Aguas Andinas S.A

What it is

Aguas Andinas and its subsidiaries are the largest sanitation group in Chile, managing the full water cycle — drawing raw water from the Andes, treating and distributing it, then collecting and treating the sewage. It serves close to six million people in the Metropolitan Region across a concession zone of more than 70,000 hectares, with coverage reaching 100% for water supply and 98% for sewage collection.

Revenue comes almost entirely from the volumes of potable water delivered and wastewater treated, priced under regulated tariffs that incorporate efficient operating costs, infrastructure depreciation, and an allowed return on assets. That is the defining feature of a regulated utility: the government sets the price, and in exchange the company keeps the monopoly.

Who owns it

The Veolia Group — the French environmental-services giant — is the indirect controlling company through its Spanish subsidiary Agbar, which in turn controls Aguas Andinas via Inversiones Aguas Metropolitanas S.A. (IAM), which holds 50.1% of Aguas Andinas. Veolia took control of Agbar’s parent Suez in 2022, acquiring 86.22% of Suez’s shares and later raising its stake to 95.95%.

Insiders (the controlling bloc) hold 54.0% of shares; institutional investors hold a further 24.8%, leaving a free float of roughly 21% — meaning most of the stock rarely trades, which is typical for a regulated infrastructure asset. (Ownership percentages: EODHD.)

Who runs it

José Sáez Albornoz became CEO on 1 May 2025, the first Chilean to lead the company in more than a decade. His predecessor Daniel Tugues departed to take on new responsibilities inside the Veolia Group; Sáez joined Aguas Andinas in 2008 and most recently served as director of strategy and corporate affairs.

The board was also refreshed in April 2025, with Felipe Larraín elected as chairman and Gustavo Migues as vice chairman. CFO is Miquel Sans, who has presented financial results publicly through 2025 and into 2026.

The money, in plain words

For every Chilean peso of revenue it collects, Aguas Andinas keeps about 20 cents as net profit — a net margin of 19.6% (our calculation), unusually high for an infrastructure company that must constantly reinvest. Full-year 2025 revenue rose 7.5% year-on-year, with net profit up 12.4%, driven by regulated tariff increases and rising consumption volumes.

For every peso of owners’ equity in the business, it earns back roughly 11 cents a year — a return on equity of 11.1%, respectable for a capital-heavy regulated utility. At a price-to-earnings ratio of 13.6×, the stock trades cheaply by global utility standards; the dividend yield of 5.2% is one of the highest in Chile’s IPSA index.

The April 2025 shareholder meeting approved distribution of 70% of 2024 earnings as dividends.

What it is doing now

In Q1 2026 — the most recent reported period — revenue rose 6.6% year-on-year to CLP 210.5 billion (US$232.2 million), earnings before interest, tax, depreciation, and amortisation grew 7.5%, and net profit jumped 22.1%, supported by higher tariffs and improved financial results.

The company’s eighth regulated tariff review, concluded in 2024, locked in a 3% base increase for Aguas Andinas from March 2025, plus an additional 7.4% tariff covering climate-adaptation projects — making every investment in the Biocity infrastructure plan fully revenue-backed through 2030 and beyond. In January 2025 the company also issued a sustainable bond in the local market worth UF 4,000,000 (roughly US$155 million) to finance this investment plan and extend its debt maturities.

What to watch

• Drought and the Maipo watershed. Precipitation in early 2025 ran below recent years, meaning snowpack levels in coming months will determine whether emergency water-transfer decisions must be made ahead of the 2026 summer. A severe drought hits both costs and volumes.
• Tariff-linked capital programme. The 2025–2030 tariff increases are now in effect, supporting revenue and funding strategic investments; capital expenditure execution is on track with annual guidance and expected to accelerate through the year.
• Veolia’s long-term intentions. The parent owns the asset through a multi-layer Spanish holding structure. Any decision by Veolia to restructure its Latin American portfolio would flow directly to this stock.
• New management. Sáez is the first Chilean CEO in over a decade; his appointment strengthens local legitimacy at a moment when the company faces scrutiny over service quality and climate resilience.

This is news, not investment advice.