By Brazil Stock Guide – Aegea Saneamento approved the restatement of its 2023 and 2024 financial statements and its reports for the first quarter of 2025 and the second quarter of 2025.
The revision of accounting treatment for unrealized profits on related-party transactions increased net income by R$147.5 million ($27.8 million) in the first half of 2025, R$348.0 million ($65.7 million) in 2024 and R$245.1 million ($46.3 million) in 2023, with no cash impact.
The decision, made with independent auditors, reflects the conclusion that the previous elimination of unrealized profits was not applicable, since the concessionaires hold the right to operate the constructed assets and ownership reverts to the granting authority only at the end of the concession. The company also adjusted deferred tax assets related to post-employment benefits, in line with IAS 12/CPC 32.
The adjustments ensure greater reliability, consistency and comparability of the disclosed information, said André Pires de Oliveira Dias, CFO and Investor Relations Officer.
The restatement strengthens reported earnings and equity, mainly through equity-method accounting and concession intangible assets. While operations and cash generation remain unchanged, the move reduces noise for investors and aligns accounting practices with the contractual and regulatory framework of Brazil’s sanitation sector.
With concessions expanding after the 2020 legal framework, accounting clarity is increasingly important for securing capital and financing. For lenders and infrastructure investors, transparent figures may influence funding costs and conditions in future auctions.