Sabesp

What Sabesp does

Sabesp (Companhia de Saneamento Básico do Estado de São Paulo) is a Brazilian regulated water and sanitation utility serving 376 municipalities in São Paulo state — Brazil's most populous state — providing water supply to 30.3 million people and sewage collection/treatment to 27.4 million people. Founded in 1973 through the merger of several state-controlled entities (COMASP, SANESP, SAEC, FESB, SBS, SANEVALE) and privatized in July 2024 with the State of São Paulo retaining an 18.0% stake, the company operates under a unified 50-year Concession Contract (No. 01/2024, URAE 1 – Southeast) that runs through October 19, 2060 and front-loads universalization targets to 2029 — four years ahead of Brazil's national 2033 deadline. The company's regulated monopoly position is the foundation of its business model, with tariffs set by ARSESP (the São Paulo state regulator) and adjusted annually using IPCA minus X-Factor (efficiency), Q-Factor (quality), and U-Factor (universalization) factors.

The company's core product set comprises water supply, sewage collection, and sewage treatment services delivered through a physical infrastructure network that includes landmark assets such as the Barueri Sewage Treatment Plant and the Santos Submarine Outfall. Underpinning operations is a multi-vendor technology stack: the world's largest IoT smart metering deployment (4.4 million meters in partnership with Vivo/Telefônica Brasil and Kaifa, R$3.8B budget) for real-time consumption monitoring and leak detection; an AI-powered Nautilus acoustic inspection system on AWS for large-diameter pipeline leak detection (10-year partnership with Aganova, 2025–2035); AVEVA PI System for predictive monitoring and hydraulic modeling; and Bentley OpenFlows Water for digital twin simulation. The R$70 billion capex plan for 2024-2029 funds the universalization build-out, including the BRL 17 billion Integra Tietê program for river clean-up and sewage expansion.

Sabesp generates revenue primarily through regulated subscription tariffs billed monthly to residential, commercial, industrial, and government customers across its 376-municipality concession area. Following privatization, the company raised R$36 billion in capital (including a $1.5B IIC/Blue Bond financing package in January 2026) and achieved approximately 60% EBITDA margin in its first post-privatization year through operational efficiency gains, a voluntary headcount reduction from ~11,000 to ~9,000, smart-meter-driven billing improvements (BRL 800M), and tariff adjustments. Additional revenue streams include returns on minority stakes in three water/sewage companies and six energy and infrastructure companies. The company is publicly listed on B3 (SBSP3) and NYSE (SBS as Level III ADRs), with ratings of brAAA (Fitch national scale) and BB/BB+ (S&P/Fitch global scale).

Name

Sabesp

Legal name

Companhia de Saneamento Básico do Estado de São Paulo

Website

https://ri.sabesp.com.br

Company type

Public

Founded year

1973

Operating status

Operating

Headcount range

5,001–10,000 employees

Short description

Sabesp is a privatized Brazilian regulated monopoly utility providing water supply and sewage collection/treatment to 30.3 million people across 376 municipalities in São Paulo state under a 50-year concession contract, executing a R$70 billion 2024-2029 universalization program backed by R$36 billion in post-privatization capital.

Ownership category

akta.pro rank

Product category

Water and Sanitation Services

NAICS

Water, Sewage and Other Systems (2213), Sewage Treatment Facilities (22132), Water Supply and Irrigation Systems (22131)

SIC

Water Supply (4941), Electric, Gas & Sanitary Services (4900)

akta.pro primary industry

Decentralized/Package Wastewater Systems (Small/Remote) (EUANADAE)

akta.pro secondary industry

Sanitary Sewer Overflow (SSO) Control & Mitigation (EUANACAE)

Keywords

• Water supply services
• Sewage treatment services
• Sanitation utility services
• Smart water metering
• Wastewater management

Headquarters

HQ city

São Paulo

HQ country

Brazil

HQ region

Latin America

Offices1 record

Markets served

GTM type

B2C

Offering type

Services

Cost components

Personnel, Infrastructure, Technology or R&D, Operations, Supply Chain

Revenue model

1. Water Supply Tariffs: Revenue is generated from regulated water supply tariffs billed to residential, commercial, industrial, and government customers across 376 municipalities in São Paulo state. Tariffs are subject to periodic tariff reviews every 5 years and annual adjustments based on IPCA minus X-Factor (efficiency), Q-Factor (quality), and U-Factor (universalization).
2. Sewage Collection and Treatment Tariffs: Revenue from sewage collection and treatment services, billed as a bundled or separate tariff alongside water supply. Integrated under the same concession contract (Concession Contract No. 01/2024), covering 371 municipalities under URAE 1 – Southeast.
3. Capital Expenditure from Financing and Bonds: Sabesp raised R$36 billion post-privatization through a $1.5 billion financing package (IIC loan: $150M A Loan maturing 2038 + $1.35B B Loan; Blue Senior Secured Notes: $850M at 5.75% due 2031, $500M at 6.5% due 2036), BRL bonds, and CHF 100 million pipe supply contract with GF. Proceeds fund sewage treatment facility construction, collection system expansion, and water network modernization.
4. Minority Holdings in Associated Companies: Sabesp holds minority stakes in three water supply and sewage companies, plus six companies in energy, paving, and other sanitation-related sectors, generating returns from associated company operations.

Pricing tiers

Go-to-market motion2 records

Distribution channels3 records

Marketing channels5 records

Core offering

Sabesp provides regulated water supply and sewage collection and treatment services across 376 municipalities in São Paulo state, Brazil, serving 30.3 million people with water and 27.4 million people with sewage services. The company operates as a regulated monopoly utility under a unified 50-year concession contract (Concession Contract No. 01/2024, URAE 1 – Southeast) and is accelerating universal water and sewage coverage targeting 99% water and 90% sewage coverage by 2029.

Product overview

Sabesp is Brazil's largest water and sanitation company, operating as a regulated utility with a single integrated product portfolio organized around three core service areas: water supply, sewage collection and treatment, and related infrastructure services. The company serves 376 municipalities in São Paulo state, supplying water to 30.3 million people and sewage services to 27.4 million people. Post-privatization in 2024, Sabesp has accelerated its universalization targets to 2029, supported by major infrastructure programs including the Smart Water Metering IoT Platform (replacing 4.4 million meters with Vivo), the Integra Tietê river clean-up program (BRL 17 billion), and water network modernization (CHF 100 million with GF). The company also raises capital through Blue Bonds financing to fund sewage treatment expansion. Universalization performance is tracked through the U-Factor regulatory framework.

Differentiator

Problem solved

Functional benefit

Products and services

• Water Supply Services Water treatment and distribution services supplying clean water to 30.3 million people across 376 municipalities in São Paulo state, including real-time monitoring and predictive analytics to optimize supply and reduce water shortages.
• Sewage Collection and Treatment Services Sewage collection and treatment services serving 27.4 million people, with facilities including the Barueri Sewage Treatment Plant (one of the largest in South America) and the Santos Submarine Outfall for coastal sewage management.
• Smart Water Metering IoT Platform IoT-based smart water metering system replacing 4.4 million water meters in São Paulo and São José dos Campos, enabling real-time consumption monitoring, automated leak alerts, fraud detection, and remote reading across 377 municipalities.
• AI-Powered Water Leak Detection Program AI-powered acoustic leak detection service using Aganova's Nautilus technology on AWS cloud to inspect ~64 km of large-diameter pipelines and recover 210 million litres of water annually, addressing Sabesp's 29% water loss rate.

Quantifiable outcome

• 29% water loss rate reduced via AI-powered acoustic inspection targeting 210 million litres of water recovered annually (84 Olympic-sized swimming pools)
• +5 more outcomes

Named customers3 records

Segments3 records

Ideal customer profiles3 records

Technology focussed No

API detail

Has API

No

API docs

API detail

Core technology

AI maturity

App detail

Integration4 records

AI capability7 records

Feature4 records

Partnerships

Seven partnerships are on record, tiered major, core and supporting.

• GF (Georg Fischer)majorTechnology or Integration · 15 April 2026GF signed a CHF 100 million contract with Sabesp to supply polyethylene pipes for modernizing water distribution networks across São Paulo state over 24 months. This is among GF's largest orders to date and builds on a prior 2025 pilot project using integrated technologies. The contract supports Brazil's national goal of achieving universal access to water and sanitation by 2033.
• KaifacoreTechnology or Integration · 15 January 2026Chinese metering equipment manufacturer Kaifa plans to invest R$200 million (US$41.2M) in a factory in Brazil's Manaus free trade zone to supply smart meters for the Vivo-Sabesp contract. This will be Kaifa's first manufacturing facility outside Asia (Shenzhen-based; 9 factories in China and Malaysia), generating ~300 direct and indirect jobs. The factory will supply 4.4 million smart water meters for the Sabesp project and potentially serve other Latin American markets.
• Amazon (AWS)coreTechnology or Integration · 17 November 2025Amazon (via AWS), Sabesp, and Aganova launched a 10-year partnership (2025–2035) to detect and repair water leaks across São Paulo's large-diameter pipeline network using Aganova's AI-powered Nautilus acoustic inspection technology deployed on AWS cloud infrastructure. The program will inspect ~64 km of pipelines, projected to recover 210 million litres of water annually (equivalent to 84 Olympic-sized swimming pools), addressing Sabesp's 29% water loss rate.
• AganovacoreTechnology or Integration · 17 November 2025Aganova's AI-powered Nautilus acoustic inspection technology is deployed on AWS cloud infrastructure as part of a 10-year partnership with Sabesp and Amazon to detect and repair water leaks across São Paulo's large-diameter pipeline network. The program targets 210 million litres of water recovered annually.
• Vivo (Telefônica Brasil)coreTechnology or Integration · 7 October 2025Sabesp partnered with Vivo (Telefônica Brasil) for the world's largest IoT smart water metering project, valued at R$3.8 billion, to install 4.4 million smart water meters across 377 municipalities in São Paulo state and São José dos Campos by 2029. Vivo handles connectivity services and network upgrades, enabling real-time consumption monitoring, leak alerts, fraud detection, and remote reading.
• AVEVAsupportingTechnology or Integration · 29 August 2025Sabesp reduced water shortages by 1% and benefited over 200,000 residents after implementing AVEVA PI System alongside Stefanini IHM for real-time monitoring and predictive modeling of water distribution and sewage treatment operations.
• Bentley SystemssupportingTechnology or Integration · 19 August 2025Sabesp deploys Bentley's digital tools including AI, digital twins, and hydraulic modeling software (OpenFlows Water) to improve water efficiency, reduce water losses, and manage wastewater across São Paulo, contributing to climate resilience and infrastructure modernization.

Scale indicators14 records

Recent moves8 records

Expansion highlights6 records

Direct peers

• Copasa (Companhia de Saneamento de Minas Gerais): State-owned water and sewage utility serving Minas Gerais, Brazil. Direct comparable to Sabesp in business model (regulated monopoly utility), customer base (residential/commercial/industrial), and product offering (water supply and sewage treatment). Sabesp is pursuing a 30% stake acquisition, underscoring direct overlap.
• Sanepar (Companhia de Saneamento do Paraná): State-level water and sanitation utility serving Paraná, Brazil. Publicly traded on B3 with virtually identical operating model to Sabesp – regulated tariff, water/sewage services, universalization mandates, and concession contracts – making it the closest Brazilian state-utility peer.
• Aegea Saneamento: Brazil's largest private-sector water and sanitation operator, holding concessions across multiple states. Competes head-to-head with Sabesp in concession bidding and embodies the private-sector alternative post-Law 14.026/2020.
• Iguá Saneamento: Private Brazilian water and sanitation utility operating across multiple states under concession contracts. Directly comparable to Sabesp in product/service mix and target market, with overlapping competition for new URAE concessions.
• BRK Ambiental: One of Brazil's largest private water and sewage operators, active in dozens of municipalities. Same regulated utility model and customer segments as Sabesp; backed by Brookfield, competing for the same concession opportunities.
• Embasa (Empresa Baiana de Águas e Saneamento): State-owned water and sanitation utility serving Bahia, Brazil. Closely comparable to Sabesp in scale, regulatory model (state-level concession), and product offering; serves as a benchmark for state utility economics.
• CAGECE (Companhia de Água e Esgoto do Ceará): State-owned water and sewage utility in Ceará with comparable operational footprint to Sabesp's mid-sized concessions. Same business model (regulated monopoly, water + sewage), comparable customer base (residential, commercial, industrial).

Broad incumbents

• Veolia (Brazil operations): Global environmental services giant with significant Brazilian water/wastewater operations. Competes for concessions and provides operational services; broader portfolio includes waste and energy, but water utility segment directly overlaps Sabesp's offering.
• American Water Works Company: Largest publicly traded US water and wastewater utility, serving 14M+ people across 14 states. Comparable in regulated monopoly model, IoT/smart meter deployment, and capex-driven growth thesis – though in a developed-market regulatory context.

Others

• Equatorial Energia: Brazilian multi-utility holding (electricity distribution, sanitation via Saaesp-like concessions, gas) holding 15% of Sabesp as reference shareholder. Shares CEO lineage (Carlos Piani) and strategic playbook of acquiring underperforming regulated utilities and driving operational improvement.

Market position

Strengths5 records

Weaknesses5 records

Competitive moat5 records

Key risks7 records

Key highlights7 records

Customer concentration

• Xx.com/sabesp
• YouTubeyoutube.com/sabespcia
• Facebookfacebook.com/OficialSabesp
• LinkedInlinkedin.com/company/sabespcia
• Instagraminstagram.com/sabespcia

Compliance3 records

Revenue estimate

Valuation estimate

Number of profiles

Profiles14 records

Subsidiaries2 records

Funding overview

Funding rounds5 records

Investors4 records

Funding detail is available on the Subscription and Enterprise plan.Contact sales →

M&A1 record

Investments

M&A and investment is available on the Subscription and Enterprise plan.Contact sales →

Frequently asked questions about Sabesp