SABESP(US:SBS)2025-08-13 00:46Financial Performance - Net income for the current quarter was R$2,135,962, compared to R$3,618,053 year-to-date, indicating a decrease in profitability[10]. - Comprehensive income for the period was R$2,043,831, down from R$3,513,696 year-to-date, indicating challenges in overall financial performance[11]. - Net income for the period was R$3,618,053, compared to R$2,032,761 in the previous year, reflecting an increase of 78%[14]. - The company reported a total comprehensive income of R$3,513,696 thousand for the period, compared to R$2,032,761 thousand in the previous year, indicating significant growth[24]. - Net income for Q2 2025 was R$2.136 billion, a 76.6% increase compared to R$1.209 billion in Q2 2024[35]. Revenue and Sales - Revenue from sales and services reached R$8,954,760 for the quarter, with a year-to-date total of R$17,370,781, reflecting a solid revenue stream[10]. - Revenue for the period reached R$17,990,604, up 29% from R$13,951,004 in the previous year[16]. - Revenue from sanitation services for Q2 2025 was R$293,807, an increase from R$225,373 in Q2 2024, representing a growth of 30.3%[124]. - Net revenue reached R$8.965 billion in Q2 2025, a 32.8% increase from R$6.749 billion in Q2 2024[35]. Assets and Liabilities - Total assets increased to R$88,713,461 as of June 30, 2025, up from R$80,978,272 at the end of 2024, representing a growth of approximately 9.4%[8]. - Total liabilities remained stable at R$88,713,461, consistent with total assets, indicating a balanced financial position[9]. - Current liabilities decreased to R$10,456,039 from R$11,968,321, showing improved short-term financial health[9]. - The company’s total liabilities rose to R$48,275,810 in Q2 2025, up from R$32,882,054 in Q2 2024, highlighting increased financial obligations[49]. Cash Flow and Investments - Cash and cash equivalents rose significantly to R$4,560,280 from R$1,681,204, marking an increase of 171.5%[8]. - Net cash from operating activities increased to R$4,275,618 from R$3,164,172, representing a growth of 35% year-over-year[12]. - Cash generated from operations rose to R$7,341,585, a 23% increase from R$5,965,664[12]. - Net cash from investing activities was negative R$4,501,015, compared to negative R$1,602,505 in the previous year, indicating increased investment outflows[13]. - The company accelerated its investment pace to R$3.6 billion for the quarter, reflecting a commitment to universalization of services[28]. Equity and Financing - The company’s paid-up capital increased to R$18,400,000 from R$15,000,000, indicating a strengthening of equity position[18]. - The company’s total financial debt amounts to R$6,512,574, an increase from R$3,401,111 as of December 31, 2024[68]. - The company raised R$3,373 million from the IFC in June 2025, with a total amount of R$3,372,828 from various loans[192]. - The company has multiple financing agreements with the Inter-American Development Bank, with maturities extending to 2044 and interest rates ranging from SOFR + 5.34% to SOFR + 6.50940%[188]. Operational Efficiency - Operating costs decreased by R$476 million (19%) in Q2 2025, driven by reductions in general and administrative expenses and a leaner workforce[40]. - The average amortization rate decreased to 2.6% as of June 30, 2025, from 5.2% in the previous year, due to a new agreement with URAE-1 extending the amortization period[174]. - The company recognized a total of R$87,009 thousand in additions to property, plant, and equipment during the first half of 2025[183]. Risk Management - The company has been actively managing financial risks associated with currency fluctuations due to foreign currency-denominated liabilities[65][67]. - The company has implemented a hedge accounting policy for its foreign currency-denominated debt, applying cash flow and fair value hedges[85]. - The company’s liquidity management relies on cash from operating activities and financing from capital markets[75]. Investments and Acquisitions - The acquisition of 70% of Aguas de Andradina S.A. and Aguas de Castilho S.A. was finalized, bringing SABESP's total ownership to 100%[142]. - The company recognized R$401,679 in the third quarter of 2025 following the resolution of uncertainties regarding tax calculations with the São Paulo State[121]. - The company negotiated registered warrants for overdue bills with municipalities, resulting in a total of R$1,947,178 receivable as of June 30, 2025[120].