Q2 FY2026
Filed Aug 6, 2026Loma Negra Reports 2Q26 results
Net revenue increased by 2.1% and net profit rose to Ps. 7,043 million, supported by lower net financial losses, but Adjusted EBITDA decreased by 2.5%, consolidated Adjusted EBITDA margin contracted by 97 basis points, and cement volumes declined by 1.4%.
Key metrics
as reported| Metric | Value | q/q | y/y |
|---|---|---|---|
| Net revenueother | Ps. 238,053 million | – | 2.1% |
| Net revenue, figures exclude the impact of IAS 29other | Ps. 233,660 million | – | 36.0% |
| Net revenue, figures exclude the impact of IAS 29other | US$ 166 million | – | 10.9% |
| Cost of salesother | Ps. 192,390 million | – | 3.7% |
| Gross profitother | Ps. 45,663 million | – | -3.9% |
| Gross profit marginother | 19.2% | – | -121 bps |
| Selling and administrative expensesother | Ps. 28,858 million | – | 15.7% |
| Selling and administrative expenses as a percentage of net salesother | 12.1% | – | an increase of 142 basis points |
| Profit before taxesother | Ps. 10,654 million | – | n/a |
| Net profitother | Ps. 7,043 million | – | 1269.7% |
| Net profit attributable to owners of the Companyother | Ps. 7,468 million | – | 1307.4% |
| Earnings per share (basic and diluted)other | 12.7982 | – | 1307.4% |
| Earnings per ADRother | Ps. 63.9908 | – | – |
| Average outstanding sharesother | 583 | – | 0.0% |
| Adjusted EBITDAnon-GAAP | Ps. 48,175 million | – | -2.5% |
| Adjusted EBITDA, figures exclude the impact of IAS 29non-GAAP | Ps. 54,115 million | – | 38.0% |
| Adjusted EBITDA, figures exclude the impact of IAS 29non-GAAP | US$ 38 million | – | 12.5% |
| Adjusted EBITDA marginnon-GAAP | 20.2% | declined by approximately 466 basis points | -97 bps |
| Adjusted EBITDA margin, figures exclude the impact of IAS 29non-GAAP | 23.2% | – | +34 bps |
| Total finance gain (cost), netother | Ps. (5,626) million | – | -74.8% |
| Net financial expenseother | Ps. 9,548 million | – | decreased by 26.9% |
| Net cash generated by (used in) operating activitiesother | Ps. 18,098 million | – | – |
| Net cash used in investing activitiesother | Ps. (9,883) million | – | – |
| Net cash generated by (used in) financing activitiesother | Ps. (30,241) million | – | – |
| Total debtother | Ps. 302,505 million | – | – |
| Cash, cash equivalents and investmentsother | Ps. 28,855 million | – | – |
| Total net debtother | Ps. 273,650 million | – | -20.0% |
| Net debt / LTM Adjusted EBITDAnon-GAAP | 1.30x | – | -0.03x |
| LTM Adjusted EBITDAnon-GAAP | Ps. 210,746 million | – | – |
| Cement, masonry & lime sales volumesother | 1.19 million tons | – | -1.4% |
| Concrete sales volumesother | 0.11 million m3 | – | -18.6% |
| Railroad sales volumesother | 1.01 million tons | – | 10.1% |
| Aggregates sales volumesother | 0.23 million tons | – | -12.2% |
Segments
| Segment | Revenue | q/q | y/y |
|---|---|---|---|
| Cement, masonry cement and limeRevenue increased by 2.2% YoY. Volumes decreased by 1.4% YoY after a weak April affected by heavy rains; bulk dispatches continued to benefit from concrete producers, industrial clients, and construction companies, while bagged cement remained soft. Positive pricing supported top-line performance. | Ps. 203,557 million, figures exclude the impact of IAS 29 | – | – |
| ConcreteRevenue decreased by 11.2% compared to 2Q25 as volumes declined by 18.6%; favorable pricing partially offset lower special-project, public-works, industrial, and architecture-related demand. Stronger dispatches in Rosario were supported by public infrastructure works. | Ps. 17,565 million, figures exclude the impact of IAS 29 | – | – |
| RailroadRevenue increased by 8.6% in 2Q26 versus the same quarter of 2025 as transported volumes increased by 10.1%, led by grains, frac sand, and cement. Softer pricing did not contribute to top-line growth. | Ps. 22,957 million, figures exclude the impact of IAS 29 | – | – |
| AggregatesRevenue decreased by 10.3% YoY as volumes contracted 12.2%, reflecting weaker public-works and construction-company demand. Favorable pricing and sales mix partially offset the decline. | Ps. 5,698 million, figures exclude the impact of IAS 29 | – | – |
| OthersNo segment-specific operating commentary was reported. | Ps. 4,201 million, figures exclude the impact of IAS 29 | – | – |
What drove it
- Net revenue growth was mainly driven by stronger top-line performance in Cement, followed by Railroad, partly offset by lower Concrete and Aggregates revenues.
- Cement unit costs increased by 5.4% YoY, exceeding the 3.6% increase in average pricing. Higher depreciation from the 25-kilogram bagging project, packaging, maintenance, and freight costs weighed on costs.
- Most kilns were shut down in May as planned to limit exposure to higher winter energy costs.
- Selling and administrative expenses increased mainly because of higher salary expenses.
- Net profit improved mainly because foreign-exchange losses on U.S. dollar-denominated liabilities were lower as peso depreciation was more moderate than in 2Q25.
- Operating cash flow improved primarily due to substantially lower income tax payments and a stronger increase in tax liabilities.
Concerns
- Cement, masonry, and lime volumes decreased by 1.4% YoY, with heavy rains affecting April and bagged-cement demand lagging amid consumer sentiment and the economic environment.
- Concrete volumes decreased by 18.6% and Aggregates volumes decreased by 12.2%, reflecting lower special-project, public-works, and construction-company activity.
- Adjusted EBITDA decreased by 2.5% and its margin contracted by 97 basis points YoY to 20.2%; the sequential margin declined by approximately 466 basis points from 24.9%.
- Railroad Adjusted EBITDA margin declined to -5.2% from positive 9.8%, driven by higher fuel and labor costs.
- 87% of total debt, or Ps. 263,586 million, was denominated in U.S. dollars.
What to watch
- Whether industry volumes regain momentum in the second half of the year, as management said demand recovery remains gradual.
- The progression of bulk-cement demand relative to softer bagged-cement demand from retail, self-construction, and refurbishment customers.
- Cement cost inflation, including packaging, maintenance, freight, and depreciation, relative to pricing.
- Recovery in Concrete and Aggregates demand tied to public works, special projects, and construction companies.
- Railroad cost performance and whether transport growth in grains, frac sand, and cement can offset fuel and labor cost pressure.
Balance sheet and cash flow
- Cash, cash equivalents and investments were Ps. 28,855 million as of June 30, 2026, compared to Ps. 21,227 million as of June 30, 2025.
- Total debt was Ps. 302,505 million as of June 30, 2026, including Ps. 46,592 million of short-term debt and Ps. 255,914 million of long-term debt.
- Total net debt was Ps. 273,650 million, and Net Debt / LTM Adjusted EBITDA was 1.30x as of June 30, 2026.
- In May 2026, the Company cancelled its Class 4 corporate bond for a total principal amount of US$ 10.0 million. The Company reported no remaining debt maturities for the rest of the year.
- Net cash generated by operating activities was Ps. 18,098 million, net cash used in investing activities was Ps. 9,883 million, and net cash used in financing activities was Ps. 30,241 million.
- Payments to acquire property, plant and equipment were Ps. 9,371 million and payments to acquire intangible assets were Ps. 669 million.
Analysis
Loma Negra delivered modest top-line growth but weaker operating profitability in 2Q26. Net revenue increased 2.1% YoY to Ps. 238,053 million, with Cement revenue up 2.2% and Railroad revenue up 8.6%, while Concrete and Aggregates revenues declined by 11.2% and 10.3%, respectively. Cement, masonry, and lime volumes fell 1.4% to 1.19 million tons. Management attributed the volume outcome to heavy rains in April, while May and June were in line with the prior-year period.
Cost and expense growth exceeded revenue growth. Cost of sales increased 3.7%, gross profit declined 3.9%, and gross margin contracted 121 basis points to 19.2%. In Cement, unit costs increased 5.4% YoY versus a 3.6% increase in average pricing, reflecting higher depreciation after the 25-kilogram bagging project, plus higher packaging, maintenance, and freight costs. Selling and administrative expenses rose 15.7%, largely due to salaries, and reached 12.1% of net sales.
Adjusted EBITDA decreased 2.5% YoY to Ps. 48,175 million, and the Adjusted EBITDA margin fell 97 basis points to 20.2%. The sequential margin declined by approximately 466 basis points from 24.9%. Cement margin contracted to 23.9%, while Concrete and Aggregates remained negative despite material margin improvements. Railroad was the clearest deterioration, with its Adjusted EBITDA margin declining to -5.2% from positive 9.8% as fuel and labor costs increased.
Reported net profit nevertheless rose to Ps. 7,043 million from Ps. 514 million. The principal driver was a reduction in total net financial loss to Ps. 5,626 million from Ps. 22,291 million, primarily due to lower foreign-exchange losses on U.S. dollar-denominated liabilities. Cash generation also improved: operating cash flow was Ps. 18,098 million, versus cash used of Ps. 29,743 million in 2Q25, supported by lower income tax payments and tax-liability movements.
Balance-sheet leverage improved from year-end, with net debt of Ps. 273,650 million and net debt to LTM Adjusted EBITDA of 1.30x, versus 1.47x as of December 31, 2025. The Company repaid borrowings and cancelled its Class 4 corporate bond for US$ 10.0 million. No formal financial guidance was issued. Management's outlook instead centers on preserving efficiency gains while awaiting stronger activity in the second half of the year.
Management, verbatim
As we move through the second quarter, industry volumes have not yet fully regained the momentum we were expecting.
Sergio Faifman, Chief Executive Officer
Performance during the quarter was mainly affected by a weak April, impacted by heavy rains, while May and June trends were more in line with the levels registered a year ago.
Sergio Faifman, Chief Executive Officer
Looking ahead, we will continue to focus on preserving our efficiency gains as we await a stronger level of activity in the second half of the year.
Sergio Faifman, Chief Executive Officer
Not in the filing
stated, not guessed- Formal forward guidance for revenue, margins, operating expenses, tax rate, capital expenditures, earnings, or cash flow was not provided.
- Previous-release outlook was not provided, so comparison with prior guidance is unavailable.
- Operating income was not reported.
- Free cash flow was not reported.
- Dividend and share-repurchase activity was not reported.
- A tax rate was not reported.
- GAAP reconciliation terminology is not applicable as the issuer reports financial information applying IAS 29; the release reports Adjusted EBITDA as a non-GAAP measure.
- IAS 29-adjusted revenue by individual operating segment was not reported in the segment financial table; reported segment revenue figures exclude the impact of IAS 29.
- Prior-quarter absolute values were not reported for most quarterly metrics.
AlphAI analysis generated from the company’s SEC earnings filing (Form 8-K Item 2.02, or Form 6-K for a foreign private issuer). Every figure was cross-checked against the filing text; consensus estimates, price targets and share-price reactions are not shown because they are not in the filing. AI-generated research, not investment advice.