Recent Updates — SBS
Companhia de Saneamento Básico do Estado de São Paulo - SABESP reported consolidated net income of R$4,601 million (approx. $930 million) for the first nine months of 2026, a decrease from R$5,777 million in the prior year period. Adjusted EBITDA rose 13.8% to R$11,968 million, driven by tariff adjustments and higher volumes, while adjusted net income fell 13.8% due to weaker financial results and increased interest expenses on larger debt balances. The company invested approximately R$12 billion in capital expenditures during the period, supporting its universalization agenda. SABESP operates as a basic sanitation utility providing water supply and sewage services in São Paulo State, Brazil.
SABESP reported third-quarter 2026 core earnings per share of R$0.31, down from R$0.38 in the prior-year period, primarily due to a weaker net financial result compared to a non-recurring R$1.5 billion gain from court-ordered payments received in 3Q25. Adjusted EBITDA increased 13.8% year-over-year to R$3.648 billion, driven by tariff adjustments and higher volumes, while adjusted net revenue grew 9.0%. Capital expenditures reached R$4.5 billion, up 13.8%, bringing the nine-month total to approximately R$12 billion as the company advances its universalization agenda. The firm operates in the basic sanitation sector, providing water supply and sewage services in the state of São Paulo, Brazil.
The Board of Directors approved the crediting of interest on equity to shareholders, totaling a gross amount of R$2,636,971,532.99. This distribution corresponds to 50% of the net profit from the nine-month period of 2026 and amounts to R$0.75197707687 per common share. The payment is scheduled for the Ordinary General Meeting that approves the fiscal year 2026 financial statements, with shares trading ex-interest on November 11, 2026. This amount will be deducted from mandatory dividends for the fiscal year ending December 31, 2026. SABESP operates in the basic sanitation industry, providing water and sewage services.
SABESP and EMAE confirm the end of the dissenting shareholder withdrawal right period for their proposed share merger, noting that zero requests were received and no cash reimbursements will be paid. The transaction is set to consummate on October 27, 2026, when EMAE shareholders will receive SABESP shares at an exchange ratio of 1.3195 common shares for each EMAE share held. Fractional shares resulting from the conversion will be sold on the spot market with proceeds distributed to former EMAE investors. Non-resident investors may face a 25% withholding tax on capital gains unless they provide acquisition cost documentation. SABESP operates as a basic sanitation utility providing water and sewage services in the state of Sao Paulo, Brazil.
Sabesp and EMAE have issued an updated estimated timetable regarding the merger of shares, which involves Sabesp incorporating all EMAE shares not currently held by Sabesp. The process includes a withdrawal right period that began on September 18 and is scheduled to end on October 19, 2026. Reimbursement for shareholders exercising withdrawal rights is expected by October 21, 2026, with the last trading day for EMAE shares on the B3 exchange set for October 23, 2026. The companies expect to confirm the consummation of the merger and the credit of Sabesp shares to EMAE shareholders on October 27, 2026. Sabesp is a water and sanitation company operating in Brazil.