With cautious optimism that the earnings of firms listed on the Philippine Stock Exchange (PSE) will recover next year, Abacus Securities Corp. provides a preview of its outlook for 2026, focusing on recovery stories and dividend plays.

“For now, we reiterate our basic conclusion that 2026 earnings growth should be significantly better compared to this year’s, but it won’t be a game changer,” said Abacus Securities Vice President and Head of Research Nicky Franco.

He noted that, “The focus, therefore, will be on individual companies that could stand out next year.”

Among his top recommendations is Ayala-led ACEN Corp., which is seen to have a bounce-back year with earnings growth of 40 to 50 percent.

While the stock has been sold down by fund managers, Franco said, “This is an advantage for those willing to buy early. Once the financials start to turn around, possibly as soon as this quarter, the stock will get its mojo back.”

Of the expected ₱5.9 billion in additional revenues from self-generated energy in the Philippines next year, Abacus estimates that 60 to 70 percent, or ₱3.5 billion to ₱4.1 billion, will flow to earnings attributable to common shareholders.

“This alone will bring up our estimated range for 2026 net income to between ₱10 billion and ₱10.5 billion. On top of this, we expect incremental contributions from international assets that have recently been or are about to be energized,” said Franco.

Meanwhile, Abacus’ other recovery candidates are Jollibee Foods Corp. (JFC), with forecast earnings growth of 16 percent; and Converge ICT Solutions Inc., whose profits are expected to rise 15 percent.

Among those expected to post strong growth of low to mid-teens despite high bases from this year are Manila Electric Co. (Meralco), GT Capital Holdings Inc., LT Group (LTG), and Century Pacific Food Inc. (CNPF).

“Looking at dividend plays, LTG will probably catch a bid whenever it dips because its gross yield is one of the highest among the large caps at over eight percent,” said Franco.

He added that, “Over time, institutions’ exposure should increase, especially if we are correct that management will hike payouts over the next 12 months. Possibly the only reason that funds own relatively little of the company is the lack of liquidity.”