First Pacific Company (142) H2 2025 earnings summary

Executive summary

• Recurring profit rose 10% year-over-year to $740 million, with net profit up 10% to $661 million, both record highs, driven by Indofood and MPIC.

• Turnover reached $10.2 billion, up 2% year-over-year, led by Indofood and MPIC, while PLP saw a decline.

• Final distribution of HK$0.14 per share brings full-year payout to HK$0.27, the highest ever, with a special distribution following Maynilad IPO.

• Gross asset value at December 31, 2025, was $5.3 billion, with Indofood comprising over one-third and MPIC valued at $1.3 billion.

• Management remains confident in medium-term earnings growth, supported by expanding demand in Asian markets.

Financial highlights

• Contribution from operations rose 8% to $837.9 million, led by MPIC and Indofood.

• Dividend income at head office was $311 million; interest coverage ratio improved to 4.5x from 4x.

• Net interest expense fell 11% to $68.3 million; overall head office costs down 6%.

• Gross debt $1.47 billion, net debt $1.32 billion; consolidated gearing ratio improved to 0.67x from 0.76x.

• Recurring EPS rose 10% to 17.39 US cents.

Outlook and guidance

• 2026 is expected to be better than 2025, though geopolitical risks, especially in the Middle East, introduce uncertainty.

• Indofood's outlook is positive with minimal raw material cost pressure anticipated; 2026 capex at IDR9.5 trillion.

• PLDT projects mid-single-digit growth in service revenues and EBITDA for 2026, with capex intensity to decline.

• Maynilad's water tariff adjustment for 2026 expected at 4%, lower than the prior year's 10%.

• MPIC focuses on toll roads and water, with ongoing expansion and new regulatory parameters for Meralco.