Intelligence
Pricing

Materials

Loma Negra Reports 1Q26 Financial Results: Strong Profit Growth Amidst Market Fluctuations

Author:
FAQsIR News Desk
Last Updated:
Reading Time
2 min

BUENOS AIRES, AR / ACCESS Newswire / May 4, 2026 / Loma Negra, Argentina's leading cement manufacturer, has released its financial results for the first quarter of 2026, showcasing notable growth across several key performance indicators.

#Highlights of 1Q26 Results

The company's net sales for the three months ending March 31, 2026, reached Ps. 218,739 million (approximately US$ 149 million), reflecting a 1.1% year-over-year increase. This growth is primarily attributed to a 0.8% rise in revenue from the Cement segment, underscoring Loma Negra's pivotal role in the construction market.

#Profit Growth and Financial Health

Net profit for Loma Negra surged to Ps. 40,627 million, a significant increase of 44.2% compared to the previous year. This improvement is largely driven by enhanced operational performance and favorable foreign exchange dynamics, which resulted in higher financial gains due to the Argentine peso's appreciation.

#Operational Performance and Segment Analysis

Sales volumes for cement, masonry, and lime products grew by 1.8% year-over-year, totaling 1.17 million tons, with a strong rebound observed in March after a sluggish start to the year. The company noted that bulk cement dispatches showed positive trends, attributed to increased activity from concrete producers and construction firms.

However, the Aggregates segment faced challenges, experiencing an 18.3% contraction in sales volumes, while the Concrete segment reported a substantial 14.1% increase, mainly driven by private sector developments.

#Cost Management and EBITDA Margins

Loma Negra's cost of sales rose by 1.6% year-over-year to Ps. 161,707 million, driven by increases in raw material costs. The company reported an Adjusted EBITDA of Ps. 54,566 million, reflecting a 5.1% year-over-year increase, with an Adjusted EBITDA margin improving to 24.9%.

#Debt and Cash Flow Positioning

The company's net debt stood at Ps. 259,407 million (US$ 186 million), with a Net Debt to Adjusted EBITDA ratio of 1.33x, improving from 1.47x in the previous fiscal year. Enhanced cash flow generated from operations amounted to Ps. 19,712 million, showing a stark contrast to the previous year where cash flow was negative.

#Looking Ahead

CEO Sergio Faifman expressed optimism for the remainder of 2026, indicating that March's activity levels suggest a potential recovery in demand. Loma Negra celebrates its centennial this year, reaffirming its commitment to maintaining its leadership position in the market.

#Key Takeaways

  • Net sales reached Ps. 218,739 million, up 1.1% year-over-year.
  • Net profit increased by 44.2% to Ps. 40,627 million, supported by operational improvements.
  • Adjusted EBITDA stood at Ps. 54,566 million, with margins improving to 24.9%.
  • Net debt decreased relative to EBITDA, enhancing the company's financial stability.
  • Strong performance anticipated moving forward as construction activity begins to pick up.

Original source: Read original article

Frequently Asked Questions

Loma Negra reported net sales revenues of Ps. 218,739 million (US$149 million), reflecting a 1.1% year-on-year increase. Adjusted EBITDA was Ps. 54,566 million, up 5.1% YoY, highlighting operational improvements and a stronger EBITDA margin of 24.9%.
The net profit for Loma Negra increased significantly to Ps. 40,627 million from Ps. 28,178 million in the same period last year, driven primarily by improved operational performance and higher financial gains.
Sales volumes of cement, masonry, and lime grew by 1.8% year-on-year, with particularly strong performance in March indicating a positive trend. This suggests a potential stabilisation in demand following a soft start to the year.
Loma Negra's net debt stood at Ps. 259,407 million, with a Net Debt to Adjusted EBITDA ratio of 1.33x. This indicates a slight improvement in leverage, reflecting effective financial management and operational cash generation.
The Cement segment remained stable with a minor 0.8% revenue increase, while Concrete volumes surged by 14.1%. Although some segments like Aggregates faced contraction, overall positive volume trends in key areas suggest resilience in Loma Negra's operations.
Management expressed a cautious optimism about demand recovery as they anticipate continued improvement in operational performance, especially as they celebrate the company's centennial, signalling potential growth opportunities.
The appreciation of the peso has contributed positively to Loma Negra’s net financial results, with gains attributed largely to foreign exchange from dollar-denominated liabilities, which enhances their financial positioning in a volatile economy.
The issuance of the Class 6 bond for US$60 million is a strategic move to strengthen Loma Negra's financial profile, allowing them to extend the maturity of existing debt and potentially stabilising their funding structure moving forward.