Financial Data and Key Metrics Changes - Adjusted net revenue for Q4 2025 reached BRL 5.7 billion, growing 2.1% year-over-year [4] - Adjusted EBITDA totaled BRL 3.4 billion, representing a 13% growth versus a year ago, with margins expanding to 60% [4] - Adjusted net income remained stable at around BRL 1.9 billion [4] - For the full year 2025, adjusted net revenue totaled BRL 22.2 billion, representing a 2.2% growth versus 2024 [5] - Adjusted EBITDA for the full year reached BRL 13.2 billion, growing 17% year-over-year, with margins expanding to 60% [5] - Reported net income for Q4 reached BRL 2.7 billion, representing 87% growth year-over-year [11] - Cash flow from operations reached BRL 3 billion, representing a 24% growth [5] Business Line Data and Key Metrics Changes - Water production totaled 789 million cubic meters in Q4, remaining stable [3] - Water connections increased by 0.4% year-over-year, reaching approximately 9.5 million, while sewage connections grew 0.8% to 8.3 million [3] - The number of units benefiting from subsidized rates reached nearly 2 million connections, approximately 6 million people, doubling the average from 2024 [10] Market Data and Key Metrics Changes - The price index, excluding mix effects, remained stable, with no rate reviews for 2025 [9] - Discounts for large clients contributed about 1.5 percentage points to revenue growth, with BRL 450 million worth of discounts removed in 2025 [8][47] Company Strategy and Development Direction - The company focuses on three strategic priorities: delivering new concession agreement obligations, achieving operational efficiency, and improving financial efficiency [17] - CapEx for 2025 reached BRL 15.2 billion, a 120% increase year-over-year, supporting universalization and infrastructure capacity expansion [17] - The company aims to enhance water safety and metering upgrades, with significant investments planned for the future [27][48] Management's Comments on Operating Environment and Future Outlook - Management highlighted strong cash generation and a fortress-like balance sheet, reinforcing the ability to fund investment programs [5][16] - The company is optimistic about achieving universal access targets ahead of schedule, with significant infrastructure projects planned for 2026 [12][13] - Management emphasized the importance of regulatory frameworks and bidding processes for potential acquisitions, particularly regarding Copasa [39][40] Other Important Information - The company concluded the acquisition of MIE's controlling shares, which is expected to increase reservoir capacity significantly [22][23] - The company has a strong liquidity position with BRL 12 billion in cash, covering more than three years of amortizations [16] Q&A Session All Questions and Answers Question: Potential upside to the BRL 70 billion CapEx number - Management indicated that inflation and evolving business needs could lead to an increase in the CapEx number, with investments in water safety and metering upgrades being prioritized [25][26][27] Question: Annualized level of CapEx in Q4 - Management stated that they aim to maintain or accelerate CapEx levels in 2026, depending on execution capabilities [29][30] Question: Payroll line and cost efficiency - Management confirmed that personnel expenses were low due to cost reductions and centralization efforts, with a focus on capitalizing more expenses through CapEx [33][35] Question: Strategic opportunities outside São Paulo - Management expressed interest in larger deals like Copasa, emphasizing the importance of regulatory frameworks and bidding processes in decision-making [39][40] Question: Evolution of discounts for larger customers - Management reported that BRL 450 million in discounts were removed in 2025, with plans to continue capturing remaining discounts [47][48]