Business · Companies · 3 hrs ago
Sabesp's third-quarter profit falls 35.7% under debt interest pressure
Sabesp's net profit fell 35.7% to R$1.39 billion in the third quarter of 2026 compared with the same period a year earlier.
The Brazilian water and sanitation company said interest on debt used to fund investments weighed on profit.
Its revenue rose 7.6% to R$10.14 billion, while adjusted operating earnings increased 13.8% to R$3.65 billion.
The company said higher tariffs and greater service volumes, including new network connections, helped lift sanitation revenue.
Sabesp invested R$4.5 billion in the quarter and about R$12 billion in the first nine months of the year.
Its board also approved R$2.64 billion in interest payments to shareholders.
The company has R$44.2 billion in contracted investments, and the figures show the challenge of funding that work while debt costs weigh on profits.
Sabesp reported net profit of R$1.39 billion for the third quarter, down 35.7% from a year earlier.
The company said interest on debt used to finance investments weighed on profit.
Revenue rose 7.6% to R$10.14 billion, while adjusted EBITDA increased 13.8% to R$3.65 billion.
Sabesp’s board approved R$2.64 billion in interest on equity payments.
The company invested R$4.5 billion in the quarter and about R$12 billion in the first nine months of the year.
- Who
- Sabesp, Brazil’s largest sanitation company.
- What
- It reported third-quarter net profit of R$1.39 billion, down 35.7% year on year.
- When
- The third quarter of 2026. The results were reported on Thursday, November 5.
- Where
- Brazil.
- Why
- Interest on debt used to finance investments weighed on profit.
This story does not have two clearly opposing sides.
Sabesp recorded net profit of R$1.39 billion and invested R$4.5 billion during the quarter.
Sabesp reported its third-quarter results and said its board had approved R$2.64 billion in interest on equity payments.
- Net profit
- R$1.39 billion, down 35.7% year on year
- Net revenue
- R$10.14 billion, up 7.6%
- Adjusted EBITDA
- R$3.65 billion, up 13.8%
- Interest on equity approved
- R$2.64 billion
- Quarterly investment
- R$4.5 billion