Loma Negra Compania Industrial Argentina (NYSE:LOMA) reported lower third-quarter revenue and adjusted earnings as wet weather and soft construction activity weighed on cement demand, though the company returned to a net profit and reduced debt.
Consolidated net revenue fell 3.2% year over year to ARS 270.1 billion, while cement volume declined 6.3%, CEO and Vice Chairman Sergio Faifman said on the earnings call. Adjusted EBITDA decreased 6.7% in pesos to ARS 54.2 billion, and the adjusted EBITDA margin narrowed 74 basis points to 20.1%.
Faifman said industry volume was stagnant amid heavy winter rainfall and weak activity in July and August, but improved in September as weather conditions became more favorable. He described the rebound as an encouraging sign for demand in the months ahead.
Profit Improves Despite Weaker Revenue
Net income attributable to company owners was ARS 15.2 billion, compared with a net loss of ARS 11.3 billion in the third quarter of 2025. CFO Marcos Gradin attributed the improvement primarily to a net financial gain of ARS 8.5 billion, versus a financial loss of ARS 38.3 billion a year earlier. Higher income tax expenses partly offset that benefit.
Gradin said the financial result reflected a more moderate pace of peso depreciation and lower net financial expenses. Consolidated gross profit fell 4% year over year, while selling, general and administrative expenses increased 16.1%, driven largely by advertising, promotional, consulting and IT spending.
The cement segment’s adjusted EBITDA margin rose 67 basis points to 24.9%, helped by favorable pricing. Concrete’s margin improved to negative 4.6% from negative 6.8%, although Gradin said volumes remained too low to adequately cover the segment’s costs. The railroad segment’s margin fell to negative 11% from positive 3.4%.
In dollar terms, consolidated adjusted EBITDA rose 16.2% to $42 million. Faifman said EBITDA per ton reached $32.5, up 24% year over year.
Weather and Projects Shape Demand Outlook
Industry cement dispatches declined 3.9% year over year during the quarter, Gradin said. July and August each fell 8.2%, while September dispatches rose 4.5% year over year and 18% from August as weather improved.
Bulk cement outperformed bagged cement, with volumes rising 2% and falling 8%, respectively. Faifman said the outlook for bagged cement remained less clear and would depend more closely on the real economy, wages and the return of credit.
Looking toward 2027, Faifman said through a translator that the company was participating in tenders for projects linked to Argentina’s RIGI investment regime. He said Loma Negra had announced its participation in a urea plant project, which he described as involving roughly 300,000 to 350,000 cubic meters of concrete.
No individual project carries significant weight in cement dispatches, Faifman said; rather, the combined effect could support volumes. He did not provide an estimate of RIGI-related tonnage for 2027, but said many tenders involve projects lasting 24 to 30 months. Oil and gas projects were advancing more quickly, while some mining projects faced delays, he said.
Faifman also said October volumes were again lower amid rain. He said the company planned to maintain similar pricing levels while seeking fixed- and variable-cost savings.
Debt Falls as Cash Flow Rises
Loma Negra ended the quarter with $145 million in net debt, down $40 million from the second quarter. Its net debt-to-adjusted EBITDA ratio declined to 1.0 times from 1.39 times a year earlier.
Operating cash flow more than doubled to ARS 86.3 billion, helped by favorable working capital movements, including improvements in receivables, lower inventories and higher tax payables, Gradin said. Capital spending was ARS 18.1 billion, compared with ARS 19.5 billion a year earlier.
After the quarter ended, the company issued a $150 million, 36-month corporate bond on October 22 at a 6.25% interest rate. Gradin said proceeds would mainly refinance upcoming structured debt maturities and extend the average maturity of its debt.
About Loma Negra Compania Industrial Argentina (NYSE:LOMA)
Loma Negra Compañía Industrial Argentina Sociedad Anónima is an Argentina-based producer of cement and related construction materials. The company supplies cement, masonry cement, concrete and aggregates for residential, commercial and infrastructure projects, serving customers through a network of industrial facilities and distribution channels.
Founded in 1926, Loma Negra has played a longstanding role in Argentina’s construction-materials industry. Its product portfolio includes bulk and bagged cement, ready-mix concrete and aggregates, as well as other materials used in building and civil-engineering applications.
