Ayala Land (ALI) Q2 2025 earnings summary

Executive summary

• Net income for 1H 2025 reached PHP 14.2 billion, up 8% year-on-year, driven by a diversified portfolio and strong leasing and hospitality operations.

• Consolidated revenues were PHP 83.1 billion, steady year-on-year when excluding the impact of AirSWIFT's sale.

• Capital expenditures totaled PHP 40.2 billion, focused on property development, leasing, hospitality, and estates.

• Property development revenues grew 1%, while leasing and hospitality revenues increased 5%.

• Excluding AirSWIFT, net income rose 9% year-on-year.

Financial highlights

• EBIT margin improved to 37%, up from 32% last year.

• Property development revenues were PHP 52.3 billion, steady year-on-year; residential revenues dipped 5% to PHP 41.3 billion.

• Leasing revenues hit a record PHP 23.2 billion, up 5% year-on-year, despite ongoing renovations.

• Service business revenues declined 30% to PHP 5.9 billion due to the absence of airline revenues and completed contracts.

• Expenses declined 5% year-on-year, supporting higher profitability.

Outlook and guidance

• Expecting a more diversified project launch mix in the second half, with two-thirds premium and one-third core, and a focus on both horizontal and vertical developments.

• Anticipating stronger bookings and revenue recognition as sales indicators improve and inventory is actively managed.

• Launches for residential projects reached PHP 40.5 billion, up 20%, with a strong focus on premium and vertical products.

• No known trends, events, or uncertainties are expected to affect continuing operations.

• Performance is expected to remain aligned with the country's economic standing; interest rate fluctuations may impact the real estate industry.