Q3 2025 Basic Sanitation Company of the State of Sao Paulo SABESP Earnings Call (English, Portuguese) Transcript
Key Points
- Water production increased by 4.4% year-over-year, reaching 809 million cubic meters.
- Adjusted EBITDA grew by 15% to BRL3.2 billion, achieving a 59% margin.
- Cash flow from operations increased by 22% to $1.7 billion, with an EBITDA to cash conversion rate of 54%.
- CapEx accelerated to $4 billion in the quarter, growing 175% year-over-year, supporting infrastructure scaling.
- Collection efficiency reached 101%, marking the best performance since privatization.
- A catch-up adjustment was required due to a regulatory rate change, impacting revenue and EBITDA.
- The company accrued BRL478 million for severance and incentives under a voluntary dismissal program.
- There was a onetime cost of BRL74 million for restructuring warehouse and logistics operations.
- The company wrote off BRL61 million in water pipeline infrastructure, requiring further investment.
- The impact of social tariffs on revenue was $117 million, which will only be adjusted in the 2027 rate cycle.
Good morning, and welcome to SABESP's Third Quarter of 2025 Earnings Presentation. With us here today are Carlos Piani, CEO, Daniel Szlak, CFO; and Thiago Levy, Investor Relations. Before we begin, we clarify that the statement during presentation will not include injection or estimate refute events. However, it may contain forward-looking statements indicating potential trends related to SABESP based on the reasonable expectations, beliefs and assumptions of SABESP management as of today.
These statements involve risks and uncertainties and are based on assumptions and factors such as market, regulatory and economic conditions, which may not materialize in addition to the risk factors disclosed in SABESP filings with the Brazilian Securities and Exchange Commission, B3 and on its Investor Relations website. Investors should understand that changes in such factors may lead to outcomes that differ from current trends and that undue reliance should not be placed on these statements.
The full disclaimer will be presented next and must be read carefully by all participants. This presentation
| Access to All Earning Calls and Stock Analysis | |
| 30-Year Financial on one screen | |
| All-in-one Stock Screener with unlimited filters | |
| Customizable Stock Dashboard | |
| Real Time Insider Trading Transactions | |
| 8,000+ Institutional investors’ 13F holdings | |
| Powerful Excel Add-in and Google sheets Add-on | |
| All data downloadable | |
| Quick customer support | |
| And much more... |
Trustpilot
We'd love to learn more about your experiences on GuruFocus.com and how we can improve!
Take Survey
