ICTSI’s global reach makes it a defensive play

Port operator International Container Terminal Services Inc. (ICTSI) stands out among publicly held Philippine companies.

Its global footprint amid trade rerouting and handling of essential cargo provide resilience while the Philippine equity market struggles to find its footing.

The port operator extended its record-breaking streak this third quarter, with recurring income up 26% year-on-year (YoY) and EBITDA higher by 22%.

Total volume handled also rose 12% YoY to 3.7 twenty-foot equivalent units (TEUs). A TEU is the standard measure for a ship or port’s cargo capacity and is based on a standard shipping container.

In terms of region, the Americas continued to drive momentum on the back of the continued recovery in its port in Ecuador and strong performance in Mexico. Asian ports posted broad-based growth, further supported by contributions from the newly acquired Batam Terminal in Indonesia.

Meanwhile, volumes in Europe, Middle East, and Africa (EMEA) dipped, as geopolitical disruptions weighed on Iraq and Croatia and Poland faced competitive pressure. Still, revenue for this region grew, reflecting resilient pricing power.

Strategic momentum adds conviction. ICTSI’s win regarding Durban Container Terminal Pier 2, South Africa’s largest terminal, unlocks long-term value through its operational improvement playbook. Although, its contribution in the near-term will be modest. Management is also actively pursuing large-scale Latin America acquisitions.

Meanwhile, yield per TEU grew 7% YoY to USD 219 in the third quarter due to port fee increases in the Philippines and elevated storage revenue in Mexico due to congestion-driven disruptions.

While the company’s management signaled normalization toward USD 215 per TEU in the coming quarters, it still represents healthy underlying growth.

On the cost front, operating expense per TEU held steady at USD 55, with management emphasizing cost optimization as a key priority for 2026. Given all the factors, we maintain an overweight stance on the global port operator.

GERMAN DE LA PAZ III, CFA serves as an Equity Research Lead at Metrobank’s Trust Banking Group. His coverage includes banks, gaming, telcos, conglomerates, and utilities, as well as select offshore markets. German holds a Bachelor’s degree in Humanities and a master’s degree in Industrial Economics from the University of Asia and the Pacific. Recently, he obtained his CFA charter and is currently pursuing additional industry certifications. In his free time, German enjoys playing sports, particularly basketball, and has a penchant for reading fiction books.     

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 professionally Certified as a Treasury Professional, Licensed Fixed Income Market Salesman, and Certified UITF Salesperson. Outside work, he stays active by running and going to the gym.