United States Lime & Minerals, Inc. ( USLM ) is a lime- and limestone-producing company. For the last 5 years, it has shown improvements in revenue growth. Revenues rose at a CAGR of 14.6% from 2020 to 2024. CostWorked in the finance and operational departments in the construction industry for 5 years. With a desire to become an equity research analyst and start my investing journey, I decided to leave the construction industry and go back to my roots in finance. Became a sector-focused analyst specializing ...

Core Insights - Loma Negra reported a net loss of Ps. 8.6 billion in 3Q25, a significant decline from a net profit of Ps. 27.9 billion in the same period last year, primarily due to lower operational performance and a decrease in financial results [35][36] - The company experienced a 12.1% year-over-year decline in net revenue, totaling Ps. 209.3 billion, largely attributed to a 13.2% decrease in the Cement segment [17][8] - Adjusted EBITDA decreased by 23.7% year-over-year to Ps. 43.5 billion, with a margin contraction of 315 basis points to 20.8% [27][28] Financial Performance - Net revenue for 3Q25 was Ps. 209,272 million, down from Ps. 238,067 million in 3Q24, reflecting a decline in the Cement segment [17][8] - Gross profit fell by 32.5% to Ps. 36,261 million, with a gross profit margin of 17.3%, down from 22.6% in the previous year [24][6] - The company reported a net loss attributable to owners of Ps. 8.5 billion, with a loss per share of Ps. 14.5122 compared to a gain of Ps. 47.2609 in 3Q24 [36][9] Operational Highlights - Cement, masonry, and lime sales volumes decreased by 5.4% year-over-year to 1.37 million tons, despite a sequential increase of 12.8% [11][12] - The concrete segment saw a volume increase of 37.8% year-over-year, driven by private developments and public infrastructure projects [13] - The aggregates segment also experienced a 26.3% year-over-year volume increase, supported by road construction and railroad projects [20] Debt and Capitalization - Total debt as of September 30, 2025, was Ps. 396.7 billion, with a net debt to LTM adjusted EBITDA ratio of 1.49x, up from 0.89x at the end of 2024 [37][38] - The company issued a Class 5 corporate bond for US$113 million in July 2025, aimed at refinancing upcoming maturities [39][38] - Cash and cash equivalents increased to Ps. 115.2 billion compared to Ps. 18.1 billion in the previous year [37] Cash Flow Analysis - Net cash generated from operating activities was Ps. 31.9 billion, down from Ps. 83.8 billion in 3Q24, reflecting higher working capital needs [40][41] - Cash used in investing activities totaled Ps. 61.9 billion, primarily due to short-term allocations from the bond issuance [42] - Financing activities generated Ps. 74.3 billion, mainly from the bond issuance, net of repayments [42]

Financial Data and Key Metrics Changes - The company reported an adjusted EBITDA of $40 million, reflecting a 3.2% decrease in pesos, translating to $36 per ton [9][20] - Net profit attributable to owners of the company totaled ARS 21.5 billion, down from ARS 79 billion in the first quarter of 2024, primarily due to lower financial results [23] - The net debt increased sequentially to ARS 187 million, with a debt to EBITDA ratio of 0.96x, slightly up from 0.89x at the end of 2024 [24][25] Business Line Data and Key Metrics Changes - The Cement segment experienced a 10.9% revenue drop despite an 8.9% year-over-year increase in volumes, attributed to a softer pricing environment [14] - Concrete revenues declined by 1.4% despite a 22.8% increase in volumes, impacted by competitive pricing pressures [14] - The Aggregates segment saw a 14.2% revenue decline despite a 29% increase in sales volumes, affected by pricing dynamics and a lower average price due to the sales mix [15][22] Market Data and Key Metrics Changes - Cement consumption showed signs of improvement, with April figures indicating a 28% year-over-year increase and a 14% sequential increase [12][8] - The Argentine economy is projected to grow approximately 5% in 2025, following a 1.7% contraction in 2024, which is expected to benefit the construction sector [11][7] Company Strategy and Development Direction - The company remains focused on driving efficiency and controlling costs to protect profitability while delivering quality products and services [29] - The management expressed optimism about the recovery of the industry, indicating that the stabilization plans and easing of capital controls could unlock investment projects [28] Management Comments on Operating Environment and Future Outlook - Management noted that the industry is in the early stages of recovery, with expectations for a more sustained recovery in the coming quarters [27][28] - The company is optimistic about the potential for increased cement demand driven by infrastructure projects and a recovering housing market [48] Other Important Information - The company invested ARS 11.1 billion in capital expenditures during the quarter, primarily for the final stage of the 25-kilogram bag projects [24] - SG&A expenses decreased by 7.8%, mainly due to lower marketing and IT expenditures [19] Q&A Session Summary Question: Competitive dynamics and market share - Management indicated that market share dynamics are consistent with their strategy, and climate issues impacted different regions [32] Question: Pricing power and cement volume expectations - Management expects pricing to remain around $115 per ton and maintains expectations for double-digit growth in cement volumes for 2025 [40][42] Question: Volume outlook and project demand - Management noted positive forecasts for cement demand, with many tenders moving forward for projects expected to start in the second semester [48]