Ayala Corporation (AC) Q2 2025 earnings summary

Executive summary

• Core net income after tax (NIAT) for 2Q25 rose 9% quarter-on-quarter to P12.4bn, driven by improved results in ACEIC, AC Mobility, and Globe.

• For 1H25, consolidated core NIAT was flat year-over-year at P30.7bn, while reported NIAT including one-offs rose 5% to P23.4bn.

• Portfolio investments collectively shifted to profitability, improving the first half decline to -2% from -4% in 1Q.

• Consolidated sales of goods and services increased 2% to P160.3B, driven by higher residential, mall, hotel, and electric vehicle sales.

Financial highlights

• BPI posted 8% earnings growth in 1H25, with loans up 14% and deposits up 6.5% year-over-year; cost-to-income ratio improved by 96 bps.

• AyalaLand delivered 8% earnings growth, with steady property development revenues and healthy leasing and hospitality operations.

• Globe's core NIAT declined 11% year-over-year due to softer revenues and higher depreciation and interest expenses, but EBITDA margin remained strong at 52.6%.

• ACEN's core attributable EBITDA was flat, but net income dropped 88% year-over-year due to lower spot prices, reduced demand, and impairments.

• IMI's EBITDA increased 167% and net loss narrowed, while AC Logistics achieved P580mn in cost savings despite market challenges.

Outlook and guidance

• Portfolio investments are expected to continue their profitability trend.

• The group budgeted P230B in capital expenditures for 2025, with P3.9B spent at parent level as of June 30, 2025.

• No liquidity problems or defaults are expected in the next 12 months; all loan covenants are in compliance.

• Agency banking and digital initiatives are driving scalable growth in BPI.

• AyalaLand is expanding its leasing and hospitality portfolio through acquisitions and partnerships.