Grupo Rotoplas S.A.B. de C.V., a prominent provider of water solutions in the Americas, has announced its financial results for the third quarter of 2025. The report highlights a decline in net sales and a significant net loss, revealing the challenges faced by the company in a turbulent market environment.
In the third quarter, Rotoplas reported net sales of $2.7 billion, marking a 5.9% decrease compared to the same period in 2024. Cumulatively, net sales for the first nine months of 2025 reached $8.3 billion, reflecting a 2.7% decline on a year-over-year basis. Despite these setbacks, the company recorded an EBITDA of $285 million, which represents a 15.0% increase compared to Q3 2024, with a margin of 10.7%.
Notably, the third quarter saw a substantial net loss of $198 million, attributed primarily to increased financial expenses related to foreign exchange losses and inflationary pressures in Argentina. For the first nine months of the year, the cumulative net loss stood at $133 million.
CEO’s Perspective on Current Challenges
In a statement addressing the quarterly results, Carlos Rojas Aboumrad, CEO of Rotoplas, emphasized the difficulties encountered during the quarter. He noted that the construction market in Argentina remained weak and that heavy rains in Mexico impacted product demand. Despite these challenges, Rojas highlighted the company’s resilience and commitment to maintaining industry leadership.
He stated, “Operating expenses remained under strict control, resulting in a more efficient and sustainable cost structure. This positions us well to expand margins as market conditions improve.”
Rojas also pointed out that the services segment saw a remarkable growth of 50.0% during the quarter, contributing positively to the overall performance. The bebbia service, which reached over 159,000 active subscribers by the end of September, was a significant driver of this growth.
Financial Overview and Future Outlook
The financial performance of Rotoplas reflects the ongoing challenges faced across various markets. In Mexico, net sales increased by 1.5% in Q3, although a cumulative decrease of 5.2% was noted due to a high comparison base from the previous year. The product segment experienced a 9.9% decline in sales, offset by growth in services.
In Argentina, sales fell sharply by 31.8% in the third quarter, illustrating a challenging market environment characterized by low demand and increased competition. The United States market experienced an 8.5% decrease in sales for the quarter but showed a cumulative growth of 10.9% for the year.
Looking ahead, Rotoplas is prioritizing disciplined expense management and cash generation to support a solid balance sheet and long-term value creation for stakeholders. The company plans to focus its capital expenditures on enhancing the services segment, particularly in areas such as water treatment and recycling.
As the company navigates these turbulent waters, the commitment to efficient operations and sustainable practices remains paramount. The upcoming investor conference call scheduled for October 23, 2025, will provide further insights into the company’s strategic direction and performance metrics.
