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- **Q3 Challenges**: 5% YoY volume decline, $36M EBITDA (23.7% YoY drop in pesos), and net debt of $206M amid macro uncertainty.
- **Positive Signs**: October volumes up 7.4% YoY, successful 25kg bag launch, and bulk cement resilience (44% of industry dispatches).
- **Forward Outlook**: Pricing adjustments above inflation expected; no dividends in 2025, potential 2026 restart; Q4 volumes supported by post-election investments and FX stability.

**【Management Opening Remarks】**
- Diego Jalón welcomed participants and outlined the agenda, emphasizing forward-looking statements and non-GAAP financial measures. The earnings release and presentation were made available prior to the call.

**【CEO Summary Section】**
- **Industry Challenges**: The quarter saw a 5% YoY decline in industry activity due to election-related uncertainty and higher interest rates. However, September and October volumes showed improvement, with October up 7.4% YoY.
- **Financial Performance**: Adjusted EBITDA was $36 million (down 23.7% YoY in pesos), with a margin of 20.8%. Net debt decreased by $9 million QoQ to $206 million.
- **Operational Highlights**: The new 25-kilogram bagging project was successfully launched, receiving positive market feedback.

**【CFO Financial Commentary】**
- **Market Trends**: Full-year GDP growth revised down to 3.9%, with cement dispatches declining 1% QoQ but bulk cement (44% of total) outperforming bagged formats.
- **Segment Performance**: 
  - **Cement**: Revenue down 13.2% YoY due to volume and pricing pressures, but bulk dispatches grew below the industry.
  - **Concrete**: Flat revenue despite 37.8% volume growth, offset by pricing competition.
  - **Aggregates**: 26.3% volume growth, but pricing challenges reduced margin.
  - **Railroad**: 14.9% revenue decline due to disrupted traffic and lower pricing.
- **Cost Management**: Gross profit declined 32.5% YoY, but cost per ton (excluding depreciation) fell 6% due to lower thermal energy costs.
- **Financial Results**: Net loss of ARS 8.5 billion (vs. ARS 27.9 billion gain YoY), driven by higher financial expenses and FX impacts. Net debt-to-EBITDA ratio at 1.49x, with 81% of debt in dollars.

**【Q&A Key Highlights】**
- **Pricing Outlook**: CEO expects price adjustments above inflation in a stable FX environment, with recovery in dollar terms post-election.
- **Dividend Policy**: No dividend distribution this year due to macro uncertainty; potential reassessment in 2026.
- **Q4 Volumes**: October's 7.4% YoY growth driven by post-election investments and FX stability; November volumes remain strong, supporting optimism for Q4 recovery.

Loma Negra Compañía Industrial Argentina Sociedad Anónima (LOMA) Q3 2025 Earnings Call Transcript

- **Revenue Growth**: Q2 cement dispatches up 14% YoY, but EBITDA down 31% due to pricing challenges.
- **Margin Recovery**: Expecting H2 margin improvement with pricing above inflation and cost efficiencies.
- **Debt Management**: $112.9M bond issuance extends maturity, maintaining strong balance sheet.
- **2025 Outlook**: Double-digit volume growth expected, despite early-stage recovery and political risks.
- **No Dividends**: Focus on capital structure optimization rather than shareholder returns in 2025.

**【CEO Summary Section】**
- **Economic Recovery and Volume Growth**: Argentina's GDP rose 5.8% YoY in Q1, driving a 14% YoY increase in cement dispatches. Volumes grew 11% in Q2, offsetting pricing challenges.
- **Margin Challenges**: Consolidated EBITDA was $34 million (down 31% in real terms), with margins contracting 691 bps YoY to 21.2% due to competitive pricing and cost pressures.
- **Financial Health**: Net debt stood at $215 million, with a debt-to-EBITDA ratio of 1.34x. A $112.9 million bond issuance extended debt maturity and improved liquidity.
- **2025 Outlook**: Despite early-stage recovery, the company expects double-digit volume growth for the year, focusing on operational efficiency and innovation.

**【CFO Financial Commentary】**
- **Top Line Performance**: Q2 revenue declined 8% YoY, driven by a 9.9% drop in cement segment revenue despite 11.1% volume growth. Pricing pressures and competitive dynamics weighed on margins.
- **Segment Insights**: 
  - **Cement**: Bulk cement volumes surged, but bagged cement pricing softened. Cost efficiencies (10.7% per-ton cost decline) partially offset top-line weakness.
  - **Concrete**: Volumes rose 44%, but margins fell 773 bps YoY due to pricing competition.
  - **Railroad**: Margin expanded 351 bps to 9.8% on volume growth, despite disruptions in Bahía Blanca.
- **Profitability**: Net profit attributable to owners dropped 90% YoY to ARS 0.4 billion, reflecting weaker operational results and financial losses.

**【Q&A Highlights】**
- **Pricing Trends**: Management expects pricing to recover in H2, with year-end increases above inflation. Recent 2 months show improved competitive dynamics.
- **Volume Growth**: Double-digit growth for 2025 is maintained, with Q2 volumes up 13% YoY. July's performance was challenging due to high base effects in 2024.
- **Margins and Costs**: Cost control efforts (e.g., lower energy prices) will support margin recovery, though winter-related costs may temporarily pressure H2.
- **Dividends**: No dividend payout is planned for 2025, with focus on capital structure optimization.
- **Public Works**: Slow recovery in public projects is expected to accelerate in 2026, driven by infrastructure initiatives.


Loma Negra Compañía Industrial Argentina Sociedad Anónima (LOMA) Q2 2025 Earnings Call Transcript

- **Recovery Momentum**: 11% YoY industry growth in Q1, with April volumes up 28% YoY, signaling accelerating construction sector recovery.
- **Profitability Improvement**: 140 bps margin expansion to 26.4%, driven by cost control and higher volumes.
- **Debt Management**: Net debt of $174 million with 0.96x debt-to-EBITDA ratio, under 1x target.
- **Pricing Stability**: Cement pricing expected to remain around $115/ton, reflecting cost pass-through.
- **Growth Catalysts**: Double-digit volume growth outlook, with H2 2025 projects (renewable energy, public works) set to boost demand.

**【CEO Summary Section】**
- Q1 2025 revenue reflects early-stage recovery in the Argentine cement industry, with a 11% year-over-year increase despite adverse weather conditions.
- EBITDA reached $40 million, with a 140 basis point improvement in margin to 26.4%, driven by cost control and higher volumes.
- Net debt of $174 million remains manageable, with a net debt-to-EBITDA ratio of 0.96x, below 1x threshold.
- CEO expresses optimism about 5% GDP growth and construction sector recovery, with April fuel rates up 28% YoY.

**【CFO Financial Commentary】**
- **Cement Segment**: 10.9% revenue decline offset by 8.9% volume growth; pricing softness amid cost inflation.
- **Concrete Segment**: 1.4% revenue decline due to price competition, despite 22.8% volume growth in infrastructure and residential projects.
- **Aggregates Segment**: 14.2% revenue decline despite 29% volume growth, pressured by low-margin fine aggregates and market competition.
- **Railroad Segment**: 1.2% revenue decline from higher grain transport (lower margin) and a storm-related disruption in Bahia Blanca.
- Operating cash flow improved to ARS 1.3 billion, with CAPEX of ARS 11.1 billion for capacity expansion.

**【Q&A Highlights】**
- **Market Share Dynamics**: Temporary fluctuations due to weather, pricing delays, and regional demand variations; company maintains strategic market share range.
- **Pricing Outlook**: Cement pricing expected to stabilize around $115/ton, tied to cost structure and inflation trends.
- **Volume Growth**: Double-digit 2025 expectations, with April volumes up 28% YoY and 14% sequentially; Q2+ recovery momentum.
- **Strategic Initiatives**: Renewed focus on renewable energy projects (e.g., wind turbines) to reduce costs and align with sustainability goals.
- **Construction Sector**: Backlog of public and private projects (e.g., renewable energy, mining) poised to drive demand in H2 2025.

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