Grupo Rotoplas S.A.B. (AGUA) Q4 2025 earnings summary

Executive summary

• Achieved resilient sales and improved profitability in Q4 2025, with a focus on efficiency, discipline, and execution amid challenging conditions in Argentina and Mexico.

• Services segment expanded rapidly, with bebbia surpassing 168,000 subscribers and water treatment/recycling services growing; services sales grew 83% in Q4 and over 40% for the year.

• Embedded digital tools and AI across operations, investing in upskilling over 1,500 employees to drive productivity and data-driven decision-making.

• Sustainability integrated into operations, achieving a 26% reduction in carbon intensity, a 6% decrease in water consumption, and an "A" rating in CDP Climate Change.

• Net income reached MXN 91 million in Q4, reversing a prior loss; full-year net result was a loss of MXN 42 million.

Financial highlights

• Q4 2025 sales grew 3.9% year-over-year to MXN 2,829 million; full-year sales declined 1% to MXN 11,080 million.

• Services revenue up 83% in Q4 and 41% for the year; product sales down 3–5% year-over-year.

• Q4 EBITDA surged to MXN 366 million (12.9% margin), up from MXN 57 million in Q4 2024; full-year EBITDA was MXN 1,320 million, up 1%.

• Operating cash flow rose 81% year-over-year; cash and cash equivalents increased 17.7% to MXN 861 million.

• Net financial debt/EBITDA improved to 2.7x from 3.0x; total financial debt down 4.7–8.9% year-over-year.

Outlook and guidance

• Continued focus on operational efficiency, cost control, and working capital optimization.

• Services segment expected to remain at or near breakeven in 2026, with growth in recurring revenue models and expansion of bebbia and water treatment plants.

• U.S. business targets long-term EBITDA margins of 15%, with near-term margins just above breakeven.

• CapEx for 2026 to remain similar to 2025, focused on services and maintenance.

• Short-term priorities include cash generation, leverage reduction, and further sustainability improvements.