Loma Negra (LOMA) Q2 2025 earnings summary

Executive summary

• Cement dispatches grew 11% year-over-year, supporting a recovery trend despite challenging market conditions and lower inflation.

• Net revenues declined 8% year-over-year to AR$174.5 billion (US$149 million), mainly due to a 9.9% drop in the cement segment's top line despite higher volumes.

• Adjusted EBITDA dropped 30.6% year-over-year to AR$37.0 million (US$34 million), with margin contracting to 21.2%.

• Net profit attributable to owners fell sharply to AR$0.4 billion from AR$41.3 billion in 2Q24, mainly due to weaker operational and financial results.

• Launched a new 25-kg cement bag, requiring a US$70 million investment in industrial infrastructure.

Financial highlights

• Consolidated gross profit fell 30.5% year-over-year, with gross margin down 659 basis points to 20.4%.

• Adjusted EBITDA margin contracted to 21.2%, a 691 basis point decline year-over-year.

• Net debt at quarter-end was AR$256 billion (US$215 million), with Net Debt/LTM Adjusted EBITDA at 1.34x, up from 0.89x.

• SG&A expenses rose 5.3% year-over-year, mainly due to higher salary and insurance costs, reaching 10.7% of sales.

• Operating cash flow turned negative at AR$22.3 billion, mainly due to higher income tax payments and lower operational results.

Outlook and guidance

• Management expects the positive trend in cement volumes to continue, reaffirming a double-digit growth outlook for 2025.

• Margins are expected to remain under pressure due to a competitive recovery phase and challenging pricing dynamics.

• Pricing is anticipated to recover in the coming months, with year-end increases expected to outpace inflation.

• Margins are projected to improve in the next quarters, continuing into the fourth quarter.

• Focus remains on operational efficiency and innovation, highlighted by the launch of 25-kg cement bags.