DMCI Holdings (DMC) Q2 2025 earnings summary

Executive summary

• H1 2025 group net income declined 18% year-over-year to Php 9.13 billion, mainly due to lower coal prices, fewer construction projects, and initial losses from the cement segment, with Q2 net income down 27% to Php 4.0 billion.

• Utilities (Maynilad, DMCI Power) and nickel mining delivered record or sharply improved results, cushioning weaker coal and construction earnings.

• Integration of Concreat (acquired Dec 2024) weighed on results, with a net loss contribution in both Q2 and H1.

• Total revenues increased 11% to Php 61.6 billion, driven by cement consolidation and higher construction, real estate, mining, and off-grid power sales.

• The group declared Php 7.97 billion in cash dividends, representing a 42% payout of 2024 core net income.

Financial highlights

• H1 2025 consolidated revenues rose 11% year-over-year to Php 61.6 billion, with EBITDA for Q2 2025 down 13% to Php 10.12 billion and margin narrowing to 34% from 41%.

• H1 cost of sales increased 28% to Php 35.3 billion, reflecting cement integration and higher construction/nickel costs.

• Core net income for H1 fell 17% to Php 9.13 billion; Q2 core net income dropped 27% to Php 4.0 billion.

• EPS for H1 was Php 0.69, down from Php 0.84 in H1 2024.

• Net finance costs increased 389% to Php 832 million, mainly due to cement-related finance costs.

Outlook and guidance

• Diversification and integration efforts are expected to cushion further market normalization and construction delays.

• Coal segment targets 16–17 MMT shipments and 18 MMT production for 2025, with Narra mine ECC expansion approved.

• Power segment aims to increase contracted capacity, with 38% of 840 MW dependable capacity already contracted.

• Capex for 2025 is projected at Php 57.2 billion, up 18% year-over-year, with major investments in water, real estate, mining, and cement.

• Core businesses pursuing organic growth, with DMCI bidding for large-scale projects and SMPC expanding mining capacity.