Ayala Q1 net income falls 5%

AYALA CORP.’s first-quarter (Q1) attributable net income fell 5% to P11.95 billion from P12.60 billion a year earlier due to the absence of one-off gains booked last year, although core net income remained steady at P11.2 billion on stronger contributions from Bank of the Philippine Islands (BPI), Globe Telecom, Inc., and AC Energy & Infrastructure Corp. (ACEIC).

In a disclosure on Wednesday, the listed conglomerate said last year’s results included a P1.7-billion dilution gain from Mitsubishi UFJ Financial Group’s investment in Globe Fintech Innovations, Inc. (Mynt).

Higher earnings from BPI and Globe, as well as contributions from ACEIC, offset softer results from Ayala Land, Inc. (ALI).

Lower aggregate contributions from other business units were mainly due to Ayala’s reduced stake in Mynt following Mitsubishi Corp.’s entry into AM 50 Ventures, Inc. in 2025 and lower dividend income from Manila Water Co.

BPI posted a 2% increase in net income to P16.9 billion, supported by strong revenue growth that offset higher operating expenses and provisions. Return on equity declined to 14.3% from 15.4%.

The bank’s revenues rose 14% to P50.9 billion, driven by double-digit growth in both net interest and non-interest income. Total loans expanded 14% to P2.6 trillion, while deposits increased 10% to P2.8 trillion.

Globe’s core net income rose 9% to P4.9 billion on higher gross service revenues and improved equity earnings from affiliates.

Gross service revenues climbed 5% to P42 billion, driven by sustained demand for data-related services, while earnings before interest, taxes, depreciation, and amortization (EBITDA) increased 7% to P22.2 billion.

ACEN’s core net income declined 27% to P1.4 billion as higher generation from new international plants and the substantial restoration of Ilocos operations were offset by higher depreciation and net financing costs.

On a reported basis, however, ACEN’s net income rose 50% to P2.9 billion. ACEIC, meanwhile, posted a 60% increase in net income to P2.6 billion driven by improved contributions from ACEN, higher net interest income, and foreign exchange gains.

ALI’s net income fell 23% to P5.4 billion as lower contributions from its property development business partly offset growth in leasing and hospitality revenues.

Property development revenues declined 27% to P20.3 billion, while leasing and hospitality revenues increased 9% to P12.6 billion. Hotels and resorts revenues jumped 30% to P3.4 billion driven by stronger performance from renovated properties and contributions from the newly acquired New World Makati hotel.

“Given global macro conditions, our near-term focus is on resiliency through stronger cash generation, prudent cost management, and disciplined capital allocation. Our portfolio is positioned for long-term value creation,” Ayala President and Chief Executive Officer Cezar P. Consing said.

Among Ayala’s emerging businesses, ACMobility narrowed its core net loss to P109 million from P168 million, supported by strong volume growth and the absence of losses from prior portfolio divestments.

Total vehicle sales rose 34% to 12,299 units from 9,206 units, primarily driven by BYD. ACMobility’s charging network expanded to 505 installed charging points, of which 482 are electrified, across 195 locations.

AC Health widened its net loss to P143 million from P59 million as higher manpower-related costs outpaced 24% revenue growth. EBITDA declined 21% to P209 million from P265 million.

AC Logistics narrowed its net loss to P167 million from P322 million, supported by lower variable costs, disciplined spending, and a higher-quality revenue mix.

Ayala said its balance sheet remained resilient amid market volatility, with consolidated cash rising to P71.9 billion and parent-level cash increasing 15% to P15.9 billion.

Consolidated net debt increased 5% to P667.6 billion, while consolidated net debt-to-equity ratio rose to 0.81x from 0.79x at end-2025.

On Wednesday, Ayala Corp. shares rose by 0.17% to P464 per share. — Alexandria Grace C. Magno