Loma Negra Reports 2Q26 results

BUENOS AIRES, Argentina, Aug. 6, 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 June 30, 2026 (our "2Q26 Results").

2Q26 Key Highlights

• Net sales revenues stood at Ps. 238,053 million (US$ 166 million), and increased by 2.1% YoY, mainly explained by an increase of 2.2% in the top line of the Cement segment.
• Consolidated Adjusted EBITDA reached Ps. 48,175 million, decreasing by 2.5% YoY in pesos, while in dollars it reached US$ 38 million, up 12.5% from 2Q25.
• The Consolidated Adjusted EBITDA margin stood at 20.2%, decreasing by 97 basis points YoY from 21.2%.
• Net Profit of Ps. 7,043 million, compared to a net profit of Ps. 514 million in the same period of the previous year, mainly driven by lower total net financial cost.
• Net Debt stood at Ps. 273,650 million (US$ 185 million), representing a Net Debt/LTM Adjusted EBITDA ratio of 1.30x, compared to 1.47x in FY25 (and a slight improvement vs. 1.33x reported in 1Q26).

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 second quarter of 2026, Sergio Faifman, Loma Negra's Chief Executive Officer, noted: "As we move through the second quarter, industry volumes have not yet fully regained the momentum we were expecting. Performance during the quarter was mainly affected by a weak April, impacted by heavy rains, while May and June trends were more in line with the levels registered a year ago.

Regarding our second-quarter results, margins in pesos remained broadly in line year-over-year, while the sequential comparison was more affected by higher costs, some of them seasonal. Our top line continued to show a positive trend, although volumes are still lagging. In dollar terms, EBITDA per ton improved year-over-year and remains at healthy levels, underscoring the resilience of our operations even as demand recovery remains gradual.

Looking ahead, we will continue to focus on preserving our efficiency gains as we await a stronger level of activity in the second half of the year."

Overview of Operations

Sales Volumes

Sales volumes of cement, masonry, and lime in 2Q26 decreased by 1.4% year-over-year (YoY) to 1.19 million tons. Volumes for the quarter were mainly affected by a weak April, impacted by heavy rains, while May and June were in line with the year-over-year comparison.

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 continued to lag, as their target clients — retail customers for self-construction and refurbishment — were more affected by the economic environment and current consumer sentiment.

Concrete segment volumes decreased by 18.6% year-over-year, mainly reflecting a lower level of special projects, together with a decline in demand related to public works and, to a lesser extent, softer demand from industrial and architecture-related projects. This was partially offset by stronger dispatches in Rosario, supported by public infrastructure works. Demand from the construction companies segment remained subdued, continuing to represent a lower share of the sales mix compared to the previous year.

The Aggregates segment posted a 12.2% year-over-year contraction, mainly reflecting the same dynamics affecting the Concrete segment, particularly weaker demand from public works and construction companies.

Railroad segment volumes increased 10.1% compared to the same quarter of 2025, primarily driven by higher transportation volumes of grains, frac sand and cement, partially offset by lower volumes of granitic aggregates. Frac sand volumes also benefited from the resumption of operations following the disruption to the rail network in Bahía Blanca caused by the severe storm in March 2025.

Review of Financial Results

Net Revenues

Net revenue increased by 2.1% to Ps. 238,053 million in 2Q26, from Ps. 233,056 million in the comparable quarter last year, mainly driven by stronger top-line performance in the Cement business, followed by the Railroad segment, partially offset by lower revenues in the Concrete and Aggregates segments.

The Cement, Masonry Cement and Lime segment revenue increased by 2.2% YoY. Volumes decreased by 1.4% YoY, as a weak April, impacted by heavy rains, was only partially offset by May and June, which came in line with last year. Dispatch mix remained mixed, with bulk cement continuing to outperform on the back of steady demand from concrete producers, industrial clients, and construction companies, while bagged cement remained soft amid a more challenging environment for retail and self-construction demand. Pricing dynamics remained positive, supporting the segment's top-line performance.

Concrete revenue decreased by 11.2% in the quarter compared to 2Q25, as an 18.6% decline in volumes — driven by the dynamics discussed above — was only partially offset by favorable pricing dynamics, which supported the segment's top-line performance despite a highly competitive environment.

Revenues in the Aggregates segment decreased by 10.3% YoY, as the 12.2% volume contraction was only partially offset by favorable pricing dynamics, which also supported the top line, together with a favorable sales mix.

Railroad revenues increased by 8.6% in 2Q26 compared to the same quarter of 2025, as higher transported volumes, up 10.1%, more than offset softer pricing dynamics, which did not contribute to the segment's top-line growth.

Cost of sales, and Gross profit

Cost of sales increased by 3.7% YoY to Ps. 192,390 million in 2Q26, mainly reflecting higher costs in the Cement and Railroad segments, partially offset by lower cost of sales in the Concrete and Aggregates businesses.

In the Cement segment, unit costs increased by 5.4% YoY, outpacing the 3.6% increase in average pricing and resulting in some margin compression on a per-ton basis. The increase was mainly driven by higher depreciation, following the completion of the 25-kilogram bagging project after June 2025, along with higher packaging costs associated with its implementation. Maintenance costs also rose, together with freight costs, reflecting the pass-through of higher fuel prices. Thermal and electric energy costs remained broadly in line. Additionally, as planned, most kilns were shut down in May to avoid operating during the winter months and thereby limit exposure to higher energy costs.

Gross profit decreased by 3.9% in the second quarter, totaling Ps. 45,663 million compared to Ps. 47,535 million in 2Q25. The gross profit margin contracted by 121 basis points year-over-year, reaching 19.2%.

Selling and Administrative Expenses

Selling and administrative expenses (SG&A) increased by 15.7% YoY to Ps. 28,858 million in 2Q26, compared to Ps. 24,942 million in 2Q25. This increase was mainly driven by higher salary expenses. As a percentage of net sales, SG&A expenses represented 12.1% of net sales, an increase of 142 basis points compared to 2Q25.

Adjusted EBITDA & Margin

Adjusted EBITDA decreased by 2.5% year-over-year in 2Q26, totaling Ps. 48,175 million compared to Ps. 49,420 million in the same period of the previous year, mainly driven by a weaker result in the Railroad segment, together with, to a lesser extent, a contraction in Cement, partially offset by improved results in Concrete and Aggregates.

As a result, the Adjusted EBITDA margin contracted by 97 basis points to 20.2% in 2Q26 from 21.2% in 2Q25. On a sequential basis, the margin declined by approximately 466 basis points from 24.9% in the previous quarter.

In particular, the Adjusted EBITDA margin of the Cement, Masonry and Lime segment contracted by 81 basis points to 23.9%, mainly reflecting higher cost of sales, as discussed above, coupled with higher SG&A expenses.

Meanwhile, the Concrete segment's Adjusted EBITDA margin expanded by 867 basis points to -4.3% in 2Q26, from -13.0% in 2Q25, as favorable pricing dynamics, coupled with lower costs, helped reduce the negative result, although it remained affected by higher SG&A expenses. Similarly, the Aggregates segment improved its margin by 877 basis points, reaching -18.6% this quarter from -27.3% in the same period last year, also supported by favorable pricing and cost control, although it remained in negative territory.

In the Railroad segment, the Adjusted EBITDA margin declined to -5.2% in 2Q26 from a positive 9.8% in 2Q25, mainly due to higher cost of sales, driven by increased fuel and labor costs, while SG&A expenses remained broadly in line.

Finance Costs-Net

During 2Q26, the Company reported a total net financial loss of Ps. 5,626 million, compared to a net financial loss of Ps. 22,291 million in 2Q25. This YoY improvement was mainly attributable to lower foreign exchange losses on our U.S. dollar-denominated liabilities. While the peso continued to depreciate against the U.S. dollar during the quarter, the pace of depreciation was more moderate than the one registered in 2Q25, resulting in a smaller foreign exchange loss year-over-year.

Meanwhile, net financial expense decreased by 26.9% year-over-year to Ps. 9,548 million, from Ps. 13,070 million in 2Q25, primarily driven by an improvement in financial income, coupled with lower financial expenses.

Net Profit and Net Profit Attributable to Owners of the Company

The Company reported Net Profit of Ps. 7.0 billion in 2Q26, compared to Ps. 0.5 billion in the same period of the previous year. The improvement was mainly driven by lower net financial losses, as discussed in the Finance Cost section, despite lower operating performance during the quarter. This increase was partially offset by higher income tax expense, as the Company recorded a net tax expense in 2Q26, compared to a net tax benefit in the same period last year.

Net Profit Attributable to Owners of the Company totaled Ps. 7.5 billion. During the quarter, the Company reported earnings per common share of Ps. 12.7982 and earnings per ADR of Ps. 63.9908, compared to earnings per common share of Ps. 0.9094 and earnings per ADR of Ps. 4.5469 in 2Q25.

Capitalization

As of June 30, 2026, total Cash, Cash Equivalents and Investments amounted to Ps. 28,855 million, compared to Ps. 21,227 million as of June 30, 2025. Total Net Debt at quarter-end stood at Ps. 273,650 million, composed of Ps. 46,592 million in short-term borrowings, including the current portion of long-term debt (15% of total debt), and Ps. 255,914 million in long-term borrowings (85% of total debt). As of the end of 2Q26, 87% (Ps. 263,586 million) of Loma Negra's total debt was denominated in U.S. dollars, while 13% (Ps. 38,919 million) was denominated in pesos.

As of June 30, 2026, 87% of the Company's consolidated debt accrued interest at a fixed rate, while the remaining 13% accrued interest at a variable rate, primarily linked to short-term peso market rates.

In May 2026, the Company cancelled its Class 4 corporate bond (ON Clase 4) for a total principal amount of US$ 10.0 million. Following this cancellation, the Company has no remaining debt maturities for the rest of the year.

At quarter-end, Loma Negra's total debt had an average maturity of 1.4 years.

The Net Debt to Adjusted EBITDA (LTM) ratio stood at 1.30x as of the end of the second quarter, compared to 1.34x as of June 30, 2025, and 1.47x as of December 31, 2025.

Cash Flows

In 2Q26, net cash generated from operating activities totaled Ps. 18,098 million, compared to net cash used of Ps. 29,743 million in the same period of the previous year. The YoY improvement was mainly driven by an improvement in working capital, primarily reflecting substantially lower income tax payments during the quarter, together with a stronger increase in tax liabilities. This was partially offset by higher working capital requirements in trade and other receivables, as well as accounts payable.

During the quarter, the Company used Ps. 30,241 million in financing activities, mainly related to the repayment of borrowings, including the cancellation of the Class 4 corporate bond for US$ 10 million, compared to net proceeds generated in 2Q25, mainly associated with bond issuances. Additionally, Ps. 9,883 million were used in investing activities, as CAPEX remained lower following the completion of the 25-kilogram bagging project.

Definitions

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.

About Loma Negra
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.

Note
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.

Disclaimer
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