Loma Negra reported net sales revenues of ARS174.511bn (US$149m) in the second quarter of 2025, representing a YoY fall of eight per cent as the top line of the company’s cement business contracted by 9.9 per cent. The decline in sales has been attributed to pricing prices as the country is in the midst of a fragile macroeconomic recovery. Softer demand and a low-inflation environment limited price increases.

While net sales revenues were down, sales volumes improved across the board with cement, masonry and lime sales up 11.1 per cent YoY to 1.21Mt in the 2Q25 when compared with 1.09Mt sold in the equivalent period of the previous year. Industrial and commercial projects and larger housing developments drove strong bulk cement dispatches while bagged sales continued the trend seen in the first quarter, posting single-digit YoY growth. Concrete sales expanded by 44 per cent YoY to 0.13Mm3 from 0.09Mm3 while aggregates saw 34.1 per cent growth to 0.30Mt from 0.22Mt. The railroad business saw a 10.6 per cent increase in sales volumes to 0.92Mt from 0.83Mt. 

Consolidated adjusted EBITDA decreased by 30.6 per cent YoY to ARS35.005bn and by 32.6 per cent in US dollar terms in the 2Q25. As a result the consolidated adjusted EBITDA margin declined by 691 basis points YoY to 21.2 per cent from 28.1 per cent. 

Net profit dropped to ARS385m in the 2Q25 from ARS41.246bn in the year-ago period. 

The company’s net debt reached ARS256.186m, representing a net debt/LTM adjusted EBITDA ratio of 1.34x, compared to 0.89x in 2024. 

Commenting on the financial and operating performance for the second quarter of 2025, Sergio Faifman, Loma Negra’s CEO, noted: “The Argentine economy continues to recover, with INDEC reporting a 5.8 per cent YoY GDP growth for the first quarter of the year. Cement dispatches in the industry also improved, maintaining the positive trend observed in previous quarters. Our own volumes grew 11 per cent YoY during the quarter, and we expect this trend to continue, reaffirming our double-digit growth outlook for 2025.

“In terms of results, in this context of a still-incipient recovery for the sector, margins for the quarter stood at 21.2 per cent on a consolidated basis, showing a year-over-year decline driven by the impact of a more challenging competitive dynamic, typical of a recovery phase that has yet to consolidate.

First half of 2025
In the first half of 2025, Loma Negra posted net revenue of ARS247.472bn, down 8.5 per cent YoY from ARS379.607bn. 

Cement, masonry and lime sales volumes saw a 10 per cent improvement to 2.36Mt in the 1H25 when compared with the 1H24, when sales in this segment were at 2.15Mt. Concrete volumes advanced 34 per cent YoY to 0.23Mm3 from 0.17Mm3. Aggregate volumes increased by 22 per cent yoY to 0.54Mt from 0.44Mt over the same period while railroad volumes were up 14.8 per cent YoY to 1.75Mt from 1.53Mt. 

Adjusted EBITDA fell by 18 per cent to ARS81.324bn in the 1H25 from ARS99.124bn in the year-ago period. The adjusted EBITDA margin contracted by 276 basis points to 22.6 per cent from 25.4 per cent in the 1H24. 

The company’s net profit shrank by 81.7 per cent YoY to ARS22.912bn to ARS125.061bn. 

Outlook
Loma Negra is playing the long game. “Loma Negra's management is betting on Argentina's infrastructure boom to drive long-term growth. CEO Sergio Faifman highlighted the 5.8 per cent GDP growth in Q1 2025 and rising cement dispatches as early indicators of a durable recovery. The company's targets – 47.3 per cent market share in residential construction, 44.6 per cent in commercial, and 40.9 per cent in infrastructure by 2025 – reflect confidence in its ability to outperform rivals,” according to Eli Grant of AInvest.

“The residential construction market, growing at 7.2 per cent YoY, and the commercial segment, expanding at 5.9 per cent, offer fertile ground for expansion. Loma Negra's digital transformation (38 per cent of facilities automated) and US$56.2m in digital infrastructure investments further enhance its efficiency, enabling it to scale operations without proportionally increasing costs,” he adds.