Sabesp (SBSP3) reported net income of R$ 1.4 billion in 3Q26 (R$ 1,388 million), down 35.7% from R$ 2.2 billion in 3Q25 (R$ 2,159 million). The decline reflects the non-recurring gain of R$ 1,461 million from the payment of court-ordered debts (precatórios) in 3Q25 and net interest expense R$ 383 million higher, due to larger debt.
Adjusted net income was R$ 1.1 billion (R$ 1,107 million), down 13.8% from 3Q25, when it totaled R$ 1,284 million. Including EMAE's results, adjusted net income is R$ 1,138 million, down 11.4%.
Adjusted net revenue was R$ 6.0 billion (R$ 5,958 million), up 9.0%. Including EMAE, revenue is R$ 6,095 million, up 11.5%. Reported net revenue was R$ 10.1 billion (R$ 10,141 million), up 7.6%, including R$ 4,001 million of construction revenue. On an adjusted basis, price contributed R$ 421 million, with a tariff adjustment of 10.6%, and volume contributed R$ 112 million. The mix of customers and consumption brackets subtracted R$ 44 million.
Adjusted EBITDA (earnings before interest, taxes, depreciation and amortization) was R$ 3.6 billion (R$ 3,648 million), up 13.8%, with a margin of 61.2% versus 58.6% in 3Q25. Including EMAE, EBITDA is R$ 3,680 million, up 14.8%. Reported EBITDA was R$ 3,982 million, up 29.7%. Among expenses, energy rose 37.2% to R$ 415 million, and the allowance for doubtful accounts increased by R$ 82 million. Personnel expenses fell 21.5% to R$ 538 million, with a 3.4% reduction in headcount.
Capex (investments) was R$ 4.5 billion in the quarter (R$ 4,528 million), up 13.8% year over year, and the contracted backlog totals R$ 44.2 billion. Gross debt is R$ 46.4 billion and net debt is R$ 38.6 billion, equivalent to 2.7 times adjusted EBITDA for the last 12 months. Cash of R$ 7.9 billion, which reaches R$ 12.8 billion after the A/B loan signed in October, covers all amortization through 2029.
