Loma Negra Compañía Industrial Argentina Sociedad Anónima (NYSE:LOMA) opened 2026 with Q1 results that put revenue at about ARS 218.7b and basic EPS at ARS 351.37, setting a clear marker for how the year is starting to shape up. Over the past few quarters, the company has seen revenue move from about ARS 279.4b in Q4 2024 to ARS 172.9b in Q1 2025 and then to ARS 270.6b in Q4 2025. Basic EPS shifted from ARS 360.89 to ARS 195.07 and then to ARS 64.39, so this latest print lands against a backdrop of sharply changing earnings power that keeps margins firmly in focus for investors.

See our full analysis for Loma Negra Compañía Industrial Argentina Sociedad Anónima.

With the headline numbers on the table, the next step is to see how this pattern of shifting revenue and EPS lines up with the widely followed growth, risk, and profitability narratives around Loma Negra.

Margins Thin Out Despite Strong ARS 850.5b Trailing Revenue

• Over the last 12 months, Loma Negra generated about ARS 850.5b in revenue with net income of roughly ARS 36.1b. This works out to a 2.8% net margin compared with 22% a year earlier.
• Analysts' consensus view links Argentina's recovering GDP and growing cement volumes to a stronger volume outlook. However, the drop in trailing margin to 2.8% sits awkwardly against that story, especially when Concrete and Aggregates are flagged as operating at negative EBITDA margins and could be holding back the broader cement recovery.
  • The consensus narrative leans on cost efficiency efforts such as lower energy input prices and modernization of production processes. At the same time, the recent contraction in gross profit and operating margins across most segments shows how much work is still needed for those efficiencies to show up in net income.
  • Commentary pointing to early momentum in bulk dispatches and public works projects contrasts with the modest ARS 36.1b of trailing net income. This suggests that any volume recovery has yet to translate into the kind of profitability that the long term thesis highlights.

High 77.8x P/E Versus Peers and 7.86 DCF Fair Value

• With the share price at ARS 11.70, Loma Negra trades on a trailing P/E of 77.8x compared with 21.8x for peers and 15.8x for the Global Basic Materials industry. The stock also sits above a DCF fair value estimate of about ARS 7.86.
• Bears argue that rich valuation multiples leave little room for disappointment, and the combination of a 2.8% trailing margin and negative earnings growth over the past year reinforces that concern when set against the DCF fair value and elevated P/E.
  • Critics highlight that trailing earnings have fallen from a period when margins were 22%. The same business now supports a much higher P/E on a weaker earnings base, which magnifies the risk if earnings do not rebound as expected.
  • The fact that the market price is above the ARS 7.86 DCF fair value, while the P/E is several times industry levels, lines up closely with the bearish focus on valuation risk rather than near term operating momentum.

On this view, valuation worriers may see more downside risk than upside payoff if profitability does not recover toward past levels, which is exactly the kind of scenario skeptics are focused on in their more cautious narrative. 🐻 Loma Negra Compañía Industrial Argentina Sociedad Anónima Bear Case

Growth Story: 32.2% Forecast Earnings Versus 35.1% Five Year History

• Analysts are projecting earnings growth of about 32.2% per year and revenue growth of roughly 7% per year, while over the past five years reported earnings grew at around 35.1% per year.
• Bulls argue that this mix of strong historic growth and upbeat forecasts helps justify analyst price targets around ARS 14.70, which is higher than the current ARS 11.70 share price. However, the recent drop in trailing margin to 2.8% from 22% shows the path to those targets is not smooth.
  • Supporters point to cost measures and financial discipline that are expected to lift profit margins over time. Yet the latest trailing figures still show lower net income of about ARS 36.1b on ARS 850.5b of revenue compared with the much stronger profitability implied by the earlier 22% margin.
  • The roughly 32% forecast earnings growth rate is close to the 35.1% five year earnings growth history, which backs the bullish view that the company has handled growth before. Investors now have to reconcile that history with the recent period of negative earnings growth and thinner margins.

For anyone weighing whether the long term growth case really lines up with the latest numbers, it helps to see how different analysts stitch these earnings, margin, and valuation threads into a single story. To see how these results tie into long-term growth, risks, and valuation, check out the full range of community narratives for Loma Negra Compañía Industrial Argentina Sociedad Anónima on Simply Wall St. Add the company to your watchlist or portfolio so you'll be alerted when the story evolves.

Next Steps

To see how these results tie into long-term growth, risks, and valuation, check out the full range of community narratives for Loma Negra Compañía Industrial Argentina Sociedad Anónima on Simply Wall St. Add the company to your watchlist or portfolio so you'll be alerted when the story evolves.

The mix of tight margins and growth expectations can feel conflicting, so look through the numbers yourself, weigh the trade offs, and see why many investors are weighing both 2 key rewards and 1 important warning sign

Explore Alternatives

Loma Negra's thin 2.8% net margin on ARS 850.5b of revenue, negative segment EBITDA, and high 77.8x P/E all point to pressured profitability and valuation risk.

If those tight margins and rich multiples concern you, use the 48 high quality undervalued stocks to quickly spot stocks where current prices are closer to underlying fundamentals and potential value.

This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.