Monitor progress on universalization targets under URAE-1 and upcoming tariff adjustments; the material weakness in internal controls warrants attention. The heavy capex and rising debt could pressure margins and dividends if revenue growth slows.
Price Chart
Executive Summary
Sabesp's 20-F for FY2025 reports revenue growth of 5.4% to R$38.1B, but net profit fell 11.7% to R$8.46B due to a sharp rise in operating costs (+44.5%) from higher construction activity post-privatization. Capital expenditures surged to R$15.2B while total debt increased 58.9% to R$40.1B, reflecting the company's aggressive investment cycle under the new URAE-1 concession. The privatization, completed in July 2024, has shifted the company to a widely held structure with no controlling shareholder.
Key Facts
- Operating revenue increased 5.4% to R$38,092.1 million in 2025 from R$36,145.5 million in 2024.
- Net profit decreased 11.7% to R$8,462.1 million from R$9,579.6 million.
- Total debt rose 58.9% to R$40,142.3 million as of December 31, 2025.
- Capital expenditures were R$15.2 billion in 2025, up from R$6.9 billion in 2024.
- Privatization was completed on July 22, 2024; the State of São Paulo reduced its stake to 18.0% and Equatorial S.A. holds 15.0%.
- A material weakness in internal controls over financial reporting was identified related to IT general controls.
Financial Impact
Revenue up R$1.95B, net profit down R$1.12B, debt up R$14.9B
Risk Factors
- Regulatory risk from URAE-1 concession targets and tariff adjustments
- Leverage risk from increased debt and capex program
- Operational risk from drought and extreme weather
- Internal control material weakness may affect financial reporting reliability
Market Snapshot
Investment Themes
Documents Analyzed
This report is based on 4 SEC documents filed with EDGAR.
| Document | Accession Number |
|---|---|
| 20-F Filing (Primary) | 0001292814-26-002681 |
| Exhibit: ex01-1.htm | 0001292814-26-002681 |
| Exhibit: ex02-1.htm | 0001292814-26-002681 |
| Exhibit: ex11-2.htm | 0001292814-26-002681 |
Filters
| Type | Now | ||||
|---|---|---|---|---|---|
Aug 21, 2026 6w ago | Institutional Cluster | $4.61 $5.31 | ▲ +15.18% | ▲ +15.46% | $5.26 (+14.10%) |
Aug 14, 2026 6w ago | 6-K | $4.60 $5.22 | ▼ −13.48% | ▼ −15.47% | $5.26 (−14.35%) |
Jul 31, 2026 9w ago | 6-K | $5.45 $4.87 | ▼ −10.64% | ▼ −13.63% | $5.26 (−3.49%) |
Jun 30, 2026 13w ago | 6-K | $5.78 $5.68 | ▼ −1.73% | ▼ −0.70% | $5.26 (−9.00%) |
Jun 17, 2026 15w ago | Insider Cluster | $5.25 $5.79 | ▲ +10.29% | ▲ +9.75% | $5.26 (+0.19%) |
May 29, 2026 17w ago | Insider Cluster | $5.52 $5.81 | ▲ +5.25% | ▲ +7.05% | $5.26 (−4.71%) |
May 8, 2026 21w ago | 6-K | $6.35 $5.35 | ▼ −15.75% | ▼ −15.77% | $5.26 (−17.17%) |
May 8, 2026 21w ago | 6-K | $6.35 $5.35 | ▼ −15.75% | ▼ −15.77% | $5.26 (−17.17%) |
Apr 29, 2026 22w ago | 20-F | $6.73 $5.52 | ▼ −17.93% | ▼ −23.16% | $5.26 (−21.80%) |
Apr 28, 2026 22w ago | 6-K | $6.72 $5.66 | ▼ −15.80% | ▼ −21.25% | $5.26 (−21.75%) |
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