Loma Negra pania Industrial Argentina Sociedad Anonima(LOMA) - 2025 Q4 - Earnings Call Transcript

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]