EarningsQ3 2024 Earnings Report

Companhia De Saneamento (SBSN) Q3 2024 Earnings Report

0 Followers

Previous Report: Q2 2024

Next Report: Q4 2024

MX:SBSN Q3 2024 EPS Results

Actual EPS$1.02

Consensus EPS$2.51

Beat/MissMissed by -$1.49

One Year Ago EPS$0.88

MX:SBSN Q3 2024 Revenue Results

Actual Revenue$48.58B

Expected Revenue$19.95B

Beat/MissBeat by +$28.62B

YoY Revenue Growth+104.56%

Earnings Announcement Details

QuarterQ3 2024

Date11/11/2024

TimeAfter Close

Conference CallMonday, November 11, 2024

MX:SBSN Upcoming Earnings

Companhia De Saneamento's next earnings date is estimated for November 5, 2026, based on past reporting schedules.

Q3 2024 Earnings Call Audio

MX:SBSN Q3 2024 Earnings Call

0:00 / 0:00

Q3 2024 Earnings Slide Deck

Q3 2024 Earnings Call Summary

Q3 2024

Earnings Call Date:Nov 11, 2024|

% Change Since:

Earnings Call Sentiment|Neutral

The earnings call presented a mixed picture. While there were positive developments in revenue and EBITDA growth, operational cash generation, and new strategic directions post-privatization, significant challenges remain. These include regulatory impacts, transition costs, and construction delays. The company is focused on overcoming these hurdles with a new management team and investment strategies.

Company Guidance

During the Q3 2024 earnings call for SBSP3.SA, the management team provided comprehensive guidance on several financial metrics and strategic initiatives. Daniel Szlak, the CFO, detailed a 7% increase in net revenue, translating into a 17% rise in EBITDA, driven by a 2% growth in volume and pricing adjustments. The company reported a gross revenue impact of approximately BRL 8.8 billion due to deferred revenue adjustments under IFRS 12. Operational cash generation stood at BRL 1.6 billion, reinvested into the asset base. The privatization transition incurred non-recurring costs, yet the company saw a 6.4% tariff readjustment, netting a positive effect of around 5%. Additionally, SABESP completed BRL 1.4 billion in investments this quarter, with expectations to reach BRL 6.5 to 7 billion by year-end, despite transitioning from public to private procurement processes. The call also highlighted the company's strategic focus on universal sanitation, cost control, and an efficient capital structure, aiming to leverage a planned BRL 60 billion investment over five years.

Revenue and EBITDA Growth

Net revenue increased by 7%, and EBITDA grew by 17% driven by a 2% increase in volume and pricing adjustments.

Operational Cash Generation

Generated operational cash of BRL 1.6 billion, which was almost entirely reinvested in the asset base.

Strategic Privatization and Transition

Privatization process enabled SABESP to transition from a state-owned model to a private one, allowing for potential operational and financial improvements.

Investment Program

Completion of BRL 1.4 billion investment this quarter with a significant investment program planned, including over BRL 60 billion for universalization of services.

Formation of New Management Team

New management team established to guide SABESP through privatization and operational transformation.

MX:SBSN Earnings History

Report Date	Fiscal Quarter	Forecast / EPS	Last Year's EPS	EPS YoY Change
Nov 05, 2026	2026 (Q3)	1.29 / -	1.275	―
Aug 12, 2026	2026 (Q2)	1.62 / 1.15	1.85	-37.86% (-0.70)
May 07, 2026	2026 (Q1)	1.47 / 1.60	1.06	50.85% (+0.54)
Mar 16, 2026	2025 (Q4)	1.60 / 1.89	1.688	11.70% (+0.20)
Nov 07, 2025	2025 (Q3)	1.02 / 1.28	1.024	24.56% (+0.25)
Aug 11, 2025	2025 (Q2)	1.04 / 1.85	1.114	66.13% (+0.74)
May 12, 2025	2025 (Q1)	1.06 / 1.06	0.97	9.26% (+0.09)
Mar 24, 2025	2024 (Q4)	1.24 / 1.69	1.221	38.24% (+0.47)
Nov 11, 2024	2024 (Q3)	2.51 / 1.02	0.88	16.33% (+0.14)
Aug 08, 2024	2024 (Q2)	0.90 / 1.11	0.772	44.19% (+0.34)

The table shows recent earnings report dates and whether the forecast was beat or missed. See the change in forecast and EPS from the previous year.

Beat

Missed