Capital intensity has reached extreme levels, evidenced by a $13.3B CAPEX outlay in 2026Q1 that resulted in a $12.5B free cash flow deficit, highlighting the heavy financial burden of infrastructure expansion.
| Metric | TTM | Dec'25 | Dec'24 | Dec'23 | Dec'22 | Dec'21 | Dec'20 | Dec'19 | Dec'18 | Dec'17 | Dec'16 | Dec'15 | Dec'14 | Dec'13 | Dec'12 | Dec'11 | Dec'10 | Dec'09 | Dec'08 | Dec'07 | Dec'06 | Dec'05 | Dec'04 | Dec'03 | Dec'02 | Dec'01 |
|---|
| Cash from Operations | 8.02B | 8.21B | 7.4B | 4.85B | 3.97B | 3.91B | 4.98B | 4.2B | 3.84B | 3.3B | 3B | 2.64B | 2.48B | 2.78B | 2.34B | 2.72B | 2.08B | 2.06B | 2.53B | 2.22B | 2.98B | 1.75B | 1.33B | 1.47B | 974.48M | 1.66B |
| Operating CF Growth % | 84.2% | 10.92% | 52.53% | 22.35% | 1.38% | -21.38% | 18.61% | 9.22% | 16.39% | 9.93% | 13.71% | 6.5% | -10.69% | 18.88% | -14.02% | 30.44% | 1.03% | -18.44% | 14.1% | -25.63% | 69.76% | 32.23% | -9.86% | 51.08% | -41.19% | - |
| Operating CF / Revenue % | 20.72% | 21.99% | 20.49% | 18.98% | 17.99% | 20.08% | 27.97% | 23.34% | 23.89% | 22.6% | 21.3% | 22.55% | 22.12% | 24.54% | 21.72% | 27.33% | 22.57% | 30.63% | 36.97% | 37.11% | 53.9% | 35.43% | 30.18% | 35.82% | 25.87% | 48.49% |
| Net Income | 8.53B | 8.3B | 13.64B | 4.75B | 4.27B | 2.31B | 1.33B | 4.68B | 3.91B | 3.5B | 4.13B | 587.53M | 1.27B | 2.66B | 2.54B | 1.72B | 1.63B | 1.94B | 63.57M | 1.05B | 778.9M | 865.3M | 513.03M | 833.32M | -650.52M | 215.12M |
| Depreciation & Amortization | 2.31B | 2.17B | 2.68B | 2.79B | 2.45B | 2.25B | 2.04B | 1.78B | 1.39B | 1.3B | 1.15B | 1.07B | 1B | 871.07M | 740.15M | 768.77M | 552.18M | 560.69M | 617.8M | 622.55M | 642.17M | 595.98M | 598.91M | 564.46M | 519.08M | 477.3M |
| Deferred Taxes | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | -152.31M | -104.43M | -8.46M | -32.47M | 339.97K | 16.55M | -344.27M | 0 |
| Other Non-Cash Items | -5.17B | -2.15B | -7.84B | -31.96M | -647.26M | 572.3M | 2.69B | -1.64B | -599.71M | -535.38M | -2.1B | 1.31B | 303.28M | -149.46M | 58.29M | 565.5M | 580.26M | -4.04M | 1.9B | 428.13M | 1.57B | -15.2M | 875.81M | 653.37M | 1.68B | 964.58M |
| Working Capital Changes | 1.88B | -99.98M | -1.07B | -2.66B | -2.11B | -1.22B | -1.08B | -620.02M | -862.23M | -968.24M | -171.8M | -328.55M | -102.34M | -600.03M | -1.01B | -337.96M | -679.85M | -432.86M | -614.56M | -709.4M | -15.15M | -491.08M | -661M | -615.12M | -253.41M | 0 |
| Capital Expenditures | -20.38B | -15.41B | -9.98B | -4.91B | -2.88B | -2.66B | -6.77B | -3.27B | -2.19B | -1.98B | -2.14B | -2.45B | -2.75B | -2.34B | -2.03B | -2.21B | -1.9B | -1.98B | -1.56B | -881.7M | 0 | -660.37M | -600.9M | -1.01B | -619.19M | -694.6M |
| CapEx / Revenue % | 52.67% | 41.27% | 27.6% | 19.18% | 13.05% | 13.66% | 38.03% | 18.17% | 13.61% | 13.53% | 15.15% | 20.94% | 24.51% | 20.64% | 18.91% | 22.24% | 20.6% | 29.45% | 22.74% | 14.77% | 0% | 13.33% | 13.67% | 24.56% | 16.44% | 20.33% |
| CapEx / D&A | 8.82x | 7.12x | 3.73x | 1.76x | 1.17x | 1.18x | 3.32x | 1.84x | 1.57x | 1.52x | 1.86x | 2.28x | 2.74x | 2.68x | 2.75x | 2.88x | 3.44x | 3.54x | 2.52x | 1.42x | 0.00x | 1.11x | 1.00x | 1.79x | 1.19x | 1.46x |
| CapEx Coverage (OCF/CapEx) | 0.39x | 0.53x | 0.74x | 0.99x | 1.38x | 1.47x | 0.74x | 1.28x | 1.76x | 1.67x | 1.41x | 1.08x | 0.90x | 1.19x | 1.15x | 1.23x | 1.10x | 1.04x | 1.63x | 2.51x | - | 2.66x | 2.21x | 1.46x | 1.57x | 2.39x |
| Cash from Investing | -27.5B | -15.41B | -9.98B | -4.91B | -2.88B | -2.66B | -6.77B | -3.27B | -2.19B | -1.97B | -2.13B | -2.46B | -2.76B | -2.28B | -2B | -2.01B | -2.09B | -1.95B | -1.56B | -881.7M | 1.54B | -660.48M | -803.9M | -1.23B | -546.52M | -709.5M |
| Acquisitions | -1.02B | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 8.13M | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Purchase of Investments | -30.02B | -32.16B | -7.27B | -1.57B | -426.82M | 0 | -3.42B | 0 | -1.14M | 0 | 0 | -2.54M | -16K | -369K | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Sale of Investments | 22.09B | 30.22B | 5.3B | 816.97M | 1.18B | 0 | 0 | 240K | 0 | 5.26M | 5.08M | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Other Investing | -9.56B | 0 | -7.91B | -4.01B | -3.56B | -2.61B | -3.31B | -3.19B | -2.14B | 5.26M | 5.08M | -4.79M | -9.42M | 54.64M | 34.75M | 202.84M | -189.82M | 29.16M | 0 | 0 | 1.54B | -106K | -203M | -223.49M | 72.67M | -14.9M |
| Cash from Financing | 19.4B | 10.12B | 3.42B | -977.84M | 60.3M | -929.02M | -66.35M | -1.71B | -907.49M | -933.61M | -625.87M | -265.7M | 218.48M | -629.66M | -566.25M | -547.97M | 1.23B | 36.85M | -812.1M | -1.2B | 1.44B | -919.73M | -879.46M | -333.4M | -709.58M | -763.6M |
| Dividends Paid | -2.36B | -2.32B | 0 | 0 | 0 | -254.22M | 0 | -740M | -653.39M | -765.93M | -139.4M | -202.12M | -467.47M | -498.67M | -537.82M | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Dividend Payout Ratio % | - | 27.93% | - | - | - | 11.02% | - | 21.97% | 23.05% | 30.4% | 4.73% | 37.69% | 51.77% | 25.92% | 30.27% | 34.57% | 24.44% | 22.11% | 1115.07% | 13.01% | - | 9.45% | - | - | - | - |
| Debt Issuance (Net) | 4M | 1000K | 1000K | 1000K | 1000K | 1000K | 1000K | -1000K | -1000K | -1000K | -1000K | 1000K | 1000K | -1000K | 1000K | -1000K | 0 | 0 | -1000K | -1000K | -1000K | -1000K | -1000K | -1000K | -1000K | 0 |
| Stock Issued | 0 | 0 | 0 | 811K | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Share Repurchases | -121.08M | -466.05M | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Other Financing | -1.73B | -860.69M | -1.21B | -1.58B | -1.21B | -701.01M | -1.6B | -611.14M | -209.9M | -76.69M | -201.68M | -74.56M | -42.62M | -129.84M | -131.04M | 113.31M | 1.23B | 36.85M | -708.86M | -136.39M | -169.05M | -81.84M | -237.2M | -304.28M | -178.59M | -763.6M |
| Net Change in Cash | 139.19M | 3.15B | 844.12M | -1.03B | 1.15B | 321.53M | -1.86B | -775.98M | 746.14M | 396.83M | 247.01M | -83.78M | -59.01M | -133.97M | -228.81M | 160.81M | 1.22B | 145.28M | 160.74M | 136.79M | 1.44B | 174.62M | -879.46M | -333.4M | -709.58M | -763.6M |
| Exchange Rate Effect | 218.08M | 223.23M | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | -4.52B | 0 | -523.19M | -239.37M | -427.96M | -947.5M |
| Cash at Beginning | 4.4B | 1.53B | 838.48M | 1.87B | 717.93M | 396.4M | 2.25B | 3.03B | 2.28B | 1.89B | 1.64B | 1.72B | 1.78B | 1.92B | 2.15B | 1.99B | 771.01M | 625.73M | 465M | 328.21M | 0 | 105.56M | 0 | 0 | 0 | 0 |
| Cash at End | 3.51B | 4.67B | 1.68B | 838.48M | 1.87B | 717.93M | 396.4M | 2.25B | 3.03B | 2.28B | 1.89B | 1.64B | 1.72B | 1.78B | 1.92B | 2.15B | 1.99B | 771.01M | 625.73M | 465M | 1.44B | 280.17M | -879.46M | -333.4M | -709.58M | -763.6M |
| Free Cash Flow | -12.36B | -7.2B | -2.57B | -51.16M | 1.09B | 1.25B | -1.79B | 929.96M | 1.65B | 1.33B | 867.79M | 189.25M | -268.06M | 441.41M | 302.69M | 505.94M | 181.5M | 79.26M | 972.84M | 1.33B | 2.98B | 1.09B | 726.19M | 462.85M | 355.29M | 962.4M |
| FCF Growth % | -500.95% | -179.97% | -4925.56% | -104.7% | -12.9% | 169.84% | -292.53% | -43.76% | 24.79% | 52.71% | 358.53% | 170.6% | -160.73% | 45.83% | -40.17% | 178.75% | 128.99% | -91.85% | -27.07% | -55.22% | 172.2% | 50.71% | 56.89% | 30.28% | -63.08% | - |
| FCF Margin % | -31.95% | -19.28% | -7.11% | -0.2% | 4.94% | 6.42% | -10.06% | 5.17% | 10.28% | 9.07% | 6.16% | 1.62% | -2.39% | 3.9% | 2.81% | 5.09% | 1.97% | 1.18% | 14.23% | 22.34% | 53.9% | 22.1% | 16.52% | 11.26% | 9.43% | 28.16% |
| FCF / Net Income % | -144.94% | -86.77% | -26.84% | -1.45% | 34.9% | 54.23% | -183.95% | 27.62% | 58.33% | 52.6% | 29.45% | 35.29% | -29.69% | 22.95% | 15.83% | 41.35% | 11.13% | 5.77% | 1530.31% | 127.2% | 382.47% | 126.43% | 141.55% | 55.54% | -54.62% | 447.37% |
Capital intensive universalization mandates
As reported in financial statements, SBS recorded a massive CAPEX outlay of $13.3B in 2026Q1, representing a significant escalation in capital intensity that far outpaces historical averages and underscores the heavy financial burden of meeting the New Sanitation Framework's universalization mandates within the State of São Paulo.
The extreme variance in CAPEX-to-OCF ratios, peaking at 17.6% in 2026Q1, suggests that the company is entering a period of intense capital deployment. Investors should monitor whether this level of investment can be sustained without compromising the balance sheet, as the current pace of spending appears to be decoupling from internal cash generation.
According to recent quarterly filings, the company's free cash flow deficit reached $12.5B in 2026Q1, necessitating a reliance on external financing sources to bridge the gap between operational cash flow and the substantial capital requirements mandated by the ongoing privatization and infrastructure expansion efforts.
The persistent negative free cash flow trend indicates that SBS is currently in a structural deficit phase typical of utilities undergoing massive asset base expansion. The ability to secure debt or equity on reasonable terms remains the primary constraint on the company's ability to meet its long-term regulatory obligations.
Based on the provided data, operating cash flow has exhibited significant instability, fluctuating from a low of $755.4M in 2026Q1 to a high of $3.2B in 2025Q3, which suggests that the core regulated business is susceptible to external shocks and potential regulatory lag in tariff adjustments.
The inconsistency in cash generation capacity may indicate that the company's regulated revenue streams are not yet providing the predictable coverage required to service the debt load associated with its capital-intensive projects. This volatility warrants further investigation into the effectiveness of current tariff recovery mechanisms.
As indicated by the financial data, dividend payments have been highly erratic, with a $2.4B payout in 2025Q2 followed by periods of zero distribution, reflecting the tension between returning capital to shareholders and funding the massive infrastructure requirements inherent in the current regulatory environment.
The lack of a consistent dividend policy suggests that management is prioritizing capital preservation for infrastructure projects over shareholder returns. Investors should monitor whether future dividend distributions remain contingent on the successful completion of the privatization process and the stabilization of free cash flow.
Quick answers to the most common questions about buying SBS stock.
Companhia de Saneamento Básico do Estado de São Paulo - SABESP (SBS) generated $8.21B in net cash from operating activities in 2025. This reflects the cash generated directly from core business operations.
Companhia de Saneamento Básico do Estado de São Paulo - SABESP (SBS) reported negative free cash flow of $7.20B in 2025, indicating capital requirements exceeded cash from operations.
Companhia de Saneamento Básico do Estado de São Paulo - SABESP (SBS) spent $15.41B on capital expenditures in 2025. CapEx represents the cash invested in physical assets like property, plant, and equipment to maintain or grow the business.
In 2025, Companhia de Saneamento Básico do Estado de São Paulo - SABESP (SBS) returned $2.32B to shareholders via cash dividends and spent $466.0M on share repurchases. This shows the company's commitment to returning capital to its equity investors.