Manila Bulletin
Business
The Stock Market
Consunji braces for uneven year as war risks pressure DMCI units
Business
The Stock Market
Consunji braces for uneven year as war risks pressure DMCI units
Consunji braces for uneven year as war risks pressure DMCI units
Published May 12, 2026 01:09 pm
Diversified engineering conglomerate DMCI Holdings Inc. expects mixed performance across its subsidiaries this year as geopolitical tensions in the Middle East and regulatory uncertainty surrounding its coal mining assets weigh on the group’s outlook.
Speaking at the company’s annual stockholders’ meeting, Isidro A. Consunji, DMCI Holdings chairman and president, said the group is bracing for volatility triggered by the conflict in Iran.
“Looking ahead, conditions will likely remain uneven, particularly with the recent developments in the Middle East affecting our fuel costs and the broader economy,” Consunji said.
The regional instability has begun to pressure fuel costs and broader economic sentiment, potentially tempering the momentum of the company's diversified portfolio.
Conditions across the group will likely remain uneven, according to Consunji. While he noted that the company maintains a solid financial position backed by healthy cash flows and zero debt, he warned that the construction and real estate units face near-term cost pressures and the lingering threat of elevated interest rates.
Conversely, Consunji identified off-grid energy and nickel mining as the group's primary growth engines for the current fiscal year.
A significant point of focus for the conglomerate remains the upcoming auction for the coal operating contract in Semirara. The expiration and subsequent bidding process for the site, which is central to the group's power and mining earnings, remains a critical variable.
Consunji expressed confidence in the firm’s competitive positioning, asserting that DMCI is well-prepared to secure the rights to continue operations at the site.
In the off-grid power sector, DMCI Power Corp. is pivoting toward a higher renewable energy mix to insulate itself from the volatility of imported fuel prices.
Antonino E. Gatdula Jr., DMCI Power president, said the utility is integrating hybrid renewable systems into its portfolio, following the commissioning of a 12.5-megawatt wind project in Semirara.
“We expect renewables to play a larger role in our off-grid portfolio, particularly in the underserved and unserved communities across the country. In off-grid areas, adequacy, reliability, and affordability remain the priority,” he noted.
The company plans to bring approximately 44 megawatts of additional capacity online within the year, including an expansion into Occidental Mindoro via a 17-megawatt bunker-fired plant slated for 2027. DMCI Power recently commissioned an 8.8-megawatt plant in Masbate this March to address electrification gaps in underserved regions.
The group’s real estate arm, DMCI Homes, is shifting its strategy toward inventory optimization as buyer behavior evolves.
Alfredo R. Austria, DMCI Homes [resident, noted a distinct transition from investor-led purchases to end-user demand.
The company is prioritizing the sale of ready-for-occupancy units through rent-to-own programs and flexible financing to capture buyers who can no longer delay housing requirements deferred during the pandemic.
Following a recent launch in Baguio, the DMCI Homes is preparing for the Moriyama Nature Park project and several transit-oriented developments, contingent on market stability.
The conglomerate’s cement division, Concreat Holdings Philippines, is also eyeing a turnaround.
Herbert M. Consunji, Concreat president and chief executive officer, said the unit is targeting a cash break-even point this year by increasing plant utilization and improving cost efficiencies.
The cement business continues to face a highly competitive domestic market, though management expects 2026 results to benefit from operational overhauls implemented last year.