SMC Tollways Corp., the infrastructure arm of San Miguel Corp., reduced its interest-bearing debt through the end of 2024 as rising vehicle traffic across its network of expressways boosted cash flow and fortified its balance sheet.

The company’s interest-bearing debt fell 6.1 percent to ₱52.3 billion last year, according to a report from Philippine Rating Services Corp. (PhilRating).

During the same period, total equity climbed 19.6 percent to ₱51.3 billion, a surge PhilRatings attributed to the consistent reinvestment of earnings into the business.

The combination of lower liabilities and higher retained earnings improved the company’s debt-to-equity ratio to 1.0 times at the end of 2024, down from 1.3 times a year earlier. Debt-to-capitalization was recorded at 50.4 percent.

The deleveraging trend continued into the current year. As of the end of September 2025, the debt-to-equity ratio reached 0.8 times, supported by further earnings retention and continued reduction in debt levels.

These financial metrics prompted PhilRatings to maintain its highest issue credit rating of PRS Aaa with a stable outlook for the company’s ₱35.0 billion in outstanding bonds.

The PRS Aaa designation indicates that the obligations are of the highest quality with minimal credit risk, reflecting an extremely strong capacity to meet financial commitments. A stable outlook suggests the rating will likely remain unchanged over the next 12 months.

Revenue for the toll operator rose 4.5 percent to ₱21.2 billion in 2024, fueled by growth in annual average daily traffic across all vehicle classes.

Efficient cost management allowed the company to outpace revenue growth in its bottom line, with net income rising 9.9 percent to ₱9.2 billion. This profitability translated into a 15.6 percent jump in cash from operating activities, which reached ₱18.9 billion.

By the end of 2024, SMC Tollways’ cash and cash equivalents had surged 57.6 percent to ₱17.3 billion, as internally generated funds proved more than sufficient to cover both investing and financing activities. Liquidity remained robust, with a current ratio of 2.5 times and an acid test ratio of 1.4 times.

For the first nine months of 2025, the company reported a 5.7 percent increase in revenue to ₱16.6 billion. However, net income growth for the period was more measured, rising 1.5 percent to ₱7.4 billion.

The slower pace of earnings growth was attributed to a surge in income tax expenses following the expiration of the tax holiday for Skyway Stage 3. Despite the higher tax hit, the company’s cash position climbed to ₱20.9 billion as of September 2025.

Current and acid test ratios further improved to 3.0 times and 2.0 times, respectively, underscoring what PhilRatings described as a conservative capital structure despite the capital-intensive nature of the tollway industry.