Key Highlights

  • Cementos Pacasmayo reported third quarter revenue of approximately USD 193.6 million, equivalent to PEN 667.4 million, up 16.3% year over year.
  • Net income rose 69.8% to PEN 121.4 million, supported by higher operating profits across the company's cement business.
  • Consolidated EBITDA increased 45.1% to PEN 233.1 million, with EBITDA margin expanding 7 percentage points to 34.9%.
  • The company's net debt to EBITDA ratio stood at 2.0 times as of September 30, 2026, which management described as a healthy balance sheet position.

Cement Segment Growth Drives Margin Expansion

Cementos Pacasmayo (NYSE:CPAC) reported third quarter revenue of PEN 667.4 million, up 16.3% from a year earlier, driven by higher sales volumes of bulk and bagged cement. Overall sales volume across cement, concrete and precast products rose 14.2%, supported by demand from mining infrastructure and self construction activity.

Cement segment revenue specifically rose 21.3% to PEN 571.6 million, with cement gross margin expanding 2 percentage points to 50%, aided by a new long term energy contract. Consolidated EBITDA margin reached 34.9%, an expansion of 7 percentage points, reflecting lower electricity rates and a reduced clinker factor in the production process.

Concrete Segment Revenue Declines as Margins Improve

Concrete, pavement and mortar segment revenue declined 19.7% to PEN 65.6 million following the completion of major airport and road infrastructure projects. Despite the revenue decline, concrete segment gross margin expanded 21 percentage points to 19.8%, which the company attributed to a disciplined commercial strategy and cost savings.

Precast segment revenue rose 23.1% to PEN 11.3 million, supported by demand for concrete pavers in both public and private projects. For the first nine months of 2026, consolidated revenue reached PEN 1,781.9 million, up 14.4%, with nine month EBITDA of PEN 585.8 million, up 37.7% year over year.

Balance Sheet Position and Integration Progress

Net income for the quarter was PEN 121.4 million, up 69.8% from the prior year, with earnings per share of PEN 0.28 compared with PEN 0.17 a year earlier. Cash and cash equivalents stood at PEN 387.7 million as of September 30, 2026, up from PEN 53.6 million at the end of 2025.

The company said it remains in the early stages of its strategic integration with Holcim, with procurement or operational synergies not yet reflected in current financial results. Management's volume growth guidance for 2027 stands at approximately 4%, though the company noted this estimate remains contingent on weather conditions, including the potential effects of El Nino on regional construction demand.

Integration and Weather Factors to Watch

Progress on the Holcim integration, including any procurement or operational synergies not yet captured in results, the realization of the roughly 4% volume growth estimate for 2027, and regional weather patterns tied to El Nino are among the factors the company has flagged for coming quarters. The net debt to EBITDA ratio of 2.0 times remains a reference point for assessing the balance sheet as integration progresses.