Loma Negra Reports 88.7% Net Profit Decline in 2025 Amid Challenging Argentine Economy

summarizeSummary

Loma Negra reported an 88.7% drop in net profit and a 7.8% revenue decline in 2025, reflecting severe macroeconomic pressures in Argentina, despite successful bond issuances and national IMF support.

check_boxKey Events

• Significant Net Profit Decline

  Net profit decreased by 88.7% to Ps. 22,821 million in 2025, down from Ps. 202,094 million in 2024, with net margin contracting from 22.0% to 2.7%.

• Revenue Contraction

  Revenues decreased by 7.8% to Ps. 848,087 million in 2025, primarily due to lower sales prices in the core cement segment.

• Macroeconomic Headwinds Persist

  Operations were impacted by Argentina's hyperinflationary environment (31.5% inflation in 2025) and a 41.3% peso devaluation against the U.S. dollar, though GDP showed signs of recovery in Q4 2025.

• New Debt Issuances

  The company successfully issued Class 5 Corporate Bonds for US$112.9 million in July 2025 and Class 6 Corporate Bonds for US$60 million in January 2026, increasing total borrowings to Ps. 297,908 million.

auto_awesomeAnalysis

Loma Negra's annual report reveals a substantial 88.7% decrease in net profit for 2025, falling to Ps. 22,821 million from Ps. 202,094 million in 2024, alongside a 7.8% decline in revenues. This significant downturn reflects the ongoing macroeconomic challenges in Argentina, including a 41.3% peso devaluation and persistent, albeit decelerating, inflation. The company's core cement segment experienced a 11.9% decrease in sales price, partially offset by a 2.5% increase in volume. While the company successfully issued new corporate bonds and Argentina secured a new US$20 billion IMF funding facility, these broader financial stability measures for the country do not fully mitigate the direct impact on Loma Negra's profitability. Additionally, a change in the indirect ownership structure of its controlling shareholder introduces potential uncertainty regarding future strategic direction.