Loma Negra (LOMA) Q3 2025 earnings summary

Executive summary

• Net sales revenue for 3Q25 was Ps. 209,272 million (US$154 million), down 12.1% year-over-year, mainly due to a 13.2% decline in the Cement segment's top line and a 5% drop in shipping volumes amid economic and electoral uncertainty.

• Adjusted EBITDA fell 23.7% year-over-year to Ps. 43,536 million, with margin contracting to 20.8% from 24.0% in 3Q24.

• Net loss attributable to owners was ARS 8.5 billion (Ps. 8,468 million), compared to a net gain of ARS 27.9 billion in the prior year quarter, mainly due to lower financial results and FX impacts.

• Political and macroeconomic instability led to a deceleration in sector activity, but October volumes showed a 7.4% year-over-year rebound.

Financial highlights

• Gross profit dropped 32.5% year-over-year to Ps. 36,261 million, with gross margin down 524 basis points to 17.3%.

• Adjusted EBITDA margin contracted to 20.8%, down 315 bps year-over-year.

• Net financial loss was ARS 28.7 billion, compared to a gain of ARS 16.6 billion a year ago; net financial expenses rose 7.5% to ARS 17 billion.

• Cash flow from operating activities was ARS 32 billion (Ps. 31,937 million), down from ARS 84 billion (Ps. 83,758 million) in the prior year quarter.

• SG&A expenses decreased 11.7%, standing at 9.1% of sales, flat year-over-year.

Outlook and guidance

• October volumes showed renewed strength with a 7.4% year-over-year increase, and year-to-date volumes are also up 7.4%.

• Management expects price increases above inflation in the coming periods, with potential recovery in dollar terms if FX stabilizes.

• Optimism for industry recovery as post-election stability is expected to unlock investment projects and boost activity.

• Dividend payments are not expected for the remainder of the year, but may be reconsidered in 2026 depending on macro conditions.