Q2 2026 Loma Negra Compania Industrial Argentina SA Earnings Call Transcript
Key Points
- Consolidated net revenue increased 21% year-over-year to ARS238.1 billion, driven by favorable pricing dynamics.
- EBITDA generation per ton rose 14% year-over-year in dollar terms, showcasing operational resilience despite gradual demand recovery.
- Net debt to adjusted EBITDA ratio improved to 1.3 times, down from 1.47 times at the end of 2025, with no remaining structured debt maturities for the rest of the year.
- Cement volumes outperformed the industry, declining only 1.4% versus the industry's 5% drop, supported by bulk cement demand from larger projects.
- Concrete and aggregates segments posted significant margin improvements, with EBITDA margins expanding by 867 and 877 basis points, respectively, driven by pricing and cost control.
- The company completed the cancellation of its Class 4 corporate bond for $10 million, strengthening its balance sheet.
- Management remains cautiously optimistic about the second half, citing potential support from RIGI project approvals, easing monetary conditions, and expected improvements in real wages.
- Consolidated adjusted EBITDA declined 2.5% year-over-year to ARS48.2 billion, with margin contracting 97 basis points to 20.2%.
- Cement volumes decreased 1.4% year-over-year, impacted by heavy rains in April and weak retail demand in the bag segment.
- Cost of sales increased 3.7% year-over-year, driven by higher depreciation from the 25-kilogram bagging project, packaging costs, maintenance, and freight expenses.
- SG&A expenses rose 15.7% year-over-year, primarily due to higher salary expenses, leading to a 132 basis point increase in SG&A as a percentage of sales.
- The railroad segment's adjusted EBITDA margin turned negative at minus 5.2%, down from positive 9.8% a year ago, due to higher fuel and labor costs.
- Concrete and aggregates segments remain in negative EBITDA territory, with margins of minus 4.3% and minus 18.6%, respectively, despite improvements.
- Industry cement dispatches declined 5% year-over-year, reflecting a slower-than-expected demand recovery, with potential short-term volatility ahead.
Good day, and welcome to the Loma Negra second quarter 2026 conference call and webcast. (Operator Instructions) Also, Mr. Sergio Faifman will be responding in Spanish immediately following an English translation.
(Operator Instructions) Please note, that is being recorded. I would now like to turn the conference over to Mr. Diego Jalon, Head of IR. Please, Diego, go ahead.
Thank you. Good day, 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 today are Sergio Faifman, our CEO and Vice Chairman of the Board of Directors; and Marcos Gradin, our CFO. Sergio and Marcos will be available for the Q&A session.
Before we proceed, I would like to make the following safe harbor statements. Today's call will contain forward-looking statements and I refer you to the
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