Loma Negra Reports 3Q26 results

Loma Negra posts a net profit turnaround and reduces leverage despite lower sales volumes.

What the company is saying

Loma Negra reports a 3.2% year-over-year decline in net sales revenue for 3Q26, totaling Ps. 270,107 million (US$ 177 million), attributing the drop primarily to a 23.2% fall in Concrete segment revenue and a 1.8% decrease in Cement segment revenue. The company highlights a swing to net profit of Ps. 14,482 million from a net loss of Ps. 11,451 million in 3Q25, driven by a net financial gain. CEO Sergio Faifman frames the quarter as one of operational resilience, noting that industry volumes were subdued due to heavy rainfall in July and August, but improved in September with better weather. He emphasizes margin improvement in the Cement segment and a strengthened balance sheet, with net debt reduced to Ps. 220,486 million (US$ 145 million) and the Net Debt/LTM Adjusted EBITDA ratio improving to 1.00x. The company also points to the successful post-quarter issuance of a US$ 150 million corporate bond to refinance structured debt maturities. The tone is measured, acknowledging ongoing demand challenges but stressing operational efficiency and financial discipline.

What the data suggests

The disclosed figures show that while Loma Negra's top-line performance weakened—net sales revenue fell 3.2% and cement, masonry, and lime volumes dropped 6.3%—profitability improved sharply due to financial gains. Adjusted EBITDA in pesos declined 6.7% to Ps. 54,189 million, but in dollar terms rose 16.2% to US$ 42 million, reflecting currency effects and cost controls. The consolidated EBITDA margin contracted by 74 basis points to 20.1%, but the Cement segment's margin expanded by 67 basis points to 24.9%. Net profit reached Ps. 14,482 million, reversing a prior-year loss, mainly due to a net finance gain of Ps. 8,478 million versus a loss of Ps. 38,317 million in 3Q25. Net debt fell to Ps. 220,486 million (US$ 145 million), lowering leverage to 1.00x Net Debt/LTM Adjusted EBITDA from 1.47x in FY25. Segment-level data reveal that Concrete and Aggregates volumes and margins remain under pressure, with the Concrete segment's margin still negative at -4.6% and Aggregates at -19.4%. Selling and administrative expenses rose 16.1% year-over-year, driven by higher advertising, consulting, and IT costs. The successful US$ 150 million bond issue post-quarter provides liquidity for upcoming maturities, supporting short-term financial stability.

Analysis

The announcement is a factual quarterly results release, with nearly all claims supported by realised, audited financial and operational data for 3Q26. The tone is measured, with the CEO's commentary referencing both challenges (volume declines, margin compression) and improvements (net profit swing, deleveraging, successful bond issuance). The only forward-looking statements are mild and relate to general optimism for the coming months, not to specific, unsubstantiated targets. The US$ 150 million bond issuance is disclosed as completed and is for refinancing, not new capex, so there is no mismatch between capital outlay and long-dated returns. All key profitability metrics (net profit, EBITDA, margins) are disclosed alongside revenue and volumes, meeting the completeness rule. There is no evidence of narrative inflation or overstatement.

Risk flags

• ●Demand weakness remains a core risk, as evidenced by a 6.3% decline in cement, masonry, and lime volumes, a 24.9% drop in concrete volumes, and a 16.1% fall in aggregates volumes. This exposes the company to further revenue and margin pressure if construction activity does not recover.
• ●Segment profitability is uneven, with the Concrete segment posting a negative EBITDA margin of -4.6% and Aggregates at -19.4%, highlighting structural challenges in absorbing fixed costs at lower volumes. Sustained underperformance in these segments could offset gains elsewhere.
• ●Selling and administrative expenses increased 16.1% year-over-year, outpacing revenue growth and eroding margins. If cost inflation continues without a corresponding revenue rebound, overall profitability could deteriorate.
• ●While net debt and leverage have improved, the company remains exposed to refinancing and currency risk, especially given Argentina's volatile macroeconomic environment. The recent US$ 150 million bond issue addresses near-term maturities but does not eliminate longer-term financial risk.
• ●The improvement in net profit was driven primarily by a net financial gain rather than core operating performance. If financial market conditions reverse, future quarters may not sustain this level of profitability.

Bottom line

Loma Negra's 3Q26 results show a clear financial turnaround, with net profit swinging positive and leverage metrics improving, even as sales volumes and revenue declined. The company's operational performance remains mixed: the Cement segment is resilient, but Concrete and Aggregates continue to struggle with negative margins and weak demand. The successful US$ 150 million bond refinancing reduces immediate liquidity risk, but underlying demand weakness and rising overhead costs remain concerns. The improvement in net profit is largely attributable to financial gains rather than a fundamental recovery in the operating business. Investors should watch for sustained volume recovery, especially in non-cement segments, and monitor cost discipline and further debt management actions. The most important takeaway is that while financial engineering has stabilized the balance sheet for now, a true recovery will require a rebound in construction demand and improved segment profitability.

Announcement summary

(NYSE:LOMA) Loma Negra, the leading cement producer in Argentina, reported results for the three-month period ended September 30, 2026. Net sales revenues for 3Q26 were Ps. 270,107 million (US$ 177 million), representing a 3.2% year-over-year decrease, mainly due to a 23.2% decline in the Concrete segment and a 1.8% decrease in the Cement segment. Consolidated Adjusted EBITDA was Ps. 54,189 million, down 6.7% YoY in pesos, but in dollar terms reached US$ 42 million, up 16.2% from 3Q25. The Consolidated Adjusted EBITDA margin was 20.1%, down 74 basis points from 20.8% in 3Q25. Net profit for the quarter was Ps. 14,482 million, compared to a net loss of Ps. 11,451 million in the same period last year, mainly due to a net financial gain versus a loss in 3Q25. Net Debt at quarter-end was Ps. 220,486 million (US$ 145 million), with a Net Debt/LTM Adjusted EBITDA ratio of 1.00x, improved from 1.47x in FY25 and 1.30x in 2Q26. After the quarter closed, Loma Negra issued a US$ 150 million corporate bond to refinance upcoming structured debt maturities. Cement, masonry, and lime sales volumes were 1.28 million tons, down 6.3% YoY, with September showing improvement after weak July and August due to heavy rainfall. Concrete volumes fell 24.9% YoY to 0.12 million m3, mainly from lower special project contributions and weaker public works demand. Aggregates volumes decreased 16.1% YoY to 0.26 million tons, and Railroad volumes declined 7.0% YoY to 1.05 million tons. Gross profit for 3Q26 was Ps. 46,421 million, down 4.0% YoY, with a gross profit margin of 17.2%. Selling and administrative expenses rose 16.1% YoY to Ps. 29,863 million, mainly due to higher advertising, promotional, consulting, and IT expenses. The Cement segment's Adjusted EBITDA margin expanded by 67 basis points to 24.9%, while the Concrete segment's margin improved by 220 basis points to negative 4.6%. The Aggregates segment's margin contracted by 277 basis points to negative 19.4%, and the Railroad segment's margin declined to negative 11.0% from positive 3.4% in 3Q25. Finance gain (cost), net, was Ps. 8,478 million for the quarter, compared to a loss of Ps. 38,317 million in 3Q25. The company presented certain financial figures in both U.S. dollars and pesos, with net revenue in US$ for 3Q26 at 177 million, Adjusted EBITDA at 42 million, and net profit at 23 million. The average exchange rate for the quarter was Ps. 1,500.51 per US$, and the end-of-period rate was Ps. 1,517.52 per US$. CEO Sergio Faifman commented that industry volumes remained subdued due to soft activity and heavy rainfall in July and August, but September improved with better weather. He noted that the Cement business improved its margin year-over-year and sequentially, and that the company strengthened its balance sheet, reducing net debt and improving the Net Debt to LTM Adjusted EBITDA ratio to 1x. He also highlighted the successful issuance of a US$ 150 million corporate bond after quarter-end to refinance debt maturities.

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