SBS · Companhia de Saneamento Básico do Estado de São Paulo - SABESP

SABESP reported strong first-quarter results for 2026, with net income rising 18.0% to R$1.749 billion compared to R$1.482 billion in the same period last year. The improvement was driven by an 18.3% increase in net operating revenue to R$9.955 billion, reflecting higher water and sanitation service revenues. Gross profit grew 11.0% to R$3.909 billion, though gross margin contracted slightly from 41.8% to 39.3% due to a 23.5% increase in operating costs. Operating expenses (selling, administrative, and allowance for doubtful accounts) decreased overall, contributing to a 19.0% rise in profit from operations before financial items to R$3.383 billion. Net financial expenses increased to R$1.027 billion from R$594 million, primarily due to higher interest on borrowings. The effective tax rate was 25.8% versus 34.1% in the prior year, benefiting from deferred tax credits. Earnings per share rose to R$0.50 from R$0.43. The balance sheet showed significant growth, with total assets increasing 10.9% to R$115.5 billion, driven by increases in financial investments, intangible assets, and financial asset of the concession. Total debt rose to R$52.0 billion from R$40.3 billion at year-end 2025, reflecting new borrowings. Equity grew to R$43.7 billion from R$42.4 billion, supported by retained earnings and capital increases.