Sabesp 2Q26: Adjusted Net Income Falls 41.2% on Higher Costs and Debt

summarizeSummary

Sabesp reported a 41.2% drop in adjusted net income for 2Q26 on higher costs and debt, while continuing heavy capex investment. The filing also discloses early debt settlements and a health plan termination write-off.

check_boxKey Events · Earnings and Guidance · SBS

• Adjusted Net Income Falls 41.2%

  2Q26 adjusted net income totaled R$1,150 million, down from R$1,956 million in 2Q25, driven by a 24.5% increase in operating costs and expenses and higher net debt.

• Operating Costs Surge 24.5%

  Costs and expenses rose to R$2,528 million, with services up 39.0% on customer service investments, general expenses up 977% due to prior-year legal wins, and treatment supplies up 97% on inflation.

• Capex Reaches R$3.7 Billion in 2Q26

  Quarterly capex increased 3.6% year-over-year to R$3,731 million, with 1H26 investments totaling R$7,458 million, up 15.6%, supporting universalization projects.

• Early Debt Settlements Reduce Covenants

  In August 2026, Sabesp fully prepaid Caixa Econômica Federal financing (R$1,572,014) and ~99% of BNDES debt, leaving restrictive covenants at Adjusted EBITDA/Interest ≥2.35 and Net Debt/EBITDA ≤3.50.

auto_awesomeAnalysis · SBS · Energy & Transportation

Sabesp's second-quarter adjusted net income dropped 41.2% year-over-year to R$1,150 million, driven by a 24.5% increase in operating costs and expenses and a higher net debt balance of R$34 billion. The company invested R$3.7 billion in capex during the quarter, up 3.6% year-over-year, as it pushes toward universal access targets. The filing also reveals early settlement of Caixa and BNDES financing agreements in August 2026, which reduces restrictive covenants and signals proactive balance sheet management.