Q2 2026 Companhia de Saneamento Basico do Estado de Sao Paulo - SABESP Earnings Call (English, Portuguese) Transcript
Key Points
- Adjusted net revenue grew 9.4% year over year, driven by tariff increases and customer expansion.
- Underlying EBITDA would have grown close to 20% year over year, excluding one-off items and investments.
- CapEx execution remains strong, with BRL7.5 billion invested year-to-date and a BRL40 billion contracted backlog through 2029.
- Universal-access targets are progressing well, with water targets virtually met and sewage collection/treatment at 90% and 82% respectively.
- Balance sheet remains solid with BRL17.4 billion in cash, covering over four years of amortization, and net debt at 2.5 times EBITDA.
- Adjusted EBITDA declined 3.2% year over year due to higher costs and investments in customer-service initiatives.
- Revenue was negatively impacted by milder weather and ERP implementation, reducing underlying growth by about 3.3%.
- Costs increased due to inflationary pressures on chemicals (BRL28 million) and higher service costs from customer-experience investments.
- Net income decreased year over year due to higher financial expenses from increased debt to fund the investment program.
- Allowance for doubtful accounts rose to 2.5% from 1.4% in previous quarters, reflecting a normalization from historically low levels.
Good morning and welcome to SABESP's second quarter of 2026 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 statements made during this presentation will not include projections or estimates of future events. However, they may contain forward-looking statements indicating potential trends -- and related to SABESP -- based on the reasonable expectations, beliefs, and assumptions of SABESP's 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's filings with the Brazilian Securities and Exchange Commission, CVM, B3, and on its Investor Relations website.
Investors should understand that change in such factors may lead to outcomes that differ from current trends and that undue reliance should be placed on these statements.
The full disclaimer will be presented next and
| 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
