Revenue growth is volatile (16.0% YoY in 2026Q1 vs -26.9% in 2025Q4), yet operating margins have averaged ~32% over the last four quarters, with 2026Q1 at 34.1%.
Companhia de Saneamento Básico do Estado de São Paulo - SABESP (SBS) annual income statement — 25-year revenue, gross profit & net income history
| 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 |
|---|
| Revenue | 40.17B | 37.34B | 36.15B | 25.57B | 22.06B | 19.49B | 17.8B | 17.98B | 16.09B | 14.61B | 14.1B | 11.71B | 11.21B | 11.32B | 10.75B | 9.94B | 9.23B | 6.73B | 6.84B | 5.97B | 5.53B | 4.95B | 4.4B | 4.11B | 3.77B | 3.42B |
| Revenue Growth % | -14.14% | 3.32% | 41.35% | 15.94% | 13.16% | 9.52% | -1.03% | 11.8% | 10.11% | 3.62% | 20.38% | 4.44% | -0.9% | 5.22% | 8.18% | 7.7% | 37.15% | -1.58% | 14.54% | 8.02% | 11.59% | 12.65% | 6.99% | 9.1% | 10.24% | - |
| Cost of Revenue | 26.06B | 23.66B | 16.6B | 16.05B | 14.35B | 12.8B | 11.18B | 10.14B | 9.09B | 8.78B | 9.01B | 8.26B | 7.64B | 6.82B | 6.47B | 6.03B | 5.19B | 3.08B | 3.32B | 2.7B | 2.62B | 2.39B | 2.25B | 2.05B | 1.81B | 1.12B |
| Gross Profit | 14.11B | 13.68B | 19.54B | 9.52B | 7.7B | 6.69B | 6.62B | 7.85B | 7B | 5.83B | 5.09B | 3.45B | 3.58B | 4.5B | 4.29B | 3.91B | 4.04B | 3.65B | 3.52B | 3.28B | 2.91B | 2.56B | 2.14B | 2.06B | 1.95B | 2.3B |
| Gross Margin % | 35.12% | 36.64% | 54.07% | 37.23% | 34.93% | 34.33% | 37.18% | 43.63% | 43.51% | 39.9% | 36.07% | 29.46% | 31.91% | 39.76% | 39.88% | 39.34% | 43.73% | 54.29% | 51.47% | 54.85% | 52.66% | 51.74% | 48.75% | 50.2% | 51.82% | 67.22% |
| Gross Profit Growth % | - | -29.99% | 105.27% | 23.56% | 15.15% | 1.11% | -15.65% | 12.11% | 20.06% | 14.63% | 47.36% | -3.54% | -20.49% | 4.9% | 9.68% | -3.12% | 10.46% | 3.82% | 7.47% | 12.53% | 13.56% | 19.56% | 3.91% | 5.68% | -15.02% | - |
| Operating Expenses | 1.73B | 1.65B | 4.03B | 3.17B | 3.06B | 2.59B | 2.13B | 2.14B | 1.83B | 1.87B | 1.66B | 409.41M | 1.66B | 1.36B | 1.44B | 1.47B | 1.36B | 1.51B | 2.35B | 1.2B | 1.11B | 873.37M | 816.08M | 551.04M | 611.16M | 2.09B |
| Other Operating Expenses | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - |
| EBITDA | 14.9B | 14.24B | 18.19B | 9.14B | 7.1B | 6.35B | 6.53B | 7.49B | 6.57B | 5.26B | 4.58B | 4.12B | 2.92B | 4.01B | 3.59B | 3.12B | 3.22B | 2.7B | 1.79B | 2.14B | 2.45B | 2.29B | 1.93B | 2.08B | 1.86B | 679.71M |
| EBITDA Margin % | 37.1% | 38.14% | 50.32% | 35.73% | 32.17% | 32.58% | 36.69% | 41.66% | 40.84% | 36.03% | 32.46% | 35.16% | 26.02% | 35.44% | 33.34% | 31.41% | 34.93% | 40.14% | 26.13% | 35.81% | 44.26% | 46.14% | 43.81% | 50.52% | 49.38% | 19.89% |
| EBITDA Growth % | -30.97% | -21.68% | 99.06% | 28.76% | 11.73% | -2.73% | -12.84% | 14.04% | 24.81% | 15.02% | 11.13% | 41.14% | -27.24% | 11.84% | 14.8% | -3.14% | 19.33% | 51.19% | -16.41% | -12.6% | 7.03% | 18.64% | -7.22% | 11.63% | 173.66% | - |
| Depreciation & Amortization | 2.52B | 2.21B | 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 |
| D&A / Revenue % | 6.28% | 5.91% | 7.41% | 10.91% | 11.11% | 11.56% | 11.45% | 9.9% | 8.66% | 8.91% | 8.13% | 9.17% | 8.96% | 7.7% | 6.88% | 7.73% | 5.98% | 8.33% | 9.03% | 10.43% | 11.62% | 12.03% | 13.62% | 13.73% | 13.78% | 13.97% |
| Operating Income (EBIT) | 12.38B | 12.04B | 15.51B | 6.35B | 4.65B | 4.1B | 4.49B | 5.71B | 5.18B | 3.96B | 3.43B | 3.04B | 1.91B | 3.14B | 2.85B | 2.35B | 2.67B | 2.14B | 1.17B | 1.52B | 1.8B | 1.69B | 1.33B | 1.51B | 1.34B | 202.41M |
| Operating Margin % | 30.82% | 32.23% | 42.91% | 24.82% | 21.06% | 21.02% | 25.24% | 31.76% | 32.18% | 27.12% | 24.33% | 25.99% | 17.06% | 27.74% | 26.46% | 23.68% | 28.95% | 31.81% | 17.1% | 25.38% | 32.64% | 34.11% | 30.19% | 36.79% | 35.6% | 5.92% |
| Operating Income Growth % | - | -22.4% | 144.41% | 36.61% | 13.36% | -8.79% | -21.35% | 10.33% | 30.67% | 15.51% | 12.67% | 59.11% | -39.05% | 10.32% | 20.85% | -11.89% | 24.79% | 83.12% | -22.84% | -15.99% | 6.77% | 27.26% | -12.2% | 12.75% | 562.52% | - |
| Interest Expense | 4M | 4.21B | 1.79B | 1.41B | 1.22B | 734.86M | 157.56M | 213.27M | 489.25M | 459.12M | 564.13M | 495.58M | 483.82M | 216.8M | 491.99M | 435.34M | 445.55M | 825.49M | 494.59M | 513.38M | 658.86M | 447M | 0 | 346.48M | 0 | 0 |
| Interest Coverage | - | 3.72x | 8.61x | 4.37x | 4.51x | 5.31x | 13.19x | 25.86x | 9.40x | 8.72x | 8.23x | 2.19x | 3.63x | 14.32x | 6.17x | 5.64x | 6.58x | 3.03x | 4.44x | 3.88x | 2.78x | 4.22x | - | 4.36x | - | - |
| Interest / Revenue % | 0.01% | 11.29% | 4.96% | 5.52% | 5.52% | 3.77% | 0.89% | 1.19% | 3.04% | 3.14% | 4% | 4.23% | 4.31% | 1.92% | 4.57% | 4.38% | 4.83% | 12.26% | 7.23% | 8.6% | 11.92% | 9.02% | 0% | 8.43% | 0% | 0% |
| Non-Operating Income | -2M | -1000K | -1000K | -1000K | -1000K | -1000K | -1000K | -1000K | -1000K | -1000K | 1000K | -1000K | -1000K | -1000K | -1000K | -1000K | -1000K | -1000K | -1000K | -1000K | -1000K | -1000K | -1000K | -1000K | -1000K | -1000K |
| Pretax Income | 10.51B | 11.47B | 13.64B | 4.75B | 4.27B | 3.17B | 1.33B | 4.68B | 3.91B | 3.5B | 4.13B | 587.53M | 1.27B | 2.66B | 2.54B | 1.72B | 2.29B | 1.94B | 461.8M | 1.48B | 1.19B | 1.22B | 789.99M | 1.11B | -938.71M | 153.54M |
| Pretax Margin % | 26.15% | 30.72% | 37.74% | 18.59% | 19.37% | 16.26% | 7.45% | 26.01% | 24.32% | 23.98% | 29.29% | 5.02% | 11.37% | 23.47% | 23.65% | 17.31% | 24.84% | 28.79% | 6.75% | 24.79% | 21.53% | 24.57% | 17.97% | 27.03% | -24.92% | 4.49% |
| Income Tax | 2.62B | 3.18B | 4.06B | 1.23B | 1.15B | 864.29M | 352.68M | 1.31B | 1.08B | 984.3M | 1.18B | 51.25M | 371.86M | 732.04M | 632M | 497.33M | 662.31M | 564.05M | 398.23M | 431.57M | 375.78M | 316.38M | 241.84M | 175.67M | -236.96M | -61.58M |
| Effective Tax Rate % | 24.89% | 27.69% | 29.78% | 25.88% | 26.95% | 27.26% | 26.6% | 28.01% | 27.53% | 28.09% | 28.63% | 8.72% | 29.17% | 27.57% | 24.84% | 28.9% | 28.89% | 29.11% | 86.23% | 29.15% | 31.58% | 25.99% | 30.61% | 15.81% | 25.24% | -40.11% |
| Net Income | 7.87B | 8.3B | 9.58B | 3.52B | 3.12B | 2.31B | 973.32M | 3.37B | 2.84B | 2.52B | 2.95B | 536.28M | 902.98M | 1.92B | 1.91B | 1.22B | 1.63B | 1.37B | 63.57M | 1.05B | 778.9M | 865.65M | 513.03M | 833.32M | -650.52M | 215.12M |
| Net Margin % | 19.6% | 22.21% | 26.5% | 13.78% | 14.15% | 11.83% | 5.47% | 18.73% | 17.63% | 17.25% | 20.9% | 4.58% | 8.05% | 17% | 17.78% | 12.31% | 17.66% | 20.41% | 0.93% | 17.56% | 14.09% | 17.48% | 11.67% | 20.28% | -17.27% | 6.3% |
| Net Income Growth % | -34.32% | -13.4% | 171.87% | 12.89% | 35.36% | 136.91% | -71.1% | 18.78% | 12.53% | -14.52% | 449.55% | -40.61% | -53.06% | 0.61% | 56.28% | -24.96% | 18.67% | 2061.17% | -93.94% | 34.64% | -10.02% | 68.73% | -38.44% | 228.1% | -402.39% | - |
| EPS (Diluted) | 2.23 | 2.42 | 2.80 | 1.03 | 0.91 | 0.67 | 0.28 | 0.99 | 0.83 | 0.74 | 0.86 | 0.16 | 0.26 | 0.56 | 0.56 | 0.40 | 0.48 | 0.40 | 0.25 | 0.31 | 1.82 | 2.03 | 0.15 | 0.24 | -0.19 | 0.06 |
| EPS Growth % | -35.14% | -13.57% | 171.84% | 13.19% | 35.82% | 139.29% | -71.72% | 19.28% | 12.16% | -13.95% | 437.5% | -38.46% | -53.57% | 0% | 40% | -16.67% | 20% | 60% | -19.35% | -82.97% | -10.34% | 1253.33% | -37.5% | 226.32% | -396.88% | - |
| EPS (Basic) | - | 2.42 | 2.80 | 1.03 | 0.91 | 0.67 | 0.28 | 0.99 | 0.83 | 0.74 | 0.86 | 0.16 | 0.26 | 0.56 | 0.56 | 0.40 | 0.48 | 0.40 | 0.25 | 0.31 | 1.82 | 2.03 | 0.15 | 0.24 | -0.19 | 0.06 |
| Diluted Shares Outstanding | 3.52B | 3.42B | 3.42B | 3.42B | 3.42B | 3.42B | 3.42B | 3.42B | 3.42B | 3.42B | 3.42B | 3.42B | 3.42B | 3.42B | 3.42B | 3.42B | 3.42B | 3.42B | 3.42B | 3.42B | 3.42B | 3.42B | 3.42B | 3.42B | 3.42B | 3.42B |
Quick answers to the most common questions about buying SBS stock.
For fiscal year 2025, Companhia de Saneamento Básico do Estado de São Paulo - SABESP (SBS) reported total revenue of $37.34B. This represents a 992.8% increase compared to $3.42B in 2001.
Companhia de Saneamento Básico do Estado de São Paulo - SABESP (SBS) is profitable, generating $8.30B in net income for the fiscal year ending 2025 with a net profit margin of 22.2%.
Companhia de Saneamento Básico do Estado de São Paulo - SABESP (SBS) reported an operating income of $12.04B, resulting in an operating profit margin of 32.2%. This margin reflects the operational efficiency of the business before interest and taxes.
Companhia de Saneamento Básico do Estado de São Paulo - SABESP (SBS) generated $13.68B in gross profit for the year, representing a gross profit margin of 36.6%. This demonstrates the company's core pricing power and production efficiency.
Key Metrics
Top Statement Risk
Capex financing and regulatory lag
Revenue Volatility Masks Underlying Growth
SABESP's revenue fluctuates sharply, with 2025Q4 down 26.9% year-over-year but 2026Q1 up 16.0%, reflecting tariff adjustments and construction revenue under IFRIC 12, as reported in financial statements.
The reported revenue swings are largely driven by non-cash construction revenue and tariff resets, not organic demand. The 2026Q1 revenue of $9.8B, while below the 2024Q4 peak of $14.4B, suggests a stabilizing trend after the 2025 dip. Investors should focus on the regulated tariff base, which is expected to grow with inflation and RAB expansion, but the volatility complicates quarter-to-quarter comparisons.
Earned Returns Near Authorized Levels
Operating margins have remained resilient, averaging around 32% over the last four quarters, despite revenue volatility, indicating effective cost control and regulatory recovery, based on SABESP's reported figures.
The 2026Q1 operating margin of 34.1% is above the 2025 average, suggesting the company is earning close to its authorized return. However, the 2024Q3 margin of 65.7% was an outlier, likely due to one-time items, and the 2023Q4 negative margin of -57.4% reflects a non-recurring charge. The consistency of margins in the 27-37% range indicates a stable regulatory compact, though the gap between authorized and earned ROE may widen if capex outpaces rate base growth.
Electricity Costs Pose Recovery Risk
Electricity is a key variable cost for SABESP, and with annual tariff adjustments, spikes in Brazilian power prices can compress margins, as seen in 2025Q3 when operating margin fell to 27.4%.
The 2025Q3 margin dip suggests that cost recovery mechanisms may not fully shield SABESP from energy price volatility. While fuel and purchased power are typically pass-through for electric utilities, for water utilities, electricity is a direct input. The regulatory framework allows for annual tariff revisions, but the lag can create working capital strain. Investors should monitor the PLD (spot electricity price) trends and the timing of tariff adjustments.
Non-Recurring Items Distort Earnings
Net income quality is mixed, with 2024Q3 net margin of 40.8% and EPS of $1.79 clearly inflated by one-time gains, while 2026Q1's 17.6% margin appears more sustainable, per SABESP's income statements.
The 2024Q3 earnings spike is not reflective of core operations, and the 2023Q4 operating loss of -$4.2B indicates a major write-down. Excluding these anomalies, net margins have been in the 12-24% range, which is more typical for a regulated water utility. The presence of construction revenue under IFRIC 12 also inflates revenue without cash flow, so investors should adjust for this to assess true earnings power.
Capex Cycle May Not Yet Boost EPS
SABESP's accelerating capex, aimed at universalization, may not immediately translate to EPS growth due to regulatory lag, as evidenced by flat EPS growth in 2026Q1 despite 16% revenue growth.
The post-privatization investment cycle is expected to expand the RAB, but the earnings benefit will only materialize as assets enter rate base. The 2026Q1 EPS of $0.49 is only 14% higher year-over-year, while revenue grew 16%, suggesting that incremental capex is not yet generating proportional returns. Investors should monitor the pace of CWIP conversion and the authorized ROE of approximately 8% to gauge future EPS accretion.
Capex Financing Could Strain Balance Sheet
With debt-to-equity at 0.94 and rising interest expenses, SABESP's aggressive capex program may require additional debt, potentially pressuring cash flows if regulated returns lag, as per recent financial disclosures.
The interest coverage ratio fell to 0.69 in 2025Q4, a red flag, though it recovered to 2.59 in 2026Q1. This volatility suggests that the company's cash flow may be insufficient to cover interest costs during periods of low revenue or high debt service. The universalization mandate could turn SABESP into a cash-burning entity for several years, despite positive accounting earnings. If the regulator delays tariff adjustments, the gap between authorized and earned ROE could widen, undermining the investment thesis.