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 [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]