Concepcion Industrial Corp. (CIC) posted an 8% increase in attributable net income to P115.9 million in the third quarter, up from P107.2 million a year earlier, as higher sales and improved gross margins more than offset rising operating expenses.

In its quarterly financial report filed with the Philippine Stock Exchange, the company said consolidated net sales rose 13% to P4.4 billion from P3.9 billion, while consolidated net income jumped 29% to P183.1 million from P141.5 million.

CIC credited the sales growth to stronger demand in July, higher selling prices, and increased commercial activity, although demand subsequently eased as consumers remained cautious about spending.

"Elevated product and logistics costs and continued peso depreciation remained key pressures, although pricing actions implemented from the second quarter provided a greater offset during Q3," the company said.

For an importer of air-conditioners and appliances, freight and currency swings feed directly into landed costs — the pressure point the second-quarter price increases were meant to offset.

The consumer segment's sales grew 9% to P2.8 billion, lifted by stronger retail air-conditioning and online appliance sales, partially offset by weaker refrigeration sales.

The commercial segment recorded a 20% sales increase to P1.6 billion, supported by commercial air-conditioning projects, contractor-channel sales, and aftermarket parts and services. The gain was partly weighed down by lower sales of new elevators, reflecting a smaller opening order backlog and the timing of project completions.

Including associate Concepcion Midea, Inc. (CMI), CIC's combined net sales climbed 29% to P7.2 billion.

Gross profit rose 20% to P1.5 billion, while gross margin widened to 34.6% from 32.4%, following pricing adjustments and changes in standard costs. The improvement was partly offset by higher product and landed costs, including import-related logistics expenses.

Operating expenses increased 17% to P1.3 billion from P1.1 billion, mainly due to higher outbound freight and distribution costs, warranty expenses, and taxes.

For the first nine months of 2026, CIC's attributable net income declined 61% to P252.8 million from P641.5 million a year earlier. Consolidated net sales edged up 2% to P14.3 billion, while consolidated net income fell 48% to P478 million from P927 million. Viewed against that backdrop, the third quarter's gains only partially recover ground lost in a weak first half.

Heading into the final quarter, the factors the company itself flagged — cost and currency pressures, consumers' appetite to spend, and the elevator order backlog — are the ones to watch.

CIC's businesses include Concepcion-Carrier Air Conditioning Co., Concepcion Durables, Inc., Cortex Technologies Corp., and Tenex Services, Inc., which provide air-conditioning, refrigeration, and other appliance products and services. The company also operates Concepcion-OTIS Philippines, Inc., which supplies and services elevators and escalators, and Teko, an appliance repair and maintenance platform.

Shares in CIC slipped 0.18% to close at P11.04 apiece on Tuesday.

— Alexandria Grace C. Magno