Aboitiz Equity Ventures, Inc. (AEV), one of the Philippines' largest diversified conglomerates, reported a 40% year-on-year increase in second-quarter consolidated net income, driven by robust earnings from its power segment and stronger contributions from its banking and food units, which offset persistent weakness in real estate and infrastructure.

Consolidated net income climbed to P7.3 billion in the April-to-June period, up from P5.2 billion a year earlier. "This included P8 million of non-recurring items recognized in the second quarter of 2026," AEV said in a disclosure filed on Thursday.

For the first half of 2026, consolidated net income surged 63% to P13.6 billion from P8.4 billion in the same period last year. Stripping out non-recurring items, first-half core net income rose 61% to P13.7 billion from P8.5 billion, with the period reflecting a net non-recurring loss of P51 million.

Power remained AEV's dominant earnings engine in the first half, accounting for 61% of total net income contributions. The food and beverage business represented 24%, while financial services contributed 21%.

"Transformation is not defined by a single breakthrough, but by consistently making better decisions, executing with discipline, and staying focused on long-term goals," said Aboitiz Group President and Chief Executive Officer Sabin M. Aboitiz in a separate statement. "Every investment we make today is intended to strengthen our businesses, satisfy our customers, and support our nation's continued growth," he added.

Aboitiz Power Powers Ahead

AEV's listed power subsidiary, Aboitiz Power Corp., contributed P10 billion in net income during the first half. On a standalone basis, Aboitiz Power's beneficial earnings before interest, taxes, depreciation, and amortization (EBITDA) grew 21% to P23 billion in the second quarter, up from P19.1 billion a year earlier.

The increase was fueled by higher generation margins, stronger electricity market prices, additional capacity from the Caliraya-Botocan-Kalayaan Hydroelectric Power Plant Complex, and the commissioning of three solar power plants: Olongapo (221 MWp), Armenia (47 MWp), and San Manuel (93 MWp). The new solar capacity adds roughly 361 MWp to Aboitiz Power's renewable portfolio, aligning with the company's strategy to expand its clean energy footprint as the Philippines pushes to increase the share of renewables in its power mix. These gains offset lower availability at the company's coal-fired facilities. Aboitiz Power's second-quarter net income climbed 31% to P10.5 billion from P8.1 billion.

UnionBank and Food Deliver Gains

Union Bank of the Philippines (UnionBank) contributed P3.4 billion in net income to AEV in the first half. On a standalone basis, UnionBank's net income more than doubled to P6.9 billion as net revenues rose 9% to P43.1 billion. Net interest income increased 8% to P33.7 billion on loan growth, while net interest margin expanded by 40 basis points to 6.9%.

The food and beverage business contributed P4 billion in first-half net income, up 10% from P3.6 billion. Growth was driven by higher volumes and margins across Aboitiz Foods' flour, livestock feed, and trading operations, along with increased sales at Coca-Cola Europacific Aboitiz Philippines, Inc. These gains were partially offset by losses in the farms and meat segments.

Real Estate and Infrastructure Remain Weak

AEV's consolidated real estate business recorded a P37-million net loss in the first half, wider than the P4-million loss reported a year earlier, primarily due to weakness in its economic estates segment. The company attributed the softer performance to the timing of revenue recognition, noting that the comparable 2025 period benefited from reservation sales made in 2024. Higher leasing revenues, supported by improved occupancy and scheduled rent escalations, partially mitigated the decline.

On infrastructure, AEV's share in the net loss of Aboitiz InfraCapital, Inc. narrowed to P278 million from P525 million a year earlier, as contributions from its airport and digital infrastructure businesses improved. The gain was partly offset by lower water volumes at Apo Agua Infrastructura, Inc. due to El Niño. AEV's share in the net loss of Republic Cement & Building Materials, Inc. also narrowed to P743 million from P769 million. Overall, AEV reported an attributable loss of P1 billion from its infrastructure segment in the first half.

As of June 30, AEV held consolidated assets of P1 trillion, cash and cash equivalents of P86.6 billion, and a net debt-to-equity ratio of 0.9x.

At the local bourse on Thursday, AEV shares declined 2.74% to close at P35.50 each. — Alexandria Grace C. Magno