$SBS · COMPANHIA DE SANEAMENTO BASICO DO ESTADO DE SAO PAULO-SABESP
Sabesp's 6-K earnings release for 3Q26 reports adjusted net revenue up 9.0% y/y to R$5,958M and adjusted EBITDA up 13.8% to R$3,648M, but adjusted net income down 13.8% to R$1,107M. The decline reflects a weaker net financial result, as 3Q25 included a non-recurring R$1.5B precatórios gain, plus higher interest expense on a larger debt balance. CapEx reached R$4.5B in the quarter (+13.8% y/y), with 9M26 investments of ~R$12B (+15% y/y).
- Adjusted net revenue rose 9.0% y/y to R$5,958M on tariff adjustments and higher volumes.
- Adjusted EBITDA rose 13.8% y/y to R$3,648M despite a R$179M Commercial Plan impact.
- Adjusted net income fell 13.8% y/y to R$1,107M on a weaker net financial result.
- CapEx hit R$4.5B in 3Q26 (+13.8% y/y); 9M26 total ~R$12B, up 15% y/y.
- Contracted CapEx backlog reached R$44.2B; Wave 4 (São Paulo metro) still in bidding.
Extended-hours last trade $4.70, +3.07% vs regular close of $4.56, suggesting a mildly positive after-hours reaction despite the adjusted net income decline.
Sabesp's core operations are growing, but rising debt costs and a non-recurring prior-year gain are compressing net income even as universalization capex accelerates.
Sabesp's heavy universalization capex and rising debt load mirror the broader Brazilian sanitation sector's investment cycle under the new regulatory framework.
Higher interest expense on a larger debt balance (ST/LT debt up R$6.3B) and a R$1.5B non-recurring precatórios gain in 3Q25 that won't repeat pressure net income.