SM Investments (SM) investor relations material

Executive summary

• Net income attributable to owners rose 7.7% year-over-year to P45.9B on revenues of P339.2B, up 6.3% from the prior year.

• Q2 2026 delivered strong results, with robust performance in Retail, Malls, and Portfolio Investments, supported by resilient consumer spending despite economic shocks.

• Operating income increased 6.6% to P80.6B, with net margin steady at 18.4%.

• Earnings mix remains diversified across Retail (47%), Banking (27%), and Property (15%), with Portfolio Investments contributing 11%.

• Positive outlook for the remainder of 2026, while remaining cautious of macroeconomic uncertainties.

Financial highlights

• Revenues grew 6.3% year-over-year to P339.2B; net income after tax reached P62.4B, up 6.1%.

• EBITDA rose to P95.0B from P89.0B, and interest cover improved to 9.2x.

• Book value per share increased to P587.31 from P572.26 at year-end.

• Retail net income increased 5.3% year-over-year, with margin expansion across all retail segments.

• Portfolio Investments' share of group net income rose from 7% to 11%.

Outlook and guidance

• Maintains a positive outlook for 2H 2026, expecting continued healthy consumer spending but mindful of economic uncertainties.

• Expansion to continue across retail, property, banking, and portfolio investments in 2026.

• Capital expenditures to be funded mainly by internal cash flows, with borrowings as needed.