6-K 1 sbspr1q26_6k.htm 6-K
 
SECURITIES AND EXCHANGE COMMISSION
Washington, DC 20549
 
 
FORM 6-K
 
REPORT OF FOREIGN ISSUER
PURSUANT TO RULE 13a-16 OR 15d-16 OF THE
SECURITIES EXCHANGE ACT OF 1934
 
For May, 2026
(Commission File No. 1-31317)
 
 
Companhia de Saneamento Básico do Estado de São Paulo - SABESP
(Exact name of registrant as specified in its charter)
 
Basic Sanitation Company of the State of Sao Paulo - SABESP
(Translation of Registrant's name into English)
 

Rua Costa Carvalho, 300
São Paulo, S.P., 05429-900
Federative Republic of Brazil
(Address of Registrant's principal executive offices)


Indicate by check mark whether the registrant files or will file
annual reports under cover Form 20-F or Form 40-F.

Form 20-F ___X___ Form 40-F ______
Indicate by check mark if the registrant is submitting the Form 6-K
in paper as permitted by Regulation S-T Rule 101(b)(1)__.
Indicate by check mark if the registrant is submitting the Form 6-K
in paper as permitted by Regulation S-T Rule 101(b)(7)__.

Indicate by check mark whether the registrant by furnishing the
information contained in this Form is also thereby furnishing the
information to the Commission pursuant to Rule 12g3-2(b) under
the Securities Exchange Act of 1934.

Yes ______ No ___X___

If "Yes" is marked, indicated below the file number assigned to the
registrant in connection with Rule 12g3-2(b):
 

Earnings Release

1Q26

 

Page 1

  

 

May 7, 2026

·1Q26 adjusted EPS³ of R$0.44 versus R$0.34 in 1Q25
·R$3.7 bn Capex in 1Q26 aimed at universal access, +31% y/y

 

SÃO PAULO, SP – Sabesp (SBSP3) reported adjusted earnings of R$0.44 per share in the 1Q26, compared to R$0.34 per share in the same period of the previous year.

 

“We entered 2026 maintaining strong execution momentum. In 1Q26, investments totaled R$3.7 billion, a 31% increase versus 1Q25, supporting operational expansion and service quality improvements. Adjusted EBITDA reached R$3.8 billion (+26% y/y) and Adjusted Net Income¹ totaled R$1.6 billion (+32% y/y), reinforcing the consistency of our operating performance and financial discipline,” said Daniel Szlak, CFO of Sabesp.

“Beyond the financial results, our priority continues to be delivering tangible advances in sanitation coverage and service standards. We are consistently outperforming the U-Factor benchmarks for the 2024–2026 cycle, with targets at 87% in water supply, 77% in sewage collection, and 71% in sewage treatment, reflecting sustained operational improvements rather than one-off gains.

Our investment program is driving broad social and economic impact by expanding access to essential services while strengthening communities through large-scale infrastructure execution, positioning the Company to sustain and scale these outcomes throughout 2026,” said Carlos Piani, CEO of Sabesp.

 

Consolidated Results

For the quarter ended March 31, 2026, Sabesp reported adjusted earnings per share³ of R$0.44 compared to R$0.34 recorded in the same period of the previous year. Performance was driven by volume growth resulting from new connections (U-Factor targets fully attained), tariff gains and better collection, partially offset by the change in customer mix, with the expansion of consumers with access to subsidized rates².

The quarter sustained strong efficiency gains, driven by reductions in general and administrative expenses, headcount reduction, power optimization with shifts to the free market, and better collection rates. As a result, Adjusted EBITDA increased by 26%, reaching R$3.8 billion in 1Q26, while Adjusted Net Income grew by 32%, totaling R$1.6 billion

Sabesp invested R$3.7 bn in 1Q26, a 31% increase over the same period of the previous year, focusing on expansion projects directly aimed at meeting universalization targets.

 

Earnings Conference Call

Will be held on May 8, 2026, at 10:00 AM (Brasília time). Access link is available at the Company’s Investor Relations website. The presentation has been made available at the same website. An audio recording of the call will be posted at the same website.

 

 

 

1.Excluding the update of the financial asset (indemnification)
2.Covered from July/25 onward by the amendment signed between Sabesp and URAE-1 (https://semil.sp.gov.br/urae1/wp content/uploads/sites/26/2025/08/2-Termo_Aditivo_Assinado_URAE1_ARSESP_SABESP.pdf)
3.Considers the stock split in the proportion 1:5 as approved in the EGM of April 28, 2026

 

 

 

 

Earnings Release

1Q26

 

Page 2

  

REPORTED INCOME STATEMENT (CONSOLIDATED)

R$ mn

    1Q26 1Q25 Var. (R$) %
  Revenue from Operations 6,366 6,120 247 4.0
  FAUSP 40 (200) 240 (120.0)
  Financial Asset 342 420 (78) (18.5)
  Sales Tax (418) (502) 85 (16.9)
(=) Net Sanitation Revenue 6,332 5,837 494 8.5
  Construction revenues 3,633 2,589 1,044 40.3
(=) Net Revenue 9,965 8,426 1,538 18.3
  Construction costs (3,633) (2,589) (1,044) 40.3
  Operating Costs and expenses (2,241) (2,439) 199 (8.1)
  Other operating income/(expense), net (19) 18 (37) (203.9)
  Minority Interest 8 11 (3) (26.8)
(=) EBITDA 4,080 3,427 653 19.1
(%) Margin 41% 41% - 0.3
  Depreciation and Amortization (697) (584) (114) 19.5
(=) EBIT 3,383 2,844 539 19.0
  Net Financial result (1,025) (593) (432) 72.9
(=) EBT 2,358 2,251 107 4.7
  Income tax (609) (769) 160 (20.8)
(=) Net income 1,749 1,482 267 18.0
(%) Margin 18% 18% - (0.0)
  EPS (R$) 0.50 0.43 - -

 

 

 

 

Earnings Release

1Q26

 

Page 3

  

 

ADJUSTED INCOME STATEMENT (CONSOLIDATED)

1Q26

R$ mn

    1Q26 Adjustments 1Q26 Adjusted 1Q25 Adjusted Var. (R$) %
    Financial Asset Construction Non-Recurring
  Revenue from Operations 6,366 - - - 6,366 6,120 247 4.0
  FAUSP 40 - - - 40 (200) 240 (120.0)
  Financial Asset 342 342 - - - - - -
  Sales Tax (418) (32) - - (386) (491) 105 (21.5)
(=) Net Sanitation Revenue 6,332 311 - - 6,021 5,428 593 10.9
  Construction revenues 3,633 - 3,633 - - - - -
(=) Net Revenue 9,965 311 3,633 - 6,021 5,428 593 10.9
  Construction costs (3,633) - (3,633) - - - - -
  Operating Costs and expenses (2,241) - - - (2,241) (2,449) 209 (8.5)
  Other operating income/(expense), net (19) - - (16) (3) 18 (21) (115.6)
  Minority Interest 8 - - - 8 11 (3) (26.8)
(=) EBITDA 4,080 311 - (16) 3,786 3,008 778 25.9
(%) Margin 41% - - - 63% 55% - 7.5
  Depreciation and Amortization (697) - - - (697) (584) (114) 19.5
(=) EBIT 3,383 311 - (16) 3,088 2,425 664 27.4
  Net Financial result (1,025) - - - (1,025) (638) (387) 60.7
(=) EBT 2,358 311 - (16) 2,063 1,787 276 15.5
  Income tax (609) (106) (0) 5 (508) (611) 103 (16.8)
(=) Net income 1,749 205 - (11) 1,554 1,176 379 32.2
(%) Margin 18% - - - 26% 22% - 4.2
  EPS (R$)* 0.50 - - - 0.44 0.34 - -

 

 

*Balance adjusted by construction revenue/cost

 

Non-recurring effects on 1Q26 EBITDA: R$ (16) mn related to M&A expenses.

 

Due to the migration to SAP S/4HANA, a temporary cutover reduced March 2026 billing by two days. This effect negatively impacted billing volumes and revenues in the period and is expected to be recovered over the subsequent months.

 

In 1Q26, total water production reached 778 million cubic meters, 4.6% lower year-over-year compared to 1Q25. This decline reflects a milder summer, with average temperatures 3.3 °C lower than last year, as well as the application of SP Aguas operational rule of the night pressure management implemented for approximately 10 hours per day to enhance the system resilience.

 

 

 

 

 

 

 

Earnings Release

1Q26

 

Page 4

  

ADJUSTED NET REVENUE

Adjusted net revenue from sanitation services, considering FAUSP and taxes, totaled R$ 6,021 mn in 1Q26, an increase of +10.9% vs 1Q25. The main factors that impacted revenue in the period were:

·+11.9% in net price: +9.1% tariff phase-in and +2.8% due to commercial initiatives (large clients and revenue assurance);
·+2.4% in volume: New units +2.9%, partially offset by lower average temperature (3.3)ºC and lower reservoir levels, affecting consumption per capita negatively;
·(3.4)% in mix: Growth in units with access to subsidized rates;

 

CONSUMPTION BY CATEGORY

  Billed Volume (millions of m³) Average Rate (R$/m³)
Category 1Q26 1Q25 % 1Q26 1Q25 %
Residential 949 939 1.1 4.31 4.21 2.3
Commercial 95 98 (3.3) 15.46 15.04 2.8
Industrial 17 18 (8.6) 20.82 19.06 9.2
Total Retail 1,061 1,055 0.5 5.57 5.47 1.7
Wholesale 13 13 (3.0) 3.02 2.76 9.1
Others¹ 23 30 (24.6) 21.62 16.39 31.9
Total 1,096 1,098 (0.2) 5.87 5.74 2.2
(1)Others are composed of Public, Own Building, and Mauá (BRK).

Wholesale and Others in 1Q25 was adjusted to incorporate the amount related to Olímpia.

 

 

 

 

 

 

Number of connections in thousands¹ 1Q26 1Q25 Var. %
Water¹ 9,468 9,491 (22.5) (0.2)
Sewage¹ 8,211 8,219 (7.8) (0.1)

 

(1) Active and registered connections, average at the end of the period

Not audited by external auditors

 

 

 

 

 

Earnings Release

1Q26

 

Page 5

  

COST AND EXPENSE

In 1Q26, OPEX decreased by 7.7% compared to 1Q25, representing a reduction of R$ 188 mn. This performance was mainly driven by: (i) R$ 170 mn in savings in personnel expenses, reflecting an 13% headcount reduction, workforce mix and labor benefits streamlining; (ii) energy cost savings, primarily due to the migration from the regulated market to the free market, reaching 86% (+12.6pp y/y). These effects were partially offset by higher general expenses related to municipal funds (FMSAI), reflecting higher revenues compared to last year.

 

R$ mn

  1Q26 Adjusted 1Q25 Adjusted Var. (R$) %
Personnel (485) (655) 170 (25.9)
General supplies (122) (70) (53) 75.6
Treatment supplies (163) (158) (5) 2.9
Services (706) (696) (10) 1.4
Power (384) (440) 56 (12.7)
General expenses (290) (264) (26) 9.8
Tax expenses (37) (21) (17) 81.5
Allowance for doubtful accounts (54) (147) 93 (63.5)
Other revenues and expenses¹ (3) 18 (21) (115.6)
Costs and Expenses (2,243) (2,431) 188 (7.7)
Depreciation and Amortization (697) (584) (114) 19.5
Costs, Expenses, Depreciation and Amortization (2,941) (3,015) 74 (2.4)

 

PERSONNEL

Sabesp ended 1Q26 with 8,927 employees, 8% reduction vs the same period of the previous year, and a 13% reduction

when considering the average number of employees.

 

Number of employees 1Q26 1Q25 Var. (Qty.) %
Employees at the end of each period 8,927 9,700 (773) (8.0)
Employees - simple average 8,814 10,089 (1,275) (12.6)

 

capital expenditures

In 1Q26, CapEx totaled R$ 3,728 mn, an increase of 30.8% compared to the same period of the previous year.

R$ mn

  1Q26 1Q25 Var. (R$) %
Water 1,243 615 627 102.0
Sewage 2,485 2,236 249 11.2
Total 3,728 2,851 877 30.8

 

 

 

 

 

1.In 1Q25 minority interest was considered in Other Revenues and Expenses line. This was changed in 2Q25. 1Q25 was adjusted to reflect the same criteria.
 

Earnings Release

1Q26

 

Page 6

  

BALANCE SHEET (CONSOLIDATED)

 

ASSETS 1Q26 4Q25
Current assets    
Cash and Equivalents 3,540,240 4,663,226
ST investments 15,641,914 7,707,745
Trade receivables 4,571,688 4,413,449
Related parties 276,096 276,388
Inventories 125,780 22,061
Restricted cash 17,864 9,575
Taxes 1,540,437 1,295,310
Held for sale 48,150 26,864
Other assets 187,137 141,892
Total Current assets                25,949,306                       18,556,510
     
Fixed and LT assets    
Trade receivables 367,159 258,544
Related parties 852,234 862,782
Legal deposits 190,446 120,021
Deferred income tax and social contribution 41,513 -
Taxes to be recovered 267,575 -
Other assets 32,502 33,509
PP&E 243,146 254,358
Investments 328,066 49,933
Non-operating Property 14,268,245 11,018,516
Contract asset (Construction in progress) 22,321,254 21,665,330
Financial asset (Indemnity) 50,732,495 50,492,473
Intangible 1,124,763 890,791
Total noncurrent assets                90,769,398                       85,646,257
Total Assets              116,718,704                     104,202,767
 

Earnings Release

1Q26

 

Page 7

  

 

LIABILITIES AND EQUITY 1Q26 4Q25
Current liabilities    
Trade payables 872,111 2,400,046
Services payable 2,601,742 2,772,416
ST Debt 4,872,680 5,092,816
Labor 435,732 699,629
Tax 303,085 615,592
Sales Tax 81,432 89,049
Dividends and IoC 2,063,503 2,059,850
Legal Accruals 1,380,446 1,370,013
Public-Private Partnership 473,049 469,687
Derivatives 1,484,755 661,421
Performance Agreements 125,766 120,776
Others 228,068 201,619
Total Current liabilities                14,922,369                       16,552,914
     
Noncurrent Liabilities    
LT Debt 46,769,945 35,049,531
Tax 3,076,274 3,129,908
Salex Tax 1,218,870 1,191,916
Legal Accruals 711,943 533,399
Pension 2,407,944 2,140,161
Public-Private Partnership 2,851,931 2,856,008
Performance Contracts 3,543 6,151
Contract liabilities 626,985 -
Others 304,875 341,655
Total Noncurrent Liabilities                57,972,310                       45,248,729
Total Liabilities                72,894,679                       61,801,643
     
Equity    
Capital stock 21,379,216 21,210,000
Capital reserves 65,843 30,219
Earnings reserves 21,348,996 21,518,212
Treasury Shares (475,385) (475,385)
Other Comprehensive Income 117,652 118,078
Retained Earnings/Accumulated Losses 1,264,634 -
Total Equity - Controlling Shareholders                43,700,956                       42,401,124
Interest of Non- Controlling Shareholders 123,069 -
Total Equity                43,824,025                       42,401,124
Total Equity and Liabilities              116,718,704                     104,202,767

 

 

 

Earnings Release

1Q26

 

Page 8

  

STATEMENT OF CASH FLOWS (CONSOLIDATED)

 

R$ ‘000  1Q26 1Q25
Cash flows from operations 4,198,490 3,206,487
Earnings before Tax 2,357,565 2,250,926
 Adjustments on net income:    
Depreciation and amortization 697,472 583,560
Fixed Assets write-off 1,587 934
Allowance for doubtful accounts 53,602 136,699
Accruals and inflation over accruals 29,833 158,411
Interest owed 1,292,903 646,698
Interest and inflation adjustments, net (547,396) (160,113)
Derivatives 228,068 4,570
Financial Charges from Customers (78,222) (87,593)
Voluntary dismissal plans 69,893 (295,866)
Equity pick-up (8,311) (11,348)
PPP Interest and inflation 122,675 159,821
SP City Transfers 175,452 120,900
Pension 41,154 65,272
Deferred Sales Tax on financial assets (indemnity) 31,680 62,885
Update of financial asset (indemnity) (342,488) (420,229)
Others 73,023 (9,040)
  4,198,490 3,206,487
Changes in assets    
Trade receivables (184,664) (152,222)
Related parties 35,204 70,287
Inventory (99,022) (50,672)
Tax (128,743) (21,577)
Escrow (8,968) 41,907
Others 83,783 33,147
     
Changes in liabilities    
Trade payables (58,955) (746,743)
Services payables (346,126) 422,455
Labor (370,777) (12,261)
Income Tax (366,970) (304,152)
Sales Tax (12,343) (24,012)
Accruals (14,922) (55,701)
Pension (62,453) (57,008)
Others (73,955) (119,731)
Cash from operations 2,589,579 2,230,204
Interest paid (1,210,954) (760,885)
 

Earnings Release

1Q26

 

Page 9

  

 

Income tax (616,987) (368,799)
Free cashflow from operations 761,638 1,100,520
     
Cash-flow from investments    
Contract, intangible assets and PP&E (5,056,694) (1,549,922)
Restricted Cash (7,996) (1,395)
Financial investments – Investment (18,982,625) (4,360,677)
Financial Investments – Withdrawal 11,567,987 4,437,855
Investment 8,156 - 
Equity redemption/(injection) in subsidiaries (302,293) - 
Free cashflow from investments (12,773,465) (1,474,139)
     
Cash flow from financing activity    
Borrowings    
     Debt issuance 13,873,101 3,636,828
     Amortization (1,550,259) (1,126,479)
Acquisition of non-controlling interests (739,343) - 
PPP (123,390) (136,484)
Derivatives (571,268) (42,699)
Free cashflow from financing activities 10,888,841 2,331,166
     
Increase / (decrease) in cash and cash equivalents in the period (1,122,986) 1,957,547
     
Represented by:    
Cash and equivalents BoP 4,663,226 1,682,606
Cash and equivalents EoP 3,540,240 3,640,153
Increase / (decrease) in cash and cash equivalents in the period (1,122,986) 1,957,547

 

 

SIGNATURE  
 
Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized, in the city São Paulo, Brazil.
Date: May 7, 2026
 
Companhia de Saneamento Básico do Estado de São Paulo - SABESP
By: /s/  Daniel Szlak    
 
Name: Daniel Szlak
Title: Chief Financial Officer and Investor Relations Officer
 

 

 
FORWARD-LOOKING STATEMENTS

This press release may contain forward-looking statements. These statements are statements that are not historical facts, and are based on management's current view and estimates of future economic circumstances, industry conditions, company performance and financial results. The words "anticipates", "believes", "estimates", "expects", "plans" and similar expressions, as they relate to the company, are intended to identify forward-looking statements. Statements regarding the declaration or payment of dividends, the implementation of principal operating and financing strategies and capital expenditure plans, the direction of future operations and the factors or trends affecting financial condition, liquidity or results of operations are examples of forward-looking statements. Such statements reflect the current views of management and are subject to a number of risks and uncertainties. There is no guarantee that the expected events, trends or results will actually occur. The statements are based on many assumptions and factors, including general economic and market conditions, industry conditions, and operating factors. Any changes in such assumptions or factors could cause actual results to differ materially from current expectations.