Companhia de saneamento Basico Do Estado De Sao Paulo – Sabesp (NYSE:SBS) Releases Quarterly Earnings Results, Beats Expectations By $0.06 EPS

Companhia de saneamento Basico Do Estado De Sao Paulo – Sabesp (NYSE:SBS) released its quarterly earnings results on Tuesday. The utilities provider reported $0.51 EPS for the quarter, beating analysts’ consensus estimates of $0.45 by $0.06, reports. The business had revenue of $1.08 billion during the quarter, compared to analyst estimates of $1.08 billion. Companhia de saneamento Basico Do Estado De Sao Paulo – Sabesp had a return on equity of 15.83% and a net margin of 23.64%.

Here are the key takeaways from Companhia de saneamento Basico Do Estado De Sao Paulo – Sabesp’s conference call:

• Adjusted EBITDA
• BRL 15.2 billion CapEx in 2025 (more than double 2024) accelerated universalization—millions of people gained water/sewage access and targets for 2025 were met early, with a large project backlog and 38 projects slated for 2026.
• Balance-sheet liquidity and funding remain strong: gross debt BRL 40 billion (net BRL 28 billion), net-debt/adjusted-EBITDA ~2.2x, BRL 12 billion cash covering >3 years of amortizations, and a long weighted-average debt maturity (~5.6 years).
• Reported results include several one-offs and accounting adjustments (e.g., BRL 370 million tax gains, BRL 60 million logistics restructure, financial-asset bifurcation) that management excludes from “adjusted” figures, so underlying recurring performance may be less robust than headline adjusted metrics suggest.
• Key execution and regulatory risks remain: the updated, inflation-adjusted CapEx plan is still under discussion with the regulator, a small portion of injunctions/discount disputes (BRL 50–100 million) remain unresolved, and the MIE acquisition/tender process carries timing and approval uncertainty.

Companhia de saneamento Basico Do Estado De Sao Paulo – Sabesp Trading Down 2.1%

Shares of SBS opened at $28.16 on Thursday. Companhia de saneamento Basico Do Estado De Sao Paulo – Sabesp has a fifty-two week low of $16.52 and a fifty-two week high of $30.63. The business has a 50-day moving average of $27.41 and a 200 day moving average of $25.56. The firm has a market cap of $19.81 billion, a P/E ratio of 12.87, a price-to-earnings-growth ratio of 5.61 and a beta of 0.78. The company has a debt-to-equity ratio of 0.68, a quick ratio of 1.17 and a current ratio of 1.17.

Companhia de saneamento Basico Do Estado De Sao Paulo – Sabesp Announces Dividend

The company also recently disclosed a special dividend, which will be paid on Monday, May 11th. Investors of record on Friday, March 27th will be issued a $0.4772 dividend. The ex-dividend date of this dividend is Friday, March 27th. This represents a yield of 56.0%. Companhia de saneamento Basico Do Estado De Sao Paulo – Sabesp’s dividend payout ratio (DPR) is 32.88%.

Hedge Funds Weigh In On Companhia de saneamento Basico Do Estado De Sao Paulo – Sabesp

Institutional investors and hedge funds have recently added to or reduced their stakes in the business. VPR Management LLC increased its position in shares of Companhia de saneamento Basico Do Estado De Sao Paulo – Sabesp by 1.3% in the 4th quarter. VPR Management LLC now owns 29,056 shares of the utilities provider’s stock valued at $693,000 after acquiring an additional 376 shares during the period. Creative Planning raised its stake in Companhia de saneamento Basico Do Estado De Sao Paulo – Sabesp by 1.3% in the 3rd quarter. Creative Planning now owns 31,150 shares of the utilities provider’s stock worth $775,000 after acquiring an additional 386 shares during the last quarter. Quadrant Capital Group LLC lifted its position in Companhia de saneamento Basico Do Estado De Sao Paulo – Sabesp by 5.0% during the 4th quarter. Quadrant Capital Group LLC now owns 10,344 shares of the utilities provider’s stock worth $247,000 after acquiring an additional 491 shares during the period. Vident Advisory LLC lifted its position in Companhia de saneamento Basico Do Estado De Sao Paulo – Sabesp by 1.5% during the 4th quarter. Vident Advisory LLC now owns 35,538 shares of the utilities provider’s stock worth $848,000 after acquiring an additional 538 shares during the period. Finally, BNP Paribas Financial Markets grew its stake in Companhia de saneamento Basico Do Estado De Sao Paulo – Sabesp by 3.3% during the 3rd quarter. BNP Paribas Financial Markets now owns 21,740 shares of the utilities provider’s stock valued at $541,000 after purchasing an additional 699 shares during the last quarter. Institutional investors own 10.62% of the company’s stock.

Wall Street Analysts Forecast Growth

A number of research analysts have weighed in on SBS shares. Zacks Research upgraded shares of Companhia de saneamento Basico Do Estado De Sao Paulo – Sabesp from a “hold” rating to a “strong-buy” rating in a research note on Wednesday, March 11th. Weiss Ratings upgraded shares of Companhia de saneamento Basico Do Estado De Sao Paulo – Sabesp from a “buy (b)” rating to a “buy (a-)” rating in a research note on Tuesday. Two analysts have rated the stock with a Strong Buy rating, According to data from MarketBeat.com, the company presently has an average rating of “Strong Buy”.

Companhia de saneamento Basico Do Estado De Sao Paulo – Sabesp Company Profile

Companhia de Saneamento Básico do Estado de São Paulo (SABESP) is a Brazilian utility that provides water supply and wastewater collection and treatment services. As the principal sanitation company serving the state of São Paulo, SABESP operates a wide range of infrastructure spanning water capture, treatment plants, distribution networks and sewage systems. The company’s activities support residential, commercial and industrial customers and are focused on delivering potable water, ensuring water quality and expanding access to sanitation services.

SABESP’s service offering includes the operation and maintenance of water treatment and sewage treatment facilities, network expansion and rehabilitation, meter reading and billing, customer service and environmental programs aimed at improving sewage treatment rates and protecting water resources.

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