Ayala Corp., the country’s oldest conglomerate, is prepared to slash its planned capital expenditure for 2026 by as much as 28 percent as escalating tensions in the Middle East cloud the global economic outlook.

Cezar P. Consing, Ayala president and chief executive officer, said the Zobel family-led holding company may reduce its spending target to approximately ₱180 billion, retreating from an initial ₱230 billion “high water mark: set at the start of the year.

The revised figure would bring spending in line with 2025 levels, signaling a tactical pivot from aggressive expansion toward balance-sheet preservation.

“When we were entering this year, we were really thinking of ramping up,” Consing told reporters following the firm’s annual stockholders’ meeting on Friday, April 24. 
“I suspect the number will probably look more like last year’s number. That is still a big number, but what has happened in the world since has changed the color of our expectations,” he explained.

The recalibration reflects the shift in corporate strategy across Philippine boardroom suites as the conflict between Unitated States (US)-Israel and Iran threatens to destabilize energy markets.

Jaime Augusto Zobel de Ayala, Ayala chairman, noted that the “green shoots” observed in January have been overshadowed by the prospect of higher oil prices, energy shortages, and prolonged periods of elevated interest rates.

For the Philippines, Zobel warned that the volatility could even dampen remittances from overseas Filipino workers, a traditional bedrock of the domestic economy.

Consing said that the Ayala group is now prioritizing “resiliency over growth,” focusing on cash flow and earnings as market valuations remain depressed. This discipline is already filtering down to Ayala’s major subsidiaries.

Ayala Land Inc. is focusing on “sweating its assets” through the redevelopment of flagship malls to bolster leasing income, while Globe Telecom Inc. has tempered its own spending to ensure positive free cash flow.

In the renewable energy sector, ACEN Corp. has dialed back its 2030 capacity target to 15 gigawatts from an original 20 gigawatts. The move is designed to improve net cash generation and reduce the company’s reliance on equity capital and fresh borrowings.

Furthermore, new equity partners in AC Health and AC Logistics are expected to assume a larger share of the investment burden, thereby reducing the parent company's direct capital contributions.

Despite the cautious stance, the conglomerate’s leadership maintains that the current geopolitical headwinds are unlikely to match the severity of the Covid-19 pandemic.

Consing noted that the group’s core business units are in a stronger financial position today than they were four years ago.

“All our businesses will be resilient, with no exception,” Consing said, adding that the group remains agile enough to pivot back to growth should the environment stabilize. “If we are disciplined, 2026 may yet surprise us on the upside.”