Rheem Argentina: Negocia Deuda de $12.3M y Reporta Pérdidas Millonarias

Argentina’s Rheem, a leading manufacturer of electric and gas water heaters, is navigating a critical period of financial restructuring. The company is currently in negotiations with creditors regarding a total of US$12.3 million in loans that matured on December 31, 2025.

Financial Strain and Negotiations

According to a relevant fact presented to the National Securities Commission by Garovaglio and Zorraquín, its controlling entity, negotiations began in November of last year. “Negotiations with each of the parties involved have been ongoing since November 2025 to find a definitive solution for the cancellation of the loans,” the company explained. They anticipate concluding these conversations and implementing agreements before the end of the current fiscal year.

Did You Know? Rheem has maintained an industrial presence in Argentina since 1947, beginning as a steel drum manufacturer.

The company detailed three financial liabilities: US$6.9 million to Rheem Manufacturing Company (its parent company), US$4.8 million to Federico Zorraquín (shareholder and company president), and US$541,929 to Sol y Oro.

Impact of Economic Conditions

Simultaneously, Rheem reported that an agreement for the use of the Rheem brand – previously valued at US$1 annually from Rheem Manufacturing Company – has expired, opening negotiations for a new arrangement. Recent financial performance reflects broader economic challenges. Rheem reported a loss of $1136 million for the second half of 2025, a significant increase from the $324.9 million loss reported for the same period in 2024.

Between July and December 2025, Rheem’s revenue totaled $46.143 million, a slight increase of 1.7% compared to the same period the previous year. However, this marginal gain was insufficient to offset rising costs, with inputs and manufacturing expenses accounting for 71.1% of sales, up from 67.2% in the prior year.

Expert Insight: The increasing cost of inputs, coupled with a relatively stagnant revenue stream, suggests Rheem is facing significant margin pressure. Successful negotiation with creditors will be crucial to stabilizing the company’s financial position.

The company attributes some of these results to the political and macroeconomic context of the second half of the year. “The quarter was strongly conditioned by provincial elections first and then national elections. Forecasts and results from both heavily impacted market behavior; in particular, the exchange rate and interest rate postponed purchasing and investment decisions,” the report stated.

Rheem noted that sales were negatively impacted by exchange rate fluctuations and high interest rates, but maintained a good sales volume despite being unable to fully pass on inflationary price increases.

Looking Ahead

Despite these challenges, Rheem reported “satisfactory” sales in January and projects performance for February and March to be in line with previous years, ahead of the peak season in April. The company is continuing efforts and investments to improve margins and achieve price levels that can offset the impact of inflation.

Frequently Asked Questions

What is the total amount of loans Rheem is negotiating with creditors to restructure?

Rheem is negotiating with creditors regarding a total of US$12.3 million in loans.

When did the negotiations with creditors begin?

Negotiations with creditors began in November of last year.

What was Rheem’s reported loss for the second half of 2025?

Rheem reported a loss of $1136 million for the second half of 2025.

How might Rheem’s ability to navigate these financial challenges impact the Argentinian water heater market?