DMCI Holdings (DMC) Q3 2025 earnings summary

Executive summary

• Nine-month net income declined 22% year-over-year to Php 11.8 billion, with Q3 net income down 33% to Php 2.7 billion, mainly due to lower coal and electricity prices, higher costs, and initial losses from the cement segment.

• Revenue for Q3 2025 rose 19% year-over-year to Php 26.0 billion, driven by cement consolidation and higher construction accomplishments.

• Integration of the newly acquired cement unit (Concreat) weighed on group performance, with Q3 and 9M net losses in the segment.

• Special dividends of Php 0.48/share (Php 6.4 bn) declared, bringing 2025 total dividends to Php 14.3 bn (76% of 2024 core net income).

• EBITDA margin narrowed to 28% in Q3 and 33% in 9M, from 40% and 41% last year.

Financial highlights

• 9M 2025 revenues rose 13% year-over-year to Php 87.6 billion, driven by cement addition and stronger construction, mining, and off-grid power.

• 9M core net income dropped 21% to Php 11.8 billion; reported net income down 22% to Php 11.8 billion.

• Cost of sales and services rose 31%, outpacing revenue growth, leading to lower gross profit margin.

• Operating expenses (excluding royalties) increased 55% to Php 11.0 billion, mainly from higher repairs, salaries, and cement segment inclusion.

• Earnings per share for 9M 2025 was Php 0.89, down from Php 1.14 last year; annualized ROE at 12.9%.

Outlook and guidance

• Focus on execution, efficiency, and diversification amid market headwinds.

• Construction expanding infrastructure and subway pipeline; real estate boosting RFO sales and preparing for 2026 launches.

• Integrated energy segment investing prudently to weather softer markets; off-grid power capacity to grow 15% in 2026, targeting over 200MW installed by year-end.

• Nickel mining to benefit from new Palawan mine and expects to operate three mines by 2026, increasing capacity to 3 million WMT.

• Cement integration investments underway to improve efficiency and logistics.