Brazil · Delayed Price · Currency is BRL Companhia de Saneamento de Minas Gerais Earnings Call Transcripts
Fiscal Year 2026
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Privatization enabled a new growth cycle, with net revenue up 9% and record investments. Labor claims and extraordinary expenses weighed on net income, but operational efficiency and contract renewals support long-term outlook.
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Q1 2026 saw record CapEx, stable water and sewage volumes, and a 2.5% revenue increase, but net income fell 14% due to higher costs and depreciation. The Belo Horizonte concession was renewed to 2073, and the destatization process advanced as planned.
Fiscal Year 2025
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Record CapEx and robust financial growth in 2025, with net revenue up 5.6% and EBITDA up 5.7% year-over-year. Strategic focus on privatization, regulatory stability, and efficiency, with a BRL 21 billion CapEx plan for 2026–2030 and improved ESG recognition.
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Q3 2025 saw strong CapEx growth, robust cash flow, and stable EBITDA margin, with progress in privatization and regulatory improvements. Investments and efficiency initiatives are on track, supporting universalization and future expansion.
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Q2 2025 saw modest revenue growth and a drop in net income due to lower water consumption and higher depreciation, but strong cash generation and investments continued. Operational efficiency improved, with record-low default rates and better loss control, while robust dividend payouts and a solid capital structure support future growth.
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Record Q1 2025 results featured all-time high EBITDA, robust cash generation, and a Fitch AAA rating. Aggressive investment plans and efficiency initiatives support growth, while leverage and dividend policies are balanced to sustain future expansion.
Fiscal Year 2024
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Record CapEx and robust cash generation supported expansion and high dividend yield, while operational efficiency and ESG leadership were recognized internationally. Regulatory changes and foreign currency exposure present ongoing risks, but financial discipline and a strong investment plan position the company for future growth.
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Net revenue grew 9.6% year-over-year to BRL 1.8 billion, with EBITDA up 13.6% and net income rising 9.3%. Investments surged, regulatory negotiations advanced, and the company maintained strong liquidity and credit ratings despite higher costs and ongoing regulatory risks.
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Q2 2024 saw net revenue rise 10.7% and net income jump 30.4% year-over-year, driven by tariff adjustments, higher volumes, and cost efficiencies. Investments surged 33.2% in H1, while leverage and profit reserves increased to support a BRL 9.8 billion five-year plan.