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Sabesp Posts Strong 1Q26 Earnings and R$3.7 Billion Capex Surge

Story Highlights
  • Sabesp’s 1Q26 adjusted EPS rose to R$0.44, with EBITDA and net income boosted by volume growth, tariff gains and cost efficiencies.
  • The utility invested R$3.7 billion in 1Q26 to advance universalization targets and is outperforming sanitation benchmarks for 2024–2026.
  • Looking for the best stocks to buy? Follow the recommendations of top-performing analysts.
Sabesp Posts Strong 1Q26 Earnings and R$3.7 Billion Capex Surge

Meet Samuel – Your Personal Investing Prophet

The latest update is out from Companhia De Saneamento ( (SBS) ).

On May 7, 2026, Sabesp reported that in the first quarter of 2026 it delivered adjusted earnings per share of R$0.44, up from R$0.34 a year earlier, supported by higher volumes from new connections, tariff gains and improved collections despite a growing share of subsidized customers. Adjusted EBITDA rose 26% to R$3.8 billion and adjusted net income increased 32% to R$1.6 billion, reflecting cost efficiencies from lower administrative expenses, headcount reduction and power optimization.

The company invested R$3.7 billion in the quarter ended March 31, 2026, a 31% year-on-year increase directed at projects to meet universalization targets in water and sewage services. Management highlighted that Sabesp is outperforming U-Factor benchmarks for 2024–2026 in water supply, sewage collection and treatment, underscoring both sustained operational improvements and broader social and economic benefits from its large-scale infrastructure program for customers and communities.

The most recent analyst rating on (SBS) stock is a Buy with a $36.60 price target. To see the full list of analyst forecasts on Companhia De Saneamento stock, see the SBS Stock Forecast page.

Spark’s Take on SBS Stock

According to Spark, TipRanks’ AI Analyst, SBS is a Neutral.

The score is anchored by solid financial profitability but moderated by 2025 revenue/margin compression, higher leverage, and softer cash-flow conversion. Valuation is a clear positive (low P/E and ~4% yield), while technicals are neutral with longer-term trend support but limited near-term momentum.

To see Spark’s full report on SBS stock, click here.

More about Companhia De Saneamento

Companhia de Saneamento Básico do Estado de São Paulo (Sabesp) is a Brazilian basic sanitation utility that provides water supply, sewage collection and sewage treatment services across the state of São Paulo. The company focuses on expanding universal access to essential sanitation infrastructure while improving service quality and operational efficiency in its regulated concessions.

Average Trading Volume: 6,988,181

Technical Sentiment Signal: Buy

Current Market Cap: $22.56B

For an in-depth examination of SBS stock, go to TipRanks’ Overview page.

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