Loma Negra Compañía Industrial Argentina Sociedad Anónima

Third-quarter consolidated revenue was Ps. 170 billion, down 3.2% year over year. Consolidated adjusted EBITDA was Ps. 54.2 billion, down 6.7% year over year, with adjusted EBITDA margin at 20.1% versus 20.9% a year ago. Gross profit declined 4% year over year and gross margin was 17.2%, down 14 bps. Cement volume decreased 6.3%; industry cement dispatches declined 3.9%; concrete revenues fell 23.2%; railroad revenues fell 2.2%; and aggregates revenue rose 3.7%. Net income attributable to owners was Ps. 15.2 billion versus a net loss of Ps. 11.3 billion in the third quarter of 2025. Cash flow from operating activities totaled Ps. 86.3 billion, capex was Ps. 18.1 billion, and net debt was Ps. 145 million at quarter-end with net debt/adjusted EBITDA at 1.0x. After quarter end, the company issued a $150 million local corporate bond with a 30-month tenor and a 6.25% coupon to refinance upcoming maturities. Management did not give formal quarterly or full-year revenue/EPS guidance, but said pricing should remain at similar levels and that profitability will depend on cost discipline, weather normalization, and a gradual build in demand from large projects and RIGI-linked initiatives.

Sergio Faifman said the quarter was held back by heavy winter rainfall and subdued activity, but he emphasized that volumes respond quickly when weather improves, pointing to September as proof. He said the company is seeing more large-scale projects move from announcements to execution, including tenders linked to the RIGI regime, and that these should gradually support demand into 2027. His tone was cautiously optimistic, with an emphasis on pricing discipline and strict cost control.

Marcos Gradin highlighted the key financial details: revenue down 3.2%, gross margin at 17.2%, adjusted EBITDA of Ps. 54.2 billion, and operating cash flow of Ps. 86.3 billion, more than double the prior-year quarter. He also noted net debt of Ps. 220 billion in pesos and $145 million in dollar terms, with net debt/adjusted EBITDA at 1.0x versus 1.39x a year ago, plus average debt maturity of 1.2 years. He said the October $150 million bond refinancing extends maturities and strengthens the debt profile.

Analysts focused on what would drive a 2027 volume recovery, whether RIGI-linked projects could materially lift demand, and what the fourth-quarter pricing and margin outlook looked like. Management said no single project is large enough on its own; rather, the sum of multiple projects, including a urea plant project and several tenders, could lift dispatches, while weather normalization remains an immediate driver. On pricing, management said it is consolidating its pricing strategy and expects similar price levels, while continuing to look for fixed- and variable-cost savings.