Eye on Earnings: Port operator’s record year

While port operator International Container Terminal Services Inc. (ICTSI) closed 2025 with record results, geopolitical and economic risks temper the cheer.

The company’s recurring net income rose 26% year-on-year to USD 1 billion in 2025. Earnings before interest, taxes, depreciation, and amortization (EBITDA)—the company’s operating cash generation proxy—moved past the USD 600-million mark, with the improved operating leverage lifting the full-year EBITDA margin by 1 percentage point to 66%.

Volume growth remained the key driver, with throughput growing 11% YoY to 14.5 million twenty-foot equivalent units. Excluding newly acquired ports, growth would still be a solid 10%, underscoring ICTSI’s ability to deliver organic volume gains.

Tariff-led rerouting

The company’s management said global tariffs implemented US President Donald Trump’s administration benefited ICTSI’s diversified emerging markets footprint through trade rerouting.

Revenue-per-TEU rose by USD 14 YoY. That is thanks to port fee hikes, a better container mix, and higher ancillary services, which offset lower revenue from the newly acquired Indonesian port and unfavorable foreign exchange. Cost-per-TEU was stable, highlighting disciplined expense management.

Strategic momentum remains intact, as ICTSI increased capital expenditures by 14% YoY to USD 740 million to fund new and ongoing expansions across Asia, Latin America, and Australia.

The company is already in talks for a potential acquisition in Brazil, comparable in size to its Manila terminal, the largest in its portfolio.

Near-term risks

While fundamentals are robust, a shift to neutral is prudent given near-term risks. A prolonged oil shock could raise the probability of a global recession, which could drag volume growth.

As the Philippine equities market’s year-to-date top foreign-bought stock with the largest weight in the local benchmark index, ICTSI is vulnerable to de-risking and broader risk-off selling.

(Disclaimer: This is general investment information only and does not constitute an offer or guarantee, with all investment decisions made at your own risk. The bank takes no responsibility for any potential losses.)

CHARLES RANDY LUMHOD is an Equity Research Analyst of Metrobank’s Trust Banking Group. His coverage includes shipping, properties, REITS, and consumers, as well as select offshore markets. He holds a Bachelor’s degree, cum laude, in Business Administration major in Financial Management from the University of Santo Tomas. He is also a Certified Treasury Professional and Certified UITF Salesperson, and is currently pursuing other industry certifications. Outside work, he stays active by running and going to the gym.