Loma Negra's Q2 2026 Earnings: A Tale of Resilience Amidst Turbulent Markets
During a challenging second quarter 2026, Loma Negra, a leading cement producer in Argentina, showcased its resilience and adaptability. The company's quarterly earnings call, held on August 7th, offered valuable insights into its performance amidst a more moderate economic growth trajectory.
The quarter was marked by weak April sales, largely due to heavy rains that impacted the country's main urban centers. However, May and June trends normalized closer to last year's levels, with cement volume declining 1.4% year-over-year. Notably, Loma Negra outperformed the industry, as its top line continued to show positive trends despite volumes lagging behind.
"We have not yet fully regained the momentum we were expecting," said Sergio Faifman, Loma Negra's CEO and Vice Chairman of the Board of Directors. "Performance during the quarter was mainly affected by weak April, impacted by heavy rains. May and June trends were more in line with the level registered a year ago."
Despite the challenges, Loma Negra reported consolidated net revenue of ARS 238.1 billion, up 2.1% year-over-year. Its consolidated adjusted EBITDA reached ARS 48.2 billion, down 2.5% year-over-year, with margin contracting to 20.2%. However, the company's dollar-denominated EBITDA generation per ton increased 14% year-over-year, demonstrating its operational resilience.
"In terms of quarterly performance, margin in pesos showed some compression, mainly reflecting higher costs and depreciation," added Faifman. "Our top line continued to show positive trends even as volumes remained lagging."
Notably, Loma Negra cancelled its Class 4 corporate bonds for a total of $10 million during the quarter, eliminating any remaining structured debt maturity for the rest of the year. As of quarter-end, net debt stood at $185 million, representing a net debt to LTM adjusted EBITDA ratio of 1.3 times.
Meanwhile, Marcos Gradin, Loma Negra's CFO, highlighted the company's cautious optimism regarding the market. "The most recent economic data shows a more moderate growth trajectory in the second quarter," he said. "Construction activity has shown a similar mixed trend."
Loma Negra's ability to navigate turbulent markets and adapt to changing demand trends is a testament to its operational resilience and strategic planning. As the company continues to evolve and respond to market conditions, investors and stakeholders will be closely watching for further developments.
