Ayala profit weakens on softer cyclical businesses

MANILA, Philippines — Softer results from its cyclical businesses weighed on Ayala Corp.’s core earnings in the first nine months, which slipped by six percent  to P34.5 billion.

Ayala said stable earnings from Globe Telecom Inc., higher contributions from AC Energy and Infrastructure Corp. (ACEIC) and narrower losses from the emerging businesses helped temper the impact of softer results from its cyclical businesses, Ayala Land Inc. (ALI) and Bank of the Philippine Islands (BPI), as well as lower non-operating income.

The decline in non-operating income mainly reflected reduced dividends from Manila Water as the first batch of divested Manila Water preferred shares had been fully transferred, and a smaller stake in Mynt after Mitsubishi Corp. invested in AM 50 Ventures Inc. in 2025.

On a reported basis, Ayala’s net income fell by 22 percent to P36.3 billion, reflecting a high 2025 base that included a one-off remeasurement gain on AM 50 Ventures.

“Our results reflect the benefits of strengthening and rebalancing the portfolio over the past several years,” Ayala CEO Cezar Consing said.

“Improving contributions from our growth platforms, narrowing losses from emerging businesses and disciplined capital allocation are helping build a more resilient earnings base,” he said.

BPI saw its net income inch down by three percent to P48.9 billion as higher provisions and operating expenses offset double-digit loan growth and higher fee income.

Globe’s core net income, which excludes non-recurring items, foreign exchange and mark-to-market charges, was steady at P15.5 billion as record gross service revenues and higher EBITDA were tempered by increased non-operating charges, mainly interest costs, as well as non-recurring prior-year gains.

GCash parent, Mynt, posted a 17-percent increase in net income to P16.5 billion on the back of double-digit revenue growth.

ACEIC, the parent company of ACEN Corp., registered a 62-percent jump in net income to P6.9 billion, driven by stronger thermal plant earnings, foreign exchange gains at the ACEIC parent level, and ACEN’s net one-off gains.

Stronger generation, an expanding retail business and improved contracting, along with the absence of last year’s Vietnam impairment, fueled an 84-percent jump in ACEN’s net income to P3.3 billion.

ALI’s net income, however, eased by 18 percent to P17.5 billion, with recurring leasing and hospitality income partly offsetting lower property development revenues.

For its emerging businesses, AC Health was able to sustain its topline momentum, with revenues rising by 29 percent to P11.8 billion, while core net loss narrowed to P54 million.

ACMobility’s core net loss, which excludes dividends from its share in Honda Cars Philippines, widened to P287 million from P117 million last year as lower Kia and Isuzu sales and higher inventory costs from peso weakness offset the profit contribution from its BYD distribution business.

AC Logistics, excluding Entrego, substantially closed the gap to profitability on a better-quality business mix and tighter cost discipline.

Higher revenues and wider margins lifted IMI’s net income, excluding losses from Via Optronics, by 33 percent to $22.3 million.