Companhia de Saneamento Básico do Estado de São Paulo - SABESP (SBS) Q2 2025 Earnings Call

Investor webinar replay

Replay transcript excerpt

and volume expansion with partial offsets from FAUSP and MIX. Volume growth contributed 3.5%, supported by 1.5% from new connections for the aggregate of water and sewage. Additionally, we saw 2% in increased consumption in the quarter, despite slightly lower temperatures in Sao Paulo State in the period versus last year. As a reference, historical consumption increase in the past three years for Q2 has been 3.2%. Breaking down the revenue dynamics, average prices rose by 5%, largely due to tariff carryover in April and May from May's 2024 tariff cycle. While in June, we saw a tariff decline driven by July 2024 1% tariff decrease. In addition to that, we also continue to benefit from the removal of these comes to the first cohort of large clients with prices rising an average 47% versus Q4 2024. As mentioned in Q125 call, we have also terminated more contracts and we'll start seeing the benefit of them throughout H2. On the mixed topic, it was impacted by the growth in the number of subsidized residential units. notably with the expansion of clients eligible for discounts. In July 2025, we saw the approval by the concession of the extension for 18 months of subsidies to current clients that do not fit the CAGI-ÚNICO rules and the introduction of a new intermediary discount class called Tarifa Paulista, which will further help consumers in vulnerable situations. EBITDA growth was driven by price and discipline in cost control, On the cost front, we have been communicating that we would be changing the conduction in legal claims, outsourcing an important part to specialized external counsel and implementing settlements. This has contributed about 200 million in EBITDA year-on-year for this quarter. Deep diving into personnel, expenses fell 10.3% year-on-year despite a ...