SM Investments (SM) Q1 2026 earnings summary

Executive summary

• Q1 2026 delivered solid results, with consolidated revenue up 4.9% to PHP 159.4B and net income attributable to owners rising 7.3% to PHP 21.5B, led by retail as the standout performer.

• Operating income increased 6.5% to PHP 38.4B, with net margin at 18.3%.

• Diverse earnings base enabled resilience against external volatility, with portfolio companies contributing 8% of group net income, up from 6% last year.

• Retail, property, banking, and portfolio investments all contributed to growth, with retail and property accounting for 66% and 20% of revenues, respectively.

• Management remains cautiously optimistic for 2026, emphasizing cost discipline and customer focus amid external challenges.

Financial highlights

• Consolidated revenues reached PHP 159.4B, up 4.9% year-over-year; net income at PHP 21.5B, up 7.3%.

• EBITDA increased to PHP 45.5B from PHP 42.7B; interest cover improved to 8.6x.

• Retail net income rose 13.2% to PHP 4.1B, with EBIT margin expanding to 6.2%.

• Dividend per share increased 31% to PHP 17.00, with a 2.4% yield based on Dec 31, 2025 share price.

• Book value per share rose to PHP 585.01 from PHP 572.26.

Outlook and guidance

• Management maintains a cautiously positive outlook for 2026, focusing on meeting consumer needs and disciplined cost management.

• Expansion initiatives will continue across retail, property, banking, and portfolio investments, with retail planning further store openings and omni-channel enhancements.

• Property to expand malls and launch new projects; banking to grow lending and digital platforms while maintaining prudent risk management.

• Capital expenditures for 2026 to be funded mainly by internal cash flows, supplemented by borrowings as needed.

• External challenges are acknowledged, but the group expects continued resilience due to its diversified earnings base.