Rotoplas: Fourth Quarter 2025 Results

• Net sales reached $2,829 million, representing a 3.9% increase compared to Q4'24. On a cumulative basis, net sales amounted to $11,080 million, a 1.1% decrease compared to 2024.
• EBITDA was $366 million, compared to $57 million in Q4'24, with a margin of 12.9%. On a full-year basis, EBITDA amounted to $1,320 million, 0.7% above 2024, representing an 11.9% margin.
• Operating result reached $161 million and net income was $91 million in Q4'25, compared to negative results in Q4'24. On a year-to-date basis, operating result amounted to $634 million, while net result was a loss of $42 million.
• Services sales increased by 83.4% during the quarter and by 40.5% on a full-year basis, primarily driven by bebbia and water treatment plants in Mexico.
• bebbia reported more than 168,000 active subscribers at the end of December.

Message from the CEO

"During the fourth quarter, the operating environment continued to present challenges, mainly in Argentina. In response, we maintained strict financial discipline and focused on efficiency and productivity across both costs and expenses, while developing new operational capabilities to strengthen competitiveness and concentrate on variables within our control.

In addition, we adjusted product portfolio strategies by geography to defend and/or capture market share, while safeguarding margins. Disciplined execution also allowed us to maintain healthy inventory levels and strengthen working capital performance.

The services segment maintained its positive trajectory, improved profitability, and gained greater strategic relevance within the portfolio. At the same time, the United States continued its recovery process and closed the year with a positive EBITDA margin.

Finally, we maintained strict cash flow control and optimized the operating cycle, which allowed us to preserve a solid balance sheet, reduce net financial debt, and improve leverage levels. As always, we continued strengthening user-centric solutions aimed at improving quality of life and people's daily relationship with water."

— Carlos Rojas Aboumrad

Q4'25 vs Q4'24 Results

• Net Sales amounted to $2,829 million, representing a 3.9% increase compared to Q4'24, driven by the strong performance of the services segment, where sales grew 83.4%. Within the products segment, there was a recovery in Mexico and solid performance in other countries; however, this was not enough to offset the decline in Argentina, resulting in a 3.4% decrease.
• Gross profit closed at $1,083 million, with a margin of 38.3%, representing an expansion of 520 bps, driven by greater operational efficiencies, workforce restructuring, and strict discipline in the cost structure.
• Operating income reached $161 million, compared to an operating loss of $148 million in Q4'24, This reflects a reduction in operating expenses and the implementation of efficiency initiatives that strengthened workforce capabilities and reduced expenses as a percentage of sales from 38.5% to 32.6%.
• EBITDA closed at $366 million, and EBITDA margin stood at 12.9%, representing an expansion of 1,080 bps, derived from an improvement in gross margin and a reduction in operating expenses.
• Net income amounted to $91 million, driven by the improvement in operating income and lower financial expenses, resulting from a benefit related to the recognition of hyperinflation in Argentina.

Cumulative Results 2025 vs 2024

• Net sales amounted to $11,080 million, a 1.1% decrease, reflecting a 4.6% decline in product sales, which was partially offset by a 40.5% increase in the services segment.
• Gross profit reached $4,532 million, representing a 6.0% year-over-year decrease. Gross margin closed at 40.9%, a 210 bps contraction, mainly due to lower sales volumes in Argentina amid a stagnant construction sector, as well as weaker product sales in Mexico during the first nine months of the year.
• Operating income reached $634 million, representing a 5.1% decrease compared to 2024, as a result of gross margin pressure derived from lower sales, which impacted operating leverage. However, strict expense control— with expenses decreasing as a percentage of sales from 37.1% to 35.2%—partially mitigated this impact.
• EBITDA closed at $1,320 million and, despite a 1.1% decrease in sales, it stood 0.7% above the previous year, with an EBITDA margin of 11.9%.
• Net result was a loss of $42 million, reflecting lower operating income and higher financial expenses driven by interest payments, foreign exchange impact, and inflation in Argentina.
• Net Financial Debt / EBITDA leverage closed at 2.7x, resulting from an 8.9% year-over-year reduction in net financial debt.
• During the period, CapEx amounted to $488 million, primarily focused on the services segment in Mexico, mostly allocated to bebbia and water treatment and recycling plants, in line with the Company's growth strategy.

Mexico

• Sales in Mexico increased by 15.8% during the quarter and declined by 0.3% on a cumulative basis, reflecting a recovery in product sales toward the end of the year, supported by a more competitive commercial strategy focused on strengthening positioning in a challenging demand environment. This allowed the Company to close the year with a stable performance. The services segment maintained double-digit growth throughout the year, with additional acceleration in the fourth quarter, driven by the start of operations of water treatment plant contracts.
• EBITDA increased significantly during the fourth quarter, supported by a strict focus on expense control and the operational efficiencies implemented, which began to be reflected in results. On a full-year basis, EBITDA was impacted by lower product demand during the first nine months, affected by heavy rains and weakness in the construction sector.

Argentina 

• Sales declined by 28.8% during the quarter and by 17.1% on a cumulative basis, reflecting lower volumes and a competitive environment that limited the pass-through of price increases associated with inflation.
• The lack of recovery in the construction market, together with the recognition of a restatement adjustment, mainly related to inventories —with no impact on cash flow—, resulted in negative EBITDA both for the quarter and the full year. Despite this, working capital optimization remains a priority, with inventory efficiencies and more effective management of accounts receivable and payable, ensuring operational sustainability in terms of cash.

United States

• Sales remained stable during the quarter and increased by 8.2% on a cumulative basis, driven by the industrial and chemical verticals. Favourable factors such as drought conditions in the western U.S., data center construction, and municipal water investments supported demand throughout the year.
• EBITDA was positive for the third consecutive quarter, reflecting a structural turnaround of the business and allowing the Company to close the year with a positive result. This performance was supported by greater pricing discipline, improved operational productivity across branches, and enhancements in inventory management.

Other Countries
(Peru, Central America, and Brazil)

• Sales increased by 10.0% during the quarter and by 16.6% on a cumulative basis, driven by solid growth across all countries and regions: 
  
  In Peru, the strong performance during both, the quarter and the year, was driven by growth in piping and water heaters, which offset lower momentum in storage. In addition, blow moulding technology was implemented in the country during the year, providing a competitive product advantage versus other players.
  
  In Central America, both quarterly and full-year growth reflected the regional expansion strategy, which translated into higher sales volumes across all three categories.
  
  In Brazil, good momentum continued in the contracting of water treatment and recycling plants. Although this remains a developing business, it presents a favourable growth outlook.
  
  
• EBITDA more than doubled both during the quarter and on a full-year basis, supported by productivity improvements, greater expense discipline, and consistent operational execution.

Products

• Sales reflected pressure in Argentina and Mexico during the year; however, in the fourth quarter, Mexico returned to growth. Throughout the year, the solid performance in the United States, Central America, and Peru stood out.
• EBITDA for both the quarter and the full year was mainly impacted by weak demand in Argentina, which affected cost and expense absorption. To counteract this effect, cost and expense control measures were implemented, along with initiatives to increase productivity across all regions.

Services

• Sales maintained solid growth throughout the year, with a particularly strong performance in the fourth quarter, primarily driven by bebbia, which surpassed 168 thousand active subscribers, and the operation of water treatment and recycling plants in Mexico.
• EBITDA, improved significantly compared to the prior year, supported by a positive result in the fourth quarter, driven by stronger unit economics in both bebbia and RSA Mexico.

CapEx

• Capital investments amounted to $488 million, representing 4.4% of sales for the year.
• In line with financial priorities focused on strengthening cash flow, maintenance CapEx remained at low levels, with more than 75% of total investment allocated to the services segment.

Net Financial Result 

• The net financial result for the fourth quarter recorded an expense of $43 million, compared to $108 million in Q4'24. The 2025 expense includes $132 million for interest, commissions, and leases, and a $89 million benefit from exchange rate effects and inflation in Argentina.
• The cumulative net financial result recorded an expense of $667 million, compared to $547 million in 2024. The 2025 expense includes $552 million for interest, commissions, and leases, and a $116 million impact from exchange rate effects and inflation in Argentina.

Derivative Financial Instruments

• As of December 31^th, 2025, the market value of Grupo Rotoplas' position was:

Sustainability Strategy Milestones

• 2025 Targets

In 2025, we made progress toward our sustainability targets. We achieved or exceeded two objectives, including access to sanitation, where we surpassed our original target by more than 200 thousand people. In addition, CO₂ intensity (Scopes 1 and 2 per ton of processed material) decreased 26% year over year and 32% versus the 2021 baseline, driven by increased use of renewable energy, operational efficiency initiatives, and the transition to new production technologies.

Two other objectives remained broadly in line with expectations. In terms of customer experience, we closed the year with an NPS of 81 in Products and 60 in Services, resulting in a weighted average of 79, while 98% of Tier 1 critical suppliers were assessed based on sustainability criteria.

Female representation in the workforce and cubic meters of purified water fell below the established targets and remain focus areas as we move into the next strategic cycle.

Looking ahead, the new AGUA strategy, presented during AGUA Day, defines the next phase of our sustainability agenda, building on the progress achieved and providing a clear framework of priorities and targets for the coming years.

• Schools with Water – Mexico

"Escuelas con Agua," a multi-year initiative aimed at reducing the water access gap for students in Mexico, developed in partnership with Fundación Coca-Cola, the eight bottlers of the Mexican Coca-Cola industry, and Isla Urbana, closed 2025 with the installation of 1,032 IoT-enabled rainwater harvesting systems in schools, benefiting more than 332,000 students.

4Q25 Highlights:

• CDP

Rotoplas achieved an "A" rating, the highest possible score, in CDP's 2025 Climate Change Questionnaire. This distinction was awarded to only two companies in Mexico and to just 4% of the 22,100 participating companies worldwide.

• Distributor Training – Peru

For the first time, Rotoplas Peru conducted a sustainability-focused training program for five key distributors, aimed at strengthening responsible practices across the value chain.

• Social Action – Mexico

Through the Rotogotas de Ayuda program, Rotoplas donated 1,500 water storage tanks across nine states in Mexico, benefiting more than 8,000 people and contributing to improved access to water in vulnerable communities.

Analyst Coverage

Investor Conference Call Invite

Friday, December 13, 2026, at 10:00am Mexico City time (11:00pm EST)
Speakers: Carlos Rojas (CEO), Andrés Pliego (CFO)
Registration: https://rotoplas.zoom.us/webinar/register/WN_2wyBXoaCSLCVqgOC0Jg6ZA#/registration

Investor Relations Contact

Disclaimer

This document may contain forward-looking statements regarding the future performance of Grupo Rotoplas S.A.B. de C.V. These statements are based on current management expectations and information available at the time of publication. Actual results may differ materially due to various risks, uncertainties, and external factors beyond the Company's control. Grupo Rotoplas assumes no obligation to update or revise any forward-looking statements.

About the Company

Grupo Rotoplas S.A.B. de C.V. is America's leading provider of water solutions, including products and services for storing, piping, improving, treating, and recycling water. With over 40 years of experience in the industry and 18 plants throughout the Americas, Rotoplas is present in 14 countries and has a portfolio that includes 27 product lines, a services platform, and an e-commerce business. Grupo Rotoplas has been listed on the Mexican Stock Exchange (BMV) under the ticker "AGUA" since December 10^th, 2014.

Pedregal 24, 19th Floor, Molino del Rey
Miguel Hidalgo
Zip Code 11040, Mexico City
T. +52 (55) 5201 5000
www.rotoplas.com

¹ In 2025, Adjusted EBITDA for the quarter includes $13 million in donations, and $15 million on a cumulative basis. By comparison, in 2024, $11 million were considered in the quarter and $16 million on a cumulative basis for the same period.
² Excluding leases.
³ Excluding leases. Includes $14 million related to the interest provision of the AGUA 17-2X Sustainable Bond in 2025 and $13 million in 2024.
⁴ Excluding leases.
⁵ In 2025, Adjusted EBITDA for the quarter includes $13 million in donations, and $15 million on a cumulative basis. By comparison, in 2024, $11 million were considered in the quarter and $16 million on a cumulative basis for the same period.
⁶ Excludes leases. Includes $14 million for interest provisions related to the AGUA 17-2X Sustainable Bond in 2025 and $13 million in 2024.
⁷ Excludes leases.

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SOURCE Grupo Rotoplas S.A.B. de C.V.