AEV income nearly doubles to P6.3 billion in Q1

ABOITIZ EQUITY Ventures, Inc. (AEV) reported P6.3 billion in consolidated net income for the first quarter (Q1), nearly double the P3.2 billion recorded a year earlier, including P43 million in non-recurring items.

Among its business units, the power segment contributed the largest share to net income at 56%, followed by food and beverage at 27%, the company said in a regulatory filing on Wednesday.

Net income contributions from the financial services, real estate, and infrastructure strategic business units were at 25%, -1%, and -7%, respectively.

The power unit, Aboitiz Power Corp., contributed P4.4 billion in net income.

Beneficial earnings before interest, taxes, depreciation, and amortization rose by 35% to P20.3 billion, driven by higher margins in its generation business due to increased contracted capacity, improved coal plant availability, and new solar projects in Olongapo, Armenia, and San Manuel.

The increase was also supported by a full quarter of earnings from Chromite Gas Holdings Inc., whose subsidiary began commercial operations in mid-2025.

The banking unit, Union Bank of the Philippines, contributed P1.9 billion in net income.

Revenue grew by 12% to P21.7 billion, supported by loan expansion and lower funding costs. Consumer lending accounted for 60% of the bank’s portfolio, while institutional loans also posted growth. Credit costs declined by 18%, supporting profitability.

The real estate segment posted a net loss of P48 million, widening from the P36 million net loss recorded in the same period last year, as gains from residential sales were offset by weaker contributions from industrial estate developments, partly due to timing of revenue recognition.

“Contributions from the residential segment improved, driven by higher revenue recognition from 2025 sales, incremental contributions from select current-year sales, and more normalized forfeitures,” the company said.

“Meanwhile, the financial performance of the economic estates segment was largely affected by timing factors,” it added.

Net income contribution from the food and beverage segment rose by 43% to P2.1 billion, driven by stronger volumes and margins in agribusiness and flour operations, higher beverage sales, and full contributions from Aboitiz Foods Holdings, Aboitiz Foods Pte. Ltd., and Coca-Cola Europacific Aboitiz Philippines.

The infrastructure unit, Aboitiz InfraCapital, Inc., returned to profitability with a P30-million contribution, reversing a loss a year earlier. The improvement was driven by higher airport traffic, new contributions from regional airports, expansion of tower assets, and increased water sales.

However, losses linked to Republic Cement & Building Materials widened to P593 million, resulting in a P563-million net loss for the infrastructure segment attributable to AEV.

At the local bourse on Wednesday, shares of AEV rose by 2.35% to P28.35 apiece. — Alexandria Grace C. Magno