Pacasmayo profit surges 61% as higher-margin cement lifts Q2

Cementos Pacasmayo posted a 61% jump in second-quarter net income to PEN 77.2 million, driven by a substantial increase in profitability that far outpaced its double-digit revenue growth. The Peruvian cement producer reported revenue of PEN 558.9 million for the period, up 15.4% from a year earlier, while consolidated EBITDA surged 34.3% to PEN 174.8 million.

The company's ability to grow the bottom line twice as fast as the top line stemmed directly from a 4.4 percentage point expansion in its EBITDA margin, which reached 31.3%. Chief Executive Officer Humberto Nadal noted the company delivered "outstanding operational execution and financial discipline" during the quarter. "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.

Underlying these financial gains was a 15.5% increase in total sales volumes across cement, concrete, and precast products. Chief Financial Officer Ely Hayashi highlighted that this volume growth was primarily led by robust demand for bagged cement within Peru's informal self-construction market, a segment that remains highly active across the northern regions of the country.

The second-quarter momentum carried firmly into the first-half results, suggesting the operational improvements are structural rather than transient. Six-month revenue reached PEN 1.11 billion, representing a 13.3% increase, while gross profit climbed 25.4% to PEN 455.5 million. Hayashi attributed the improvement to "structural operational efficiencies and higher shipments."

For market participants, the critical takeaway from the earnings call is the trajectory of this margin profile heading into the second half of 2026. Management signaled confidence by keeping annual sustaining capital expenditures anchored near PEN 100 million, effectively limiting cash drain while the business scales.

Future earnings growth is expected to draw support from specific external catalysts. Management pointed to upcoming synergies related to Holcim, as well as a developing pipeline of infrastructure and El Niño-related reconstruction projects across Peru. If Pacasmayo can maintain its current product mix, the EBITDA margin gains established this quarter could solidify into a new baseline for the stock.