Loma Negra Compania Industrial Argentina Q1 2026 Earnings Report

Loma Negra Compania Industrial Argentina EPS Results

• Actual EPS: $0.25
• Consensus EPS: $0.05
• Beat/Miss: Beat by +$0.20
• One Year Ago EPS: N/A

Loma Negra Compania Industrial Argentina Revenue Results

• Actual Revenue: $158.23 million
• Expected Revenue: $119.83 million
• Beat/Miss: Beat by +$38.39 million
• YoY Revenue Growth: N/A

Loma Negra Compania Industrial Argentina Announcement Details

• Quarter: Q1 2026
• Date: 5/4/2026
• Time: After Market Closes
• Conference Call Date: Tuesday, May 5, 2026
• Conference Call Time: 10:00AM ET

Loma Negra Compañía Industrial Argentina S.A. is the leading cement producer in Argentina, with a history dating back to its founding in Buenos Aires in 1926. The company operates an integrated network of cement and lime plants, as well as quarries and ready-mix concrete facilities. Its operations encompass the extraction of limestone, the production of clinker, hydraulic cement and quicklime, and the distribution of aggregates and concrete for a wide range of construction projects.

The company’s product portfolio serves residential, commercial, industrial and public infrastructure markets across Argentina. Loma Negra’s cement brands are used in everything from highway and bridge projects to urban developments and housing initiatives. In addition to its core cement operations, the company maintains a network of ready-mix concrete plants that enable it to supply customized concrete mixes directly to construction sites, ensuring quality control and logistical efficiency.

With plants located in key provinces such as San Juan, San Luis and Tucumán, Loma Negra also exports cement and clinker to neighboring countries in South America. The company is part of the InterCement group, itself owned by the Camargo Corrêa conglomerate, and benefits from shared expertise in operations, technology and sustainability practices. Headquartered in Buenos Aires, Loma Negra continues to invest in production capacity, supply chain optimization and environmental management to support Argentina’s ongoing infrastructure and development needs.

Loma Negra Compania Industrial Argentina Q1 2026 Earnings Call Transcript

Key Takeaways

• Positive Sentiment: Consolidated volumes and revenue improved in Q1 with cement volumes up 1.8% y/y, consolidated net revenue up 1.1% y/y, and adjusted EBITDA of $45 million resulting in a 24.9% EBITDA margin (up 94 bps y/y).
• Positive Sentiment: Management attributes the margin recovery to active cost discipline and efficiency measures—EBITDA per ton rose to $37.6 (+5% y/y) and SG&A fell 3.9% y/y, driving a strong sequential margin rebound.
• Positive Sentiment: The balance sheet was strengthened by a well‑received $60 million Class 6 bond (36 months at 6.5%), leaving net debt at ~$186 million (net debt/EBITDA 1.3x) and covering 2026 USD maturities.
• Negative Sentiment: Key commercial weaknesses persist—bagged cement demand remains weak, concrete and aggregates volumes/price pressure continue, and both concrete (EBITDA margin -1.2%) and aggregates (-18.3%) stayed in negative territory; April volumes were also hit by heavy rains.
• Neutral Sentiment: Management is cautiously optimistic for the year (expects high single‑digit volume growth) but flags that the recovery depends on macro trends, credit normalization, and weather, so guidance is conditional on those factors.

Presentation

[Operator]

Good morning, and welcome to the Loma Negra first quarter 2026 conference call and webcast. All participants will be in a listen only mode. Should you need assistance, please signal conference specialist by pressing the star key followed by zero. After today's presentation, there will be an opportunity to ask questions. Mr. Sergio Faifman will also be responding in Spanish immediately following the English translation.

[Operator]

To ask a question, you may press star then one on your telephone keypad. To withdraw your question, please press star then two. Please note this event is being recorded. I would now like to turn the conference over to Mr. Diego Jalón, Head of Investor Relations. Please, Diego, go ahead.

[Diego Jalón, Head of Investor Relations at Loma Negra]

Thank you. Good morning, and welcome to Loma Negra's earnings conference call. By now, everyone should have access to our earnings press release and the presentation for today's call, both of which were distributed yesterday after market close. Joining me on the call this morning will be Sergio Faifman, our CEO and Vice President of the Board of Directors, and our CFO, Marcos Gradin. Both of them will be available for the Q&A session.

[Diego Jalón, Head of Investor Relations at Loma Negra]

Before we proceed, I would like to make the following safe harbor statements. Today's call will contain forward-looking statements. I refer you to the forward-looking statements section of our earnings release and recent filing with the SEC. We assume no obligation to update or revise any forward-looking statements to reflect new or changed events or circumstances. This conference call will also include discussion on non-GAAP financial measures. The full reconciliation of the corresponding financial measures is included in the earnings press release. Now, I would like to turn the call over to Sergio.

[Sergio Faifman, CEO at Loma Negra]

Thank you, Diego. Hello, everyone, and thank you for joining us this morning. I would like to start my presentation by discussing the highlights of the quarter. Marcos will take you through our market review and financial results. Following that, I will share some final remark before opening the call to your question. Starting with Slide 2.

[Sergio Faifman, CEO at Loma Negra]

We began the year with renewed expectation, although industry volume was relatively subdued at the start of the year, reflecting a slower exit from the summer season. March showed a more encouraging level of activity, allowing the quarter to close on a positive note, with cement volume growing 1.8% and consolidated net revenue up 1.1% year-over-year. In term of quarterly performance, we delivered improvement in margin and EBITDA generation per ton, both sequentially and year-over-year.

[Sergio Faifman, CEO at Loma Negra]

Consolidating Adjustment EBITDA margin reached 24.9%, expanding 94 basis points year-over-year and 528 basis points sequentially. EBITDA generation per ton stood at $37.6, up 5% year-over-year. As previously indicated, the action we have been implementing are beginning to be reflected in our results, positioned as well as await a more sustainable recovery in demand.

[Sergio Faifman, CEO at Loma Negra]

During the quarter, we successfully issued our Class 6 corporate bond for a total of $60 million, further strengthening our balance sheet and extending our debt maturity profile. As of quarter end, net debt stood at $186 million, representing a net debt to EBITDA adjustment, EBITDA ratio of 1.3x. I will now hand off the call to Marcos Gradin, who will go through our market review and financial result. Please, Marcos, go ahead.

[Marcos Gradin, CFO at Loma Negra]

Thank you, Sergio. Good morning, everyone. Please turn to Slide 4. The most recent economic data paints a mid picture at the start of 2026. The EMAE, Argentina's monthly eco-economic activity indicator, registered a 2.1% year-over-year decline in February, with industry and commerce posting the sharper contraction, down 8.7% and 7% respectively. This interrupted a two-month streak of positive readings recorded in December and January.

[Marcos Gradin, CFO at Loma Negra]

Growth continues to be driven by sectors linked to the external front: mining, agriculture, and financial intermediation, while domestic demand-driven sectors remain under pressure. Construction has shown greater resilience. The ISAC posted a 0.7% year-over-year decline in February. On a cumulative basis, the first two months of 2026 show a slight increase of 0.3% versus the same period last year. Leading indicator points in the same direction.

[Marcos Gradin, CFO at Loma Negra]

Registered private sector employment in construction grew 3.6% year-over-year in January, and building permits authorized in the same month expanded by 3.1%. The sector is not yet accelerating, but it is holding its ground. Within this context, the cement industry dispatches follow a similar pattern throughout the quarter. January and February were soft, weighed down by a later than usual exit from the summer season and still cautious activity levels.

[Marcos Gradin, CFO at Loma Negra]

March, however, was significantly stronger, increasing by 11% year-over-year and allowing the quarter to close broadly in line with the prior year. In terms of product mix, bulk segment outperformed, supported by larger scale projects, while bagged segment, which represents 56% of the industry mix, remained relatively weak, consistent with more cautious behavior in the retail and small contractor segment.

[Marcos Gradin, CFO at Loma Negra]

Looking ahead to the near term, April dispatch figures are expected to reflect the impact of an unusually rainy month. Persistence and intense rainfalls across much of the month disrupted construction activity in the country's main urban centers. We view this as a transitionary weather-related effect and do not see it as indicative at any change in underlying demand trends.

[Marcos Gradin, CFO at Loma Negra]

Turning to Slide 5 for overview of our top-line performance by segment. First quarter revenues increased by 1.1% year-over-year, reversing the trend of previous quarters. The performance was mainly driven by stronger top-line results in the cement business, followed by the railroad segment, partially offset by lower revenues in the concrete and aggregates segments. In the cement, masonry cement and lime segments, revenues increased by 0.8% year-over-year.

[Marcos Gradin, CFO at Loma Negra]

Volumes growth was partially offset by pricing, although its performance remained broadly in line with inflation. Volumes grew by 1.8% year-over-year, with all segment maintaining a strong performance, supported by higher activity from concrete producer, larger scale projects, and public works. Conversely, bag cement's volumes remain under pressure, reflecting softer retail demand and more cautious behavior among small contractors. March show a more favorable dynamic in bag cement dispatches, helping to narrow the year-over-year gap for the quarter.

[Marcos Gradin, CFO at Loma Negra]

Concrete revenues decreased by 1.9% year-over-year, despite a 14% increase in volumes. Volume growth was primarily supported by private developments related to logistic infrastructure and larger scale residential projects, while sustained public works activity in the province of Santa Fe supported dispatches in Rosario. On the other hand, pricing remained under pressure amid a highly competitive environment.

[Marcos Gradin, CFO at Loma Negra]

Aggregate revenues remained broadly stable, declining by 0.2% year-over-year. Sales volumes fell by 18.3%, driven by lower demand from concrete producers and construction companies. This negative volume impact was offset by improved pricing and a favorable sales mix. A reduced demand from road construction projects lowered the share of fine aggregates, which carry a lower average price.

[Marcos Gradin, CFO at Loma Negra]

Railroad revenues increased by 2.2% in the quarter. Higher transported volumes, up 14.8%, were partially offset by softer pricing conditions. Volume performance was mainly supported by increased transportation of granitic aggregate, cement, and chemicals. Moving on to Slide 7, consolidated gross profit remained broadly in line, declining slightly by 0.3%, where gross margin contracted by 37 basis points year-over-year to 26.1%.

[Marcos Gradin, CFO at Loma Negra]

Margins show a sequential recovery of 256 basis points compared to the previous quarter. Cost of sales increased by 1.6% year-over-year, mainly reflecting higher cost in the cement segment, partially offset by lower cost of sales in the concrete and aggregate businesses. There was a greater impact from depreciation following the completion of the 25 kg bagging project.

[Marcos Gradin, CFO at Loma Negra]

In the cement segment, cost of sales increased by 3.8% year-over-year and by 2% on a per ton basis. Higher depreciation impact the segment following the completion of the 25 kg bagging project. Packing related to the implementation of the 25 kg bag and maintenance put upward pressure on the cost base. Energy inputs, freights, and salaries contributed to cost containment efforts.

[Marcos Gradin, CFO at Loma Negra]

The other segments contributed positively to the consolidated results, posting gross margin expansion. Finally, SG&A expenses decreased by 3.9%. This decrease was mainly driven by lower salary and freight expenses, partially offset by higher IT and marketing expenses. As a percentage of sales, SG&A stood at 11.1%, decreasing by 58 basis points compared to first quarter of 2025. Please turn to Slide 8.

[Marcos Gradin, CFO at Loma Negra]

Consolidated Adjusted EBITDA for the quarter stood at $45 million, while in ARS it reached ARS 54.6 billion, reflecting a 5.1% year-over-year improvement. This increase was driven by improved results across all segments. As a result, the consolidated EBITDA margin expanded to 24.9%, representing a 94 basis point increase year-over-year. On a sequential basis, it improved significantly, rising 528 basis points quarter-over-quarter.

[Marcos Gradin, CFO at Loma Negra]

In the cement segment, Adjusted EBITDA margin stood at 28.8%, remaining broadly in line with the first quarter of 2025. Higher cost of sales and softer pricing were offset by a lower impact from SG&A expenses. The concrete segment Adjusted EBITDA margin expanded by 424 basis points, but remained negative at -1.2%, compared to -5.5% in the first quarter of 2025.

[Marcos Gradin, CFO at Loma Negra]

The recovery in sales volumes coupled with improved cost of sales have helped reduce the loss, although it continued to be affected by softer pricing dynamics in a highly competitive environment. Similarly, the aggregates segment improved its margin by 643 basis points, although it remained in negative territory, reaching -18.3% in the quarter from -24.7% in the same period last year.

[Marcos Gradin, CFO at Loma Negra]

The contraction in volumes and cost pressures were partially offset by improved pricing, mainly driven by a favorable product mix. Finally, in the railroad segment, the Adjusted EBITDA margin improved by 160 basis points year-over-year, reaching -3.9% in the first quarter compared to -5.5% in the same period of 2025.

[Marcos Gradin, CFO at Loma Negra]

Transported volumes increased, contributing to the dilution of fixed cost, although it was partially offset by a higher impact from SG&A and lower gains in the other gain and losses. Additionally, pricing continues to weigh on the segment's results amid a still challenging environment. Moving on to the bottom line on Slide 10.

[Marcos Gradin, CFO at Loma Negra]

Net profit attributable to the owners of the company totaled ARS 41 billion for the quarter, compared to ARS 28.5 billion in the first quarter of 2025. The improvement was mainly driven by higher financial gains, coupled with improved operating performance. However, this increase was partially offset by higher income tax expenses.

[Marcos Gradin, CFO at Loma Negra]

On the financial side, the company reported a net financial gain of ARS 32.4 billion for the quarter, compared to a net financial gain of ARS 11.8 billion in the same period of last year. The year-over-year improvement was mainly attributable to foreign exchange gains resulting from the appreciation of the peso, approximately 5% during the quarter on our US dollar-denominated liabilities. Additionally, net financial expenses increased by 19% to ARS 12.5 billion, primarily driven by lower finance income and higher financial expenses.

[Marcos Gradin, CFO at Loma Negra]

Moving on to the balance sheet, as you can see on Slide 11, we ended the quarter with net debt of ARS 259 billion and a net debt to EBITDA of 1.3x, down from 1.47 at the end of 2025. Cash flow from operating activities totaled ARS 19.7 billion in the quarter, compared to a cash flow of ARS 1.8 billion in first quarter of 2025.

[Marcos Gradin, CFO at Loma Negra]

The year-over-year improvement was mainly driven by lower working capital requirements and improved operating results. We saw improvements in account payables and our receivables, while inventory grew at a lower pace than last year, supporting cash generation. This came despite the quarter being one of the most working capital-intensive of the year, as we concentrate clinker production during the summer to avoid higher energy costs in the winter.

[Marcos Gradin, CFO at Loma Negra]

On the other hand, tax liability advanced from customers and trade receivables partially offset this positive effect. Regarding investment activities, the company used ARS 12 billion, with CapEx totaling ARS 11 billion, down following the completion of a 25 kg bagging project. On the financial side, the company generated ARS 16 billion during the quarter, mainly related to the issuance of the Class 6 bond and the subsequent repayment of borrowing.

[Marcos Gradin, CFO at Loma Negra]

In January 2026, the company completed the issuance of a $60 million Class 6 corporate bond with a 36-month tenure. This transaction was well received by the market, attracting strong investor demand, allowing the company to secure a 6.5% interest rate. With this issuance, the company has fully covered its US dollar maturities for the year and extended the duration of its debts, maintaining a comfortable maturity profile.

[Marcos Gradin, CFO at Loma Negra]

In US dollars, net debt stood at $186 million, with an average duration of 1.4 years. As of the quarter, 85% of the total debt was denominated in US dollars, while the remaining in pesos. For our final remark, I will hand the call back to Sergio. Thank you.

[Sergio Faifman, CEO at Loma Negra]

Thank you, Marcos. To finalize the presentation, I please ask you to turn to Slide 13. After a slow start to the year for the industry, March showed improved dynamic, allowing us to maintain our expectation for the year, subject to the evolution of the economy. The decline and stabilization in interest rates, along with easing of monetary dynamics, should have a positive impact in the coming quarter, with credit expected to regain positive momentum.

[Sergio Faifman, CEO at Loma Negra]

In this context, we remain confident in sustaining the positive trend in margin recovery that began to materialize this quarter. The expansion in Adjusted EBITDA margin reflects the tangible results of our ongoing focus on cost discipline, operational efficiency, and our leadership position in the industry. We expect these efforts to continue supporting performance as the year progresses. Looking ahead, we maintain a cautiously optimistic outlook.

[Sergio Faifman, CEO at Loma Negra]

Key growth driver remain in place. Infrastructure investment linked to recent project, the housing deficit, road concession, and the broader construction cycle continue to support medium-term demand. While the pace of recovery has been somewhat slower than initially anticipated, we see condition for a gradual and sustained improvement taking shape. We are well positioned to capture the opportunity this recovery will bring.

[Sergio Faifman, CEO at Loma Negra]

Our operational platform, financial discipline, and the steps taken to grow our capacity and efficient level as well prepared to respond as volume consolidating in the coming quarter. Finally, the completion of the restructuring process of our indirect controlling shareholder marks the beginning of the new chapter for Loma. I would like to welcome the new shareholder of InterCement and the new member of our board of directors.

[Sergio Faifman, CEO at Loma Negra]

We expect this new phase to further strengthen our leadership position and reinforce our commitment to the sustainability development of the country. This is end of our prepared remark. We are now ready to take questions. Operator, please open the call for questions.

[Operator]

Thank you. We will now conduct a question and answer session. If you would like to ask a question, please press star then one on your telephone keypad. A confirmation tone will indicate that your line in the question queue. You may press star then two if you would like to remove your line. For participants using speaker equipment, it may be necessary to pick up your handset prior to pressing the keys.

[Operator]

Once again, star one on your telephone keypad to ask a question. We also would like to ask that you please limit your questions to one question and one follow-up. If you have additional questions you may re-queue for those questions and they will be addressed. Also, please note that Mr. Sergio Faifman will be responding in Spanish immediately following an English translation. Please hold momentarily while we assemble our roster. The first question will come from Sofia Vatta with Latin Securities. Please go ahead.

[Sofia Vatta, Research Analyst at Latin Securities]

Hi, Loma Negra team. Thank you for taking my question. Regarding the cement dispatches and given that April is likely to come in weak, what are the trends you are seeing in May, and how do you expect volumes for the rest of 2026? Thank you.

[Sergio Faifman, CEO at Loma Negra]

Hi, Sofia. Thank you for the question. As you mentioned, the volume for April are going to be coming lower than what we have been seeing before. Clearly, this has to be due to the impact of weather. We are still optimistic for the volumes for May and the remains of the year. [Non-English content] We believe that many of the projects that have been announced should start boosting volumes ahead. [Non-English content] We are still thinking of growth for the year of one high single digit.

[Sofia Vatta, Research Analyst at Latin Securities]

Perfect. Thank you.

[Operator]

The next question will come from Andrés Cardona with Citi. Please go ahead.

[Andrés Cardona, VP of Equity Research at Citi]

Hi, good morning, everyone. Thanks for the opportunity. With the change in the shareholder base of InterCement and a healthier balance sheet nowadays, how do you see Loma Negra's business plan changing because of this new outlook for both, right? InterCement, but in particular concerned about how your strategy could change going forward.

[Sergio Faifman, CEO at Loma Negra]

Hi, Andrés. Thank you for your question. [Non-English content] Loma always have had a business plan, thinking about Loma and not InterCement. [Non-English content] Logically, this change in our indirect controlling shareholder, brings us some opportunities of thinking on a longer on longer terms. [Non-English content] This probably can bring us more opportunities to keep on growing in the coming years. [Non-English content] Logically thinking about controlling shareholders that have a more healthy financial situation.

[Operator]

The next question will come from Daniel Rojas with Bank of America. Please go ahead.

[Daniel Rojas, VP at Bank of America]

Good morning. Thank you for taking the question. I wanted to take a step back to look at your commercial strategy now in a context of a low inflationary environment. You're probably having to shift your paradigm as you try to look at other competitors and how they look or think about pricing and how you look at pricing yourself.

[Daniel Rojas, VP at Bank of America]

I was just curious as to this change can give us any color on how you're thinking about pushing price increases through your portfolio aggregates, cement or concrete. How should we as analysts should start thinking about the cement industry in Argentina as you normalize and your commercial strategy starts to look more like other countries. Thank you.

[Sergio Faifman, CEO at Loma Negra]

Hi, Daniel. Thank you for your question. [Non-English content] In this scenario, we continue our commercial strategy. [Non-English content] Where we try to maximize price and profitability. [Non-English content] Logically, with this new context, we keep a close eye on costs. [Non-English content] With this cost management and price increases, keep on improving profitability ahead. [Non-English content] We are confident to keep the pricing power and profitability shown in this first quarter for the upcoming quarters.

[Daniel Rojas, VP at Bank of America]

Okay, thank you. If I might have a follow-up. When you think about this new strategy, are you pushing for prices on a quarterly basis, or should we continue to expect monthly adjustments? I'm just trying to get a better sense of how you are gonna be able to adapt to the new inflationary environment.

[Sergio Faifman, CEO at Loma Negra]

[Non-English content] We come from scenarios where we were, you know, increasing prices on a monthly basis. [Non-English content] Now, depending on the impact of inflation in our costs, those adjustments could be monthly, on a two-month basis or on a three-month basis. [Non-English content] We are not foreseeing a change in our commercial strategy or in the market.

[Daniel Rojas, VP at Bank of America]

Okay. If, one last one, sorry, are you seeing pressure from energy prices like diesel or gasoline, which your peers or another logistics or transportation sectors are seeing because of what's happening in the Middle East?

[Sergio Faifman, CEO at Loma Negra]

[Non-English content] We saw some impact regarding gasoline or diesel in regards of freights. [Non-English content] Since the beginning of the war, the gasoline has increased around 20%. [Non-English content] This has an impact on freights and the raw materials that also have an impact due to freights. [Non-English content] It's important to have in mind that we use for our production, natural gas. [Non-English content] The contracts that we used and the ones that we are going to start using in our on our next production cycle, they didn't suffer any increases. Furthermore, we have signed contracts with lower terms.

[Daniel Rojas, VP at Bank of America]

Okay, thank you. That’s very clear.

[Sergio Faifman, CEO at Loma Negra]

You're welcome.

[Operator]

The next question is a follow-up from Andrés Cardona with Citi. Please go ahead.

[Andrés Cardona, VP of Equity Research at Citi]

Hi, guys. Thanks. I just wanted to try to get some color about how margins could look like into the second Q. It was a very positive surprise to see the performance, so during the first quarter. Just wanted to understand if this number remain relatively flat, maybe improve further, or we should see a deterioration because of the higher fuel prices or anything. Just directionally speaking, how do you see margin second Q?

[Sergio Faifman, CEO at Loma Negra]

Hi again, Andrés. Thank you for your question. [Non-English content] The truth is, for us, margins were not a surprise. [Non-English content] We have been working on cost management very strongly. [Non-English content] A consistent strategy regarding pricing and market. [Non-English content] Due to different situations, last year we had a drop in margins. [Non-English content] We are reverting that situation. [Non-English content] For the upcoming months, we are expecting to maintain this level of margins or even improve them.

[Operator]

This will conclude our question and answer session. I would like to turn the conference back over to Mr. Diego Jalón for any closing remarks. Please go ahead.

[Diego Jalón, Head of Investor Relations at Loma Negra]

Thanks again for joining us today. We appreciate your continued interest and look forward to reconnecting with you in our next call. Thanks again, and have a nice day.

[Operator]

The conference is now concluded. Thank you for attending today's presentation. You may now disconnect.

Participants

Analysts

• Andrés Cardona, VP of Equity Research at Citi
• Daniel Rojas, VP at Bank of America
• Diego Jalón, Head of Investor Relations at Loma Negra
• Marcos Gradin, CFO at Loma Negra
• Sergio Faifman, CEO at Loma Negra
• Sofia Vatta, Research Analyst at Latin Securities