Aboitiz Equity Ventures: profit doubles on power segment growth, but leverage remains high

15 мая 2026 года Aboitiz Equity Ventures раскрыла результаты за первый квартал 2026 года. Чистая прибыль выросла на 83,4% год к году до 10,9 млрд песо, выручка – на 26,4% до 86,4 млрд песо, EBITDA – на 33,7% до 18,2 млрд песо. Акции торгуются с P/E 8,8 и EV/EBITDA 8,4, что выглядит привлекательно, но высокая долговая нагрузка (net debt/EBITDA 5,61) и скромный потенциал роста по модели портала (+34%) делают оценку скорее привлекательной, чем однозначно выгодной.

Key takeaways

— Net profit rose 83% on power segment and bank

— Revenue up 26% on electricity and goods sales

— EBITDA margin expanded to 21% on higher generation share

— Operating cash flow fell 18% on working capital build

— Leverage remains high: net debt/EBITDA at 5.61

— Capex rose but cash flow covers it with a cushion

— Dividend yield of 4.08% is below market average

Attractiveness

Key figures, PHP bn

Net profit rose 83% on power segment and bank

In Q1 2026, Aboitiz Equity Ventures' net profit reached PHP 10.9 billion, up 83.4% year-on-year. The power segment contributed 56% of profit, and banking 25%. Power generation profit rose 72% on higher contracted capacity, better coal plant availability, and new solar plants.

UnionBank's contribution jumped 174% to PHP 1.9 billion on higher net interest income and lower credit costs. Food and beverage added 27% of profit, while real estate and infrastructure were negative.

Revenue up 26% on electricity and goods sales

Q1 2026 revenue rose 26.4% to PHP 86.4 billion. Electricity sales grew 17% to PHP 50.5 billion on higher contracted capacity and the CBK HEPP turnover in February 2026. Goods sales jumped 50% to PHP 32.3 billion on volume growth in agribusiness, trading, and flour.

Real estate revenue fell 7% on timing of economic estate recognition, while other income rose 28% on passenger growth at Mactan-Cebu airport.

EBITDA margin expanded to 21% on higher generation share

EBITDA margin for the quarter was 21.0%, up from 19.9% a year earlier. Expansion came from higher generation share with better spreads and higher equity earnings. Operating profit rose 51% to PHP 13.4 billion, and net margin widened from 8.7% to 12.6%.

Margin improvement reflects a better revenue mix: electricity sales share fell from 64% to 58%, while goods rose from 32% to 37%, yet margins still expanded on operational efficiency.

Operating cash flow fell 18% on working capital build

Operating cash flow in Q1 2026 was PHP 15.4 billion, down 18% year-on-year (from PHP 18.8 billion). The decline came despite higher operating profit, due to increased working capital requirements.

Still, operating cash flow comfortably covers capex of PHP 4.8 billion. Pre-financing free cash flow is positive, supporting debt service and dividends.

Leverage remains high: net debt/EBITDA at 5.61

Net debt stood at PHP 405.5 billion at end-March 2026, up PHP 4.7 billion from end-2025 and PHP 39.8 billion over 12 months. Net debt/EBITDA for the trailing twelve months is 5.61, a high level for a conglomerate.

Debt rose on CBK HEPP acquisition financing and AboitizPower bond issuance in Q3 2025. Interest expense rose 19% to PHP 7.2 billion in the quarter, pressuring net profit.

Capex rose but cash flow covers it with a cushion

Capex in Q1 2026 was PHP 4.8 billion, up from PHP 3.8 billion a year earlier, driven by investments in new solar plants and infrastructure.

Operating cash flow of PHP 15.4 billion is more than three times capex, leaving ample room for debt service and dividends. However, given high leverage, the company will likely direct much of free cash flow to deleveraging.

Dividend yield of 4.08% is below market average

Trailing dividend yield is 4.08%, below the Philippine market average. The company paid PHP 8.5 billion in dividends in Q1 2026, consistent with its policy.

At the current price, the yield is moderate, especially given high leverage. Income-focused investors may find better alternatives, but for long-term holders dividends remain a stable income source.

Valuation on the latest reported figures

Bottom line

Bottom line: Aboitiz Equity Ventures delivered a strong quarter with doubled net profit and margin expansion, confirming the strength of its power and banking businesses. However, part of the growth came from one-off factors like new capacity and bank recovery. High leverage and a modest upside on the portal's model (+34%) cap the potential. At current valuation (P/E 8.8, EV/EBITDA 8.4), the shares look rather attractive, but investors should watch debt dynamics and free cash flow generation.