Loma Negra widens cement margin to 24.9% and cuts debt in third quarter
Key Facts
Loma Negra, Argentina’s largest cement producer, reported on November 5 results for the three months ended September 30, 2026, with the adjusted EBITDA margin for its cement, masonry cement and lime segment widening to 24.9%. The company said the margin rose 67 basis points year over year, as positive pricing trends offset pressure from higher cost per tonne and selling and administrative expenses. The segment margin improved as net revenue and volumes fell, presenting a mixed picture of the company’s performance during the quarter. The company also swung to net profit of 14.482 billion pesos, compared with a net loss of 11.451 billion pesos in the year-earlier period. Loma Negra attributed the turnaround mainly to a net financial gain, instead of the financial loss recorded a year earlier.
Net revenue was 270.107 billion Argentine pesos, down 3.2% from the third quarter of 2025. The company attributed the decline mainly to a 23.2% drop in concrete revenue, alongside a 1.8% decrease in cement revenue. Adjusted operating earnings were 54.189 billion pesos, down 6.7% in pesos year over year. In dollar terms, however, the figure was $42 million, up 16.2% from the third quarter of the previous year. The consolidated adjusted earnings margin narrowed to 20.1% from 20.8%, down 74 basis points year over year, in contrast with the widening margin in the cement, masonry cement and lime segment.
Gross profit was 46.421 billion pesos, down 4% from the third quarter of 2025. The gross margin was nearly unchanged at 17.2%, compared with 17.3% a year earlier. Cement, masonry cement and lime sales volumes fell 6.3% to 1.28 million tonnes. The company said heavy rainfall and weak activity weighed on shipments in July and August, before activity improved in September as weather conditions improved. The differing trends across the months show that volume pressure was not uniform throughout the quarter, although quarterly sales remained below year-earlier levels.
The decline was steeper in concrete, where volumes fell 24.9% to 0.12 million cubic meters. The company attributed this to a lower contribution from private projects, weak demand linked to public works, and reduced activity in industrial and architectural projects. Weak concrete sales were reflected in a 23.2% fall in segment revenue, the main factor the company cited in explaining the decline in net revenue. Cement revenue fell 1.8%, despite improved pricing that supported the segment margin. Demand and volume pressure thus coincided with higher cost per tonne and selling and administrative expenses, while positive pricing limited their impact on the cement segment margin.
The debt position improved alongside quarterly results: net debt was 220.486 billion pesos as of September 30, 2026, down 41.3% from 375.419 billion pesos a year earlier. The ratio of net debt to adjusted earnings for the last 12 months fell to 1.00 times, compared with 1.49 times in the third quarter of 2025 and 1.30 times in the second quarter of 2026. In a financing move ahead of the results announcement, the company issued a Class VII corporate bond on October 22 with a total value of $150 million. The bond carries an annual interest rate of 6.25% and a term of 36 months. Loma Negra said it plans to use the proceeds to refinance short-term liabilities.
The company scheduled its third-quarter results conference call for November 6, 2026, at 10:00 a.m. Eastern Time, or 12:00 p.m. Argentina time. The call is one day after the results announcement, according to the company’s schedule. The results leave investors weighing two contrasting themes: an improved cement segment margin and lower debt on one hand, and declining revenue and volumes and a narrower consolidated adjusted earnings margin on the other. September’s performance following weak shipments in July and August also stands out among the quarter’s details reported by the company. The company did not provide a forecast for subsequent periods in the information published here.