Cementos Pacasmayo S.A.A. Q1 Earnings Call Highlights

Key Points

• Holcim acquisition completed: Holcim Ltd. acquired a controlling 50.01% stake on March 30, 2026, signaling a major ownership change that management says opens global opportunities but could lead to future shifts in capital allocation and strategy once new shareholders decide.
• Strong Q1 operating and financial results: Sales volumes rose 11.7% and total revenue was up 11.3% to PEN 555.7 million, while consolidated EBITDA climbed about 32% to roughly PEN 178–180 million with margin expanding to 32% (from 27%); net income jumped 55.4% to PEN 81.9 million and net debt/EBITDA fell to 2.6x.
• Segment dynamics and cost/marketing trends: Cement led growth (revenues +16% to PEN 466.4 million, 86.5% of sales) driven by bag-cement demand and lower unit costs, while concrete revenue fell 15.2% to PEN 66.0 million but achieved higher margins from specialized projects; selling expenses rose 33.5% due to marketing and provisions and management expects continued investment in brand and dealer support.

Cementos Pacasmayo S.A.A. NYSE: CPAC reported first-quarter 2026 results that management said reflected stronger volumes, improved operating efficiency, and continued emphasis on sustainability initiatives, alongside a major change in its shareholder structure.

Holcim completes acquisition of controlling stake

Chief Executive Officer Humberto Nadal opened the call by highlighting what he described as “a transcendental new chapter” for the company. On March 30, 2026, Holcim Ltd completed its acquisition of Inversiones ASPI and now holds a 50.01% controlling interest in Cementos Pacasmayo.

Nadal said the change of control “opens global opportunities for our teams and promot[es] responsible, sustainable construction on a much wider scale.” He also thanked the Hochschild Group for “decades of vision and leadership” that helped build the company’s foundation.

Asked by a Scotiabank analyst whether investors should expect changes in capital allocation, strategic priorities, or dividends under Holcim’s ownership, Nadal said the company would need to wait for decisions from the new shareholders. “For the time being, we keep the course steady,” he said.

Sales volumes rise; EBITDA margin expands

Management pointed to double-digit growth in volumes and profitability during the quarter. Nadal said sales volume increased 11.7% year-over-year, “driven primarily by higher demand for cement and concrete.” He added that consolidated EBITDA totaled PEN 177.9 million, up 32.1% from the first quarter of 2025, and that EBITDA margin expanded to 32% from 27% a year earlier, citing “disciplined cost control and gross margin expansion” tied to operational efficiencies.

Chief Financial Officer Ely Hayashi reported total revenues of PEN 555.7 million, an 11.3% increase versus the prior-year quarter, driven by the 11.7% rise in total sales volumes across cement, concrete, and precast.

Hayashi said cement volumes were resilient, especially in the bag cement segment, which she described as a key driver in northern Peru’s self-construction market. She also said concrete sales picked up as regional infrastructure projects “began to regain momentum,” and noted “continued benefits of our optimized production at the Pacasmayo plant.”

On profitability, Hayashi reported consolidated EBITDA of PEN 179.9 million, up 32.1% year-over-year, supported by higher revenue, “moderate price adjustment in the cement segment,” and reduced unit costs in cement and concrete. She said the EBITDA margin rose to 32%, a 5-percentage-point improvement from the prior year.

Segment performance: cement leads growth; concrete revenue declines on tough comp

Hayashi provided detail on segment results, with cement continuing to represent the bulk of sales.

• Cement: Revenues increased 16% to PEN 466.4 million, representing 86.5% of total quarterly sales. Hayashi attributed the increase primarily to higher bag cement volumes for self-construction. Cement gross margin expanded to 48.2%, up 1.5 percentage points, driven by higher volumes, slightly improved average prices, and lower unit costs due to reduced kiln downtime.
• Concrete, pavement, and mortar: Revenues fell 15.2% to PEN 66.0 million, which Hayashi said largely reflected a higher comparative base in the prior-year quarter that included significant volume from the Piura Airport project. Despite lower volumes, segment gross margin expanded 18.3 percentage points to 16.1%, driven mainly by sales to the Yanacocha project that required “more specialized higher-margin concrete solutions” compared with lower-margin airport work.
• Precast: Sales increased 4.8% to PEN 6.6 million, supported by increased demand from the public sector. Gross margin improved to 9.1%, up 7.5 percentage points, which Hayashi said was primarily due to higher volumes enabling better dilution of fixed costs.

Expenses and net income

On operating expenses, Hayashi said administrative expenses decreased 0.7% year-over-year, mainly reflecting lower personnel expenses due to a lower collective bargaining bonus than in the first quarter of 2025.

Selling expenses, however, increased 33.5% compared with the prior-year quarter. Hayashi attributed the rise to higher advertising and promotion expenses tied to marketing and loyalty programs with affiliated retailers, as well as an increased provision for doubtful payments.

Net income rose sharply during the quarter. Hayashi reported consolidated net income of PEN 81.9 million, up 55.4% year-over-year, driven by higher operating profits and lower financial expenses. She added that the company continued to reduce leverage, with a net debt-to-EBITDA ratio of 2.6x.

Cost improvements and marketing spend: management comments

In response to a question from Integra about whether cement unit-cost improvements were structural or cyclical, Nadal suggested the gains were not primarily cyclical. He noted that historically the first quarter is typically the weakest period, and said the drivers behind the quarter’s performance were not “really cyclical factors.”

Addressing the increase in selling expenses and whether it should be considered recurring, Nadal said the company would “keep investing in positioning our brand” and in supporting dealers and distributors. He also said the company’s plan is “to maintain the current margin in terms of EBITDA profitability,” while adding that marketing and provisions could be somewhat higher in the second half “in defense of how we are doing the provisions.”

Beyond financial performance, Nadal highlighted sustainability milestones, including the company’s sixth consecutive year in the S&P Global Sustainability Yearbook 2026 and its entry into the global top 10% of the construction materials industry. He also cited a partnership with the Inter-American Cement Federation (FICEM) and Habitat for Humanity that integrates the company’s Sueños en Concreto program into the “100,000 Floors to Play On” initiative, aimed at replacing dirt floors with concrete for families in northern Peru.

Closing the call, Nadal said management was “very happy with the beginning of this year” and expressed confidence in the region’s resilience and long-term potential, adding that the company believes “the best is still to come.”

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.

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