CPAC

• Overall Financial Performance

  • Consolidated Q2 2026 revenues grew 15.4% year-over-year to PEN 558.9 million, with total sales volume up 15.5%, driven by strong performance in the self-construction segment and higher bagged cement demand.
  • Consolidated Q2 2026 EBITDA increased 34.3% to PEN 174.8 million, with EBITDA margin expanding 4.4pp to 31.3%. Net income surged 61.5% to PEN 77.2 million.
  • Cumulative H1 2026 revenue reached PEN 1,114.5 million (up 13.3% YoY), cumulative EBITDA grew 33.1% to PEN 352.7 million (margin up 4.7pp to 31.6%), and cumulative net income rose 58.4% to PEN 159.2 million.
  • Administrative expenses decreased 7.5% YoY in Q2 2026, driven by lower personnel expenses from a reduced collective bargaining bonus compared to 2025.
  • Net debt to EBITDA ratio declined to 2.32, reflecting continued deleveraging.

• Sustainability and Innovation

  • Received official ICONTEC Perú verification for 2025 organizational carbon footprint, validating company-wide emission reductions.
  • Secured a CONCYTEC tax benefit for an approved technology and innovation project, supporting long-term R&D and competitiveness.

• Key Project Milestones

  • Successfully prefabricated construction foundations at over 5,000 meters above sea level for the Yanacocha Sulfuros project.
  • Secured a 4.4-kilometer concrete sheet pile extension contract for the Piura Riverbank Defense Project, developed in preparation for the El Niño phenomenon.

• Talent and Culture

  • Ranked in the top 15 of the national Merco Talento 2026 Index, and maintained the number 1 position for attracting and retaining talent in the Peruvian cement sector for the 11th consecutive year.
  • Completed the latest edition of the ALAS: Women that Inspire program, which empowers women employees and advances an inclusive corporate culture.

• Annual sustaining capital expenditure is expected to remain at approximately PEN 100 million per year, consistent with levels over the past 2–3 years following the completion of the Pacasmayo kiln 4 project.
• Management expects significant new project activity in public infrastructure and river protection/prevention works within the next 120 days, driven by the new Peruvian government's priorities related to El Niño preparation.
• Cement prices have already been adjusted once in the month preceding the call, and management will continue monitoring market conditions for potential additional price increases through the remainder of 2026.
• Management expects the 16% gross margin achieved in the concrete, pavement, and mortar segment in Q2 2026 to be a sustainable long-term level going forward.

1. Cement: Q2 2026 revenues grew 19.5% to PEN 469.5 million, representing 86.3% of total quarterly revenue. Cumulative H1 2026 revenues reached PEN 935.9 million, up 17.7% year-over-year. Q2 2026 adjusted gross margin decreased 1.5pp to 45.2%, while H1 2026 gross margin remained stable at 46.7%.
2. Concrete, pavement, and mortar: Q2 2026 revenues decreased 2.6% to PEN 66.8 million, with H1 2026 revenues down 9.3% to PEN 132.8 million. Q2 2026 gross margin expanded 17.9pp to 16%, and H1 2026 gross margin expanded 18.1pp to 16.2%.
3. Precast: Q2 2026 revenues rose 2.6% to PEN 7.9 million, with H1 2026 revenues up 3.6% to PEN 14.5 million. Q2 2026 gross margin jumped 6.2pp to 10.1%, and H1 2026 gross margin expanded 6.8pp to 9.7%.

• The El Niño phenomenon is expected to hit Peru around September 2026, posing potential near-term operational and community disruption risks in northern Peru, where the company primarily operates. The company notes that the scale of post-event demand increase will depend on the level of government investment in reconstruction.
• Near-term concrete segment revenue is exposed to a pullback after the conclusion of the Yanacocha Sulfuros project contribution in Q3 2026, though management has a robust pipeline of upcoming projects to offset this.

Q: Now that Pacasmayo is part of the Holcim ecosystem, what further integration opportunities for building solutions or operational synergies do you expect, particularly with Holcim's existing assets in Lima? / A: Pacasmayo and Holcim share a common strategic vision focused on expanding building solutions. Pacasmayo will leverage Holcim's global expertise to improve its own operational efficiency and product offerings for customers in its core market of northern and jungle Peru. Pacasmayo remains an independent operation focused on its existing served region, with no current plans to expand into Lima via synergies with Holcim's Lima assets.

Q: The concrete segment's margin improved dramatically to 16% in Q2 2026, largely tied to the Yanacocha project which ends in Q3. Is this margin sustainable, and what projects will replace Yanacocha's contribution, especially for river protection and Chavimochic? / A: The prior year's negative concrete margin came from the low-margin completed Piura Airport project, not the Yanacocha work. Management expects the 16% margin to be sustainable going forward, as the segment has shifted away from low-margin bulk infrastructure to higher-margin specialized solutions. The new Peruvian government has prioritized El Niño prevention infrastructure including riverbank projects, and significant new project activity is expected within the next 120 days.

Q: How will the upcoming El Niño phenomenon impact cement and concrete demand, and what is the company's preparation? / A: As a major operator in northern Peru, the company is concerned about potential near-term disruption from El Niño and is fully prepared to respond, both to protect its own operations and support local communities and customers. While near-term activity may face disruption for a number of weeks, significant reconstruction demand is expected after the event, with growth dependent on government infrastructure investment priorities, which management currently expects to be supportive.

Q: What is the expected annual CapEx level for this year and next, and what is your outlook for cement prices through the end of the year and 2027? / A: Annual sustaining CapEx will remain around PEN 100 million, consistent with the past two to three years after completion of the Pacasmayo kiln 4 project. The company has already implemented one price adjustment in the prior month, and will continue monitoring market conditions for potential additional price increases through the remainder of 2026.