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SBS

Companhia de Saneamento Básico do Estado de São Paulo - SABESP

SBS

Companhia de Saneamento Básico do Estado de São Paulo - SABESP • NYSE
$26.36 ▼ -0.32% (-0.09)
Market Cap $18.02 B
52w High $27.12
52w Low $13.87
Dividend Yield 0.66%
P/E 13.45
Volume 309.87K
Outstanding Shares 683.51M

Income Statement

Period Revenue Operating Expense Net Income Net Profit Margin Earnings Per Share EBITDA
Q3-2025 $9.425B ▲ $413.791M ▼ $2.159B ▲ 22.903% ▼ $3.16 ▲ $3.909B ▲
Q2-2025 $8.965B ▲ $438.608M ▼ $2.136B ▲ 23.827% ▲ $3.12 ▲ $3.768B ▲
Q1-2025 $8.426B ▼ $676.662M ▼ $1.482B ▼ 17.589% ▲ $2.17 ▼ $3.349B ▼
Q4-2024 $14.399B ▼ $941.331M ▼ $2.258B ▼ 15.683% ▼ $3.3 ▼ $3.66B ▼
Q3-2024 $14.997B $1.16B $6.112B 40.754% $8.94 $10.442B

Balance Statement

Period Cash & Short-term Total Assets Total Liabilities Total Equity
Q3-2025 $11.65B ▲ $95.987B ▲ $53.277B ▲ $42.71B ▲
Q2-2025 $7.926B ▼ $88.72B ▲ $48.276B ▲ $40.444B ▲
Q1-2025 $8.137B ▲ $85.691B ▲ $47.293B ▲ $38.398B ▲
Q4-2024 $5.382B ▲ $80.965B ▲ $44.037B ▲ $36.928B ▲
Q3-2024 $679.166M $14.289B $7.328B $6.961B

Cash Flow Statement

Period Net Income Cash From Operations Cash From Investing Cash From Financing Net Change Free Cash Flow
Q3-2025 $2.159B ▲ $3.173B ▼ $-6.472B ▼ $3.707B ▲ $408.003M ▼ $3.173B ▼
Q2-2025 $2.136B ▲ $3.181B ▲ $-3.033B ▼ $773.307M ▼ $920.863M ▼ $3.241B ▲
Q1-2025 $1.482B ▲ $1.101B ▼ $-1.474B ▲ $2.331B ▲ $1.958B ▲ $1.04B ▼
Q4-2024 $1.231B ▼ $2.664B ▲ $-4.462B ▼ $1.087B ▼ $-710.698M ▼ $2.626B ▲
Q3-2024 $6.112B $1.57B $-3.905B $1.919B $-416.128M $1.544B

Five-Year Company Overview

Income Statement

Income Statement Over the past five years, SABESP’s income statement shows a clear story of growth and improving efficiency. Revenue has risen steadily each year, and profits have grown even faster than sales. This points to widening margins, likely helped by tariff adjustments, tighter cost control, and better operating performance. Recent years, especially the latest one, stand out as much stronger than the earlier period, moving from modest profitability to quite robust results. As a regulated utility, though, these earnings still depend heavily on regulatory decisions, inflation dynamics, and financing costs, so the recent strength should be viewed alongside those external influences.

Balance Sheet

Balance Sheet The balance sheet reflects a large, capital‑intensive utility that has been expanding. Total assets and shareholders’ equity have both grown meaningfully, suggesting ongoing investment in infrastructure and a build‑up of underlying value. Debt has also increased, so the company is leaning more on borrowing to fund its growth. The level of leverage looks significant but not extreme for a utility, yet it does raise the importance of stable cash generation and access to financing. Cash on hand is relatively modest compared with the size of the business, which is typical for a regulated utility but means SABESP relies on continuous cash inflows and capital markets support, especially as it moves into a heavier investment phase after privatization.

Cash Flow

Cash Flow Cash generation has been a strong point. SABESP consistently produces solid operating cash flow, and free cash flow has remained positive over the full period, closely tracking reported profits. That suggests earnings are well supported by actual cash, not just accounting. Historically, capital spending shown in the data looks relatively light compared with the scale of the company, which may reflect timing, accounting treatment, or projects financed in other ways. Looking ahead, the announced large investment program implies that future cash flows will need to cover much higher spending, potentially reducing free cash in some years or requiring additional funding. The company’s ability to keep converting revenue into reliable cash will be a central factor in how comfortably it can execute its plans.

Competitive Edge

Competitive Edge SABESP holds a very strong competitive position, effectively a natural monopoly over water and sewage services in much of the state of São Paulo. Its sprawling network of pipes, treatment plants, and reservoirs is extremely difficult and costly for any rival to replicate. Long‑term concession contracts add further stability, providing predictable demand and revenue visibility. Deep experience with Brazil’s complex regulatory and environmental framework is another barrier for new entrants. The recent privatization could reinforce this position by allowing quicker decision‑making and efficiency gains, though it may also draw closer regulatory and political scrutiny around tariffs and service commitments. Overall, the company operates from a position of strength but within a framework where regulation and public policy remain powerful forces.

Innovation and R&D

Innovation and R&D For a regulated utility, SABESP is relatively active on the innovation front. It is rolling out smart meters, using connected devices to monitor consumption and detect leaks, which can cut water loss and improve billing accuracy. The company is adopting advanced design software to optimize new facilities, aiming to lower long‑term construction and operating costs. It is also pushing into more resilient water solutions, such as the planned desalination plant, and experimenting with satellite‑based leak detection. Beyond core water services, SABESP is exploring recycled water for industry, biogas from sewage, and even the possibility of using its networks to host fiber optic cables. These initiatives could enhance efficiency, reduce environmental impact, and potentially open new revenue streams, but they also require careful execution and disciplined capital allocation to avoid cost overruns or technological dead ends.

Summary

Overall, SABESP looks like a maturing, large‑scale utility that has recently shifted into a higher gear in terms of profitability and cash generation. Its financial statements show steady growth, improving margins, and historically strong cash support for earnings, all built on a sizable, entrenched asset base. At the same time, debt has risen and the company is entering an ambitious investment cycle, which will test its ability to balance growth, service quality, and financial discipline. Its natural monopoly position and long‑term contracts offer stability, while privatization and technology adoption create opportunities for efficiency and expansion. The main uncertainties revolve around regulatory decisions, political dynamics, execution of the sizable investment plan, and how well innovation translates into sustainable financial gains over time.