BRAZIL · WATER UTILITY
Key Facts
- Adjusted profit US$203 million (R$1.107 billion), down 13.8% from a year earlier.
- Adjusted earnings per share R$0.31 (about US$0.06) against R$0.38 (about US$0.07) in the third quarter of 2025.
- Adjusted EBITDA US$668 million (R$3.648 billion), up 13.8%; EBITDA means operating profit before depreciation.
- Investment US$829 million (R$4.528 billion) in one quarter, up 13.8%.
- Exchange rate R$5.4621 per US$1, the central bank rate for 5 November 2026.
- Power Index Brazil ranks 1st of 14 in The Rio Times Latin America Power Index, with 74.2 points (November 2026 edition).
Sabesp profit fell 13.8% in the third quarter to an adjusted R$1.107 billion (US$203 million), the utility reported on Thursday 5 November. Sabesp supplies water and sewage services in São Paulo state, Brazil’s richest.
Operating earnings grew, but interest costs on new debt and a big one-off gain a year earlier pulled profit down. All US$ figures here use R$5.4621 per US$1, the central bank rate for 5 November.
What Sabesp Reported on 5 November
Sabesp (Companhia de Saneamento Básico do Estado de São Paulo) published its third-quarter results on Thursday 5 November 2026. Adjusted earnings per share were R$0.31 (about US$0.06), against R$0.38 (about US$0.07) a year earlier.
Reported net income, which includes one-off items, fell 35.7% to R$1.388 billion (US$254 million). Reported earnings per share dropped to R$0.39 (about US$0.07) from R$0.63 (about US$0.12).
Revenue and Operating Profit Grew
Adjusted net revenue from water and sewage services rose 9.0% to R$5.958 billion (US$1.09 billion). Sabesp credits a 10.6% tariff increase and higher water volumes from new customers.
Adjusted EBITDA climbed 13.8% to R$3.648 billion (US$668 million). That growth came even though a new customer-service plan cost R$179 million (US$33 million) in the quarter.
Live Company IntelligenceCompanhia de Saneamento Básico do Estado de São Paulo – SABESP — the full investor dossier
Why Profit Still Fell
Sabesp’s adjusted net financial result worsened by 74% to a cost of R$1.312 billion (US$240 million). Interest expenses rose because the company borrowed more to pay for its investment programme.
The third quarter of 2025 also included a one-off gain of R$1.5 billion (US$275 million) from court-ordered payments owed to the company. That made last year’s comparison unusually hard to beat.
Spending and Debt Keep Rising
Sabesp invested R$4.528 billion (US$829 million) in the quarter, up 13.8%, and about R$12 billion (US$2.20 billion) in nine months. The money goes to water and sewage networks under universal-access targets.
Loans and financing stood at about R$46.4 billion (US$8.50 billion) at 30 September, according to the balance sheet. Total debt rose R$6.3 billion (US$1.15 billion) since December 2025, the company says.
In Plain English, Who Is Who
Sabesp is the water and sewage utility of São Paulo state, which includes Brazil’s largest city. Its shares trade on B3, the São Paulo stock exchange, under the ticker SBSP3.
The company’s adjusted figures strip out accounting for construction work and one-off items, while reported figures include them. Our earlier report on its second-quarter results shows the same pressure from debt costs.
What It Means for You
For US investors in Brazilian utilities, the quarter shows strong operations but heavier borrowing costs. Rising investment is meant to expand service, yet it keeps debt climbing for now.
Sabesp also absorbed the state power firm EMAE, as covered in our report on the share-swap vote. Travelers and residents in São Paulo should see the spending as work on pipes and sewers.
What Is Not Known
It is not yet clear how investors will judge the quarter, since analysts quote different profit expectations. Sabesp’s management took questions on a call at 10:00 Brasília time on Friday 6 November.
The fourth wave of its universal-access contracts, covering greater São Paulo, is still in a tender process. Sabesp can say when it will award those contracts when it reports its full-year results in 2027.
More: Latin America news in English, every day from The Rio Times.
Frequently Asked Questions
How Much Profit Did Sabesp Make in the Third Quarter?
Sabesp reported adjusted net income of R$1.107 billion (US$203 million), down 13.8%. Reported net income was R$1.388 billion (US$254 million), down 35.7%.
Why Did Sabesp Profit Fall?
Interest costs rose because Sabesp borrowed more to fund investment. A year earlier the company also booked a one-off gain of R$1.5 billion (US$275 million).
What Is Sabesp’s Adjusted EBITDA?
Adjusted EBITDA was R$3.648 billion (US$668 million), up 13.8%. EBITDA is operating profit before depreciation and amortisation.
What Exchange Rate Does This Article Use?
All US$ figures use R$5.4621 per US$1. That is the Brazilian central bank‘s rate for 5 November 2026.
Sources: Sabesp, Results Release 3Q26, 5 November 2026; Sabesp, quarterly financial statements (ITR) to 30 September 2026, 5 November 2026; Central Bank of Brazil, PTAX dollar rate, 5 November 2026.
Editorial responsibility: Matthias Camenzind, Editor-in-Chief · Editorial standards · Report an error
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