Reported earnings remain highly erratic, with operating margins swinging from a low of -57.4% in 2023Q4 to a peak of 65.7% in 2024Q3, suggesting significant sensitivity to non-recurring accounting adjustments.
| 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 | 38.7B | 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 % | -13.18% | 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 | 24.74B | 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 | 13.96B | 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 % | 36.07% | 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 | 1.43B | 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 | 14.86B | 14.2B | 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 % | 38.39% | 38.03% | 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 % | -28.07% | -21.92% | 99.06% | 28.76% | 11.73% | -2.73% | -12.84% | 14.04% | 24.81% | 15.02% | 11.12% | 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 | 2.33B | 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 |
| D&A / Revenue % | 6.03% | 5.8% | 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) | 12.52B | 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 % | 32.36% | 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 | - | 2.86x | 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 | 11.53B | 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 % | 29.81% | 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 | 3B | 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 % | 26.05% | 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 | 8.53B | 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 % | 22.04% | 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 % | -22.89% | -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) | 2.42 | 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 % | -23.53% | -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 |
High regulatory and privatization execution risk
As reported in financial statements, SBS experienced significant revenue fluctuations, including a 16.0% increase in 2026Q1 following a 26.9% contraction in 2025Q4, suggesting that headline figures are heavily influenced by non-recurring accounting adjustments rather than consistent volumetric growth or predictable rate case outcomes within the São Paulo concession.
The extreme variance in quarterly revenue growth suggests that IFRIC 12 construction revenue is distorting the core utility performance. Investors should monitor whether the upcoming privatization process stabilizes these revenue swings by shifting the focus toward tariff-driven cash flows rather than accounting-heavy infrastructure build-outs.
Based on the reported figures, operating margins have fluctuated between a low of -57.4% in 2023Q4 and a high of 65.7% in 2024Q3, indicating that the company's cost structure remains highly sensitive to non-cash items and potential regulatory lag in recovering energy-intensive pumping costs across the plateau.
The wide swings in operating margins imply that the company's ability to pass through electricity costs is not perfectly synchronized with its reporting periods. This volatility warrants further investigation into whether the current regulatory construct provides sufficient protection against sudden spikes in the Brazilian energy market.
According to recent SEC filings, EPS growth has been erratic, ranging from a 64.8% decline in 2025Q3 to a 79.2% increase in 2025Q1, which suggests that reported net income is heavily impacted by non-recurring items rather than sustainable, core regulated earnings power from the water and sewage segments.
The lack of consistency in EPS growth appears to reflect the influence of FX volatility on debt and periodic accounting adjustments. Analysts should look past these headline figures to determine if the underlying regulated business is generating the expected returns on the asset base.
Based on the provided data, the company's reliance on significant depreciation and amortization, which reached $925.5M in 2025Q4, may mask the true cash-burning nature of the mandatory universalization investments required under the New Sanitation Framework, potentially overstating the long-term sustainability of current dividend and capital allocation policies.
The income statement fails to capture the potential for future regulatory friction if the massive capital expenditure required for universalization fails to yield the anticipated tariff increases. Investors should monitor whether the current earnings profile is overly dependent on accounting conventions that may not reflect the actual cash-flow reality of the business.
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.