By Brazil Stock Guide – Sabesp reported a 32.2% increase in adjusted net income in the first quarter of 2026, as higher tariffs, new connections and tighter cost controls lifted results at Brazil’s largest water and sanitation utility.
The company’s adjusted profit reached 1.5 billion reais in the period, according to information from Broadcast. Sabesp is traded in São Paulo under the ticker SBSP3 and in New York as SBS.
Adjusted Ebitda rose 26% from a year earlier to 3.8 billion reais, reflecting lower general and administrative expenses, a reduced workforce, energy optimization through migration to the free power market and lower provisions for doubtful accounts.
“All of this contributes positively, but it is not very different from what we have already been doing and showing,” Chief Financial Officer Daniel Szlak told Broadcast, referring to the company’s operational and financial gains in the quarter.
Adjusted net revenue advanced 10.9% to 6.021 billion reais. The result was supported by an 11.9% increase in net prices, driven by a tariff adjustment and the elimination of discounts for large customers. New units added 2.4% to revenue growth.
Those gains were partly offset by milder temperatures during the quarter and a 3.4% negative impact from the customer mix, as the number of units eligible for subsidized tariffs increased.
Sabesp’s leverage, measured by net debt to Ebitda, ended March at 2.4 times, compared with 2.2 times in the previous quarter.
“We are at a super-controlled leverage level,” Szlak said.
According to the executive, the current debt level gives the company flexibility to navigate high interest rates and a more cautious market environment ahead of Brazil’s 2026 election calendar.
Sabesp ended March with net debt of 32.5 billion reais. Its average debt cost stood at CDI plus 0.02%, with a weighted average maturity of 6.3 years. About 64% of total debt matures from 2031 onward, while available cash of 19.2 billion reais covers more than five years of amortizations.
Return on equity remained at 17%.