Company Overview - As of September 2025 LTM, Pacasmayo's cement shipments reached 2.9 million MT[4] - The company has a combined cement production capacity of 4.9 million MT/year and a combined clinker production capacity of 3.08 million MT/year[20] - 72% of the company's retail customers are socioeconomic level CDE, 25-55 years old[23] - Approximately 70% of the company's sales are represented by 271 store owners and 320 points of sale under the DINO brand[36] Financial Performance - Sales of goods reached S/ 2,084.0 million, a 6.2% increase compared to LTM September 30, 2024[6] - EBITDA reached S/ 568.0 million, a 0.9% increase compared to LTM September 30, 2024[6] - EBITDA margin was -4.9 percentage points compared to LTM September 30, 2024[6] - Cement sales accounted for S/ 1,687.93 million of the total sales of goods[40] Market Overview - Pacasmayo has a 22.9% share of the Peruvian cement market in the Northern Region, with shipments of 2.964 million MT as of August 2025 LTM[13] - The total cement market in Peru reached 12.948 million MT as of August 2025 LTM[13]

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Core Insights - Cementos Pacasmayo S.A.A. reported consolidated results for the third quarter and the first nine months of 2025, highlighting growth in sales volume and revenue driven by increased demand in the construction sector [1][5]. 3Q25 Financial and Operational Highlights - Sales volume of cement, concrete, and precast increased by 9.0%, attributed to higher sales for infrastructure projects and increased demand for bagged cement [5]. - Revenues rose by 10.9%, consistent with the increase in sales volumes [5]. - Consolidated EBITDA increased by 3.9%, reaching S/160.6 million, primarily due to the revenue increase [5]. - Consolidated EBITDA margin was 28.0%, reflecting a 1.9 percentage point decrease due to higher personnel expenses from a negotiated union bonus [5]. - Net income was S/71.5 million, a 14.4% increase, driven by higher operating income, increased financial income, and lower interest expenses due to debt amortization [5]. 9M25 Financial and Operational Highlights - Sales volume of cement, concrete, and precast increased by 6.8%, mainly due to higher demand for bagged cement and infrastructure projects [5]. - Revenues increased by 7.3%, aligning with the sales volume growth [5]. - Consolidated EBITDA rose by 4.6%, reaching S/425.5 million, driven by increased demand [5]. - Consolidated EBITDA margin was 27.3%, consistent with the same period last year [5]. - Net income increased by 15.6%, reaching S/172.0 million, attributed to higher operating income, increased financial income, lower interest payments due to debt amortization, and favorable foreign exchange effects [5]. Company Overview - Cementos Pacasmayo S.A.A. is a leading cement company in Peru, producing and selling cement and related materials, with over 67 years of operational history [7]. - The company is listed on the New York Stock Exchange under the ticker symbol "CPAC" and serves the rapidly growing construction sector in Peru [7].

Core Points - Cementos Pacasmayo S.A.A. announced a cash dividend of S/ 0.41 per common and investment share [1] - The total dividend amounts to S/ 190,300,410.65, which is related to retained earnings as of December 31, 2014, and results from 2015 to 2024 [1] - The dividend approval was made by the Company's Board of Directors during a session held on October 21, 2025 [1]

Core Insights - The article emphasizes the importance of the Zacks Rank system, which focuses on earnings estimates and revisions to identify strong stocks [1] - Value investing is highlighted as a favored strategy that seeks to find undervalued companies using various valuation metrics [2] - Zacks has developed a Style Scores system to identify stocks with specific traits, particularly in the Value category [3] Company Analysis: Cementos Pacasmayo (CPAC) - Cementos Pacasmayo (CPAC) is currently rated with a Zacks Rank 2 (Buy) and has a Value grade of A [4] - The stock has a Forward P/E ratio of 9.84, significantly lower than the industry average of 24.26 [4] - Over the past 12 months, CPAC's Forward P/E has fluctuated between a high of 13.10 and a low of 7.26, with a median of 8.91 [4] - The P/S ratio for CPAC stands at 1.12, compared to the industry average of 3.35, indicating potential undervaluation [5] - These metrics suggest that CPAC is likely undervalued, supported by a strong earnings outlook, making it an impressive value stock [6]

Company Performance - Pacasmayo (CPAC) has gained approximately 22.6% year-to-date, outperforming the average return of 6.9% for the Construction sector [4] - The Zacks Consensus Estimate for Pacasmayo's full-year earnings has increased by 9.2% over the past quarter, indicating improved analyst sentiment and a stronger earnings outlook [3] - Pacasmayo is currently ranked 2 (Buy) in the Zacks Rank system, which focuses on earnings estimates and revisions [3] Industry Context - Pacasmayo belongs to the Building Products - Concrete and Aggregates industry, which includes 6 stocks and is currently ranked 99 in the Zacks Industry Rank [5] - Stocks in the Building Products - Concrete and Aggregates industry have gained about 14% year-to-date, with Pacasmayo performing better than this group [5] - Worthington Enterprises (WOR), another Construction stock, has returned 60% year-to-date and belongs to the Building Products - Wood industry, which is ranked 227 and has moved +9.6% this year [4][6]

Group 1 - Pacasmayo (CPAC) shows a noticeable improvement in earnings outlook, making it an attractive investment option [1] - Analysts are raising earnings estimates for Pacasmayo, reflecting growing optimism about the company's earnings prospects [2][3] - The Zacks Rank system indicates a strong correlation between earnings estimate revisions and stock price movements, with Pacasmayo currently holding a Zacks Rank 2 (Buy) [3][10] Group 2 - The current quarter's earnings estimate for Pacasmayo is $0.19 per share, representing a year-over-year increase of +18.8% [7] - The full-year earnings estimate is projected at $0.71 per share, reflecting a +16.4% change from the previous year [8] - The consensus estimate for the current year has increased by 9.23% due to positive revisions [9] Group 3 - Pacasmayo's stock has gained 5.3% over the past four weeks, driven by solid estimate revisions and positive earnings growth prospects [11]

Financial Data and Key Metrics Changes - Sales volume increased by 7.1% year over year, driven by stronger demand for cement and concrete, particularly for infrastructure projects [4] - Consolidated EBITDA reached $130.2 million, a 9% increase compared to the same period last year, despite rising expenses from collective bargaining negotiations [4][11] - Revenues for the quarter increased by 5.9% year over year, totaling $484.1 million, with gross profit rising by 11.2% [11] - Net profit surged by 29.9% this quarter compared to the same period last year, attributed to increased revenues and reduced financing expenses [16] Business Line Data and Key Metrics Changes - Cement sales rose by 6.3% this quarter compared to the same period last year, with gross margin increasing by 3.2 percentage points [14] - Concrete, pavement, and mortar sales increased by 9.8% this quarter, driven by projects like the Piura Airport, although gross margin decreased by 3.2 percentage points due to project execution costs [15] - Precast materials sales grew by 4.1% this quarter, with a gross margin decrease of 1.5 percentage points [16] Market Data and Key Metrics Changes - The company is positioned to benefit from ongoing infrastructure projects in Peru, addressing significant infrastructure and housing deficits [5][6] - The introduction of new ports, such as Shanghai, may alter competitive dynamics, particularly affecting areas close to the port [28][29] Company Strategy and Development Direction - The company emphasizes its role in addressing infrastructure challenges in Peru, focusing on delivering high-quality products that enhance quality of life [5][6] - The strategy includes public-private partnerships to finance infrastructure projects, showcasing the benefits of concrete solutions [7][9] - The company remains optimistic about future growth, expecting to maintain a positive trend in sales volumes and profitability [10][33] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in maintaining a single-digit growth trend in sales volumes for the second half of the year, contingent on the timely execution of infrastructure projects [21] - The company plans to sustain its capital expenditures at around 100 million soles annually, focusing on maintenance rather than significant capacity increases [22] - Management indicated that EBITDA margins are expected to remain stable between 28-29% [25] Other Important Information - Administrative expenses increased by 13.8% in Q2 2025 compared to Q2 2024, primarily due to higher personnel costs from union bonuses [12] - The net debt to EBITDA ratio stands at 2.6 times, which management considers a comfortable level [17] Q&A Session Summary Question: Expectations for volumes in the second half - Management expects a continuation of the single high-digit growth trend for volumes, dependent on infrastructure project timelines [21] Question: CapEx expectations for the second half - Management indicated sustaining CapEx around 100 million soles annually, with no substantial increases planned [22] Question: Margin expectations for the second half - EBITDA margins are expected to remain stable between 28-29% [25] Question: Dividend distribution expectations for 2025 - Management stated that dividend decisions are made at the board level, with no anticipated changes to the consistent dividend policy [25][26] Question: Impact of CEMEX using Shanghai port on competitive dynamics - Management noted that while new ports may influence market dynamics, the primary impact would be localized to areas near the port [28][29]

Financial Data and Key Metrics Changes - Sales volume increased by 7.1% year over year, driven by stronger demand for cement and concrete, particularly for infrastructure projects [5] - Consolidated EBITDA reached $130.2 million, a 9% increase compared to the same period last year, despite rising expenses related to collective bargaining negotiations [5][12] - Revenues for the quarter increased by 5.9% compared to Q2 2024, reaching $484.1 million, with gross profit rising by 11.2% [12] - Net profit increased by 29.9% this quarter compared to the same period last year, attributed to higher revenues and reduced financing expenses [18] Business Line Data and Key Metrics Changes - Cement sales increased by 6.3% this quarter compared to the same period last year, with gross margin improving by 3.2 percentage points [15] - Concrete, pavement, and mortar sales rose by 9.8% this quarter, driven by projects like the Piura Airport, although gross margin decreased by 3.2 percentage points due to project execution costs [16] - Precast materials sales increased by 4.1% this quarter, with a gross margin decrease of 1.5 percentage points [17] Market Data and Key Metrics Changes - The company is optimistic about the infrastructure development in Peru, which is crucial for economic growth and social inclusion [6][11] - The company is a significant contributor to public-private collaboration programs aimed at enhancing infrastructure, committing over $100 million this year [9] Company Strategy and Development Direction - The company focuses on addressing Peru's infrastructure and housing deficit, emphasizing the importance of high-quality building solutions [6][11] - The strategy includes maintaining a sustainable CapEx around 100 million soles annually, with no substantial capacity increases planned [25] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in maintaining a positive trend in sales volumes, expecting single high-digit growth for the second half of the year [24] - The company anticipates EBITDA margins to remain stable between 28-29% [28] - Management remains optimistic about the future, expecting to post record results for the year [38] Other Important Information - Administrative expenses increased by 13.8% in Q2 2025 compared to Q2 2024, primarily due to higher personnel costs from union bonuses [14] - The net debt to EBITDA ratio is at 2.6 times, which the company considers comfortable [19] Q&A Session Summary Question: Expectations for volumes in the second half - Management expects volumes to continue with a trend of single high-digit increases, dependent on the timing of infrastructure projects [24] Question: CapEx expectations for the second half - The company plans to maintain sustaining CapEx around 100 million soles annually, with no substantial increases in capacity planned [25] Question: Expected margin improvements - EBITDA margins are expected to remain stable between 28-29% [28] Question: Dividend distribution expectations - The company has been consistent with dividends and sees no reason to change this policy, expecting to maintain the same level as previous years [28]

Company Overview - Pacasmayo's cement shipments reached 2.9 million MT as of Jun-25 LTM[4] - The company has a combined cement production capacity of 4.9 million MT/year and a combined clinker production capacity of 3.08 million MT/year[16] Financial Performance (2Q25) - Sales of goods reached S/ 484.1 million, a 5.9% increase compared to 2Q24[6] - EBITDA was S/ 130.2 million, a 9.0% increase compared to 2Q24[6] - EBITDA margin was 26.9%, a 0.8 percentage point increase compared to 2Q24[6] Market Overview (Peruvian Cement Market) - Pacasmayo has a 22.9% share in the Peruvian Northern Region with 2.898 million MT of cement shipments as of May-25 LTM[10] - UNACEM holds the largest market share at 42.7% with 5.418 million MT of cement shipments[10] - The Central Region's total cement shipments amounted to 6.509 million MT, representing 51.3% of the total regions[10] - The Southern Region's total cement shipments were 2.627 million MT, accounting for 20.7% of the total regions[10] - Total cement shipments across all regions reached 12.682 million MT[10] Customer Profile - Retail customers represent 75% of the customer base[18, 21, 25] - Private sector customers account for 15% of the customer base[18, 21, 25] - Infrastructure customers make up 10% of the customer base[18, 21, 25]