Results Conference Call 4Q25 Disclaimer and Forward-Looking Statement This aresentation noy contain forward-looking statements within the memina of federal securities low that are subject to risks and uncertainties. These statements are only upon our current expectations and projections about possible or assumed future results of our business, financicil condition, results of operations, liquidity, plans and bi you can identify forward-looking statements by terminology such as "believe, "may," estimate, " c ...

Core Viewpoint - Loma Negra Compañía Industrial Argentina Sociedad Anónima (NYSE:LOMA) is recognized as one of the best long-term cement stocks to invest in, despite facing challenges in revenue and earnings performance [1]. Financial Performance - The company reported fiscal Q4 2025 earnings with revenue of $160.02 million, exceeding estimates by $724,340, although it represented a 2.28% year-over-year decline [2]. - The earnings per share (EPS) was $0.03, which fell short of expectations by $0.12 [2]. - For the full year, Loma Negra achieved $606 million in revenue, reflecting a 7.8% year-over-year decline, primarily driven by a 4.4% decrease in the cement segment [2]. Economic Outlook - Management indicated that 2025 was a year of gradual recovery for Argentina, but the rebound has been slower than anticipated [4]. - The company believes there is significant potential for the economy to recover to the levels seen in 2023 [4]. - Looking forward, Loma expects fiscal Q1 2026 revenue to be approximately $304.47 million [4]. Company Overview - Loma Negra is Argentina's leading vertically integrated cement producer, involved in the manufacturing and distribution of cement, masonry cement, aggregates, ready-mix concrete, and lime for both private and public construction projects [5].

Group 1 - The investment strategy focuses on long-only investment, evaluating companies from an operational and buy-and-hold perspective [1] - The approach emphasizes understanding the long-term earnings power of companies and the competitive dynamics within their industries [1] - The majority of recommendations will be holds, indicating a cautious approach to market dynamics and price movements [1] Group 2 - A very small fraction of companies are considered suitable for a buy recommendation at any given time [1] - Hold articles are intended to provide valuable information for future investors and introduce skepticism in a bullish market [1]

Management View - Loma Negra's CEO Sergio Faifman reported a 1.2% year-over-year decline in cement dispatch for Q4 2025, indicating a continuation of the trend observed in previous quarters [2] - The company anticipates high single-digit volume growth for 2026, driven by an increase in infrastructure projects [2]

Financial Data and Key Metrics Changes - In Q4 2025, net revenue totaled ARS 225 billion (approximately $152 million), reflecting a 1.7% year-over-year decline compared to Q4 2024 [5] - Consolidated adjusted EBITDA reached $37 million with a margin of 19.7%, representing a contraction of 938 basis points year-over-year [18] - For the full year 2025, adjusted EBITDA amounted to $146 million with a margin of 21.3%, down 454 basis points from 2024 [5][21] Business Line Data and Key Metrics Changes - Cement segment revenues decreased by 4.4% year-over-year, primarily due to softer pricing conditions [13] - Concrete revenues increased by 37% year-over-year, driven by a 62% expansion in volumes [14] - Aggregates revenues were stable, down 0.9% year-over-year, with volumes increasing by 8.2% [15] Market Data and Key Metrics Changes - The Argentine economy grew by 4.4% in 2025, with significant contributions from agriculture, mining, and financial intermediation, while the construction sector remained flat [10] - The cement industry closed the year with a 5.6% growth, reversing previous declines [11] - The bulk segment outperformed due to larger-scale projects, while retail demand remained subdued [11] Company Strategy and Development Direction - The company emphasizes cost discipline and operational efficiency to preserve profitability amid challenging demand [27] - Loma Negra is well-positioned to play a central role in addressing Argentina's significant infrastructure gaps, with ongoing investment initiatives in infrastructure, mining, and energy [29] - The company aims to gradually improve its energy mix, increasing the share of renewable energy sources [34] Management Comments on Operating Environment and Future Outlook - Management noted that the recovery in the cement industry was slower than anticipated due to political uncertainty and financial tensions [27] - Looking ahead to 2026, management is optimistic about macroeconomic stabilization and expects a gradual easing of monetary constraints to support economic activity [29] - The company anticipates that investment initiatives will begin to positively impact dispatch volumes as the year progresses [29] Other Important Information - The company reported a net financial loss of ARS 9.8 billion for Q4 2025, compared to a net financial gain of ARS 1.1 billion in Q4 2024 [22] - Net debt decreased by $23 million quarter-over-quarter to $183 million, with a debt-to-EBITDA ratio of 1.47 times [6][24] - The company issued a new Class 6 corporate bond for $60 million in January 2026, reflecting strong investor demand [26] Q&A Session Summary Question: Energy management approach for 2026 - Management highlighted a focus on natural gas as the primary energy source, with contracts signed at lower prices for the upcoming year [33] - Renewable energy participation has improved, with contracts signed for additional renewable sources [34] Question: 2026 guidance on volumes and margins - Management indicated expectations for growth in volumes, despite a slow start in January and February due to seasonal effects [39] - Margins are expected to improve as pricing recovery continues [40] Question: Sales volumes and pricing expectations for 2026 - Management acknowledged a 6% decline in sales volumes for the first two months but expects recovery as projects commence [44] - Pricing guidance was not provided, but management anticipates continued recovery in pricing trends [45]

Financial Data and Key Metrics Changes - In Q4 2025, net revenue totaled ARS 225 billion (approximately $152 million), reflecting a 1.7% year-over-year decline compared to Q4 2024 [5] - Consolidated Adjusted EBITDA reached $37 million with a margin of 19.7%, representing a 938 basis points decline year-over-year [18] - For the full year 2025, Adjusted EBITDA amounted to $146 million with a margin of 21.3%, a contraction of 454 basis points compared to 2024 [5][21] - Net profit attributable to owners of the company was ARS 6.2 billion, down from ARS 29.5 billion in Q4 2024, primarily due to weaker operating performance [22] Business Line Data and Key Metrics Changes - Cement segment revenues decreased by 4.4% year-over-year, mainly due to softer pricing conditions [13] - Concrete revenues increased by 37% year-over-year, driven by a 62% expansion in volumes [14] - Aggregate revenues were stable, down 0.9% year-over-year, with volumes increasing by 8.2% [15] Market Data and Key Metrics Changes - The Argentine economy grew by 4.4% in 2025, with significant contributions from agriculture, mining, and financial intermediation, while industry and commerce showed stagnation [10] - The cement industry closed the year with 5.6% growth, reversing previous declines [10] Company Strategy and Development Direction - The company aims to maintain cost discipline and operational efficiency to preserve profitability amid challenging demand [27] - Loma Negra is positioned to play a central role in addressing Argentina's significant infrastructure gaps, with expectations for gradual economic recovery supported by announced investment initiatives [29] Management Comments on Operating Environment and Future Outlook - Management noted that the recovery in the cement industry was more moderate than anticipated, with ongoing political and financial uncertainties affecting activity levels [27] - Looking ahead to 2026, management expressed optimism about macroeconomic stabilization and a gradual easing of monetary constraints, which should support economic activity [29] Other Important Information - The company achieved a 22% reduction in CO2 equivalent emissions compared to the 2021 baseline as part of its sustainability efforts [7] - Loma Negra celebrated its 100th anniversary, emphasizing its commitment to sustainable growth and community engagement [9] Q&A Session Summary Question: Energy management approach for the year - Management discussed the use of natural gas as the primary energy source, with contracts signed at lower prices for the upcoming year, and an increase in renewable energy participation [32][34] Question: 2026 guidance on volumes and margins - Management indicated that 2026 is expected to be a year of growth, with anticipated single-digit growth in volumes, while margins are expected to improve due to ongoing price recovery [38][40] Question: Sales volumes and pricing expectations for 2026 - Management acknowledged a 6% decline in sales volumes for the first two months of 2026 but expects recovery as projects commence, while pricing trends are anticipated to continue positively [42][45]

Financial Data and Key Metrics Changes - In Q4 2025, net revenue totaled ARS 225 billion (approximately $152 million), reflecting a 1.7% year-over-year decline compared to Q4 2024 [5] - Consolidated adjusted EBITDA reached $37 million with a margin of 19.7%, representing a 938 basis points decline year-over-year [19] - For the full year 2025, adjusted EBITDA amounted to $146 million with a margin of 21.3%, a contraction of 454 basis points compared to 2024 [19][21] - Net profit attributable to owners of the company was ARS 6.2 billion, down from ARS 29.5 billion in Q4 2024, primarily due to weaker operating performance [22] Business Line Data and Key Metrics Changes - Cement segment revenues decreased by 4.4% year-over-year, reflecting softer pricing conditions [13] - Concrete revenues increased by 37% year-over-year, driven by a 62% expansion in volumes [15] - Aggregate revenues were stable, down 0.9% year-over-year, with volumes increasing by 8.2% [15] Market Data and Key Metrics Changes - The Argentine economy grew by 4.4% in 2025, with significant contributions from agriculture, mining, and financial intermediation, while industry and commerce showed declines [11] - The cement industry closed the year with a 5.6% growth, reversing previous declines [11] Company Strategy and Development Direction - The company emphasizes cost discipline and operational efficiency to preserve profitability in a challenging demand environment [27] - Loma Negra is positioned to play a central role in addressing Argentina's significant infrastructure gaps, with expectations for gradual economic recovery supported by announced investment initiatives [29] Management Comments on Operating Environment and Future Outlook - Management noted that the recovery lost momentum in the second half of 2025 due to political uncertainty and financial tensions [27] - Looking ahead to 2026, management is optimistic about macro stabilization and gradual easing of monetary constraints, which should support economic activity [29] Other Important Information - The company achieved a 22% reduction in CO2 equivalent emissions compared to the 2021 baseline as part of its sustainability efforts [8] - The company celebrated its 100th anniversary, highlighting its commitment to sustainable growth and community engagement [10] Q&A Session Summary Question: Inquiry about energy management approach - Management discussed the use of natural gas as the primary energy source, with contracts signed at lower prices for the upcoming year, and an increase in renewable energy participation [33][35] Question: Guidance for 2026 regarding volumes and margins - Management indicated expectations for growth in volumes, despite a slow start to the year, and anticipated a recovery in margins due to improved pricing dynamics [39][41] Question: Sales volumes and pricing expectations for 2026 - Management acknowledged a 6% decline in sales volumes for the first two months of 2026 but expected recovery as projects commence, while pricing guidance remains cautious [43][46]

Results Conference Call 4Q25 Disclaimer and Forward-Looking Statement This presentation may contain forward-looking statements within the meaning of federal securities law that are subject to risks and uncertainties. These statements are only predictions based upon our current expectations and projections about possible or assumed future results of our business, financial condition, results of operations, liquidity, plans and objectives. In some cases, you can identify forward-looking statements by terminol ...

Core Insights - Loma Negra, the leading cement producer in Argentina, announced its financial results for the fourth quarter of 2025, highlighting significant net sales revenues [1]. Financial Performance - Net sales revenues for the fourth quarter of 2025 reached Ps. [1].

Core Viewpoint - Loma Negra Compañía Industrial Argentina Sociedad Anónima (NYSE:LOMA) is identified as a promising high-upside materials stock, particularly following its recent bond issuance aimed at supporting its operations in the Argentine construction industry [1]. Group 1: Financial Transactions - On January 20, Loma Negra closed a public placement of $500 million in Class 6 negotiable bonds under its existing non-convertible bond program [1]. - The company placed $60 million in Class 6 bonds with a 6.50% interest rate and 100% of face value, with issuance and settlement set for January 23 [3]. - The bonds have a 36-month bullet maturity and will feature semiannual interest payments, providing medium-term financing stability for the company's operational needs [3]. Group 2: Stock Performance - Following the bond deal, Loma Negra's stock price increased from $11.55 on January 20 to $12.36 on January 27, before experiencing an 8-day decline to $10.78 by February 5 [3]. Group 3: Company Overview - Loma Negra is an Argentine cement manufacturing company that sources raw materials from quarries, produces and sells concrete, and provides railroad transportation services and granular aggregates [4].