Loma Negra Reports 3Q26 results

BUENOS AIRES, Argentina, Nov. 5, 2026 /PRNewswire/ -- Loma Negra, (NYSE: LOMA; BYMA: LOMA), ("Loma Negra" or the "Company"), the leading cement producer in Argentina, today announced results for the three-month period ended September 30, 2026 (our "3Q26 Results").

• Net sales revenues stood at Ps. 270,107 million (US$ 177 million), and decreased by 3.2% YoY, mainly explained by lower revenues in the Concrete segment, down 23.2%, together with a 1.8% decrease in the top line of the Cement segment.
• Consolidated Adjusted EBITDA reached Ps. 54,189 million, decreasing by 6.7% YoY in pesos, while in dollars it reached US$ 42 million, up 16.2% from 3Q25.
• The Consolidated Adjusted EBITDA margin stood at 20.1%, decreasing by 74 basis points YoY from 20.8%.
• Net Profit of Ps. 14,482 million, compared to a net loss of Ps. 11,451 million in the same period of the previous year, mainly driven by a net financial gain in the quarter compared to a net financial loss in 3Q25.
• Net Debt stood at Ps. 220,486 million (US$ 145 million), representing a Net Debt/LTM Adjusted EBITDA ratio of 1.00x, compared to 1.47x in FY25 and 1.30x reported in 2Q26.

The Company has presented certain financial figures, Table 1b and Table 11, in U.S. dollars and Pesos without giving effect to IAS 29. The Company has prepared all other financial information herein by applying IAS 29.

Commenting on the financial and operating performance for the third quarter of 2026, Sergio Faifman, Loma Negra's Chief Executive Officer, noted: "Industry volumes remained subdued during the third quarter, as July and August were affected by still-soft activity levels and heavy winter rainfall. September, however, showed a significant improvement on the back of more favorable weather, which we view as an encouraging sign for the months ahead.

Regarding our third-quarter results, the Cement business slightly improved its margin both year-over-year and sequentially, despite the third quarter typically being our lowest-margin quarter due to seasonal costs. At the consolidated level, margins in pesos contracted, as our other businesses weighed on the overall result. In dollar terms, EBITDA per ton improved meaningfully year-over-year, highlighting the strength of our cash generation even in a still-challenging demand environment. We also continued to strengthen our balance sheet: net debt declined compared to the second quarter, bringing our Net Debt to LTM Adjusted EBITDA ratio to 1x. Furthermore, after the close of the quarter, we successfully issued a US$ 150 million corporate bond to refinance upcoming structured debt maturities.

Looking ahead, we remain positive about the remainder of the year and will stay focused on preserving the efficiency gains we have achieved."

Sales volumes of cement, masonry cement, and lime decreased by 6.3% year over year in 3Q26, to 1.28 million tons. Quarterly volumes were primarily affected by weak dispatches in July and August due to heavy rainfall. September saw an improvement in activity, supported by more favorable weather conditions, with volumes exceeding those recorded in the same month of the previous year.

When analyzing dispatch modes, results remained mixed. Bulk cement dispatches continued their positive trend, supported by higher activity levels among concrete producers, industrial customers, and construction companies for both private and public works. Bagged cement dispatches remained under pressure, reflecting softer demand from retail customers engaged in self-construction and refurbishment, amid subdued economic activity and weaker domestic consumption.

Our Cement segment also includes masonry cement and lime, which follow demand trends similar to those of bagged cement. Their weaker performance during the quarter was one of the factors behind the segment's underperformance relative to the industry.

Concrete segment volumes decreased by 24.9% year over year, mainly due to a lower contribution from special projects, weaker demand associated with public works, and reduced activity in industrial and architectural projects. These factors were partially offset by higher shipments in Rosario.

Aggregates segment volumes decreased by 16.1% year over year, mainly reflecting the same factors that affected the Concrete segment, particularly weaker demand from public works and construction companies.

Railroad segment volumes decreased by 7.0% compared with the same quarter of 2025, primarily due to lower transportation volumes of grains, frac sand, and granitic aggregates. This decline was partially offset by higher volumes of chemicals and gypsum, which benefited from the resumption of operations following the disruption to the rail network in Bahía Blanca caused by the severe storm in March 2025.

Net revenue decreased by 3.2% to Ps. 270,107 million in 3Q26, compared with Ps. 279,075 million in the same quarter of the previous year. The decline was primarily driven by weaker performance in the Concrete business, followed by the Cement and Railroad segments, and was partially offset by higher revenue in the Aggregates segment.

Revenue from the Cement, Masonry Cement and Lime segment decreased by 1.8% year over year. Sales volumes declined by 6.3%, mainly reflecting weak dispatches in July and August mainly due to adverse weather conditions. This was partially offset by stronger activity in September, when volumes exceeded those recorded in the same month of the previous year marking a strong sequential recovery. Performance across dispatch channels remained mixed, with bulk cement benefiting from more resilient demand, while bagged cement continued to lag. Positive pricing dynamics partially offset the impact of lower volumes on the segment's performance.

Concrete revenue decreased by 23.2% in the quarter compared to 3Q25, as a 24.9% decline in volumes, driven by the dynamics discussed above, was only partially offset by improved pricing dynamics.

Revenues in the Aggregates segment increased by 3.7% year over year, as favorable pricing dynamics and an improved sales mix more than offset the 16.1% contraction in volumes.

Railroad segment revenue decreased by 2.2% year over year in 3Q26, as favorable pricing dynamics were insufficient to offset the 7.0% decline in volumes.

Cost of sales decreased by 3.0% YoY to Ps. 223,687 million in 3Q26, primarily reflecting lower costs in the Cement and Concrete segments, partially offset by higher cost of sales in the Railroad and Aggregates businesses.

In the Cement segment, unit costs increased by 2.6% YoY, below the increase in average revenue per ton, resulting in an improvement in per-ton profitability. The increase was mainly driven by higher depreciation. On the other hand, the use of clinker produced during the warmer months, together with the planned shutdown of most kilns during the quarter, helped mitigate exposure to higher winter energy costs, contributing to keeping costs broadly contained despite the seasonal pressures typically associated with the third quarter. In addition, lower fuel, electricity, packaging, and contractor costs had a favorable impact compared with the same period of the previous year.

Gross profit decreased by 4.0% in the third quarter to Ps. 46,421 million, compared with Ps. 48,356 million in 3Q25. The gross profit margin remained virtually stable year over year, reaching 17.2% in 3Q26 compared with 17.3% in 3Q25.

Selling and Administrative Expenses (SG&A) increased by 16.1% YoY to Ps. 29,863 million in 3Q26, compared with Ps. 25,714 million in 3Q25. This increase was primarily driven by higher advertising and promotional expenses, as well as higher consulting and IT expenses. SG&A expenses represented 11.1% of net revenue, an increase of 184 basis points compared with 3Q25.

Adjusted EBITDA decreased by 6.7% year over year in 3Q26, totaling Ps. 54,189 million compared with Ps. 58,057 million in the same period of the previous year. The decrease was primarily attributable to weaker performance in the Railroad segment and, to a lesser extent, a contraction in Aggregates and other businesses, partially offset by improved results in Cement and Concrete.

Consequently, the Adjusted EBITDA margin contracted by 74 basis points to 20.1% in 3Q26, from 20.8% in 3Q25. Sequentially, the margin remained broadly stable, declining by 18 basis points from 20.2% in the previous quarter to 20.1% in 3Q26.

In particular, the Adjusted EBITDA margin of the Cement, Masonry Cement, and Lime segment expanded by 67 basis points to 24.9%, primarily reflecting favorable pricing trends, which more than offset the pressure from higher costs per ton and SG&A expenses.

The Adjusted EBITDA margin of the Concrete segment expanded by 220 basis points to negative 4.6% in 3Q26, from negative 6.8% in 3Q25. Favorable pricing dynamics helped narrow the segment's loss, although profitability continued to be affected by still-challenging market conditions, as current volume levels remain insufficient to efficiently absorb the segment's cost structure.

The Aggregates segment's Adjusted EBITDA margin contracted by 277 basis points to negative 19.4% in the quarter, from negative 16.7% in the same period of the previous year. Favorable pricing dynamics partially offset the decline in volumes, while higher costs continued to weigh on the segment's profitability.

In the Railroad segment, the Adjusted EBITDA margin declined to negative 11.0% in 3Q26, from positive 3.4% in 3Q25, mainly due to higher track maintenance costs and, to a lesser extent, higher third-party services and payroll costs. Lower SG&A expenses partially offset this impact.

During 3Q26, the Company recorded a Total Net Financial Gain of Ps. 8,478 million, compared with a net financial loss of Ps. 38,317 million in 3Q25. The year-over-year improvement was primarily attributable to lower foreign exchange losses on U.S. dollar-denominated liabilities. Although the peso continued to depreciate against the U.S. dollar during the quarter, the pace of depreciation was more moderate than in 3Q25, resulting in a lower year-over-year foreign exchange loss.

Meanwhile, net interest expense decreased by 66.2% year over year to Ps. 7,875 million, from Ps. 23,300 million in 3Q25, mainly reflecting lower interest expense and a lower level of financial debt.

The Company reported Net Profit of Ps. 14.5 billion in 3Q26, compared with a Net Loss of Ps. 11.5 billion in the same period of the previous year. The improvement was primarily attributable to a net financial gain in the quarter, compared with a net financial loss in 3Q25, as detailed in the Finance Costs section, despite weaker operating performance during the quarter. This improvement was partially offset by higher income tax expense, as the Company recorded a net tax expense in 3Q26, compared with a net tax benefit in the same period of the previous year.

Net Profit Attributable to Owners of the Company totaled Ps. 15.2 billion. During the quarter, the Company reported earnings per common share of Ps. 26.0797 and earnings per ADR of Ps. 130.3984, compared with a loss per common share of Ps. 19.3528 and a loss per ADR of Ps. 96.7640 in 3Q25.

As of September 30, 2026, total Cash, Cash Equivalents, and Investments totaled Ps. 71,611 million, compared with Ps. 153,654 million as of September 30, 2025. Total net debt at the end of the quarter amounted to Ps. 220,486 million. Total debt consisted of Ps. 201,321 million in short-term debt, including the current portion of long-term debt, representing 69% of total debt, and Ps. 90,777 million in long-term debt, representing the remaining 31%.

At the end of 3Q26, 91% of Loma Negra's total debt, or Ps. 265,093 million, was denominated in U.S. dollars, while the remaining 9%, or Ps. 27,004 million, was denominated in Argentine pesos.

As of September 30, 2026, 91% of the Company's consolidated debt accrued interest at fixed rates, while the remaining 9% accrued interest at variable rates, primarily linked to short-term peso-denominated interest rates.

At the end of the quarter, Loma Negra's total debt had an average maturity of 1.2 years. The net debt-to-Adjusted EBITDA ratio (LTM), stood at 1.00x, representing a significant improvement from 1.49x at September 30, 2025, and 1.47x as of December 31, 2025.

On October 22, 2026, the Company issued its Class 7 corporate bond for an aggregate principal amount of US$150.0 million, with a 36-month tenor and an interest rate of 6.25%. The proceeds will be used to refinance short-term liabilities, strengthening the Company's debt profile by extending its average debt maturity.

In 3Q26, net cash generated from operating activities totaled Ps. 86,265 million, compared with Ps. 42,590 million in the same period of the previous year. The year-over-year improvement was mainly attributable to favorable working capital dynamics, reflecting an improvement in trade and other receivables, together with lower inventory levels and higher tax payables.

During the quarter, the Company used Ps. 24,952 million in financing activities, mainly in connection with loan repayments. This compares with Ps. 99,057 million net cash generated by financing activities in 3Q25, primarily related to the issuance of the Class 5 corporate bonds. In addition, the Company used Ps. 18,757 million in investing activities, compared with Ps. 82,604 million in the same period of the previous year. CAPEX totaled Ps. 18,060 million, compared with Ps. 19,463 million in the same period of the previous year.

On October 22, 2026, the Company issued its Class 7 Notes in the local market for an aggregate principal amount of US$150.0 million. The main terms and conditions of the issuance are set forth below.

Adjusted EBITDA is calculated as net profit plus financial interest, net plus income tax expense plus depreciation and amortization plus exchange rate differences plus other financial expenses, net plus tax on debits and credits to bank accounts, plus share of loss of associates, plus net Impairment of Property, plant and equipment, and less income from discontinued operation. Loma Negra believes that excluding tax on debits and credits to bank accounts from its calculation of Adjusted EBITDA is a better measure of operating performance when compared to other international players. 

Net Debt is calculated as borrowings less cash, cash equivalents and short-term investments.

Founded in 1926, Loma Negra is the leading cement company in Argentina, producing and distributing cement, masonry cement, aggregates, concrete and lime, products primarily used in private and public construction. Loma Negra is a vertically-integrated cement and concrete company, with nationwide operations, supported by vast limestone reserves, strategically located plants, top-of-mind brands and established distribution channels. Loma Negra is listed both on BYMA and on NYSE in the U.S., where it trades under the symbol "LOMA". One ADS represents five (5) common shares. For more information, visit www.lomanegra.com.

The Company presented some figures converted from Pesos to U.S. dollars for comparison purposes. The exchange rate used to convert Pesos to U.S. dollars was the reference exchange rate (Communication "A" 3500) reported by the Central Bank for U.S. dollars. The information presented in U.S. dollars is for the convenience of the reader only. Certain figures included in this report have been subject to rounding adjustments. Accordingly, figures shown as totals in certain tables may not be arithmetic aggregations of the figures presented in previous quarters.

Rounding: We have made rounding adjustments to reach some of the figures included in this report. As a result, numerical figures shown as totals in some tables may not be an arithmetic aggregation of the figures that preceded them.

This release contains forward-looking statements within the meaning of federal securities law that are subject to risks and uncertainties. These statements are only predictions based upon our current expectations and projections about possible or assumed future results of our business, financial condition, results of operations, liquidity, plans and objectives.  In some cases, you can identify forward-looking statements by terminology such as "believe," "may," "estimate," "continue," "anticipate," "intend," "should," "plan," "expect," "predict," "potential," "seek," "forecast," or the negative of these terms or other similar expressions. The forward-looking statements are based on the information currently available to us. There are important factors that could cause our actual results, level of activity, performance or achievements to differ materially from the results, level of activity, performance or achievements expressed or implied by the forward-looking statements, including, among others things: changes in general economic, political, governmental and business conditions globally and in Argentina, changes in inflation rates, fluctuations in the exchange rate of the peso, the level of construction generally, changes in cement demand and prices, changes in raw material and energy prices, changes in business strategy and various other factors. You should not rely upon forward-looking statements as predictions of future events. Although we believe in good faith that the expectations reflected in the forward-looking statements are reasonable, we cannot guarantee that future results, levels of activity, performance and events and circumstances reflected in the forward-looking statements will be achieved or will occur. Any or all of Loma Negra's forward-looking statements in this release may turn out to be wrong. You should consider these forward-looking statements in light of other factors discussed under the heading "Risk Factors" in the prospectus filed with the Securities and Exchange Commission on October 31, 2017 in connection with Loma Negra's initial public offering. Therefore, readers are cautioned not to place undue reliance on these forward-looking statements. Except as required by law, we undertake no obligation to update publicly any forward-looking statements for any reason after the date of this release to conform these statements to actual results or to changes in our expectations.

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SOURCE Loma Negra