grew by 9.5%, impacted by the red flag tariff level, despite efforts to migrate to the free market and use solar energy.
- There was an increase in lawsuits and compensations, although partially offset by non-recurring revenues from auctions.
- The company faces challenges in achieving universalization of services, particularly in sewage coverage, which remains below target levels.
Good morning ladies and gentlemen.
Welcome to COPASA MEG's conference call to discuss the results for the 3rd quarter of 2025.
This conference is being recorded and the replay can be accessed on the company's IR website, RI.opasa.com.br.
The presentation is also available for download on the platform.
We would like to inform that the participants attending the conference call will be in listen-only mode during the presentation. We will then open the Q&A session when further instructions will be provided.
We would like to inform you that the presentation is being recorded and translated simultaneously. The translation is available by clicking on the interpretation button. For those listening to the conference call in English, there is an option to mute the original audio in Portuguese by clicking on mute original audio.
Before proceeding, we would like to clarify that any forward-looking statements are based on the beliefs and assumptions of Kopasa's management and current information available to the company. These statements may involve risks
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