Loma Negra Compania Industrial Argentina Q2 Earnings Call Highlights

Revenue grew despite weaker volumes: Second-quarter revenue rose 2.1% year over year to ARS 238.1 billion, supported by pricing, while cement volumes fell 1.4% but outperformed the broader 5% industry decline.

Margins remained under pressure: Adjusted EBITDA declined 2.5% to ARS 48.2 billion, with the margin falling to 20.2% as higher packaging, maintenance, freight and depreciation costs offset pricing gains. Concrete and aggregates saw particularly sharp volume declines.

Cash flow and balance-sheet metrics improved: Net profit increased to ARS 7.5 billion, operating cash flow turned positive at ARS 18.1 billion, and net debt fell to 1.3 times adjusted EBITDA. Management expects a gradual, uneven recovery, with RIGI-backed projects, road concessions and seasonal demand potentially supporting volumes later in 2026.

Loma Negra Compania Industrial Argentina NYSE: LOMA reported second-quarter 2026 revenue growth despite lower cement volumes, as pricing supported its top line while higher costs and depreciation weighed on margins. Consolidated net revenue rose 2.1% year over year to ARS 238.1 billion. Cement volumes declined 1.4%, outperforming an industrywide 5% decline in cement dispatches during the quarter. Chief Executive Officer and Vice Chairman Sergio Faifman said heavy rains in April affected activity, while May and June trends returned closer to year-earlier levels.

Adjusted EBITDA totaled ARS 48.2 billion, down 2.5% from the prior-year quarter, and the adjusted EBITDA margin declined 97 basis points to 20.2%. In U.S. dollar terms, EBITDA was $38 million, while EBITDA generation per ton increased 14% year over year to $32.1, according to the company.

Demand Recovery Remains Uneven Chief Financial Officer Marcos Gradin said Argentine economic and construction indicators showed a mixed picture during the quarter. Argentina’s monthly economic activity indicator rose 1.6% year over year in April but slowed to 0.2% growth in May. Construction activity, as measured by the ISAC indicator, declined 2.8% in April before rising 4.1% in May. Within cement, bulk dispatches continued to outperform as concrete producers, industrial customers and construction companies supported demand. Bagged cement, however, remained under pressure as retail demand for self-construction and refurbishment projects stayed weak.

Faifman said the company expects the recovery to remain gradual and potentially volatile rather than follow a straight line. Management said projects approved under Argentina’s RIGI investment regime are beginning to advance and could support volumes in coming months. The company also cited road concessions granted by the government as a potential second-half contributor, although it said those projects were not yet supporting volumes.

During the question-and-answer session, Diego Jalón, Loma Negra’s head of investor relations, said the company does not expect a significant improvement in credit access during the second half. Still, he said RIGI-related projects and road concessions could provide support, while September typically begins the stronger seasonal period for cement dispatches.

Segment Performance and Margin Pressure Cement, masonry cement and lime: Revenue increased 2.2% year over year despite a 1.4% decline in volumes. Segment adjusted EBITDA margin was 23.9%, down 81 basis points. Concrete: Revenue fell 11.2% as volumes declined 18.6%, reflecting lower demand from special projects including port infrastructure and wind farms nearing completion. EBITDA margin improved to negative 4.3% from negative 13% a year earlier. Aggregates: Revenue declined 10.3% and volumes fell 12.2%, with ...