Free cash flow surged to $175.9M (31.5% margin) in Q2 2026, but this was largely driven by a volatile $82.7M working capital source, highlighting inconsistent cash conversion quality.
Cementos Pacasmayo S.A.A. (CPAC) cash flow statement — 17-year operating, investing & financing cash flows
| Metric | TTM | Dec'25 | Dec'24 | Dec'23 | Dec'22 | Dec'21 | Dec'20 | Dec'19 | Dec'18 | Dec'17 | Dec'16 | Dec'15 | Dec'14 | Dec'13 | Dec'12 | Dec'11 | Dec'10 | Dec'09 |
|---|
| Cash from Operations | 482.42M | 339.94M | 321.14M | 412.32M | 111.82M | 170.56M | 331.37M | 205.14M | 203.63M | 259.51M | 241.68M | 275.64M | 252.14M | 191.75M | 99.73M | 132.34M | 180.18M | 165.12M |
| Operating CF Margin % | - | 16.06% | 16.24% | 21.14% | 5.29% | 8.8% | 25.56% | 14.73% | 16.12% | 21.26% | 19.54% | 22.39% | 20.29% | 15.47% | 8.53% | 13.3% | 20.06% | 21.82% |
| Operating CF Growth % | 247.24% | 5.85% | -22.11% | 268.74% | -34.44% | -48.53% | 61.53% | 0.74% | -21.53% | 7.38% | -12.32% | 9.32% | 31.49% | 92.27% | -24.64% | -26.55% | 9.12% | - |
| Net Income | 212.9M | 145.36M | 198.88M | 168.9M | 262.42M | 224.11M | 85.9M | 194.35M | 116.14M | 127.11M | 185.12M | 297.91M | 266.26M | 234.68M | 229.34M | 103.85M | 223.22M | 147.77M |
| Depreciation & Amortization | 157.54M | 150.32M | 159.57M | 144.19M | 138.54M | 135.57M | 139.17M | 129.82M | 129.78M | 124.21M | 111.27M | 70.81M | 64.76M | 55.87M | 47.95M | 47.63M | 36.29M | 32.7M |
| Stock-Based Compensation | 855K | 0 | 7.17M | 0 | 0 | 0 | 5.76M | 6.52M | 9.49M | 11.4M | 16.09M | 14.16M | 5.94M | 6.7M | 5.53M | 6M | 0 | 0 |
| Deferred Taxes | 0 | -11.04M | 0 | 0 | 0 | 0 | -87.63M | -72.98M | -63.71M | -39.11M | -94.28M | -144.71M | -84.46M | -19.37M | -128.8M | 0 | 0 | 0 |
| Other Non-Cash Items | -154.27M | -25.15M | -15.3M | 45.99M | -53.36M | -25.75M | 87.92M | 77.08M | 83.11M | 71.09M | 82.31M | 40.04M | 22.4M | 12.74M | -3.73M | 15.83M | -62.62M | 479K |
| Working Capital Changes | 156.87M | 80.45M | -29.24M | 53.24M | -235.78M | -163.37M | 100.25M | -129.65M | -71.19M | -35.19M | -58.83M | -2.56M | -22.77M | -98.87M | -50.57M | -40.97M | -16.7M | -15.83M |
| Change in Receivables | 26.4M | -3.4M | -34.19M | -1.87M | -3.69M | -47.71M | 38.01M | -23.39M | -171K | -31.18M | 28.08M | -6.23M | -54.81M | -19.99M | 17.22M | 0 | 0 | 0 |
| Change in Inventory | 98.72M | 64.7M | 5.9M | 90.58M | -282.55M | -151.53M | 54.14M | -97.66M | -59.64M | -31.86M | -49.97M | 5.13M | 9.79M | -57.49M | -71.22M | -45.79M | -28.42M | 2.32M |
| Change in Payables | -39.48M | 1.71M | 0 | -48.68M | 60.57M | 48.83M | 3.35M | -4.22M | -9.65M | 14.08M | -36.2M | 517K | 0 | 0 | 0 | 0 | 0 | 0 |
| Cash from Investing | -100.76M | -108.82M | -76.61M | -289.44M | -176.19M | -91.82M | -48.42M | -79.58M | -98.83M | -73.79M | -135.63M | -475.87M | -565.25M | 194.52M | -667.35M | -115.75M | -19.97M | -75.4M |
| Capital Expenditures | -91.47M | -111.91M | -64.32M | -272.6M | -178.5M | -94.55M | -52.55M | -83.02M | -111.27M | -80.83M | -137.07M | -483.37M | -587.24M | -210.44M | -270.23M | -241.22M | -110.7M | -75.57M |
| CapEx % of Revenue | 4.07% | 5.29% | 3.25% | 13.98% | 8.44% | 4.88% | 4.05% | 5.96% | 8.81% | 6.62% | 11.08% | 39.27% | 47.26% | 16.98% | 23.1% | 24.24% | 12.33% | 9.99% |
| Acquisitions | 2.16M | 3.07M | 0 | 371.88K | 2.66M | 4.15M | -590K | 4.2M | 13.85M | 6.84M | 5.93M | 7.5M | 0 | 1.16M | 0 | 0 | 0 | 0 |
| Investments | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - |
| Other Investing | -11.45M | 24.51K | -12.29M | -16.84M | 2.67M | 4.5M | 4.72M | -763K | 12.44M | 6.35M | 1.44M | 7.5M | 3.06M | -151K | 6.83M | 125.46M | 90.72M | 168K |
| Cash from Financing | -262.34M | -249.24M | -261.34M | -115.44M | -121.48M | -130.09M | -43.85M | -106.84M | -105.34M | -185.43M | -177.54M | -257.81M | -114.77M | 507.38M | 273.7M | 192.58M | -115.44M | 618K |
| Debt Issued (Net) | -85.55M | -89.61M | -86.59M | -26.08M | 73.5M | 217.58M | 99.45M | 27.28M | 68.69M | 0 | 0 | 0 | 0 | 546.61M | -375.14M | 283.34M | -42.95M | 36.5M |
| Equity Issued (Net) | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | -34.22M | 0 | -108.22M | 0 | 0 | 672.3M | 0 | 110K | 0 |
| Dividends Paid | -175.38M | -164.77M | -175.05M | -175.43M | -179.82M | -336.82M | -143.62M | -120.65M | -171.79M | -124.99M | -154.4M | -162.17M | -115.82M | -58.09M | -52.02M | -90.76M | -72.61M | -35.26M |
| Share Repurchases | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | -34.22M | 0 | -108.22M | 0 | 0 | 0 | 0 | 0 | 0 |
| Other Financing | -1.41M | 5.14M | 297K | 86.08M | -15.16M | -10.85M | 321K | -13.48M | -2.25M | -26.22M | -23.14M | 12.58M | 1.05M | 18.86M | 28.56M | 0 | 4K | -615K |
| Net Change in Cash | 118.82M | -11.52M | -17.47M | 8.42M | -191.63M | -35.51M | 240.65M | 19.2M | -149K | -31M | -77.79M | -422.49M | -396.45M | 907.12M | -293.44M | 208.79M | 42.83M | 89.33M |
| Free Cash Flow | 379.68M | 243M | 256.82M | 123.02M | -66.68M | 76.02M | 278.82M | 122.12M | 92.36M | 178.68M | 104.61M | -207.72M | -335.11M | -18.69M | -170.5M | -108.88M | 69.48M | 89.55M |
| FCF Margin % | 16.89% | 11.48% | 12.98% | 6.31% | -3.15% | 3.92% | 21.51% | 8.77% | 7.31% | 14.64% | 8.46% | -16.87% | -26.97% | -1.51% | -14.58% | -10.94% | 7.74% | 11.84% |
| FCF Growth % | 47.64% | -5.38% | 108.77% | 284.49% | -187.72% | -72.74% | 128.31% | 32.22% | -48.31% | 70.8% | 150.36% | 38.01% | -1693.07% | 89.04% | -56.6% | -256.7% | -22.41% | - |
| FCF per Share | 4.43 | 2.84 | 3.00 | 1.44 | -0.78 | 0.89 | 3.26 | 1.43 | 1.08 | 2.09 | 1.20 | -2.27 | -3.61 | -0.20 | -1.88 | -1.46 | 0.93 | 1.20 |
| FCF Conversion (FCF/Net Income) | 1.78x | 2.20x | 1.61x | 2.44x | 0.63x | 1.11x | 5.72x | 1.55x | 2.65x | 2.77x | 2.08x | 1.28x | 1.31x | 1.23x | 0.63x | 1.95x | 0.81x | 1.12x |
| Interest Paid | 0 | 0 | 99.68M | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Taxes Paid | 62.27M | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
Quick answers to the most common questions about buying CPAC stock.
Cementos Pacasmayo S.A.A. (CPAC) generated $339.9M in net cash from operating activities in 2025. This reflects the cash generated directly from core business operations.
Cementos Pacasmayo S.A.A. (CPAC) generated $243.0M in free cash flow in 2025. Free cash flow is the cash left over after capital expenditures, which can be used to pay dividends, repurchase shares, or pay down debt.
Cementos Pacasmayo S.A.A. (CPAC) spent $111.9M on capital expenditures in 2025. CapEx represents the cash invested in physical assets like property, plant, and equipment to maintain or grow the business.
In 2025, Cementos Pacasmayo S.A.A. (CPAC) returned $164.8M to shareholders via cash dividends. This shows the company's commitment to returning capital to its equity investors.
Key Metrics
Top Statement Risk
Cyclical earnings volatility and cash conversion inconsistency
Erratic Cash Conversion Driven by Working Capital
The relationship between net income and operating cash flow is highly volatile, with the OCF/NI ratio swinging from -0.31 in Q1 2024 to 2.47 in Q2 2026, a variance almost entirely explained by large, irregular working capital swings.
The quality of earnings is inconsistent due to working capital dynamics that appear to dominate operational cash generation. For instance, Q2 2026 shows OCF of $191.0M against net income of $77.2M, but this was amplified by an $82.7M favorable working capital change. In contrast, Q4 2025 posted a net loss yet generated positive operating cash flow of $80.8M, again supported by a $64.0M working capital benefit. This pattern suggests reported net income is a poor short-term proxy for cash generation, with collections and inventory cycles creating significant timing differences.
Free Cash Flow Surge Driven by Non-Recurring Drivers
Free cash flow has surged to a record $175.9M in Q2 2026, yielding a 31.5% FCF margin, but this represents a sharp acceleration from a -6.6% margin in Q1 2024, raising questions about the sustainability of this cash generation level.
The FCF trajectory is heavily influenced by the aforementioned working capital volatility rather than consistent operational performance. While the recent quarters show strong FCF, the path has been erratic; FCF was negative in Q1 2024 and only $13.8M in Q1 2026 before exploding in Q2. The gap between net income and operating cash flow is the primary driver, not a steady improvement in core business cash generation. Investors should note that the high FCF margins in recent quarters (24.9% in Q3 2025, 31.5% in Q2 2026) are driven by large positive working capital releases that may not recur in future periods.
Wild Swings in Working Capital Obscure Core Cash Flow
Working capital changes have been the dominant factor in CPAC's operating cash flow, swinging from a $88.2M use in Q1 2024 to an $82.7M source in Q2 2026, which appears to be the primary source of the recent cash flow improvement.
The cash flow statement reveals that CPAC's cash generation is highly sensitive to the management of receivables, inventory, and payables. The large positive WC changes in Q2 2026 ($82.7M), Q4 2025 ($64.0M), and Q3 2025 ($59.8M) are the primary reasons operating cash flow significantly exceeded net income in those periods. This cyclicality suggests the company's cash flow profile is at the mercy of seasonal collection patterns and inventory build cycles typical of the cement industry, making it difficult to predict quarterly cash flow from earnings alone.
Modest Capex Intensity Suggests Maintenance Focus
Capital expenditures have remained relatively modest, ranging from 2.3% to 6.8% of revenue over the past ten quarters, which according to the data appears consistent with a maintenance-focused spending profile rather than significant expansionary investment.
The CapEx/Rev ratio has averaged approximately 3.9% over the period, with the recent Q2 2026 figure of 2.3% being on the low end. This level of investment relative to revenue suggests the company is primarily funding the upkeep and replacement of existing capacity rather than funding major growth projects. For an industrial manufacturing company, this capital intensity is moderate, but the consistency implies limited investment in capacity expansion, which may be a consideration given the revenue acceleration noted in the income statement analysis.
Cash Flow Quality Masked by Working Capital Timing
The cash flow statement may obscure the true operational cash generation, as the recent strong FCF appears to be primarily driven by a one-time or cyclical working capital release rather than a fundamental shift in profitability or efficiency.
A skeptical view would focus on the fact that in Q4 2025 and Q2 2026, operating cash flow was massively inflated by large working capital improvements ($64.0M and $82.7M respectively), while in other quarters like Q1 2024 and Q1 2026, working capital was a significant cash drain. This volatility makes it challenging to assess the underlying cash generation power of the business. Furthermore, the minimal share-based compensation ($0 in most quarters, $7.2M in Q4 2024, and $855K in Q1 2026) suggests this is not a significant non-cash adjustment impacting the cash conversion analysis.