MacroAsia Corporation reported a 30 percent decline in first-half net income to P546.5 million, down from P 777.1 million year-on-year, hit by rising operating expenses and lower earnings from its associates.
Net income attributable to equity holders of the parent fell to P449.6 million from P679.7 million in the same period last year.
Despite the drop in profitability, consolidated revenue rose 9 percent to P5.26 billion from P4.81 billion, lifted by gains across food services, ground handling and aviation support and water operations.
The bottom line was dragged down by a 25 percent drop in share of net earnings from associates, which fell to P456.1 million from P611 million. Contribution from Lufthansa Technik Philippines Inc. (LTP), MacroAsia’s primary associate, fell to P411.2 million from P537.8 million due to higher lease costs and expenses from discontinuing its line-maintenance business. Consolidated operating margins were also squeezed by rising manpower and airport-related expenses.
Performance rebounded in the second quarter, with net income surging 93 percent sequentially to P359.9 million from P186.6 million in the first quarter as associate earnings recovered.
“MacroAsia continued to generate revenue growth across its key operating businesses during the first half of 2026, notwithstanding higher operating costs and the impact of lower associate earnings on first-half profitability,” MacroAsia President and Chief Operating Officer Eduardo Luis T. Luy said.
“The improvement in second-quarter earnings reflects the recovery in contributions from our associates, particularly LTP, while our operating businesses continued to benefit from higher volumes,” Luy added.
Looking ahead, the company plans to address margin pressure through rate adjustments, tighter expense controls, supply-chain initiatives and disciplined capital spending.
“For the balance of the year, our priorities are to improve margins through cost recovery and operating efficiencies, strengthen cash conversion and maintain disciplined execution of our growth investments,” Luy said.