ICTSI: profit up 24.3%, but revenue growth decelerated from 25.3% to 18.9%

In its Q3 2026 report, International Container Terminal Services (ICTSI) posted revenue of USD 984.053 million, operating profit of USD 537.158 million and net profit of USD 332.709 million. Year on year, revenue rose 18.9% and net profit 24.3%, while the net margin improved to 33.8% from 32.3%. Revenue growth decelerated from 25.3% in Q2 2026. Our conclusion: rather attractive – on the portal's model, the upside to fair value is +17%. Our view: the share is rather attractive at the current price; upside on the portal model +17%.

Our view: is there upside

Our view in numbers

Key takeaways

— Revenue rose 18.9% year on year, but growth decelerated from 25.3% a quarter earlier

— Net profit added 24.3%, outpacing revenue, and the margin rose to 33.8%

— Operating profit of USD 537.158 million confirms solid core operations

— Leverage of 17.99x EBITDA LTM is a level that demands attention

— A dividend yield of 2.18% is modest against the cost of capital

— Valuation at 22.2x P/E LTM and 237.2x EV/EBITDA LTM is expensive in absolute terms

— The portal's model implies +17% upside to fair value

Key figures, USD bn

Revenue rose 18.9% year on year, but growth decelerated from 25.3% a quarter earlier

Q3 2026 revenue came in at USD 984.053 million, 18.9% above the year-earlier level. That is solid growth, but it is slower than the 25.3% seen in Q2 2026 – a deceleration.

The slowdown does not mean weakness: the absolute quarterly revenue level remains the highest in the company's history. The question is whether double-digit growth will persist once the low base effect fades.

For an investor, what matters is not the figure itself but the durability of the trend: if growth falls below 15%, it could cap the valuation, but for now the company remains above that threshold.

Net profit added 24.3%, outpacing revenue, and the margin rose to 33.8%

Q3 2026 net profit reached USD 332.709 million, up 24.3% year on year. That is faster than revenue growth, indicating improved efficiency.

The net margin rose to 33.8% from 32.3% a year earlier. The 1.5 percentage point improvement is the result of profit growing faster than revenue.

This level of profitability is typical of companies with strong competitive positions. However, the sustainability of this metric depends on operating expense dynamics, which are not detailed in the report.

Operating profit of USD 537.158 million confirms solid core operations

Q3 2026 operating profit was USD 537.158 million. This is a key metric reflecting profitability before financial and tax factors.

The ratio of operating profit to revenue is about 54.6%, indicating high efficiency of core operations. The company maintains control over operating expenses.

The stability of operating profit is an important argument for the resilience of the business model, especially against the backdrop of decelerating revenue growth.

Leverage of 17.99x EBITDA LTM is a level that demands attention

Net debt at the latest reporting date stands at USD 2,052.558 million. The net debt to EBITDA ratio for the trailing twelve months is 17.99. This is a high level that limits financial flexibility.

EBITDA LTM in the facts is stated as USD 114.1 million, significantly below quarterly values, likely due to one-off write-offs. This distorts the ratio, but the fact remains: leverage is high.

The company needs to generate stable cash flow to service its debt. Any slowdown in operating activity could increase pressure on financial metrics.

A dividend yield of 2.18% is modest against the cost of capital

The dividend yield over the trailing twelve months is 2.18%. This is a low level that is unlikely to attract income-oriented investors.

With a market capitalisation of USD 25,013.378 million and LTM net profit of USD 1,126.9 million, the company could pay more but prefers to allocate funds to development or debt servicing.

For comparison, the key rate in the economy is often higher than this yield, making the dividend a less attractive instrument.

Valuation at 22.2x P/E LTM and 237.2x EV/EBITDA LTM is expensive in absolute terms

The P/E LTM ratio is 22.2, implying a fairly high valuation of earnings. EV/EBITDA LTM at 237.2 looks anomalously high, likely due to distortion in the EBITDA LTM metric.

Return on equity (ROE) reaches 50.6%, indicating high efficiency in capital utilisation. However, a high ROE may be a consequence of high leverage.

Without comparison to historical averages of these multiples, it is difficult to conclude whether the stock is overvalued or undervalued, but absolute levels appear high.

The portal's model implies +17% upside to fair value

According to the portal's model, based on EBITDA growth and a target multiple, the fair value of the share implies +17% upside relative to the current market price.

This figure is our own estimate, not a market consensus. It takes into account current fundamentals and assumes the company maintains its current growth rates.

The 17% upside corresponds to a 'rather attractive' rating on our scale, but it is sensitive to a slowdown in revenue growth and leverage dynamics.

Valuation on the latest reported figures

Bottom line

The strong side of the report was net profit growth of 24.3% and an increase in the margin to 33.8%, indicating business efficiency. However, decelerating revenue growth and high leverage raise questions. Valuation at 22.2x P/E LTM and 237.2x EV/EBITDA LTM looks expensive, but the portal's model points to +17% upside. Our conclusion: rather attractive – on the portal's model, the upside to fair value is +17%. Our view: the share is rather attractive at the current price; upside on the portal model +17%.