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 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]