International Container Terminal Services: Growth cycle far from over

From AB Capital's The Opening Bell: Three Moves

Event

ICTSI delivered strong 1Q26 results, with recurring net income rising +29% YoY to US$308 million (29% of FY26E), revenues up +29% YoY to US$961 million, and throughput growing +18% YoY to 4.08 million TEUs. EBITDA increased +26% YoY to US$618 million, with margins remaining high at 64%.

View

Results highlight a shift toward a structurally higher earnings base, with growth increasingly driven by yields and mix rather than just volume. Revenue yield improved to US$235/TEU (vs. US$215 in FY25), supported by tariff adjustments and stronger contributions from EMEA (+48% revenue growth) and Americas. Despite reported cost growth, underlying opex remains controlled, preserving operating leverage as expansion assets ramp up.

Catalyst

Key catalysts include: (1) continued yield expansion and tariff realization, (2) ramp-up of expansion assets (e.g., Durban, Batam), (3) sustained growth in higher-yielding EMEA and Americas operations, and (4) upside to throughput and revenue forecasts (1Q already at ~26-29% of FY26E).

Action

We upgrade ICTSI and raise TP to P940, reflecting stronger earnings visibility, improving yield mix, and confidence in sustained structural growth, supported by high margins, >40% ROEs, and self-funded expansion.

Disclaimer: The information, analyses, and views contained herein is based on sources which we, AB Capital Securities, believe are reliable, but is not guaranteed by us and is not to be considered all inclusive. It is not to be construed as an offer or solicitation of an offer to sell or buy the securities herein mentioned. AB Capital Securities and its Directors and Officers and/or members of their families may have a position in the securities herein mentioned and may make purchases and/or sales of the securities from time to time in the open-market and otherwise.