Sabesp stock reports a 31.00 percent Q2 profit decline

Published on 10/01/2026 at 03:29 | Editorial responsibility: Rafael Müller, Editor-in-Chief AD HOC NEWS

Sabesp stock carries a BRL 35.00 JPMorgan target for December 2027 after a Q2 profit decline. Revenue rose 13.90 percent to BRL 10.20 billion.

Sabesp, BRSBSPACNOR5, Illustration mit AI erstellt.

Sabesp stock (ISIN BRSBSPACNOR5) reported BRL 1.46 billion in second-quarter 2026 net income, a 31.00 percent year-over-year decline. The result leaves execution and efficiency as the key tests for the Brazilian water utility after its privatization.

Profit falls as revenue expands

According to Investidor10 on September 8, 2026, Sabesp's second-quarter net income fell to BRL 1.46 billion from the prior-year period, while net revenue rose 13.90 percent to BRL 10.20 billion. That combination points to growth that did not translate into equal profit expansion.

Seu Dinheiro reported on September 4, 2026, that adjusted EBITDA reached BRL 3.50 billion in Q2 2026, while the adjusted EBITDA margin declined to 58.30 percent from 63.00 percent in the previous quarter. Lower water consumption, a less favorable customer mix, higher operating costs and customer-service investments weighed on the quarter.

JPMorgan lifts its target

Investidor10 reported on September 8, 2026, that JPMorgan kept its Buy rating and raised its Sabesp price target from BRL 34.00 to BRL 35.00 for December 2027. The bank also cited potential investments of BRL 20.00 billion in 2026 and a possible 20.00 percent reduction in expenses after privatization.

The target revision offers a quantified counterpoint to the weak profit trend, but it does not remove the operational test. Seu Dinheiro said on September 4, 2026, that XP expects the next two or three quarterly reports to show whether exceptional cost pressures are temporary. The report also cited BRL 600.00 million of BRL 800.00 million in expected 2026 impacts as potentially temporary.

B3 valuation sets the reference

On B3, SBSP3 was at BRL 27.46 on September 30, 2026, with a market capitalization of BRL 96.4 billion and a 52-week range of BRL 23.03 to BRL 35.32. The next earnings report is scheduled for November 5, 2026, according to Investing.com.