Financial Data and Key Metrics Changes - The company's total revenue for 2025 was $132.1 million, a slight decrease of 1% from 2024, primarily due to decreased revenue in the services segment and a modest decline in the bulk segment revenue [10] - Gross profit for 2025 was $48.4 million, representing 30% of total revenue, compared to $45.6 million or 34% of total revenue in 2024, indicating an improvement in gross margin [12] - Net income from continuing operations was $18.6 million or $1.16 per diluted share, compared to $17.9 million or $1.12 per diluted share in 2024 [13] Business Line Data and Key Metrics Changes - Retail revenue increased by 6.6% to $33.6 million, driven by an 8.3% increase in the volume of water sold to a record 1.09 billion gallons due to historically low rainfall [10][11] - The bulk segment revenue decreased less than 1%, attributed to lower energy prices affecting the energy pass-through component of rates [11] - Services segment revenue decreased from $18.6 million in 2024 to $13.5 million in 2025, primarily due to the completion of major projects in 2024 and a lull in Hawaii project activity [11][12] Market Data and Key Metrics Changes - Tourist air arrivals in the Cayman Islands increased by 2.9% to approximately 450,000 in 2025, contributing to retail sales growth [18] - The company anticipates that construction of the Hawaii desalination project will commence later in 2025, which is expected to significantly add to revenue and earnings growth in future periods [20] Company Strategy and Development Direction - The company is focused on diversifying its business segments, including retail water operations in Grand Cayman, Caribbean-based bulk water business, and U.S.-based manufacturing and O&M businesses [25] - The completion of a new manufacturing facility in Florida is expected to enhance efficiency and throughput, positioning the company for growth in the municipal water market [24] Management's Comments on Operating Environment and Future Outlook - Management acknowledged that permitting delays for the Hawaii project are common and not due to failures on the company's part, emphasizing ongoing efforts to mitigate schedule impacts [3][4] - The company expects continued growth in its retail business and stable recurring revenue from its bulk water operations, while also pursuing new project opportunities in the municipal sector [25] Other Important Information - The company increased its quarterly cash dividend by 27.3% to $0.14 per share starting in the third quarter of 2025 [16] - Cash and cash equivalents totaled $123.8 million as of December 31, 2025, representing a $24.4 million increase from the prior year-end [15] Q&A Session Summary Question: What is the status of the Hawaii desalination project permit? - The permit required is from the State Historic Preservation Division, and it is the client's responsibility to obtain it. Progress is being made, but the process is slow [29][34] Question: How does the O&M revenue pipeline look going forward? - There are significant opportunities in O&M, particularly in Southern California, where the company believes it has competitive advantages [40] Question: How is the energy cost recovery reflected in bulk services? - Energy cost recovery increases are reflected on a monthly basis based on average fuel and electricity costs [52] Question: What is the balance between public-private opportunities versus purely public projects? - The company is focusing on solid municipal business opportunities, particularly in Florida, due to regulatory changes affecting water capacity [56] Question: Are there new market opportunities for the manufacturing segment? - The expanded facility allows the company to participate more significantly in the municipal water market, focusing on larger assemblies and production skids [58]

Financial Data and Key Metrics Changes - Consolidated revenue for 2025 totaled $132.1 million, a slight decrease of 1% from 2024, primarily due to decreased revenue in the services segment and a modest decline in the bulk segment [10][11] - Gross profit for 2025 was $48.4 million, representing 30% of total revenue, compared to $45.6 million or 34% of total revenue in 2024 [12] - Net income from continuing operations in 2025 was $18.6 million or $1.16 per diluted share, compared to $17.9 million or $1.12 per diluted share in 2024 [13] Business Line Data and Key Metrics Changes - Retail revenue increased by 6.6% to $33.6 million, driven by an 8.3% increase in the volume of water sold to a record 1.09 billion gallons due to historically low rainfall [10][11] - The bulk segment revenue decreased less than 1%, attributed to lower energy prices affecting the energy pass-through component of rates [11] - Services segment revenue decreased from $18.6 million in 2024 to $13.5 million in 2025, primarily due to the completion of major projects and a lull in Hawaii project activity [11][12] - Manufacturing segment revenue increased by 6% to $18.7 million, reflecting improved gross margins and production of higher-margin products [12][23] Market Data and Key Metrics Changes - Tourist air arrivals in the Cayman Islands increased by 2.9% to approximately 450,000 in 2025, contributing to retail sales growth [17] - The company anticipates that construction of the Hawaii desalination project will commence later in 2026, which is expected to significantly add to revenue and earnings growth in future periods [19][24] Company Strategy and Development Direction - The company aims to leverage its strong balance sheet to pursue desalination and water infrastructure opportunities in the Caribbean and North America, as well as potential strategic acquisitions [24] - Continued focus on operational excellence and efficiency improvements across all business segments is emphasized to enhance profitability [6][12] Management's Comments on Operating Environment and Future Outlook - Management noted that permitting delays for the Hawaii project are common and not due to failures on the part of the company [3][4] - The company expects ongoing growth in retail operations driven by economic strength in the Cayman Islands and low rainfall, while also anticipating a rebound in services segment revenue once construction activities resume [5][19] Other Important Information - The company increased its quarterly cash dividend by 27.3% to $0.14 per share starting in Q3 2025 [15] - Cash and cash equivalents totaled $123.8 million as of December 31, 2025, with no significant outstanding debt [14][15] Q&A Session Summary Question: What is the status of the Hawaii desalination project permit? - The permit required is from the State Historic Preservation Division, and the client is responsible for obtaining it, which is a prerequisite for applying for other building permits [28][32] Question: How does the O&M revenue pipeline look going forward? - There are significant opportunities in O&M contracts, particularly in Southern California, although the market is competitive [38] Question: What is the expected usage of the new West Bay facility's capacity? - The facility adds 1 million gallons a day of water, with usage dependent on demand fluctuations due to rainfall [39][41] Question: How quickly are energy cost recovery increases reflected in bulk services? - Energy cost recovery increases are reflected on a monthly basis based on average fuel and electricity costs [50] Question: Are there new market opportunities for the manufacturing segment? - The expanded facility allows for participation in the municipal RO system market, which is seeing renewed demand [56][57]

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][5] - Adjusted net income remained stable at around BRL 1.9 billion for Q4 2025 [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 also at 60% [5][6] - 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 for Q4, 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 to approximately 9.5 million, while sewage connections grew 0.8% to 8.3 million [3][4] - 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 company achieved 84% of water targets, 74% of sewage collection, and 70% of sewage treatment for the year 2026 as of February 2026 [12] - The company generated BRL 8.5 billion in net income in 2025, with 75% reinvested to support infrastructure expansion [20] Company Strategy and Development Direction - The company’s strategy focuses on three priorities: delivering new concession agreement obligations, achieving operational efficiency, and improving financial efficiency [16] - CapEx for 2025 reached BRL 15.2 billion, representing a 120% increase year-over-year, aimed at accelerating universalization and expanding infrastructure capacity [16][17] - The company is advancing metering upgrades and integrating new water sources into its system to enhance operational flexibility and water safety [26] Management's Comments on Operating Environment and Future Outlook - Management emphasized the importance of accelerating universal access and improving service reliability [16] - The company is committed to maintaining a strong balance sheet while pursuing significant investments in infrastructure [15] - Management expressed confidence in achieving universalization targets ahead of schedule and highlighted the positive impact of their investment program on the community [12][20] Other Important Information - The company concluded the acquisition of EMAE's controlling shares, which is expected to increase reservoir capacity in the metropolitan system by up to 52% in the long term [21][22] - The company has a robust expansion backlog with approximately BRL 39 billion in contracted investments through 2029 [18] Q&A Session Summary Question: Potential upside to the BRL 70 billion CapEx number - Management indicated that inflation and evolving business needs could increase the CapEx number, with investments in water safety and advanced metering upgrades being prioritized [25][26] Question: Annualized CapEx level in Q4 - Management stated that they aim to maintain or accelerate the CapEx pace if feasible, emphasizing the importance of delivering universal access [28] Question: Payroll line and cost efficiency - Management noted that personnel expenses were low due to cost reductions and capitalizing on more expenses through CapEx, reflecting a full-year result rather than a seasonal effect [33] Question: Strategic opportunities outside São Paulo - Management expressed interest in larger deals like Copasa but emphasized the importance of regulatory frameworks and bidding processes in decision-making [35][36] Question: Evolution of discounts for larger customers - Management reported capturing about BRL 450 million in discount removals in 2025, with a goal to zero out remaining contracts [44] - For water safety CapEx, management expects to spend between BRL 1.5 billion and BRL 2 billion this year [45]

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]

RESULTS 4Q25 AND 2025 SAFE HARBOR STATEMENT This presentation does not contain projections or estimates of future events. However, it may include forward-looking statements that indicate potential trends related to Sabesp, based on the reasonable expectations, beliefs, and assumptions of the Company's management. The use of expressions such as "projects," "estimates," "anticipates," "foresees," "plans," "expects," and similar terms shall not be construed as forecasts or guidance for purposes of applicable r ...

Financial Summary - Total revenue for 2025 decreased by 1% to $132.1 million compared to $134.0 million in 2024 [5][17] - Retail revenue increased by 6% to $33.6 million, while bulk revenue decreased by 1% to $33.5 million [5][27] - Services revenue decreased by 9% to $46.3 million primarily due to a decline in construction revenue [5][11] - Manufacturing revenue increased by 6% to $18.7 million [5][20] - Net income from continuing operations attributable to company stockholders was $18.6 million, or $1.16 per diluted share, compared to $17.9 million, or $1.12 per diluted share in 2024 [5][21] - Cash and cash equivalents increased to $123.8 million, and working capital increased to $141.9 million as of December 31, 2025 [5][22] Operational Highlights - Retail water sold by the Grand Cayman utility increased by 8.3% to a record volume of 1.09 billion gallons due to increased customer connections and significantly less rainfall [5][18] - The company supplied approximately 4.8 billion gallons of water to the WSC under long-term supply agreements, consistent with 2024 [5] - Two water treatment plant construction projects were awarded, totaling approximately $15.6 million, with revenue expected primarily in 2026 [5][14] - The company completed the design of a 1.7 million gallon per day seawater desalination plant in Hawaii, with construction expected to commence later in 2026 [5][14] - The expansion of the West Bay seawater desalination plant added an additional 1 million gallons per day of production capacity [5][14] Dividend Increase - The company increased its quarterly dividend by 27.3% to $0.14 per share starting in the third quarter of 2025 [6] Management Commentary - The CEO noted that while services revenue did not meet expectations due to permitting delays, total revenue remained consistent with the previous year [7][8] - The gross margin improved across all segments, increasing by 2.6 percentage points on a consolidated basis [8] - The retail segment revenue growth was attributed to the strength of the Cayman Islands economy and low rainfall, leading to a record number of customers [9] - The bulk segment profitability increased despite a slight revenue decrease due to lower fuel pass-through charges [10] - The services segment revenue decrease was partially offset by a 9% increase in recurring revenue from O&M contracts [12]

Core Insights - California American Water is promoting leak detection and repair during the U.S. Environmental Protection Agency's Fix a Leak Week 2026, emphasizing the importance of addressing household leaks to conserve water and reduce costs [1][2] - The company is investing $200 million over the next three years to modernize water and wastewater infrastructure, including the replacement of aging pipes [2] - Household leaks are prevalent, affecting approximately one in ten homes and potentially wasting over 90 gallons of water daily [2] Leak Detection Tips - Common leak locations include boiler systems, bathtubs, showers, washing machines, dishwashers, faucets, and toilets [5] - A leaky faucet can waste up to 3,200 gallons of water annually, and customers are advised to check for drips and replace washers if necessary [5] - To test for toilet leaks, customers can use dye-tracing tablets; if dye seeps into the bowl, a leak is present and repairs are needed [5] Company Overview - California American Water is a subsidiary of American Water, serving approximately 720,000 people with safe and reliable water and wastewater services [5] - American Water is the largest regulated water and wastewater utility in the U.S., providing services to around 14 million people across 14 states and military installations [4]

Core Insights - Missouri American Water is promoting leak detection and repair during the EPA's Fix a Leak Week 2026, emphasizing the importance of addressing household leaks to conserve water and reduce costs [1][2] - The company is investing over $500 million in 2026 to modernize water and wastewater infrastructure, including replacing aging water mains and lead service lines [2] - Household leaks are prevalent, affecting about 10% of homes and wasting over 90 gallons of water daily [2] Leak Detection Tips - Common leak locations include boiler systems, bathtubs, showers, washing machines, dishwashers, faucets, and toilets [5] - A leaky faucet can waste nearly 3,200 gallons of water annually, and customers are advised to check for drips and replace washers if necessary [5] - To test for toilet leaks, customers can use dye-tracing tablets; if dye seeps into the bowl, a leak is present [5] Company Overview - American Water is the largest regulated water and wastewater utility in the U.S., serving approximately 14 million people across 14 states and 18 military installations [4] - Missouri American Water, a subsidiary of American Water, is the largest regulated water utility in Missouri, providing services to about 1.6 million people [4]

Core Insights - Iowa American Water is promoting water conservation during the EPA's Fix a Leak Week 2026 by providing practical tips for customers to identify and fix household leaks [1][2] Company Initiatives - Iowa American Water invested over $55 million last year to modernize water and wastewater infrastructure, including replacing aging pipes and upgrading treatment facilities [2] - The company emphasizes the importance of leak detection to reduce water waste and lower utility bills, highlighting that leaks can waste more than 90 gallons of water daily in affected homes [3] Customer Engagement - Customers are encouraged to utilize Iowa American Water's leak-detection kit and online portal, MyWater, to monitor water usage and manage accounts [3] - Additional resources on water conservation are available through the company's Water Learning Center [4] Company Overview - American Water, the parent company of Iowa American Water, is the largest regulated water and wastewater utility in the U.S., serving approximately 14 million people across 14 states [5] - Iowa American Water serves around 225,000 residents, focusing on providing safe, clean, and reliable water services [7]

Core Insights - Kentucky American Water is promoting water conservation during the EPA's Fix a Leak Week 2026 by providing practical tips for customers to identify and fix household leaks, which can lead to significant water waste and increased bills [2][3] Company Initiatives - The company is investing over $220 million in the next five years to modernize its water and wastewater infrastructure, which includes replacing aging pipes and valves, rehabilitating tanks, and upgrading treatment facilities [2] - Kentucky American Water offers resources such as a leak-detection kit and an online customer portal, MyWater, to help customers manage their water usage and detect leaks [3][4] Leak Statistics - According to the EPA, approximately one in ten homes experience leaks, which can waste more than 90 gallons of water daily [2] - A leaky faucet can waste nearly 3,200 gallons of water annually, highlighting the importance of addressing leaks promptly [6] Common Leak Locations - Common household areas where leaks are often found include toilets, faucets, washing machines, dishwashers, bathtubs, and showerheads [6]