DMCI Holdings (DMC) Q3 2024 earnings summary

Executive summary

• Q3 2024 net income rose 3% year-over-year to Php 4.0 billion, driven by strong water, off-grid power, construction, and nickel results, offsetting weaker coal and real estate earnings.

• 9M 2024 net income fell 23% year-over-year to Php 15.14 billion, mainly due to lower coal, real estate, and nickel contributions, despite record water earnings and resilient off-grid power.

• Diversified portfolio cushioned commodity and real estate headwinds, with Maynilad and DMCI Power posting all-time high Q3 results.

• Earnings per share for 9M 2024 was Php 1.14, down from Php 1.47 in 2023; return on equity at 14%.

Financial highlights

• Q3 2024 revenues declined 2% year-over-year to Php 21.85 billion; 9M 2024 revenues dropped 16% to Php 77.37 billion.

• Q3 core EBITDA up 3% to Php 6.8 billion; 9M core EBITDA down 26% to Php 26.44 billion.

• Q3 net margin steady at 24%; 9M margin narrowed to 28% from 32% last year.

• Net debt/equity improved to 3.9% from 12.6%; total debt down 9% to Php 44.94 billion.

• Current and quick ratios improved to 2.99x and 1.17x, respectively.

Outlook and guidance

• Macroeconomic factors expected to have uneven impact; focus remains on operational efficiencies and ecosystem synergies.

• Construction order book stable; pursuing large-scale industrial and infrastructure projects for 2025.

• 17MW Palawan bunker plant to go online in Q4; 24MW in 2025 pipeline, including 12MW Semirara Wind.

• First Cebu City real estate project launching in Q4; sales focus on existing inventory in H1 2025.

• Management expects stable coal, nickel, and power prices in 2025, with positive demand growth in construction, real estate, and utilities.