Cementos Pacasmayo S.A.A. (CPAC) Company Overview

What does Cementos Pacasmayo do?

Cementos Pacasmayo S.A.A. is a Peruvian building-materials producer focused on northern Peru. Its American Depositary Shares trade on the New York Stock Exchange under CPAC, while its common shares trade in Lima. It manufactures cement, concrete, mortar, pavement materials, precast products and quicklime through the Pacasmayo, Piura and Rioja plants, nearby quarries and a dense retail channel.

Why does the northern Peru focus matter?

Cement is expensive to transport relative to its selling price, so plant location and distribution density shape competition. Pacasmayo's facilities and quarry rights place production close to its customers, while the DINO network connects the company with fragmented hardware stores, retailers, contractors and self-builders. The official operating-sites overview shows how the three plants anchor a regional system rather than a national, asset-light brand.

How does Cementos Pacasmayo make money?

The core cash engine is cement, especially bagged product sold through retail channels for self-construction. Bulk cement and downstream materials serve infrastructure, mining and commercial projects. These extensions deepen customer relationships, but margins vary sharply: cement is structurally attractive, while project-based concrete or pavement can be low margin.

Which revenue stream is most important?

The FY2025 mix makes the concentration clear: cement and cement-related products generated nearly all revenue. Within that group, cement alone produced S/1,745.2 million, compared with S/254.1 million from concrete and mortar, S/34.3 million from pavement and S/31.1 million from precast. The company's subsidiary structure supports distribution, concrete, precast and northeastern operations.

How does cash move through the model?

What do the latest 2026 results show?

The latest official package is the second-quarter 2026 earnings release, dated July 20, 2026. It shows a sharp improvement in volume, operating leverage and concrete profitability. The strongest signal is not merely higher revenue; it is the widening gap between revenue growth and operating-profit growth.

What drove the margin expansion?

Bagged cement demand remained strong, and 2Q26 cement revenue rose 19.5% to S/469.5 million. Cement gross margin nevertheless declined 1.5 percentage points to 45.2% because of higher coal prices and imported clinker used during kiln maintenance. Consolidated profitability still expanded because concrete, pavement and mortar swung from a S/1.3 million gross loss in 2Q25 to S/10.7 million gross profit in 2Q26. The completion of the low-margin Piura airport work and the shift toward specialized Yanacocha services changed the mix.

Which strategic turning points created today's business?

Pacasmayo's history matters because each major investment changed either regional coverage, cost structure or access to capital. The official company history and its latest annual filing show a progression from one northern plant to a broader building-solutions platform.

1. 1957
   Operations began in Pacasmayo. The original plant established the company's long-standing coastal position and quarry-to-market model.
2. 1995
   The company listed on the Lima Stock Exchange, creating a public-equity framework for a capital-intensive regional producer.
3. 2012
   The U.S. ADS offering placed CPAC on the NYSE; each ADS represents five common shares, broadening access to international investors.
4. 2013
   Rioja capacity was expanded, strengthening service to northeastern Peru and reducing the need to supply that region from the coast.
5. 2015–2016
   The Piura plant began cement production in 2015 and clinker production in 2016, adding 1.6 million metric tons of cement capacity.
6. 2023
   A roughly US$83.5 million modern kiln at Pacasmayo was completed, improving efficiency and lowering emissions relative to older vertical kilns.
7. 2026
   Holcim acquired 99.99% of Inversiones ASPI, indirectly obtaining control of 50.01% of Pacasmayo's voting common shares.

What changed with Holcim control?

The March 2026 transaction is more than a shareholder change. Holcim can influence board composition, dividend policy, strategic projects and future corporate actions. It also offers access to global technical expertise, sustainable construction products and procurement capabilities. At the same time, the controller's stated intention to consider NYSE delisting after the required tender process creates a material governance and liquidity issue for ADS holders. The Schedule 13D is therefore central to understanding the current investor profile.

What gives Cementos Pacasmayo a competitive advantage?

Why is distribution difficult to replicate?

Self-builders buy cement gradually through local hardware stores and tradespeople. Pacasmayo's retailer relationships matter because 81.4% of FY2025 cement shipments were bagged. A new entrant would need a kiln, permits and quarry access plus reliable delivery and adoption across many small points of sale.

Who are the main competitors?

Which operating KPIs matter most?

Revenue alone can hide operational changes. Researchers should separate demand, plant loading, clinker timing, price, fuel cost and downstream mix. In 2Q26, cement production rose while clinker output fell because of inventory use and planned maintenance, not collapsing demand.

How should plant utilization be read?

How financially strong is Cementos Pacasmayo?

Pacasmayo is profitable and cash-generative, but it remains capital intensive and leveraged. Its 2025 Form 20-F provides the annual baseline, while 6M26 shows a faster earnings pace and improved liquidity. The key question is whether higher EBITDA and lower debt can persist through Peru's construction cycle.

What did FY2025 establish as the baseline?

What changed by June 2026?

The balance sheet is improving but not conservative. At June 2026, assets were S/3,205.6 million, inventories S/651.5 million and current liabilities S/905.1 million. Disclosed debt included S/571.6 million due within one year and S/494.5 million due in one to three years. The company reported compliance with its year-end 2025 leverage and debt-service covenants.

Who owns CPAC stock, and why does control matter?

Ownership changed fundamentally in March 2026. Holcim acquired 99.99% of Inversiones ASPI, owner of 50.01% of Pacasmayo's voting common shares. Economic ownership is broader, but voting control is concentrated, allowing the controller to shape board appointments and most shareholder decisions.

How is governance structured after the transaction?

The seven-member board changed with control: two Hochschild representatives resigned and Holcim designees Simon Kronenberg and Santiago Ojea joined. CEO Humberto Nadal became chairman, while Raimundo Morales remained vice chairman. The three-member audit committee is SEC-independent and chaired by a financial expert.

What opportunities could expand the earnings base?

Northern Peru's housing deficit, infrastructure needs and construction formalization support demand. The company cites a region with 32.9% of Peru's population but 20.0% of GDP, leaving room for housing, roads, drainage, mining and resilience projects. The challenge is capturing that demand without repeating low-margin contracts.

How can Holcim change the product strategy?

Pacasmayo already describes itself as a building-solutions provider, not only a cement manufacturer. The 2Q26 release highlighted 432 prefabricated foundations delivered for Yanacocha Sulfuros and an additional 4.4 kilometers of concrete sheet piles specified for the Piura River defense project. Holcim's broader sustainable-construction portfolio and Latin American network could accelerate technical products, procurement savings and decarbonization know-how. The company's integrated reporting provides the clearest official view of how sustainability and innovation are being connected to commercial strategy.

What risks could weaken Cementos Pacasmayo's outlook?

Pacasmayo depends on one country, one region and a cyclical construction market. It carries substantial debt, operates complex kilns and quarries, and may face unplanned environmental spending. Holcim control adds strategic potential but also minority-holder and listing uncertainty.

Which risk is most important for valuation?

The central risk is cyclicality combined with fixed obligations. Weak volume can compress plant margins quickly while debt service continues; strong volume creates operating leverage, as 6M26 showed. A DCF should test lower utilization, higher fuel cost and slower debt reduction rather than extrapolate one strong half-year.

Why does Cementos Pacasmayo matter for valuation?

A CPAC valuation should center on physical throughput and capital structure, not generic revenue growth. Cement volume, price, gross margin and utilization drive operating profit; capex, working capital, taxes and debt service determine equity cash flow. Controller actions add a governance layer because liquidity and listing status can affect comparable-company multiples.

Which assumptions deserve the widest sensitivity ranges?

• Long-run cement volume growth in northern Peru, including the balance between self-construction and large projects.
• Normalized EBITDA margin after the unusually strong 31.6% reported for 6M26 versus 23.9% for FY2025.
• Recurring capex, which management has indicated could be about S/100 million annually over the next three years in its 2025 filing.
• Debt reduction and refinancing cost, especially the near- and medium-term maturity schedule.
• Minority-holder outcomes from the mandatory tender process and any eventual NYSE delisting decision.

The investor-relations financial-reports archive and SEC-filings page are the most useful official sources for updating these assumptions each quarter.

What is the key takeaway from Cementos Pacasmayo analysis?

Cementos Pacasmayo combines regional logistics with Peru's housing and infrastructure demand. Its plants, quarries, DINO network and bagged-cement franchise create practical barriers through proximity, delivery reliability and retailer relationships. The latest results show meaningful operating leverage when volume and mix improve.

CPAC remains a leveraged, capital-intensive, single-country producer. Fuel and imported clinker pressure margins, project contracts can dilute returns, and weather or maintenance can interrupt output. Holcim may add procurement, product and sustainability capabilities, but minority governance and possible NYSE delisting now matter centrally.