Aboitiz Equity Ventures Posts P8.4 Billion Net Income in H1 2025, a 27% Drop

​Aboitiz Equity Ventures Inc. (AEV or “the Company”) recorded consolidated net income of P5.2 billion (bn) for the second quarter of 2025, representing a 65% increase from the P3.2 bn recorded in the first quarter of 2025. This quarter-on-quarter growth was largely driven by the improved performance in the Power and Food and Beverage segments. Despite the robust recovery in the second quarter, the results were insufficient to offset the softer first quarter, such that net income for the first half of 2025 was still 27% lower than the P11.5 bn reported in the first half of 2024, at P8.4 bn.

​Power accounted for 64% of the total net income contributions from AEV’s Strategic Business Units (SBU) for the first half of 2025, while Food and Beverage accounted for 33%. Net income contributions from the Financial Services, Real Estate, and Infrastructure SBUs were at 15%, -1%, and -11%, respectively.

Strategic Business Units

Power

Aboitiz Power Corporation’s (AboitizPower) net income contribution to AEV for the first half of 2025 amounted to P6.9 bn, 24% lower than the P9.1 bn recorded in the same period in 2024.

On a stand-alone basis, AboitizPower generated beneficial EBITDA of P19.1 bn in the second quarter of 2025, a 27% increase from P15.0 bn in the first quarter of the year. Quarter-on-quarter growth was driven by the full three-month contribution of Chromite Gas Holdings, Inc. (“Chromite Gas”), along with: (1) higher margins in the Generation segment, supported by increased plant availability and reduced exposure to the spot market; and (2) stronger energy sales in the Distribution segment. As a result, net income rose to P8.1 bn in the second quarter of 2025, up 74% quarter-on-quarter.

During the first half of 2025, AboitizPower generated P34.1 bn in beneficial EBITDA, 6% lower than the P36.3 bn posted in the same period in 2024. Increases due to contributions from Chromite Gas and new solar plants—Laoag (159 MWp), Armenia (45 MWp), and Calatrava (173 MWp) — were offset by lower spot market prices. Core net income amounted to P12.8 bn, compared to P17.1 bn in the first half of 2024. The core net income reflects the full impact of depreciation and interest expenses for GNPower Dinginin Ltd. Co., which AboitizPower began recognizing in March 2024. Including the impact of foreign exchange, reported net income for the first half of 2025 was P12.7 bn.

Energy sold totaled 19,440 gigawatt-hours (GWh) in the first half of 2025, a 9% increase from 17,758 GWh in the same period in 2024. Despite this, EBITDA from the AboitizPower’s Generation and Retail Supply business declined by 6% to P30.8 bn, from P32.8 bn, primarily due to lower spot market prices.

AboitizPower’s Distribution business posted P4.5 bn in EBITDA in the first half of 2025, a 3% increase driven by higher volumes compared to P4.4 bn in the same period in 2024. Energy sales rose 4% year-on-year to 3,386 GWh, compared to 3,256 GWh in 2024.

Banking & Financial Services

Net income contribution from Union Bank of the Philippines (UnionBank, or “the Bank”) amounted to P1.6 bn for the first half of 2025. This was 35% lower than the P2.5 bn recorded in the same period in 2024.

On a stand-alone basis, UnionBank recorded revenues of P39.7 bn, 9% higher YoY. Net interest income for the first half of 2025 rose by 14% year-on-year to P31.3 bn. This was driven by the 61bps expansion in the net interest margin, to 6.4%, as a result of the continued growth in Unionbank’s high-yielding consumer loans and low-cost current account/savings account (CASA). As of June 30, 2025, consumer loans accounted for 61% of UnionBank’s total loan portfolio, up from 59% in the same period in 2024. The growth in the Bank’s revenues outpaced the 8% YoY increase in its operating expenses, which reached P23.4 bn in the first half of 2025, such that Unionbank’s cost-to-income ratio improved to 58.8% as of June 2025, compared to 59.3% in the same period in 2024.

Nevertheless, the Bank’s net income declined by 36% YoY to P3.3 bn for the first half of 2025 due to higher credit costs arising from new credit card customers and its subsidiaries. The Bank also incurred one-time costs related to enhancements to the Bank’s operational and financial resiliency.

As of June 30, 2025, the total assets and total loans of the Bank amounted to P1.1 trillion (tn) and P519.0 bn, respectively, while low-cost CASA deposits reached P444.8 bn.

Real Estate

Aboitiz Land, Inc. (Aboitiz Land) and its subsidiaries reported a consolidated net loss of P51.8 million (mn) for the first half of 2025, a reversal from the P445 mn net income recorded during the same period of 2024. This was primarily driven by lower sales, higher forfeitures, and reduced construction activity as projects approached completion.

Food and Beverage

Net income contribution from the Food and Beverage segment, which includes Aboitiz Foods Holdings, Inc. (which houses Pilmico Foods Corporation, Pilmico Animal Nutrition Corporation), and Aboitiz Foods Pte. Ltd. (which houses Gold Coin Management Holdings Pte. Ltd.) (collectively, Aboitiz Foods), and Coca-Cola Europacific Aboitiz Philippines Inc. (CCEAP), was P3.6 bn in the first half of 2025. This was 31% higher than the P2.8 bn recorded in the same period of 2024, primarily driven by (i) profitability gains across all divisions of Aboitiz Foods, led by strong margin and volume growth in Flour, Farms, and Agribusiness segments, and (ii) full, six-month contributions from CCEAP, which financially closed only on February 23, 2024.

Infrastructure

Aboitiz InfraCapital, Inc.’s income contribution to AEV for the first half of 2025 amounted to a loss of P477.0 mn, compared to the P311.5 mn loss recorded in the same period in 2024. This was mainly the result of the amortization of concession asset related to the full acquisition of the Mactan-Cebu International Airport in October 2024, and higher interest expense from increased debt availments for its expansion.

AEV’s share in Republic Cement & Building Materials, Inc.’s (“Republic Cement”) loss for the first half of 2025 amounted to P769 mn, compared to P407 mn in the same period in 2024. The decline is mainly attributable to the continued weakness in sales volume and selling prices driven by low market demand for cement.

Financial Condition

As of June 30, 2025, AEV’s consolidated assets amounted to P942.2 bn, 5% higher from year end-2024 level of P893.7 bn. Cash and cash equivalents was P78.0 bn, 5% lower from year end-2024 level of P81.8 bn. Consolidated liabilities was P554.0 bn, 11% higher from the year-end 2024 level of P497.3 bn, while equity attributable to equity holders of the parent slightly decreased to P282.2 bn from year end-2024 level of P283.3 bn. As of June 30, 2025, AEV’s current ratio and net debt-to-equity ratio both stood at 1.0x.