Breaking Down Loma Negra Compañía Industrial Argentina Sociedad Anónima (LOMA) Financial Health: Key Insights for Investors

You're looking at Loma Negra Compañía Industrial Argentina Sociedad Anónima (LOMA) and trying to reconcile a tough operating environment with the long-term potential of Argentina's construction sector. Frankly, the recent numbers show the pain of that transition: the company's third-quarter 2025 revenue came in at just $135.15 million, a significant miss against analyst forecasts, and they reported a net loss of ARS 8.5 billion for the quarter, a sharp reversal from a substantial gain a year prior. This operational squeeze, driven by softer pricing dynamics and a slowdown in volume recovery-cement volumes were down 5.4% year-over-year-has pushed the Net Debt-to-EBITDA ratio (a key measure of leverage) up to 1.49x from 0.89x at the end of 2024. Still, you can't ignore the green shoots: the company successfully issued a $113 million bond to refinance debt, and October volumes saw a promising 7.4% year-over-year increase, suggesting a potential demand rebound as post-election political uncertainty (the risk of sudden, disruptive policy changes) begins to ease. We defintely need to break down whether this is a temporary dip or a deeper structural issue.

Revenue Analysis

You're looking at Loma Negra Compañía Industrial Argentina Sociedad Anónima (LOMA) because you know the Argentine construction sector is a wild ride, and you need to see if their revenue engine is holding up. The direct takeaway is this: LOMA's top line is under significant pressure in 2025, dropping 9.8% year-to-date through September, but the underlying volume story in non-cement segments shows a defintely promising resilience.

For the first nine months of 2025, net sales revenues stood at Ps. 577,483 million, down from Ps. 640,330 million in the same period of 2024. This contraction is a direct result of the macroeconomic volatility and softer pricing dynamics in Argentina, which is a key risk you need to map to your investment horizon. Still, the company is managing costs well, which is why margins aren't collapsing.

Breakdown of Primary Revenue Sources

Loma Negra is a vertically integrated powerhouse, meaning they control a lot of the supply chain, from quarry to rail. They operate in five core segments, but the bulk of their revenue-the majority-comes from the first one. It's a simple business model, but complex to execute in a high-inflation environment.

• Cement, Masonry Cement, and Lime: The core business, producing the key ingredient for concrete.
• Concrete: Ready-mix concrete for large-scale projects.
• Rail Services (Ferrosur Roca): Freight rail operations, which transport their own materials and third-party goods.
• Aggregates: Crushed stone and gravel for construction and road projects.
• Others: Smaller operations that round out the portfolio.

You can't ignore the dominance of the Cement segment. When it struggles, the whole company feels it. The shift toward selling more bagged cement through retail channels has been a strategic focus, but it's also more sensitive to the consumer's wallet and election-related uncertainty.

Year-over-Year Revenue Growth and Segment Shifts

The third quarter of 2025 (Q3 2025) highlights the challenge perfectly: net sales revenue was US$ 154 million, a decrease of 12.1% year-over-year. Here's the quick math on what's driving that decline and what's offsetting it:

The primary drag was the Cement segment's top line, which fell 13.2% year-over-year in Q3 2025. This was due to a contraction in volumes and softer pricing. However, what this estimate hides is the strength in the other segments, which are capital-expenditure-driven and less exposed to the retail slowdown. It's a tale of two companies right now.

To be fair, the volume growth in the non-core segments is impressive and signals where the green shoots of recovery are for Argentina's economy, specifically in infrastructure and logistics. This is where LOMA's vertical integration gives it an edge.

The strong volume increases in Concrete and Aggregates-37.8% and 26.3% respectively-show that infrastructure and large private projects are still moving forward, mitigating the overall revenue drop. Your action here is to watch the bulk cement dispatches, which have shown strong momentum, as a leading indicator for industrial and public works demand. For a deeper dive into the company's valuation, you should check out the full analysis at Breaking Down Loma Negra Compañía Industrial Argentina Sociedad Anónima (LOMA) Financial Health: Key Insights for Investors.

Profitability Metrics

You need to know if Loma Negra Compañía Industrial Argentina Sociedad Anónima (LOMA) is making money, and more importantly, if those earnings are sustainable. The short answer is: profitability is under pressure, but operational efficiency is holding up better than the headline figures suggest. The trend in 2025 shows a clear contraction in margins, culminating in a net loss in the most recent quarter.

Here's the quick math on the core profitability ratios for the 2025 fiscal year, focusing on the latest available data through the third quarter (3Q25). We use Adjusted EBITDA Margin as the best proxy for operating margin, as it strips out non-cash items like depreciation and amortization, giving a truer picture of core operational cash flow.

• Gross Profit Margin (3Q25): 17.3%
• Adjusted EBITDA Margin (3Q25): 20.8%
• Net Profit Margin (LTM): 5.67%

The Near-Term Profitability Trend

The most critical insight for investors is the sharp decline in profitability throughout 2025. This isn't a stable picture. In the first quarter (1Q25), Loma Negra Compañía Industrial Argentina Sociedad Anónima reported a strong Gross Profit Margin of 26.4%. By the third quarter, that margin had contracted significantly to just 17.3%. That's a massive drop, reflecting softer pricing dynamics and a challenging competitive landscape in Argentina.

The operating margin trajectory is defintely concerning too. The Consolidated Adjusted EBITDA Margin fell from 24.0% in 1Q25 to 21.2% in 2Q25, and then slightly further to 20.8% in 3Q25. The net result of this pressure was a Net Loss of Ps. 8,587 million in 3Q25, a stark reversal from the Ps. 21,250 million Net Profit in 1Q25. The net financial results, which are heavily influenced by the volatile Argentine macroeconomic environment, were the main driver of the swing to a net loss.

Operational Efficiency and Cost Management

To be fair, the company is fighting hard on costs. Despite the margin compression, Loma Negra Compañía Industrial Argentina Sociedad Anónima showed effective cost management, which partially offset the revenue hit. For instance, in 3Q25, the unit cost per ton in the Cement segment (excluding depreciation) fell by approximately 6.5%. Selling and administrative expenses (SG&A) also decreased by 11.7% in 3Q25.

This cost control is the only reason the operating margin didn't fall off a cliff. When you see a gross margin contract by over 9 percentage points from Q1 to Q3, but the Adjusted EBITDA margin only drops by 3.2 percentage points, it means the management team is effectively controlling the costs below the cost of goods sold line. That's good execution in a tough environment.

The company is trying to navigate a difficult market, but their cost controls are helping them weather the storm. You can read more about the broader context in Breaking Down Loma Negra Compañía Industrial Argentina Sociedad Anónima (LOMA) Financial Health: Key Insights for Investors.

Industry Comparison and Competitive Edge

When we stack Loma Negra Compañía Industrial Argentina Sociedad Anónima against its peers, the picture is mixed but surprisingly resilient on the operating front. The broader cement industry, for example, saw operating margins moderate to an estimated 15.6% to 16.1% for FY25 in certain markets. LOMA's 3Q25 Adjusted EBITDA margin of 20.8% is still comfortably above this industry benchmark.

However, the Gross Margin comparison highlights the competitive strain. While some regional cement peers reported Gross Margins expanding to 33% in the second quarter of FY25, LOMA's Gross Margin stood at 17.3% in 3Q25. This disparity shows that LOMA is either facing significantly higher input costs or, more likely, is unable to maintain pricing power due to the domestic market's economic volatility and competitive dynamics.

The key action here is watching the Net Profit line. The shift from a significant profit to a loss is tied to the net financial results-the cost of debt and the impact of inflation on monetary items (IAS 29 accounting). As the Argentine economy stabilizes, the Net Profit Margin, currently at an LTM of 5.67%, should see a structural improvement, assuming the operational efficiency holds.

Debt vs. Equity Structure

The core takeaway for Loma Negra Compañía Industrial Argentina Sociedad Anónima (LOMA) is that the company operates with a very conservative capital structure, relying far more on equity than debt to finance its operations. Your risk profile here is low, with the Net Debt to Equity ratio sitting at an incredibly manageable 0.27 as of June 30, 2025.

This low leverage is a deliberate choice, especially in Argentina's volatile economic environment. To put it in perspective, the average Debt-to-Equity ratio for the US Building Materials industry is around 0.5 as of November 2025, meaning Loma Negra is roughly half as leveraged as its typical US peer. This is defintely a strength for weathering economic downturns.

Overview of Debt Levels (3Q25)

Loma Negra's balance sheet for the third quarter of 2025 shows a total debt of Ps. 396,740 million. What's interesting is the composition, which shows a significant portion is due in the near-term, though recent actions have started to address this. Here's the quick math on the breakdown:

• Short-Term Debt (including current portion of long-term): Ps. 241,364 million (or 61% of total borrowings)
• Long-Term Debt: Ps. 155,376 million (or 39% of total borrowings)

This high percentage of short-term debt is a common feature in high-inflation, high-interest-rate environments like Argentina, but it does mean the company has to constantly manage its maturity schedule. Still, Net Debt (total debt minus cash and equivalents) remains low at Ps. 281,519 million, which translates to approximately US$206 million.

Leverage and Industry Comparison

When we look at the company's financial leverage (the use of borrowed money to fund assets), the numbers are very comfortable. The Net Debt-to-LTM Adjusted EBITDA ratio-a key metric for a capital-intensive business like cement-stood at 1.49x as of September 30, 2025. This is up from 0.89x at the end of 2024, reflecting both a rise in net debt and a decrease in Adjusted EBITDA, but it's still well within a healthy range for the industry.

The official Net Debt to Equity ratio for the interim period ending June 30, 2025, was 0.27, calculated against an Equity base of Ps. 935,771 million (expressed in thousands of Argentine pesos). This low ratio indicates that for every dollar of shareholder equity, Loma Negra has only about 27 cents of net debt, showing a very low risk of financial distress. While we don't have a current S&P or Moody's credit rating, this internal leverage profile suggests a solid credit position.

Recent Refinancing and Capital Strategy

Loma Negra is actively managing its debt profile to push out maturities, which is a smart move given the local economic uncertainty. In July 2025, the company issued Class 5 Negotiable Bonds for US$113 million (or US$112.9 million) with a fixed annual interest rate of 8.00% and a maturity in 2027.

The proceeds from this issuance were specifically used to refinance upcoming maturities, including the Class 2 bond that was set to mature in December 2025. This strategic debt-for-debt swap successfully increased the average duration of the total debt to 0.9 years as of 3Q25, improving the maturity profile and helping to maintain what management calls a 'comfortable leverage profile.'

The company clearly favors a prudent approach, using debt strategically for liability management and capital projects while keeping the overall leverage low, rather than relying on heavy debt financing for day-to-day growth. You can see more on this conservative approach in the full post: Breaking Down Loma Negra Compañía Industrial Argentina Sociedad Anónima (LOMA) Financial Health: Key Insights for Investors.

Liquidity and Solvency

When we look at Loma Negra Compañía Industrial Argentina Sociedad Anónima (LOMA)'s ability to cover its near-term obligations, the picture is mixed, and it demands a careful, realistic assessment. You want to know if the company has enough cash and assets to manage its bills, and the simple answer is: yes, but with a reliance on inventory that we need to watch.

The Current Ratio (current assets divided by current liabilities) sits at a decent 1.24 as of the most recent data. Here's the quick math: this means LOMA has $1.24 in current assets for every $1.00 in current liabilities. That's above the 1.0 threshold, which is good. But the real test is the Quick Ratio (or acid-test ratio), which strips out inventory, since that's the hardest current asset to quickly convert to cash.

LOMA's Quick Ratio is significantly lower at 0.61. This is a clear signal: the company is relying heavily on selling its inventory-cement and clinker-to meet its short-term debt. For a capital-intensive business like cement production, this isn't defintely a fatal flaw, but it does mean any slowdown in sales volume or pricing pressure will immediately strain liquidity.

• Current Ratio: 1.24 (Decent coverage).
• Quick Ratio: 0.61 (Heavy reliance on inventory).

Working Capital and Cash Flow Trends

The working capital trend for LOMA has been challenging. The economic uncertainty and higher interest rate environment in Argentina during the third quarter of 2025 actually increased working capital needs. Plus, the company saw a significant drop in its primary cash engine: cash flow from operating activities (CFO).

For the nine months ended September 30, 2025, net cash generated by operating activities plummeted to Ps. 6,847 million (Argentine Pesos). To put that in perspective, that's a massive drop from the Ps. 93,844 million generated in the same period a year prior. That's a red flag. A company needs strong operating cash flow to fund its own growth and pay its bills, not just rely on its balance sheet.

The cash flow statement overview for the nine months ended September 30, 2025, shows how the company managed this drop in operating cash:

The investing cash flow (CFI) shows a net outflow of Ps. (94,209) million, meaning LOMA is still spending heavily on property, plant, and equipment. That's good for long-term growth, but it drains cash now. The financing cash flow (CFF) is the key to their liquidity right now, showing a huge net inflow of Ps. 139,421 million. This cash came from new borrowings, which is how they covered the operating shortfall and the high capital expenditure.

Near-Term Liquidity Concerns

The biggest liquidity concern is the debt structure. As of Q1 2025, a staggering 93% of LOMA's total debt, or Ps. 183,746 million, was classified as short-term borrowings. While the company successfully issued a new Class 5 Corporate Bond for $113 million in July 2025 to refinance upcoming maturities, the fact that they are consistently rolling over a high proportion of short-term debt is a risk. This environment forces them to constantly access the debt markets, and any tightening in credit conditions could become a significant problem.

For a deeper dive into the valuation and strategic frameworks, you can check out the full post: Breaking Down Loma Negra Compañía Industrial Argentina Sociedad Anónima (LOMA) Financial Health: Key Insights for Investors.

Valuation Analysis

You're looking at Loma Negra Compañía Industrial Argentina Sociedad Anónima (LOMA) and asking the right question: is this stock a value play or a value trap? Based on the latest fiscal year 2025 data, the stock appears to be slightly overvalued on a trailing basis but shows a compelling case for being undervalued when looking at forward-looking estimates and analyst targets.

Honest to goodness, the valuation metrics are a mixed bag, which is typical for a company operating in the volatile Argentine market. The current price is around the $11.15 mark as of November 2025. The stock has been a wild ride, trading in a 52-week range between a low of $7.04 and a high of $14.17. It's up about 33.90% over the last year, so you're not buying at the bottom.

Here's the quick math on the key multiples:

• Price-to-Earnings (P/E): The trailing P/E is high at 185.17. That number screams overvalued, suggesting the market is pricing in a massive earnings rebound. But, the forward P/E, which uses estimated 2026 earnings, drops dramatically to just 11.43. That's a huge disconnect, signaling expected earnings growth.
• Price-to-Book (P/B): At 1.81, the P/B ratio is moderate. It means you are paying $1.81 for every dollar of the company's book value (assets minus liabilities). It's not cheap, but it's not an egregious premium either.
• Enterprise Value-to-EBITDA (EV/EBITDA): The TTM (Trailing Twelve Months) EV/EBITDA is 15.18. This is a bit rich for a basic materials company, especially one facing volume declines-Q3 2025 cement volumes were down 5% year-over-year. This multiple suggests the market is valuing the company's operating cash flow aggressively.

What this estimate hides is the political and economic risk in Argentina, which often compresses the multiples of local companies. Still, the forward P/E of 11.43 is defintely a number that catches my eye.

Analyst Consensus and Price Target

When you look at the professional analyst community, the sentiment is decidedly positive. The consensus rating for Loma Negra Compañía Industrial Argentina Sociedad Anónima is a Moderate Buy or even Strong Buy. This tells you that the Street believes the near-term operational headwinds are temporary and the long-term potential is substantial.

The average 12-month price target from analysts is between $14.62 and $15.00. Considering the current price of around $11.15, that implies a potential upside of over 31%. They are betting on the anticipated economic recovery in Argentina driving infrastructure and construction demand, a core driver for cement producers. You can find a more in-depth look at the fundamentals here: Breaking Down Loma Negra Compañía Industrial Argentina Sociedad Anónima (LOMA) Financial Health: Key Insights for Investors.

Dividend Policy and Sustainability

For income-focused investors, Loma Negra Compañía Industrial Argentina Sociedad Anónima is not currently paying a dividend. While the company has paid dividends in the past, a few sources indicate the current dividend yield is 0.00%. This is a company focused on navigating a tough economic climate and likely prioritizing cash preservation and debt management, like the successful US$112.9 million bond issuance in July 2025 to refinance short-term debt.

Historically, the trailing 12-month dividend payout ratio based on earnings was extremely high at 125.81%, which is unsustainable. The current focus is on maintaining a solid balance sheet, with net debt at US$206 million.

Your action item here is to weigh the high trailing multiples against the low forward P/E and the strong analyst conviction. The valuation hinges entirely on a successful, near-term economic recovery in Argentina.

Risk Factors

You're looking at Loma Negra Compañía Industrial Argentina Sociedad Anónima (LOMA) and seeing a market leader, but you have to be a realist about the risks tied to its home market. The most immediate threat isn't a competitor; it's the volatile Argentine macroeconomic environment. This instability is the primary driver behind the company's challenging Q3 2025 results, which saw a net loss of Ps. 8,587 million, a sharp reversal from the Ps. 27,871 million net profit a year earlier.

The core issue is that LOMA's health is inextricably linked to Argentina's economic and political cycles. While the country's GDP grew 5.8% in Q1 2025, the recovery stalled in the third quarter, which directly hit construction demand. This is a classic case of near-term pain clouding long-term potential. You can't ignore the political uncertainty that increases volatility, which is defintely a headwind for any major infrastructure player.

External Macro and Political Risks

The biggest external risks are macroeconomic and regulatory. LOMA operates in a market where the government's next move can shift the entire cost structure overnight. The company's financial results for Q3 2025 clearly show the impact of this environment:

• Currency Devaluation and Inflation: The devaluation of the Argentine peso had a significant impact on financial results, driving a net financial loss of ARS 28.7 billion in Q3 2025, compared to a gain in the prior year.
• Interest Rate and Liquidity: Higher interest rates in pesos during the quarter also increased net financial expenses by 7.5%, reaching ARS 17 billion.
• Regulatory and Political Volatility: Abrupt shifts in public infrastructure spending-a key driver for LOMA's bulk cement and aggregates segments-pose a constant threat. The mid-term election results in Q3 2025 raised doubts about the sustainability of the government's reform program, which slows down investment decisions.

To be fair, LOMA is actively managing its currency risk by hedging against fluctuations and optimizing its debt structure. Still, you're always exposed to the sovereign risk of the country where you do all your business.

Operational and Financial Headwinds

On the operational side, the slowdown in the construction sector translated into a 12.1% year-over-year decline in net sales revenues for Q3 2025, primarily due to a 13.2% drop in the Cement segment's top line. Here's the quick math: lower volumes mean less operating leverage, which is why the Consolidated Adjusted EBITDA margin contracted by 315 basis points to 20.8% in the quarter.

The company's net debt position is also a factor to watch. While the leverage is still manageable, the Net Debt/LTM Adjusted EBITDA ratio climbed to 1.49x in Q3 2025, up from 0.89x at the end of FY24. This is a direct result of the earnings compression and an increase in net debt to Ps. 281,519 million (US$ 206 million).

One clean one-liner: Macro uncertainty is the biggest line item on the risk ledger.

The table below summarizes the key operational risks and LOMA's strategic responses, which are focused on shoring up their efficiency and future positioning:

What this estimate hides is the potential for a sharp rebound. LOMA's market leadership (42.7% cement share) and strategic positioning for an infrastructure boom mean any sustained economic stability could quickly reverse these negative trends. For a deeper dive into the company's valuation and strategic frameworks, you can check out the full analysis at Breaking Down Loma Negra Compañía Industrial Argentina Sociedad Anónima (LOMA) Financial Health: Key Insights for Investors.

Your next step is clear: Finance needs to model a scenario where the Net Debt/EBITDA ratio hits 2.0x and detail the covenants that would be triggered.

Growth Opportunities

You're looking at Loma Negra Compañía Industrial Argentina Sociedad Anónima (LOMA) and seeing a mixed 2025-strong volume growth but margin pressure. The short-term volatility, with Q3 2025 revenue at US$135.15 million, is a real headwind, but the long-term growth story is still compelling, driven by Argentina's infrastructure needs.

The company is positioned to capitalize on a macro-recovery, which is the primary growth driver. Argentina's Q1 2025 GDP growth of 5.8% is a positive signal, and LOMA's management is betting on an infrastructure boom. This is translating into volume: cement, masonry, and lime sales volumes rose 11.1% year-over-year in Q2 2025, with residential construction growing at 7.2% year-over-year.

Here's the quick math: management expects double-digit volume growth for the full 2025 fiscal year, which should eventually overcome the pricing pressures that caused Q2 2025 Adjusted EBITDA to decline to US$34 million. Analyst projections reflect this optimism, setting a target price range of $14 to $16 per share for the next year. Looking further out, revenue is projected to hit ARS 956.1 billion by 2028, a significant jump from the Q1 2025 revenue of Ps. 163,151 million.

Loma Negra Compañía Industrial Argentina Sociedad Anónima (LOMA) is actively pursuing strategic initiatives to secure this future growth:

• Invest $78.4 million in green cement technology.
• Allocate $70 million in capital expenditure (capex) for operational efficiency.
• Increase renewable energy usage to 61% for cost reduction and sustainability.
• Develop new products, like the 25-kg cement bag, to improve job site logistics.

The company's competitive advantage is its market dominance. It holds a leading market share of 42.7% in the Argentine cement sector, which gives it significant pricing power once macroeconomic stability returns. Plus, synergies with strategic partners like Sacde and PAM are expected to aid margin recovery. This is a defintely a long-term play on Argentina's recovery.

For a deeper dive into the company's long-term vision, you should review their core principles: Mission Statement, Vision, & Core Values of Loma Negra Compañía Industrial Argentina Sociedad Anónima (LOMA).

What this estimate hides is the persistent political risk and the lag in construction activity, which is why Q3 2025 revenue missed forecasts by over 40%. But the company's strong balance sheet, with a manageable net debt-to-EBITDA ratio of 1.49x as of Q3 2025, provides a necessary cushion.

Here is a summary of the near-term financial reality and the long-term outlook:

Your next step: Monitor the Q4 2025 earnings release for signs of price normalization and the impact of the $78.4 million green cement investment on gross margins.