AEV profit nearly doubles in Q1

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April 30, 2026 | 12:00am

MANILA, Philippines — Earnings of conglomerate Aboitiz Equity Ventures (AEV) almost doubled in the first quarter, driven by strong performances from its power and banking businesses.

AEV reported a net income of P6.3 billion during the three months, nearly double the P3.2 billion posted in the same period in 2025.

It said the amount includes P43 million of non-recurring items recognized in the first quarter.

AboitizPower, which accounted for the bulk of total net income contributions, saw its core net income surge by 61 percent to P7.6 billion and net income by 71 percent to P7.9 billion during the period.

The growth was powered by higher margins in the firm’s generation segment, primarily attributable to higher contracted capacity, availability of its coal plants and the delivery of new solar power plants.

UnionBank of the Philippines also posted a net income of P3.8 billion, a 167 percent year-on-year increase, with net revenues rising by 12 percent to P21.7 billion.

AEV’s real estate business, comprising both the group’s residential and economic estates segments, however, recorded a higher net loss of P48 million in the first quarter from last year’s P36 million net loss.

The higher loss was attributed to lower contributions from economic estates, which offset the improvement in the residential segment during the quarter.

Net income contribution from the food and beverage segment, meanwhile, stood at P2.1 billion, up by 43 percent from the same period last year, fueled by strong volumes and margins of AboitizFoods’ agribusiness, trading and flour segments, as well as higher sales volumes and the sustained market leadership of Coca-Cola Europacific Aboitiz Philippines Inc.

Aboitiz InfraCapital’s income contribution to AEV amounted to P30 million during the quarter, a reversal of the P230 million net loss reported in the same period in 2025.

This was primarily driven by sustained passenger traffic growth at Mactan-Cebu International Airport, incremental contributions from Laguindingan International Airport and Bohol-Panglao International Airport, the continued expansion of Unity Digital Infrastructure Inc.’s colocation services and tower portfolio, and higher billed water volumes from Apo Agua Infrastructura.

AEV’s board of directors approved yesterday the renewal of authority to buy back the company’s own shares using internally generated excess cash and purchase additional shares of AboitizPower and UnionBank.

AEV president and CEO Sabin Aboitiz  has been given the authority to decide to acquire the company’s shares, as well as those of AboitizPower and UnionBank, as and when market prices dictate and opportunities arise.

Despite a challenging year ahead, AEV is maintaining a cautiously optimistic stance, with growth opportunities across its business units.

“The year 2026 definitely will be challenging as we enter the year with prospects for lower government spending and then the Iran war happened, bringing an oil price shock,” AEV chief financial officer and corporate information officer Jose Emmanuel Hilado said.

“So now, we have two opposing forces – the inflationary pressure of reduced government infrastructure spending and then the inflationary impact of the oil price shock – both of which threaten to dampen economic activity,” he said.

Hilado said that despite the challenging landscape, the group believes that there are still opportunities for growth across its diverse business units.

“We look at the long term. And our strategic direction is very clear, so I would say that, in the end, we’re still cautiously optimistic for this year,” he said.

Hilado said the immediate impact of the ongoing Middle East crisis on the group has so far centered on rising costs for logistics and packaging materials, which will eventually result in higher operating expenses.

As the active portfolio manager of the Aboitiz Group, AEV is advancing key initiatives and sustaining long-term value creation this year, supported by a more diversified portfolio and a strong balance sheet.

AEV, together with its partners,has allocated P88.5 billion in capital expenditures for 2026.