Ayala Corporation (AC) Q1 2025 earnings summary

Executive summary

• Core net income after tax declined 4% year-over-year to ₱11.3 billion, mainly due to weaker earnings from ACEIC/ACEN and Globe, while BPI and AyalaLand posted higher NIAT and smaller businesses improved margins and operations.

• Consolidated sales of goods and services rose 7% to ₱80.9 billion, driven by higher residential, mall, and hotel revenues in ALI, and increased vehicle sales in ACMobility.

• Major subsidiaries and associates showed mixed performance: BPI and ALI posted higher net income, while Globe and ACEN saw declines due to market and operational factors.

Financial highlights

• Consolidated core NIAT fell 4% to ₱11.3 billion; reported NIAT at ₱12.6 billion.

• Gross revenue for Q1 2025 was ₱80.9 billion, up 7% year-over-year; net income after tax was ₱17.8 billion, up 2% year-over-year.

• Net income attributable to parent was ₱12.6 billion, down 4% year-over-year; EPS (basic/diluted) was ₱19.47, down from ₱20.44.

• Gross profit margin improved to 27%; net profit margin rose to 15%.

• Total assets increased 1% to ₱1.77 trillion; total equity rose to ₱736.2 billion.

Outlook and guidance

• Focus remains on supporting core business units for market leadership and profitability, targeting 20–25% consolidated revenue growth and 12% ROE by 2026.

• The group budgeted ₱230 billion in capital expenditures for 2025, with ₱1.3 billion spent at parent level and ₱20.6 billion by ALI as of Q1.

• ALI plans ₱95 billion in CAPEX for 2025, focusing on residential, estate development, leasing, and land acquisition.

• Continued investment in digital, premium segments, and renewable energy projects; ACEN targets operationalizing over 800MW of new capacity in 2025.