Thank you. Good day, and welcome to Loma Negra's earnings conference call.

By now everyone should have access to our earnings press release and the presentation for today's call, both of which were distributed yesterday after market close. Joining me on the call today are Sergio Faifman, our CEO and Vice Chairman of the Board of Directors, and Marcos Gradin, our CFO.

Sergio and Marcos will be available for the Q&A session. Before we proceed, I would like to make the following Safe Harbor statements.

Today's call will contain forward-looking statements, and I refer you to the forward-looking statements section of our earnings release and recent filing with the SEC. We assume no obligation to update or revise any forward-looking statements to reflect new or changed events or circumstances.

This conference call will also include discussion on non-GAAP financial measures. The full reconciliation to the corresponding financial measures is included in the earnings press release.

Now, I would like to turn the call over to Sergio.

Thank you, Diego. Hello everyone, and thank you for joining us today.

I would like to start my presentation by discussing the highlights of the quarter. Then, Marcos will take you through our market review and financial results.

Following that, I will share some final remarks before opening the call to your questions. Starting with slide two.

As we moved through the second quarter, industry volumes have not yet fully regained the momentum we were expecting. 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 level registered a year ago.

Cement volume decreased 1.4% year-over-year, while consolidated net revenue increased 2.1%, reaching Ps. 238.1 billion.

In terms of quarterly performance, margin in pesos showed some compression, mainly reflecting higher costs and depreciation, while our top line continued to show positive trends, even as volume remained lagging. Consolidated adjusted EBITDA reached Ps.

48.2 billion, down 2.5% year-over-year, with margin contracting 97 basis points to 20.2%. In dollar terms, however, EBITDA generation per ton stood at $32.1, up 14% year-over-year, underscoring the resilience of our operation even as demand recovery remains gradual.

During the quarter, we canceled our Class 4 corporate bonds for a total of $10 million, and we have no remaining structured debt maturity for the rest of the year. As of quarter end, net debt stood at $185 million, representing a net debt to LTM adjusted EBITDA ratio of 1.3 times.

I will now hand off the call to Marcos, who will take you through our market review and financial results. Please Marcos, go ahead.

Thank you, Sergio. Good day, everyone.

Please turn to slide four. The most recent economic data shows a more moderate growth trajectory in the second quarter.

The EMAE, Argentina's monthly economic activity indicator, grew 1.6% year-over-year in April before slowing to 0.2% in May, with a monthly decline of 0.5% versus April. On a cumulative basis, the indicator is up 1.7% through the first five months of the year, although the pace of growth has clearly moderated compared to earlier in the year.

Construction activity has shown a similar mixed trend. The ISAC declined 2.8% year-over-year in April, weighed down by the same heavy rains that affected our cement volumes, before rebounding 4.1% year-over-year in May.

Leading indicators remain constructive. Registered private sector employment in construction grew 1.2% year-over-year in April, and building permits authorized in the same month expanded by 17% year-over-year, with a 7.6% increase on a cumulative basis for the first four months of the year.

Within this context, industry cement dispatches declined 5% year-over-year during the quarter, mainly reflecting the impact of heavy rains in April across the country's main urban centers. Our own volumes followed a similar trend, but with a more moderate decline, down 1.4% year-over-year, outperforming the industry as May and June trends normalized closer to last year levels.

In terms of product mix, bulk cement continued to outperform, supported by larger-scale projects, while bagged segment, which represents the majority of the industry mix, remained relatively weak, consistent with more cautious behavior in the retail and small contractor segment. Looking ahead, we expect a continued, uneven recovery path we have been describing, rather than a change in the underlying demand trend.

That said, we remain cautiously optimistic going forward, as we believe this recovery path remains intact. Turning to slide five for a review of our top-line performance by segment.

Second-quarter revenues increased by 2.1% year-over-year, with growth led by the cement business, followed by the railroad segment, partially offset by lower revenues in the concrete and aggregate segments. In the cement, masonry cement, and lime segment, revenues increased by 2.2% year-over-year, while volume decreased by 1.4%.

Bulk cement dispatches continued to outperform, supported by higher activity from concrete producers, industrial clients, and construction companies, while bagged cement remained under pressure, with the retail segment showing the weakest performance, as demand for self-construction and refurbishing projects remained delayed. Pricing dynamics remained positive, supporting the segment top-line performance.

Concrete revenues decreased by 11.2% year-over-year, as an 18.2% decline in volumes was only partially offset by favorable pricing dynamics. Volumes were mainly affected by lower demand from special projects, particularly those linked to port infrastructure and wind farms, which are now in their final stages of completion.

The start of new projects have been gradually pushed back, though we expect them to break ground in the near terms. Volumes in Rosario remained more stable, supported by a combination of public and private works.

Aggregates revenues decreased by 10.3% year-over-year, as a 12.2% decline in volumes was only partially offset by favorable pricing dynamics. Volumes were mainly affected by the same dynamics impacting the concrete segment, particularly weaker demand for public works and construction companies.

Railroad revenues increased by 8.6% year-over-year, as higher transported volumes, up 10.1%, were partially offset by softer pricing conditions. Volume growth was mainly driven by higher transportation of grain, cement, and frac sand, the latter reflecting the resumption of operations in Neuquén following the repair of the rail section in Bahía Blanca that had been affected by last year's storm.

Moving on to slide seven. Consolidated gross profit decreased by 3.9% year-over-year, with gross margin contracting 122 basis points to 19.2%, mainly reflecting higher costs and depreciations.

Cost of sales increased by 3.7% year-over-year, reflecting higher costs in the cement and railroad segments, partially offset by lower costs in the concrete and aggregate businesses. In the cement segment, cost of sales increased on a per-ton basis, mainly driven by higher depreciation following the capitalization of the 25 kg bagging project after June of last year, along with higher packaging costs associated with its implementation.

Maintenance and freight costs also rose, the latter reflecting the pass-through of higher fuel prices, while thermal and electrical energy costs remained broadly in line, as plant's most kilns were shut down in May to avoid operating during the winter months, helping to limit our exposure to higher energy costs. In railroad, the increase in cost of sales was mainly related to higher transported volumes, together with higher salaries, fuel prices, and depreciation.

The concrete and aggregate segments both contributed positively to the consolidated results, posting gross margin expansion, although they remained in negative territory. Finally, SG&A expenses increased by 15.7% year-over-year, mainly driven by higher salary expenses.

As a percentage of sales, SG&A stood at 12.1%, up 142 basis points compared to the second quarter of 2025. Please turn to slide eight.

Consolidated adjusted EBITDA for the quarter stood at $38 million, while in pesos it reached 48.2 billion, reflecting a 2.5% year-over-year decline. This decrease was mainly driven by a weaker result in the railroad segment, together with, to a lesser extent, a contraction in cement, partially offset by improved results in concrete and aggregates.

As a result, the consolidated EBITDA margin contracted to 20.2%, representing a 97 basis point decrease year-over-year. In the cement segment, adjusted EBITDA margin stood at 23.9%, down 81 basis points year-over-year, a smaller decline than the consolidated contraction.

As higher cost of sales and SG&A, as discussed in the previous slide, were partially cushioned by favorable pricing dynamics. The concrete segment's adjusted EBITDA margin expanded by 867 basis points to -4.3% from -13% in the second quarter of 2025, supported by favorable pricing dynamics and lower costs, although it remained in negative territory.

Similarly, the aggregate segment improved its margin by 877 basis points, reaching -18.6% in the quarter from -27.4% in the same period last year, also supported by an increase in price and cost control, although it likewise remains in negative territory. Finally, in the railroad segment, adjusted EBITDA margin turned negative, reaching -5.2% in the second quarter, compared to a positive 9.8% in the same period of 2025.

This was mainly due to a higher cost of sales, primarily driven by increased fuel and labor costs, while SG&A expenses remained broadly in line. Moving on to the bottom line on slide 10.

Net profit attributable to owners of the company totaled 7.5 billion pesos for the quarter, compared to a 0.5 billion pesos in the second quarter of last year. The improvement was mainly driven by lower financial expenses, despite softer operating performance, and was partially offset by higher income tax expenses.

On the financial side, the company reported a total net financial loss of 5.6 billion pesos for the quarter, compared to a net financial loss of 22.3 billion pesos in the same period of last year. The year-over-year improvement was mainly attributable to a lower foreign exchange loss on our US dollar-denominated liabilities, as the peso continued to depreciate during the quarter, though at a more moderate pace than in the second quarter of last year.

Additionally, net financial expenses decreased by 27% to 9.5 billion pesos, mainly driven by improved financial income coupled with lower financial expenses. Moving on to the balance sheet, as you can see on slide 11, we ended the quarter with net debt of 274 billion pesos and a net debt to adjusted EBITDA ratio of 1.3 times, down from 1.47 times at the end of 2025.

Cash flow from operating activities totaled 18.1 billion pesos in the quarter, compared to a cash outflow of 29.7 billion in the second quarter of 2025. This year-over-year improvement was mainly driven by a significant improvement in working capital, primarily reflecting lower income tax payments during the quarter, together with a strong increase in tax liabilities.

This was partially offset by higher working capital requirements in trade receivables as well as account payables. Regarding investing activities, the company used 9.9 billion pesos, with CapEx totaling 9.7 billion, remaining lower following the completion of the 25 kg bagging project.

On the financing side, the company used 13.2 billion pesos during the quarter, mainly related to the prepayments of borrowings. In May 2026, the company completed the cancellation of the Class 4 corporate bond for $10 million, leaving no remaining structured debt maturities for the rest of the year.

In US dollar terms, net debt stood at $185 million, with an average duration of 1.4 years. As of quarter end, 87% of total debt was denominated in dollars, with the remaining balance in pesos.

Now, for our final remarks, I will hand the call back to Sergio. Thank you.

Thank you, Marcos. Now, to finalize the presentation, I please ask you to turn to slide 13.

Volume during the first half of the year came in below our initial expectation. Going forward, we may continue to see some volatility, including potential short-term decline, as the recovery path is unlikely to be a straight line.

That said, we remain cautiously optimistic that the underlying trend for the second half of the year and beyond is a positive one. We are beginning to see some of the projects' approval under the RIGI regime starting to move forward.

Beyond that, we see additional factors that could further support volume in the second half of the year: a potential easing of monetary conditions, an expected improvement in real wages, and a possible recovery in credit availability. Our top line continued to perform well during the quarter, and we remain focused on cost discipline and operational efficiency as we navigate a gradual demand recovery.

Finally, on August 5th, Loma celebrated its 100th anniversary, an important milestone that filled us with pride. We look forward to continuing to support the country's development over the next 100 years, just as we have through this past century.

This is end of our prepared remarks. We are now ready to take questions.

Operator, please open the call for questions.

Hi, Loma team. Thank you for taking my question.

It's regarding the second semester. If credit access remains limit, would the other demand drivers

be enough to support a recovery and reach 2025 volume levels? Morning, Sofía.

Thank you for your question. Sí, claramente creemos que el crédito es difícil que se recupere de forma significativa durante el segundo semestre.

Yes, actually we believe that it's difficult to see a significant credit improvement in the second half of the year.

Asimismo, sí creemos que hay varios factores que deberían empezar a impactar positivamente en nuestro volumen y nivel de actividad.

We do believe there are other factors that should start to impact positively our level of activity.

Tenemos varios de los proyectos que han sido presentados dentro del RIGI que estamos avanzando en su cotización para comenzar. Algunos de ellos van a comenzar en el segundo semestre de este año.

Several of the projects that were presented with the RIGI regime, we are working some of those, and we expect them to start showing some impact on our volumes in the upcoming months.

Adicionalmente, tenemos todos los contratos de concesiones viales que el gobierno ha aprobado en el último tiempo.

Additionally, all the road concessions that the government has been granting in the past few months.

Aún ninguno de ellos ha comenzado, con lo cual eso debería tener impacto en los próximos meses, en el segundo semestre del año.

None of those are already back in our volumes, but they are starting to move forward. We're expecting to see some more volumes drive by that in the second half of the year.

Y siempre recordando que históricamente todos los meses de septiembre para adelante son los mejores meses estacionales del año.

Always remember that the months starting September are the strongest months in terms of cement dispatches.

Thank you.

Hi, good morning, Loma Negra team. Thank you for taking my question.

Mine is on your costs, on your unit costs, actually. You mentioned in the release and across your remarks that these are up, and you're starting to see some pressures on margins.

I was hoping to understand if you can help us break those trends down. In terms of the cost headwinds, which ones do you think are a one-off or perhaps just seasonally related vis-à-vis those that are recurring?

If you think of perhaps the second half and 2027, what do you think are the levers that could help margins recover from these levels? Thank you.

Hola Alejandra, thank you for your question. Sí, a ver, separemos dentro de los costos unitarios que están impactando en el trimestre...

Just to be clear and separate the unitary costs that are impacting in the Q...

Yo separaría

algunos que son transitorios, otros permanentes, y otros que son nuevos. I will remark some of those that are permanent, some of those will remain, and some of those are new.

Dentro de estos diría, en el trimestre y en los últimos meses hemos tenido un incremento en lo que tiene que ver con fletes, producto de el aumento de combustible por la guerra.

During the quarter, we saw some increase in freights due to the increase in gas due to the impact of the war.

Adicionalmente, cuando uno compara con el año pasado, tenemos todo lo que tiene que ver con la bolsa de 25 kilos, que fue empezada a comercializarse a partir de julio del año pasado.

Additionally, we also had the impact of the 25 kg bags that we started to dispatch on July last year.

Aquí tenemos dos impactos, uno que tiene que ver con costo de la operación, el costo del envase, el costo de personas, electricidad, y de la operación de bolsas de 25 kilos...

Here we have two types of impacts. One is related to the bags itself, and the packaging, and then the people working on this new dispatching line.

Y por el otro lado, el impacto que tiene que ver con la amortización de la inversión que la compañía ha hecho para la bolsa de 25 kilos.

On the other side, we have the impact of the depreciation of the investment that we did in the dispatching.

Te diría para cuando uno mira tanto el incremento como para adelante, tanto el impacto de lo que tiene que ver con bolsa de 25 kilos como con flete ha sido trasladado a precio.

Also looking forward, the impact of the 25 kg bags was fully translated to an increase in prices.

Adicionalmente, para los próximos meses, a partir de septiembre, que arrancan nuevamente nuestros hornos...

Additionally, looking forward, starting on September, we're going to start our kilns again.

Ya hemos firmado contratos de gas por valores que tienen una reducción respecto de lo que veníamos pagando, con lo cual eso va a mejorar nuestros costos.

We have already signed contracts to start using in that period with terms better than the ones that we used in our last production cycle, so that is going to have a positive impact on our costs.

Adicionalmente, el incremento en volumen nos debería permitir una mayor dilución de los costos fijos por tonelada.

Additionally, if volume is increased, that leverage should dilute our fixed costs and give us in terms of margin.

Thank you, that was very clear.

De nada.

Morning, thank you for taking my question. I wanted to go back to the 25 kg bag project.

Could you give us details on the implementation, on how it has impacted the commercial strategy, and of course, your pricing? You did mention it has been positive and you've been able to push for higher pricing.

Just a little bit more color on how it was implemented, has it been fully implemented, did it surpass your expectations? Just anything you can give us.

Thank you.

Hola Daniel, thank you for your question. Efectivamente,

hay que recordar que el cambio de bolsa de 50 para 25 fue un requerimiento legal. I would like to remark that this change of moving from 50 kg bags to 25 kg bags was due to a regulation.

Esto está asociado a un tema de salubridad del peso que las personas mueven cuando levantan la bolsa de 50 kilos.

This is related to improve the conditions of the workers that need to handle this heavy bags.

Si bien había normas que decían que para mover las bolsas había que hacerlo con ayuda mecánica, como eso no se realizaba, se cambió la norma para que las bolsas pasen a 25 kilos.

Firstly, the regulation was aiming to supply some sort of mechanical support in order to handle this type of bags, and because that is not feasible, the decision was to move from 50 to 25 kg bags.

Como el costo de dos bolsas de 25 kilos es superior al costo de una de 50 por los costos de envase, de inversión y de operación...

Given that the cost of two bags, two 25 kg bags, is higher than one 50 kg bags only to the packaging and of the operation necessary...

El mercado no estaría dispuesto a pagar ese sobrecosto, con lo cual, si uno no cambia toda la producción y toda la venta a 50 kilos, eso no se produciría.

The market is not willing to accept that increased cost, you need to change the whole production and the whole distribution to the new bagging package.

Con lo cual la norma preveía que a partir de determinada fecha, todo el mercado de cemento argentino tenía que pasar a bolsas de 25 kilos y dejar de vender las de 50.

The regulation demanded that on an specific date, all the industry needed to change to this new packaging format.

Y la verdad que tanto la inversión y toda la parte operativa para poder realizar todo fue un éxito. Fue una inversión de más de 60 millones de dólares.

Hemos cumplido el plazo previsto sin ningún impacto en la operación.

All the operational needs and the financial commitments, it was an investment of more than $5 million, we were able to fulfill it in the due times, and there was a whole success.

Muchas gracias.

A vos.

Thank you all for joining us today, and we hope to meet you again in our next quarterly call. Thank you very much, and have a nice day.