Cementos Pacasmayo S.A.A. (CPAC): History, Ownership, Mission, How It Works & Makes Money

How does a regional leader like Cementos Pacasmayo S.A.A. (CPAC) not only weather market volatility but post double-digit growth? This construction materials powerhouse, a cornerstone of the Peruvian economy for over 67 years, is far more than just a cement producer. The proof is in their 2025 results: they drove their third-quarter revenue up 10.9% to S/574.1 million, translating to a 14.4% jump in net income to S/71.5 million, largely fueled by robust infrastructure demand and their quicklime segment. If you want to understand how strategic focus on high-growth segments and operational efficiency translates into clear shareholder value, you defintely need to see the mechanics behind this performance.

Cementos Pacasmayo S.A.A. (CPAC) History

Given Company's Founding Timeline

You want to understand the foundation of Cementos Pacasmayo S.A.A., and honestly, it's a classic story of regional necessity driving a major industry player. The company wasn't started in a global financial hub; it was born to solve a very real, local problem in Northern Peru.

Year established

Cementos Pacasmayo S.A.A. was established in 1949.

Original location

The company was founded in Pacasmayo, Peru, a strategic location to serve the northern region's construction needs.

Founding team members

The company's foundation is primarily attributed to Don Carlos A. Vivanco, who, along with a group of private investors, started the venture to supply cement to the northern Peruvian market.

Initial capital/funding

Specific details on the initial capital or funding from the 1949 founding are not publicly available in standard filings, but the core capital was clearly sufficient to begin operations in 1957 and establish the first cement production facility in Northern Peru.

Given Company's Evolution Milestones

Looking at the timeline, you can see a clear, two-part strategy: first, dominate the home market, and second, secure the capital for massive expansion. That's how a regional player becomes a public company with a global profile.

Given Company's Transformative Moments

The real shift for Cementos Pacasmayo S.A.A. wasn't just building more plants, but fundamentally changing what they sell. They realized that selling a product is good, but selling a complete solution is defintely better for long-term growth.

The most recent transformative move is the pivot from a product-based cement supplier to a comprehensive construction solution company. This means instead of just selling bags of cement to distributors, they are now offering complete services like building roads and bridges, working directly with end-users. This shift is backed by significant operational improvements:

• Digital Transformation: The deployment of SAP S/4HANA, a major enterprise resource planning (ERP) system, was crucial. This move helped streamline financial and operational processes, ensuring reliable and punctual distribution for their new service model.
• Capacity Optimization: An investment of approximately US$83.5 million was made in 2021 to optimize the Pacasmayo plant, adding about 660,000 metric tons of clinker capacity per year, which came online in the second half of 2023.
• Financial Strength (9M 2025): The focus on infrastructure projects and bagged cement demand has paid off. For the first nine months of 2025 (9M25), net income rose by a strong 15.6% to S/172.0 million (Peruvian Soles), and consolidated EBITDA reached S/425.5 million. Here's the quick math: the company's total outstanding debt as of June 30, 2025, was S/1,451.7 million (or US$409.0 million), and the Net Debt/EBITDA ratio was a manageable 2.6 times. That tells you they are growing without over-leveraging.

The continued investment in the business is clear, with capital expenditures (CapEx) for the first half of 2025 totaling S/62.7 million, allocated across concrete equipment and plant projects in Piura, Pacasmayo, and Rioja. If you want to dive deeper into the financial health that supports this strategy, check out Breaking Down Cementos Pacasmayo S.A.A. (CPAC) Financial Health: Key Insights for Investors.

Cementos Pacasmayo S.A.A. (CPAC) Ownership Structure

Cementos Pacasmayo S.A.A. operates under a clear, concentrated ownership structure where a single corporate entity holds a dominant stake, but it remains a publicly-traded company accessible to all investors.

This dual structure means strategic control rests with the majority shareholder, but the company is still subject to the transparency and regulatory requirements of major global and local stock exchanges.

Cementos Pacasmayo's Current Status

Cementos Pacasmayo S.A.A. is a publicly-listed company, trading on the New York Stock Exchange (NYSE) under the ticker CPAC and on the Lima Stock Exchange (BVL) as CPACASC1. This listing status, in place since February 2012 for the NYSE, ensures a degree of public accountability and liquidity for its shares.

The company is a subsidiary of Inversiones ASPI S.A. and is part of the Hochschild Group, which has a century-long operating history in Latin America. This connection is defintely important, as the Hochschild family's interests drive the long-term vision, which you can read more about in our Mission Statement, Vision, & Core Values of Cementos Pacasmayo S.A.A. (CPAC).

Cementos Pacasmayo's Ownership Breakdown

As of late 2025, the company's ownership is heavily weighted toward a single corporate shareholder, with significant stakes also held by Peruvian pension funds (AFPs) and large global asset managers like BlackRock. This breakdown, based on 2025 fiscal year data, shows who really controls the company's strategic direction.

Here's the quick math: the top corporate and Peruvian institutional holders account for over two-thirds of the company, which is why the stock is often grouped with the Hochschild Group businesses.

Cementos Pacasmayo's Leadership

The company is steered by an experienced leadership team, with an average management tenure of 3.8 years and an average board tenure of 5.3 years, as of late 2025. This stability is a key factor in executing long-term strategy.

The Board of Directors and the Executive Management team work in concert, with the Chairman of the Board representing the controlling family's interests and the CEO driving daily operations.

• Chairman of the Board: Eduardo Hochschild Beeck.
• Chief Executive Officer (CEO): Humberto Reynaldo Nadal Del Carpio, who has been in the role since April 2011.
• Chief Financial Officer (CFO): Ely Adriana Hirahoka, who took over the role on April 1, 2025, after a planned succession.
• Director of Operations: Julio Reyes.
• Managing Director of Building Solutions: Ibrahim Chahuán Riveros, appointed in May 2025.

The leadership structure is designed to blend long-standing company knowledge, with some executives having two decades of experience, with new perspectives, like the recent CFO change. This balance is crucial for navigating Peru's construction market volatility.

Cementos Pacasmayo S.A.A. (CPAC) Mission and Values

Cementos Pacasmayo S.A.A.'s core purpose extends well beyond selling cement; it is a commitment to creating tangible value for all stakeholders-from shareholders to the communities they operate in-by prioritizing sustainable development and innovation. This dual focus on financial strength and social responsibility is the bedrock of their long-term strategy.

Honestly, a company's mission is just words until you see it in action, but Pacasmayo's recent results show their values are driving the bottom line: Q3 2025 revenues increased by a solid 10.9%, for example.

Given Company's Core Purpose

The company's cultural DNA is built on a clear mandate to be a driver of progress in Peru, not just a supplier. This is a trend-aware realist view, recognizing that long-term profitability is tied directly to the stability and growth of their primary market, which is why sustainability is a core pillar.

Here's the quick math: Pacasmayo's commitment to eco-efficiency, like the Clean Production Agreement signed with Peru's Ministry of Production, helps future-proof their operations against tightening environmental regulations, which is a smart financial move.

Official mission statement

The formal mission statement is a comprehensive blueprint for value creation, explicitly defining their stakeholders and their operating philosophy:

• Create value for shareholders, customers, collaborators (employees), and the community.
• Produce and market cement, concrete, precast, and other construction materials.
• Maintain a clear focus on sustainable development.

Their mission is defintely about more than product; it's about the economic and environmental context of the entire construction lifecycle. You can see this dedication to financial health and strategic positioning in Breaking Down Cementos Pacasmayo S.A.A. (CPAC) Financial Health: Key Insights for Investors.

Vision statement

The vision statement maps out their desired market position, keeping the focus tight on their home country and their role as a comprehensive solution provider, not just a raw material producer.

• Be the leading corporation providing construction solutions.
• Focus exclusively on the Peruvian market.

This regional focus is a strength, allowing them to capture demand from major infrastructure projects and the self-construction segment, which drove a 9% increase in sales volume in Q3 2025.

Given Company slogan/tagline

While Cementos Pacasmayo S.A.A. does not use a widely publicized, traditional slogan, their core purpose is often distilled into a more action-oriented phrase that guides their social and environmental initiatives, such as their commitment to be a carbon-neutral company by 2050.

• Core Purpose: To build together the future we dream of.

This purpose is exemplified by the EcoSaco initiative, a water-soluble cement bag that eliminates waste. In its first year, this program is projected to prevent nearly 16 million bags from being discarded, reducing waste by 3,500 tons and equivalent CO2 by 14,000 tons.

Cementos Pacasmayo S.A.A. (CPAC) How It Works

Cementos Pacasmayo S.A.A. operates as a vertically integrated construction materials producer, primarily manufacturing and distributing cement, concrete, and precast materials to serve Peru's northern and central regions. The company makes money by capitalizing on the strong demand from both large-scale infrastructure projects and the consistent, high-volume self-construction segment, leveraging its strategic, regional market dominance.

Given Company's Product/Service Portfolio

Given Company's Operational Framework

The company's operational strength comes from controlling the entire value chain, from raw material extraction to final-mile delivery, which helps it manage costs and product quality. For the first nine months of 2025 (9M25), this focus on efficiency helped drive a 10.5% increase in gross profit compared to the prior year period.

• Regional Production Hubs: Cementos Pacasmayo operates cement plants and grinding facilities strategically across the northern and central coasts of Peru, plus the Andean highlands, ensuring proximity to its core markets.
• Integrated Logistics: A robust network of terminals and depots supports efficient distribution, which is crucial for handling the high sales volume, which grew 9.0% in Q3 2025 for cement, concrete, and precast materials.
• Cost Optimization: Operational efficiencies, including lower costs for key inputs like coal and energy, directly boosted the Q3 2025 gross margin by 1.6 to 2.6 percentage points across its cement and concrete segments.
• Innovation in Construction: The company is moving beyond just materials into 'building solutions,' including an industrial langard employing prefabrication and Building Information Modeling (B-methodology), aiming to capture value from modern, faster construction methods.

Here's the quick math: Sales volume growth, particularly in concrete for infrastructure, led to Q3 2025 revenues of S/574.1 million, up 10.9% year-over-year. That's defintely solid momentum.

You can see how this all connects in their core principles: Mission Statement, Vision, & Core Values of Cementos Pacasmayo S.A.A. (CPAC).

Given Company's Strategic Advantages

Cementos Pacasmayo maintains its market success by leveraging a powerful combination of geographic exclusivity, a diversified product mix, and a strong balance sheet that allows for strategic investment. The net debt-to-EBITDA ratio was a comfortable 2.5x in Q3 2025, showing their financial stability.

• Geographic Monopoly: The company is the sole cement producer in the northern region of Peru, a key competitive moat due to the high capital costs and long investment horizons (high barriers to entry) inherent in the cement industry.
• Dominant Market Share: This regional strength translates into a significant national market share, which was around 24% in 2024, making them the second-largest cement producer in the country.
• Diversified Revenue Streams: They mitigate construction cycle risk by serving both the high-growth infrastructure segment (which drove a 19.5% increase in concrete, pavement, and mortar sales in 9M25) and the stable self-construction segment.
• Sustainability Leadership: A focus on eco-efficiency, including a low clinker-to-cement ratio (around 72% versus a global average of 78%), gives them a more efficient cost structure and a smaller carbon footprint, which is increasingly valuable to large public and private sector clients.

What this estimate hides is the political risk in Peru, which is always a near-term factor concerning investment in large public infrastructure projects, but still, the self-construction demand remains resilient.

Cementos Pacasmayo S.A.A. (CPAC) How It Makes Money

Cementos Pacasmayo S.A.A. generates revenue primarily by producing and distributing essential construction materials-cement, ready-mix concrete, and precast products-to the resilient self-construction market and large-scale public and private infrastructure projects across Northern Peru. Their highly integrated model, from raw material extraction to final distribution, is the core of their financial engine.

Cementos Pacasmayo's Revenue Breakdown

The company's revenue is heavily concentrated in its core product lines, which are directly tied to the Peruvian construction cycle. As of the first nine months of 2025 (9M25), this segment has been the primary driver of growth, fueled by both small-scale home building and major state-backed infrastructure work.

Here's the quick math on the core business: the consolidated sales volume for the main products-cement, concrete, and precast materials-increased by 6.8% in the first nine months of 2025, which is the key driver behind the overall 7.3% revenue jump in that period. [cite: 5, 8 from previous steps]

The Cement, Concrete, Mortar & Precast segment is the behemoth. Within this, the 'auto-construcción' (self-construction) segment, essentially bagged cement sold to homeowners and small contractors, accounted for nearly 74.8% of total cement sales volume in 2024, demonstrating its resilience even when large projects slow down. [cite: 1 from previous steps] The Quicklime segment is a specialized, smaller revenue stream, mainly serving the Peruvian mining industry with its product used in ore processing. Its performance is tied to the cyclicality of the mining sector, but it provides valuable diversification.

Business Economics

Cementos Pacasmayo's profitability hinges on two major factors: operational efficiency through vertical integration and pricing power within its regional monopoly in Northern Peru. They are not just selling a commodity; they are selling a geographically protected product with high barriers to entry for competitors.

• Pricing Strategy: The company employs a competitive pricing model, adjusting prices based on local market demand, competitor activity, and their own production costs. The average price for a bag of cement in the Peruvian market was approximately PEN 25.50 to 32.80 in 2024, reflecting their premium positioning. [cite: 9 from previous steps]
• Cost Structure: The integrated business model-owning quarries, production plants, and distribution-is the main cost control lever. The new kiln at the Pacasmayo plant, which became fully operational in the second half of 2023, is a defintely a game-changer for cost efficiency. This new capacity is significantly reducing the need for high-cost imported clinker (the main component of cement), which represented only 4.8% of production costs in 2024, down from much higher levels previously. [cite: 1 from previous steps]
• Market Fundamentals: The health of the Peruvian construction sector is the ultimate economic driver. Strong demand from infrastructure projects, like the Piura airport and various reconstruction efforts, combined with sustained self-construction activity, is what drives volume. If public sector investment slows, the resilient self-construction segment acts as a crucial buffer.

You can read more about the strategic framework that guides these decisions in Mission Statement, Vision, & Core Values of Cementos Pacasmayo S.A.A. (CPAC).

Cementos Pacasmayo's Financial Performance

The company's financial performance in 2025 demonstrates a healthy top-line recovery and strong bottom-line execution, showing that operational efficiencies are paying off despite broader economic volatility.

• Total Revenue (9M25): Consolidated revenues for the first nine months of 2025 reached S/1,557.34 million, an increase of 7.3% compared to the same period in 2024. [cite: 3 from previous step]
• Net Income (9M25): Net income surged to S/172.0 million for the first nine months of 2025, marking a significant 15.6% year-over-year increase. [cite: 3 from previous step]
• EBITDA and Margin (9M25): Earnings Before Interest, Taxes, Depreciation, and Amortization (EBITDA) reached S/425.5 million (9M25), a 4.6% increase. [cite: 5 from previous steps] The consolidated EBITDA margin for the period was 27.3%, reflecting strong profitability that is being slightly pressured by higher operating expenses, mainly from increased personnel costs. [cite: 5 from previous steps]
• Balance Sheet Health: The company maintains a conservative leverage profile, with a Net Debt-to-EBITDA ratio of 2.5x as of Q3 2025, indicating a continued deleveraging trend and a solid financial position to fund future capital expenditures (CapEx). [cite: 10 from previous steps]

What this estimate hides is the potential for project delays, which can quickly impact the Concrete and Precast segment. Still, the growth in the high-margin bagged cement business provides a strong base of stability.

Cementos Pacasmayo S.A.A. (CPAC) Market Position & Future Outlook

Cementos Pacasmayo S.A.A. maintains a dominant, near-monopolistic position in Northern Peru, which provides robust pricing power and a stable base for growth, even as national competition remains intense. The company's future trajectory is strongly tied to its successful execution of major infrastructure projects and its continued ability to capture the resilient self-construction market, driving strong volume and margin performance through the end of 2025.

Competitive Landscape

The Peruvian cement market is highly regionalized, with three major players controlling nearly all domestic production, a structure that limits direct price competition across geographic zones. Cementos Pacasmayo's primary competitive advantage is its deep logistical and production entrenchment in the northern region, which represents roughly a third of Peru's population and a significant portion of its economy.

Opportunities & Challenges

The company's performance through the first nine months of 2025 shows that strategic focus areas are paying off; for instance, Q3 2025 sales volume increased by a solid 9.0% year-over-year, largely due to infrastructure demand. Still, you need to watch for cost creep, which has been a near-term headwind. Breaking Down Cementos Pacasmayo S.A.A. (CPAC) Financial Health: Key Insights for Investors

Industry Position

Cementos Pacasmayo S.A.A. is a regional powerhouse, not just a national competitor. Its Northern Peru focus means it controls a captive market, allowing it to maintain an EBITDA margin that reached 28.0% in Q3 2025, even with the temporary expense hit. The company's financial health is strong, with nine-month 2025 Consolidated EBITDA reaching S/425.5 million (Peruvian Soles), a 4.6% increase over the same period in 2024.

• Regional Dominance: The company's three production facilities (Pacasmayo, Piura, Rioja) cement its logistical moat in Northern Peru.
• Growth Engines: Volume growth is being fueled by two distinct, strong drivers: large-scale public infrastructure projects and consistent self-construction demand.
• Financial Strength: Net income for Q3 2025 was S/71.5 million, a 14.4% year-over-year increase, reflecting operational efficiencies and lower interest costs.

Here's the quick math: The company's ability to drive a 10.9% revenue increase in Q3 2025, while simultaneously growing net income by 14.4%, shows a defintely healthy margin structure that can absorb short-term cost spikes. What this estimate hides is the true long-term impact of its capacity expansion project, which aims to further solidify its market-leading position.

Next step: Operations team to provide a detailed breakdown of the cost-savings realization timeline for the new eco-efficiency initiatives by the end of the month.