On Wednesday, August 12, 2026, COPASA MG (CSMG3) released its results for the second quarter of 2026 (2Q26), reporting adjusted net income of R$ 275.5 million, down 4.8% versus 2Q25. Net revenue from water, sewage and solid waste totaled R$ 1.952 billion, an 8.9% year-on-year increase, driven by the average 6.56% adjustment under the 3rd Tariff Review and by 2.1% growth in the measured volume of water and sewage.
Reported net income came to R$ 227.1 million in 2Q26, compared with R$ 289.4 million in 2Q25, while EBITDA (earnings before interest, taxes, depreciation and amortization) reached R$ 700.4 million, up 2.7% on the same basis of comparison. Adjusted EBITDA totaled R$ 762.1 million, a 11.7% increase, with an adjusted EBITDA margin of 39.0%, 1 percentage point higher than in 2Q25.
Net financial result remained negative, going from R$ 102.4 million in 2Q25 to R$ 168.1 million in 2Q26, reflecting a higher volume of financing, greater IPCA variation, waiver payments to creditors and higher interest on borrowings and legal provisions, despite higher real gains on financial investments and the capitalization of financial assets. Other net operating income (expenses) also had an impact, with a negative balance of R$ 143.1 million, versus a negative R$ 50.2 million a year earlier, influenced by labor claims, environmental fines, regulatory environmental expenses and the recognition of a R$ 60 million obligation with the TCE-MG.
In June 2026, the company’s consolidated net debt reached R$ 8.18 billion, compared with R$ 5.85 billion in June 2025, raising the Net Debt/EBITDA leverage ratio over the last 12 months to 2.8 times, from 2.0 times a year earlier. Gross debt totaled R$ 9.57 billion, of which R$ 8.09 billion was in local currency and R$ 1.48 billion in foreign currency, almost all hedged, and the average annual coupon stood at 9.5%.
In the first half of 2026 (1H26), consolidated investments reached R$ 1.538 billion, 27% higher than in the same period of 2025, focused on water and sewage systems, loss reduction and operational modernization. In the same period, the company declared Interest on Equity (JCP, Juros sobre Capital Próprio) of R$ 320.1 million, equivalent to R$ 0.8442595239 per share, referring to 1Q26 and 2Q26, in line with its regular dividend distribution policy of 50% of adjusted net income.
Regarding concessions, by August 10, 2026 COPASA MG had signed 43 contracts under the new regulatory and contractual model, all maturing on February 7, 2073, corresponding to approximately 37.5% of 2025 annual net revenue. The weighted average term of the concessions increased to around 29 years, compared with 13 years in June 2025, and 23 new sewage concession contracts were signed as a result of expanding agreements that were previously limited to water supply.
