Loma Negra Compania Industrial Argentina Sociedad Anonima (LOMA)

Price$10.27Cached quoteAs of 2026-09-05 18:54 UTC

AI: Fair-priced

Price checkThe shares look fairly priced because recovery hopes balance weak and uneven cash generation.

At the observed market value, Loma’s equity is roughly $1.14 billion; adding June net debt of $185 million gives about $1.32 billion of enterprise value, meaning the value of the operating business. Against trailing adjusted operating earnings before interest, tax, depreciation and amortization of 210.7 billion pesos, or about $142 million at June’s exchange rate, that is roughly 9.3 times. The shares also sit near 1.3 times book value, or shareholders’ accounting net assets. These middling multiples balance recovery potential against uneven cash output.

Big pictureDemand remains soft, and cash generation has not yet proved durable.

In 2025, operating cash flow of 65.4 billion pesos failed to cover 69.3 billion of capital spending, leaving free cash flow—cash left after running and investing in the business—slightly negative. The first half of 2026 improved to 39.1 billion from operations versus 21.6 billion spent, producing 17.5 billion of free cash flow. Yet inflation-adjusted first-half sales rose just 1.6%, and adjusted operating earnings rose 1.5%. Net profit jumped 64.8%, mainly because currency effects improved, so headline earnings overstate operating momentum.

Business strengthA leading market position and manageable debt cushion a highly cyclical business.

Loma leads Argentina’s cement market, and cement, masonry and lime supplied about 87% of second-quarter revenue before inflation accounting, giving scale but little geographic protection. June net debt equaled a manageable 1.30 times trailing adjusted operating earnings; 87% of debt carried fixed rates, and no maturities remained in 2026. Shares outstanding stayed at 583.5 million from 2023 through June 2026, so dilution is absent. However, buybacks and dividends were negligible in 2025 and early 2026, making shareholder returns dependent mainly on business recovery.

What could change the storyA construction rebound could unlock upside, while stalled demand or peso weakness could erase it.

The strongest bull case is an Argentine construction rebound: second-quarter cement volume was still 1.4% below last year, while weak bagged demand showed households had not recovered; higher volume could spread fixed kiln costs across more tons. The bear case is that costs keep outrunning prices: cement unit costs rose 5.4% while average pricing rose 3.6%, squeezing margins. With 87% of debt denominated in dollars, renewed peso depreciation would also raise reported finance losses. Around 9.3 times operating earnings, the valuation needs improving demand without another sharp margin or currency setback.

AI: News

Second-quarter demand stayed weakSales edged higher, but weak volumes and narrower margins showed recovery remains fragile.

On August 6, Loma reported inflation-adjusted revenue up 2.1% year over year, while cement volume fell 1.4%, concrete volume fell 18.6%, and adjusted operating earnings fell 2.5%. The corresponding margin slipped to 20.2% from 21.2%. Net profit rose to 7.0 billion pesos from 0.5 billion, but management attributed that mainly to smaller currency-related finance losses. The operating data, not the profit headline, therefore carried the more cautious signal.

Stronger first quarterEarly-year profits improved, though currency gains contributed more than construction demand.

On May 4, Loma reported first-quarter revenue up only 1.1% after inflation, but adjusted operating earnings increased 5.1% and the margin reached 24.9%, up from 24.0%. Net profit rose 44.2% to 40.6 billion pesos. A stronger peso created currency gains on dollar debt, so the profit increase was not purely operational. Cement volume improved 1.8%, while concrete volume grew 14.1%, giving some evidence of recovery before the softer second quarter.

Control-owner restructuringNew creditor owners may eventually sell the controlling stake, creating both opportunity and uncertainty.

On April 6, InterCement Participações, Loma’s indirect controller, completed its court-supervised restructuring, bringing creditors led by Latcem, Redwood and Moneda into its ownership. Loma’s direct controller still holds 52.14% of the voting shares. Under the restructuring plan, that indirect stake may be marketed for a private sale through September 30, 2028. A sale could produce a strategic premium or governance change, but neither timing nor buyer is assured; the disclosure creates an event-driven possibility, not confirmed value.

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Financial statements

	2025	2024	2023	2022	2021	2020	2019	2018	2017	2016	2015
Revenue	$848.09B	$699.18B	$919.31B	$984.19B	$446.87B	$122.38B	$72.08B	$51.24B	$38.21B	$19.33B	$7.87B
Gross profit	$185.01B	$186.98B	$230.63B	$265.78B	$141.24B	$37.04B	$19.69B	$12.84B	$9.74B	$4.18B	$2.06B
Gross margin	21.81%	26.74%	25.09%	27.00%	31.61%	30.26%	27.32%	25.07%	25.48%	21.62%	26.20%
Operating expenses	$103.38B	$106.02B	$124.16B	$94.71B	$141.24B	$27.01B	$18.01B	$12.03B	—	—	—
Operating income	$81.63B	$139.95B	$179.23B	$171.07B	$0	$10.03B	$1.68B	$810.2M	—	—	—
Operating margin	9.63%	20.02%	19.50%	17.38%	0.00%	8.20%	2.34%	1.58%	—	—	—
EBITDA	$174.95B	$498.83B	$328.88B	$205.71B	$36.15B	$21.76B	$7.20B	$4.54B	—	—	—
EBITDA margin	20.63%	71.35%	35.77%	20.90%	8.09%	17.78%	9.99%	8.86%	—	—	—
Net income	$23.58B	$153.63B	$21.08B	$12.25B	$38.48B	$33.47B	$8.31B	$4.09B	$5.66B	$1.29B	$351.5M
Net profit margin	2.78%	21.97%	2.29%	1.24%	8.61%	27.35%	11.53%	7.97%	14.81%	6.66%	4.47%
Basic EPSper basic share	ARS 202.10	ARS 263.61	ARS 38.46	ARS 3.31	ARS 21.67	ARS 56.00	ARS 8.77	ARS 6.32	ARS 9.46	ARS 2.25	ARS 0.62
Diluted EPSper diluted share	ARS 202.10	ARS 263.61	ARS 38.46	ARS 3.31	ARS 21.67	ARS 56.00	ARS 8.77	ARS 6.32	ARS 9.46	ARS 2.25	ARS 0.62