In Q4 2025, Sabesp (SBSP3) reported adjusted EPS of R$3.93, beating the consensus estimate of R$2.80. Net revenue reached R$11.3 billion for the quarter. For the full year, Adj. EBITDA grew 17% to R$13.2 billion and Adj. Net Income rose 22% to R$6.3 billion. Stock showed a positive bias heading into the earnings call on March 17, 2026.
About Sabesp
Sabesp ticker SBSP3 on B3 (Bovespa), is the largest sanitation company in the Southern Hemisphere and a key player in Latin America’s water and wastewater sector. Founded in 1954 and headquartered in Sao Paulo, Brazil, the company provides water supply, sewage collection, and treatment services to 375 municipalities across Sao Paulo State. As of Q4 2025, Sabesp served approximately 28.7 million people with water and 25.5 million with sewage.
Sabesp was privatized in July 2024, transitioning from a state-controlled entity to a fully publicly traded company – a pivotal shift that accelerated operational efficiency and capex deployment. As of March 2026, the company carries a market capitalization of approximately R$102.5 billion, a P/E ratio (TTM) of 14.21, an EPS (TTM) of R$10.25, and a dividend yield of approximately 2.56%. The company employs 8,717 people as of Q4 2025, down 17% year over year as part of a post-privatization efficiency plan.
Top Financial Highlights
- Total net revenue in the fourth quarter of 2025 reached R$11,276 million, reflecting a strong 43.9% increase compared with R$7,839 million in the fourth quarter of 2024, mainly supported by construction related revenues.
- Adjusted net sanitation revenue for the fourth quarter reached R$5,682 million, showing a 2.1% increase compared with R$5,565 million in the same period of 2024.
- Total net revenue for fiscal year 2025 reached R$38,092 million, representing 5.4% growth compared with R$36,145 million in fiscal year 2024.
- Reported net income in the fourth quarter of 2025 reached R$2,685 million, reflecting an 87.1% increase compared with the same quarter of the previous year.
- Adjusted net income in the fourth quarter stood at R$1,902 million, remaining stable compared with R$1,901 million in the fourth quarter of 2024.
- Adjusted net income for fiscal year 2025 reached R$6,318 million, representing a 22.1% increase compared with R$5,174 million in fiscal year 2024.
- Reported earnings per share in the fourth quarter reached R$3.93, compared with R$2.10 in the fourth quarter of 2024, reflecting an increase of 87%.
- Earnings per share for fiscal year 2025 reached R$12.37, compared with R$14.02 in fiscal year 2024, while excluding financial asset effects, earnings per share reached R$10.90 compared with R$6.00 in the previous year.
- Adjusted EBITDA in the fourth quarter reached R$3,389 million, representing a 13% increase compared with R$2,999 million in the same quarter of 2024, with a margin of 60%.
- Adjusted EBITDA for fiscal year 2025 totaled R$13,221 million, reflecting a 16.6% increase compared with R$11,339 million in fiscal year 2024.
- Operating cash flow in the fourth quarter reached R$3,234 million, compared with R$4,103 million in the same period of 2024.
- Capital expenditure in the fourth quarter totaled R$4,771 million, representing a 73.5% increase compared with the fourth quarter of 2024, while full year capital expenditure reached R$15,202 million, increasing 120% year over year.
- Cash and cash equivalents reached R$4,663 million at the end of the fourth quarter of 2025, and including R$7,708 million in short term investments, total liquid assets reached approximately R$12.4 billion.
- Total water connections reached 9.517 million, reflecting 0.4% growth year over year, while sewage connections reached 8.257 million, reflecting 0.8% growth, with a net addition of 97,000 connections during fiscal year 2025.
- Total workforce stood at 8,717 employees at the end of the fourth quarter of 2025, representing a 17.4% decline compared with 10,552 employees in the same period of 2024.
Beat or Miss?
| Metric | Reported | Estimated | Difference / Analysis |
| Q4 2025 EPS (Reported) | R$3.93 | R$2.80 | Beat by ~+40.4% |
| Q4 2025 Adj. EPS | R$2.78 | R$2.32 | Beat by ~+19.8% |
| Q4 2025 Net Revenue | R$11,276 mn | ~R$6,880 mn (prior Q4 consensus context) | Significantly above due to construction rev. surge |
| Q4 2025 Adj. Net Sanitation Revenue | R$5,682 mn | ~R$5,565 mn (4Q24 comparable base) | In line, +2.1% growth |
| FY2025 Adj. EBITDA | R$13,221 mn | N/A (no formal guidance) | +16.6% vs FY2024 |
| FY2025 Adj. Net Income | R$6,318 mn | N/A | +22.1% vs FY2024 |
| Q4 2025 OPEX (adj.) | R$2,309 mn | Beat (10% reduction YoY) | Outperformed efficiency targets |
What Leadership Is Saying?
“2025 was a year marked by ramp-up in capex deployment, capital structure and allocation discipline, and continued progress towards best-in-class operational efficiency. We invested R$15.2 bn, more than double the amount invested in 2024, and closed the year with Adj EBITDA of R$13.2 bn (+17% y/y) and Net Income of R$6.3 bn (+22% y/y), results that reflect the aggregate effect of our efficiency plan. In 4Q25, we kept pace and achieved important milestones where collection rate reached 100.2%, costs declined by 11% y/y, and volume grew by 3.0%, resulting in an Adj EBITDA of R$3.4 bn (+13% versus 4Q24) and Net Income of R$1.9 bn.” – Daniel Szlak, CFO of Sabesp
“More importantly, we have expanded the access to sanitation, meeting all U-Factor units incremental targets for 2024-25 one month ahead of schedule and brought water to 1.8 million people and sewage to 3.8 million people in that period. The magnitude of our investments also boosted the economy in the communities in which we operate, creating around 40,000 direct and indirect jobs. As the largest sanitation company in the Southern Hemisphere, we remain committed to an agenda that combines top-notch infrastructure investment, operational excellence and sustainability in our communities. We enter 2026 with even stronger foundations to accelerate this movement.” – Carlos Piani, CEO of Sabesp
Historical Performance
Sabesp Q4 2025 vs Q4 2024 (Reported)
| Category | Q4 2025 | Q4 2024 | Change (%) |
| Total Net Revenue | R$11,276 mn | R$7,839 mn | 43.90% |
| Net Sanitation Revenue | R$6,435 mn | R$5,755 mn | 11.80% |
| EBITDA (Reported) | R$4,423 mn | R$2,294 mn | 92.80% |
| Adj. EBITDA | R$3,389 mn | R$2,999 mn | 13.00% |
| Reported Net Income | R$2,685 mn | R$1,435 mn | 87.10% |
| Adj. Net Income | R$1,902 mn | R$1,901 mn | ~0.0% |
| Operating Costs and Expenses | R$2,310 mn | R$3,393 mn | -31.90% |
| EPS (Reported) | R$3.93 | R$2.10 | 87.10% |
| CapEx | R$4,771 mn | R$2,750 mn | 73.50% |
| Employees | 8,717 | 10,552 | -17.40% |
Sabesp FY2025 vs FY2024 (Full Year)
| Category | FY2025 | FY2024 | Change (%) |
| Revenue from Operations | R$24,761 mn | R$23,895 mn | 3.60% |
| Total Net Revenue | R$38,092 mn | R$36,145 mn | 5.40% |
| Adj. Net Sanitation Revenue | R$22,213 mn | R$21,726 mn | 2.20% |
| Adj. EBITDA | R$13,221 mn | R$11,339 mn | 16.60% |
| Reported Net Income | R$8,462 mn | R$9,580 mn | -11.70% |
| Adj. Net Income | R$6,318 mn | R$5,174 mn | 22.10% |
| FY EPS (Reported) | R$12.37 | R$14.02 | -11.80% |
| Adj. EPS | R$9.24 | R$7.57 | 22.10% |
| Total CapEx | R$15,202 mn | R$6,911 mn | 120.00% |
Competitor Performance
Sabesp vs Peer Water Utilities (Q4 2025 and FY2025)
| Category | Sabesp (SBSP3) Q4 2025 | Sabesp FY2025 | Copasa (CSMG3) Q4 2025 | Copasa FY2025 | Aegea (9M2025) |
| Net Revenue | R$11,276 mn | R$38,092 mn | R$2,152 mn | R$7,360 mn | R$14,400 mn |
| EBITDA | R$3,389 mn (adj.) | R$13,221 mn (adj.) | R$731 mn | R$2,950 mn | R$8,500 mn |
| Net Income | R$1,902 mn (adj.) | R$6,318 mn (adj.) | R$337 mn | N/A | N/A (9M: R$1.8 bn) |
| EBITDA Margin | 60% (adj.) | 60% (adj.) | 38.5% | 39.8% | ~59% |
| CapEx | R$4,771 mn | R$15,202 mn (+120% YoY) | N/A | R$2,900 mn (+31.5% YoY) | R$4,300 mn (9M) |
| Revenue YoY Change | +43.9% (reported) / +2.1% (adj. san.) | +5.4% | +6.9% | +5.6% | +21% |
Sabesp’s reported net revenue figure includes a surge in construction revenues (R$4.8 bn in Q4 alone vs R$2.1 bn in Q4 2024). Adjusted figures strip out construction and financial asset items for operational comparability. Aegea figures are proforma ecosystem data through 9M2025 (Q4 full-year data not yet publicly released).
How the Market Reacted?
Sabesp’s stock (SBSP3) traded at approximately R$147.80 on March 17, 2026 – the day of its earnings call – up roughly 9.42% over the five-day period preceding and including the results announcement. The stock had already staged a strong recovery from its 52-week low of R$95.78 to its 52-week high of R$158.75 reached on February 26, 2026, reflecting growing investor confidence in the post-privatization business model.
The Q4 adjusted EPS of R$3.93 significantly exceeded the Refinitiv consensus estimate of R$2.80, providing fundamental support for the bullish market posture. Wall Street analysts maintain a broadly optimistic outlook, with 14 analysts holding a “Strong Buy” consensus and an average 12-month price target of approximately R$155.79-R$157.99, suggesting additional upside from current levels.
