Cementos Pacasmayo S.A.A. (NYSE:CPAC) reported double-digit revenue and volume growth for the second quarter of 2026, with management citing strong demand from Peru’s self-construction market, higher bagged cement sales and improved operating efficiency.
Chief Executive Officer Humberto Nadal said the company delivered “outstanding operational execution and financial discipline” during the quarter. Sales volume for cement, concrete and precast products increased 15.5% from the prior-year period, helping revenue rise 15.4% to PEN 558.9 million.
“This peak in profitability is a direct result of operational efficiencies, our extremely solid commercial strategy, and a shift towards higher margin concrete solutions,” Nadal said.
First-half revenue and EBITDA also climb
Hayashi said first-half revenue totaled PEN 1.11 billion, up 13.3% from the first six months of 2025. Total shipments increased 13.6% over the same period, led by bagged cement in the self-construction market across northern Peru.
Gross profit for the first half rose 25.4% to PEN 455.5 million, following a 23% increase in the second quarter. Hayashi attributed the improvement to “structural operational efficiencies and higher shipments.”
First-half EBITDA rose 33.1% to PEN 352.7 million, and EBITDA margin expanded 4.7 percentage points to 31.6%. Cumulative net income increased 58.4% year over year to PEN 159.2 million. Hayashi also said the company reduced leverage, with its net debt-to-EBITDA ratio declining to 2.32.
Cement remains the main driver
The cement business continued to account for the bulk of Cementos Pacasmayo’s results. Hayashi said cement revenues increased 19.5% in the second quarter to PEN 469.5 million, representing 86.3% of quarterly shipments. For the first half, cement revenue reached PEN 935.9 million, up 17.7% year over year.
However, cement gross margin slipped 1.5 percentage points in the second quarter to 45.2%. Hayashi said the decline reflected a slight increase in coal prices and higher consumption of imported clinker during scheduled kiln maintenance. For the six-month period, cement gross margin was 46.7%, which she described as stable and resilient.
The concrete, pavement and mortar segment posted a 2.6% decline in quarterly revenue to PEN 66.8 million. First-half revenue in the segment fell 9.3% to PEN 132.8 million. Hayashi said the decline was due to a difficult comparison with the prior year, when the Piura Airport project contributed significant volume before concluding.
Despite lower revenue, profitability in the concrete segment improved sharply. Gross margin rose 17.9 percentage points in the second quarter to 16% and increased 18.1 percentage points for the first half to 16.2%. Hayashi said the improvement reflected a shift away from low-margin infrastructure work toward higher-margin specialized concrete solutions, including work for the Yanacocha project.
The precast segment also improved. Revenue rose 2.6% in the quarter to PEN 7.9 million and increased 3.6% in the first half to PEN 14.5 million. Hayashi said demand was supported primarily by public sector infrastructure. Precast gross margin rose 6.2 percentage points to 10.1% in the quarter and 6.8 percentage points to 9.7% for the first half.
Management points to innovation, sustainability and infrastructure work
Nadal highlighted several nonfinancial developments during the call, including official verification of the company’s 2025 organizational carbon footprint by ICONTEC Perú. He said the verification validates emission reductions across the company’s operations.
He also said Cementos Pacasmayo secured a tax benefit from CONCYTEC after approval of a technology and innovation project, which he described as supporting the company’s long-term competitiveness and research and development efforts.
On infrastructure, Nadal said the company prefabricated foundations at more than 5,000 meters above sea level for the Yanacocha Sulfuros project. He also said Cementos Pacasmayo secured the specification of an additional 4.4 kilometers of concrete sheet piles for the Riverbank Defense Project in Piura, which he described as important as Peru prepares for the El Niño phenomenon.
Nadal also noted the company’s inclusion in the top 15 of the Merco Talento 2026 Index nationwide and said it remained the top company for attracting and retaining talent in Peru’s cement sector for the 11th consecutive year.
Q&A focuses on Holcim, El Niño, margins and capital spending
During the question-and-answer session, Francisco Suarez of Scotiabank asked about potential opportunities now that Pacasmayo is part of the Holcim ecosystem. Nadal said the companies share a vision around building solutions and that Pacasmayo is looking at areas where Holcim can help, including operations, plant and kiln efficiency, ready-mix operations and building solutions.
Asked whether those opportunities could extend to Lima, Nadal said he could only speak for Pacasmayo as an independent company. He said the synergies he referenced involve learning and improving service in Pacasmayo’s own region, “fundamentally” northern Peru and part of the Peruvian jungle.
Gerald Fort of AFP Integra asked whether the concrete segment’s improved margins were sustainable, noting that Yanacocha was expected to contribute only until around the third quarter. Nadal said the prior negative margin was explained more by the conclusion of the Piura Airport project than by Yanacocha. Looking ahead, he said a 16% margin is “more of a going concern” and a sustainable level the company should be able to achieve in coming months or years.
Fort also asked about projects that could replace Yanacocha’s contribution, including riverbank protection projects and Chavimochic. Nadal said the company is “extremely excited” about the incoming government and has seen signs of interest in infrastructure and El Niño prevention efforts. He said the company expects movement in the next roughly 120 days around riverbanks and related building solutions.
Christian Choquecota of La Positiva Seguros asked whether El Niño could boost demand for cement or concrete. Nadal said the company is concerned and planning ahead, adding that Pacasmayo is prepared to face El Niño and support communities, customers and clients. He said past El Niño events have caused short-term disruption but can be followed by additional demand, depending in part on decisions by national and regional governments.
Diego Corzo of Inteligo Group asked about capital expenditures and cement prices. Nadal said sustaining capital expenditures are expected to be around PEN 100 million per year, consistent with recent years after the company completed kiln number four in Pacasmayo. On pricing, he said the company had made some recent adjustments and would continue monitoring the market for potential opportunities for further increases during the remainder of the year.
In closing remarks, Nadal said the second-quarter and first-half results reflected the company’s strategic vision and the strength of its northern Peruvian market. He said that as Pacasmayo moves forward alongside Holcim, it is positioned to combine its local presence with “world-class capabilities.”
About Cementos Pacasmayo S.A.A. (NYSE:CPAC)
Cementos Pacasmayo SAA. is a Peru?based cement and construction materials company engaged in the production, distribution and sale of cement and related products. The company’s core activities include manufacturing ordinary portland cement, hydrated lime and other industrial minerals. It serves the building and infrastructure sectors, offering tailored solutions for public works, residential and commercial construction projects.
Founded in 1949 in the coastal city of Pacasmayo, the company has grown into one of Peru’s leading cement producers.
