#Mexico #Mexico City #water solutions #Rotoplas #Q4 2025

Grupo Rotoplas Reports Financial Results for Q4 2025

Grupo Rotoplas S.A.B. de C.V. (BMV: AGUA*), recognized as the leading provider of water solutions across the Americas, released its unaudited financial results for the fourth quarter of 2025 on February 11, 2026. The results, prepared following International Financial Reporting Standards (IFRS), highlight both the company's achievements and the challenges faced in the current economic landscape.

Key Highlights of Q4 2025

• - Net Sales reached $2,829 million, marking a 3.9% increase from Q4 2024, driven significantly by a remarkable 83.4% growth in service sales, primarily from new contracts and improvements in water treatment facilities in Mexico.
• - EBITDA stood at $366 million, a significant increase from just $57 million in Q4 2024, illustrating efficient cost management and heightened operational effectiveness. The EBITDA margin also improved to 12.9%.
• - The Operating Income rose to $161 million, with a net income of $91 million in contrast to losses in the previous year's quarter, reflecting a robust recovery strategy adopted by the company.

Annual Performance Overview

Despite facing a 1.1% decrease in cumulative net sales for the year, totaling $11,080 million, Rotoplas strategically adjusted its product portfolio and maintained a focus on service enhancements. Notably, service sales year-on-year increased by 40.5%, showcasing the company's adaptive strategies in a fluctuating market environment, particularly in Argentina, which faced significant challenges.

Carlos Rojas Aboumrad, the CEO, emphasized the company's continued focus on financial discipline and efficiency, particularly when navigating the difficulties in Argentina's market. He noted, "We adjusted product portfolio strategies by geography to defend and/or capture market share while safeguarding margins. Our disciplined execution allowed us to maintain healthy inventory levels and improve our working capital position."

Sectoral Insights and Regional Dynamics

In terms of regional performance, Mexico saw particularly strong sales during Q4 with a 15.8% increase in sales, linked to a resurgence in product demand and improved service performance. Conversely, Argentina's operating environment was more challenging, noted by a 28.8% decline in sales due to an unfavorable competitive landscape and stagnant construction sector.

The United States displayed stable growth, supported by investments in industrial sectors and municipal projects, marking an 8.2% increase in year-to-date sales. Rotoplas also noted improved performance in other countries, including a 10% increase in sales across Peru and Central America, aligned with their regional expansion strategy.

Financial Management and Sustainability Initiatives

As part of its commitment to sustainability and responsible financial management, Rotoplas reduced net financial debt by 8.9%, maintaining a Net Financial Debt / EBITDA ratio of 2.7 times. CapEx focused heavily on boosting the services segment, particularly on the development of bebbia, the water treatment initiative in Mexico which surpassed 168,000 active subscribers.

Looking Ahead

Rotoplas remains committed to advancing user-centric solutions for improving access to water, alongside its growth strategy targeting expansion in the services sector. As CEO Rojas noted, maintenance of strict cash flow control and enhancement of operational cycles will continue to play a pivotal role in preserving the company's solid balance sheet and financial health moving forward.

In conclusion, Grupo Rotoplas exemplifies resilience through adaptation and strategic planning in a challenging market landscape. Through initiatives like 'Escuelas con Agua' and improvements in operational efficiency, the company positions itself not only for economic stability but also for sustainable growth in the water solutions sector in the Americas.