Cementos Pacasmayo S.A.A. reported strong consolidated results for the second quarter and first six months of 2025, with Q2 earnings reaching $13.1 million and earnings per share at 15 cents. The company's Q2 revenue stood at $132.4 million, reflecting a positive regional demand trend that reverses years of decline.
Consolidated EBITDA for Q2 2025 rose 9% year-over-year to $130.2 million, driven by improved operating leverage and higher EBITDA margins. Sales volumes increased by 7.1% year-over-year in Q2 2025, primarily from stronger demand for cement and concrete, largely from infrastructure-related projects.
Net profit saw a significant increase of 29.9% in Q2 2025 and 16.5% for the first six months, benefiting from higher revenues, gross profit, and reduced financing expenses due to decreased debt levels. The Building Solutions segment, encompassing concrete, pavement, and mortar, saw sales increase by 9.8% in Q2 2025 and 16.1% for the first six months, fueled by major infrastructure projects.
Despite a gross margin decrease of 3.2 percentage points in Q2 2025 and 4.8 percentage points for the first six months in the Building Solutions segment, management views these as short-term learning curve additional costs related to exchange rate differences and extended execution periods on the Piura Airport project. All cost overruns for the Piura Airport project were accounted for in 2024 results, with no future impact on gross margins expected.
The company maintains a comfortable liquidity position with a net debt-to-EBITDA ratio of 2.6x in Q2 2025. Management projects cement sales volumes to maintain a 'single high digits' growth trend for the second half of 2025 and anticipates an EBITDA margin between 28% and 29% for the full year 2025.
This optimistic outlook is supported by robust infrastructure spending, including the 'Obras por Impuestos' program where CPAC is a top-five contributor, and a healthy self-construction market. Management also indicated a 'higher chance of that dividend going higher than going lower,' reflecting confidence in returning excess cash to shareholders.
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