Loma Negra Compañía Industrial Argentina Sociedad Anónima

Third-quarter revenue was ARS 180.7 billion, down 21.2% year over year. Consolidated adjusted EBITDA was USD 55 million, or ARS 43 billion, down 18.5% year over year, while adjusted EBITDA margin was 24%, up 78 basis points. Consolidated gross profit declined 23.5% and gross margin was 22.6%, down 69 basis points. Net profit attributable to owners of the company was ARS 20.9 billion versus ARS 22.9 billion a year ago. Net debt ended at ARS 172 billion, or $177 million, and net debt/EBITDA was 1.03x, down from 1.4x at year-end 2023. Operating cash flow was ARS 64 billion, capital expenditure was ARS 17.4 billion, and financing activities used ARS 34.8 billion. For the next period, management did not give formal numeric revenue or EBITDA guidance, but said margins should improve in the coming quarter as winter energy costs roll off; for 2025, they expect bulk cement to start benefiting from larger projects and public works changes.

Sergio Faifman emphasized that the quarter showed a clear sequential improvement and suggested the company had moved past the worst of the recession, even if the recovery is still early. He repeatedly pointed to Loma Negra’s operational flexibility and production strategy as the reason margins held up despite lower dispatches and winter-related cost pressure. His tone was cautiously optimistic, highlighting lower inflation, lower rates, rising real wages, improving country risk, and mortgage/credit as potential catalysts for construction demand.

Marcos Gradin focused on the segment mix, cost control, and balance-sheet improvement. He said SG&A fell 12.9% to 9.2% of sales, gross margin held at 22.6%, and adjusted EBITDA margin remained resilient at 24% despite seasonally higher costs. On liquidity and capital allocation, he noted ARS 64 billion of operating cash flow, ARS 17.4 billion of CapEx with about 40% going to the 25-kilogram bags project, and ARS 34.8 billion used in financing, mainly debt repayment and interest. He also highlighted lower indebtedness by ARS 40 billion during the quarter and a clearer debt maturity profile, with Class 2 bonds due in 4Q25 and Class 3 and 4 in 2026.

Analysts focused on pricing behavior, the lagging bulk segment, dividends, the 25-kilo bag project, and possible change-of-control issues tied to InterCement. Management said price increases may move from monthly to every three or four months if inflation stays lower, to avoid large catch-up adjustments later. For bulk cement, management pointed to larger private projects, RIGI-related investment, and a possible evolution in public works as the key catalysts, while saying the impact should begin in coming months and into next year. On dividends, Sergio said nothing is planned for this year and capital-allocation alternatives are still under review; he also said there is no change-of-control covenant impact on the company.