MacroAsia Corp., a member of the Lucio Tan (LT) group of companies, reported a 34.7-percent drop in attributable net income to ₱449.6 million in the first half of 2026 from ₱679.7 million in the same period last year.

MacroAsia said in a disclosure to the Philippine Stock Exchange (PSE) on Wednesday, Aug. 12, that first-half profitability reflected higher direct and operating costs associated with increased business activity, inflationary pressures, and higher airport-related costs, together with lower equity earnings from associates, principally Lufthansa Technik Philippines Inc. (LTP).

Consolidated net income for the first half declined to ₱546.5 million from ₱777.1 million in the same period last year.

MacroAsia reported unaudited consolidated revenue of ₱5.26 billion for the first half of 2026, up nine percent from ₱4.81 billion in the comparable period last year, supported by continued growth in food services, ground handling and aviation support, and water operations.

For the second quarter of 2026, consolidated net income surged by 93 percent to ₱359.9 million from ₱186.6 million in the first quarter. The quarter-on-quarter improvement was driven primarily by the recovery in share in net earnings of associates, particularly LTP.

Margins of the group’s consolidated operating businesses, however, continued to reflect higher manpower, airport-related, and other operating costs.

“MacroAsia continued to generate revenue growth across its key operating businesses during the first half of 2026, notwithstanding higher operating costs and the impact of lower associate earnings on first-half profitability,” said MacroAsia President and Chief Operating Officer (COO) Eduardo Luis T. Luy.

He noted, “The improvement in second-quarter earnings reflects the recovery in contributions from our associates, particularly LTP, while our operating businesses continued to benefit from higher volumes.”

For the balance of the year, Luy said, “our priorities are to improve margins through cost recovery and operating efficiencies, strengthen cash conversion and maintain disciplined execution of our growth investments.”

In the first half of 2026, direct costs increased 13 percent to ₱4.22 billion. As costs grew faster than revenues, consolidated gross profit declined two percent to ₱1.05 billion.

Operating expenses (opex) increased 13 percent to ₱852 million, reflecting higher business volumes and increased manpower, lease, and other operating requirements.

Share in net earnings of associates amounted to ₱456.1 million, 25 percent lower than the ₱611 million in the comparable period.

LTP remained the largest associate contributor, generating MacroAsia’s equity share of ₱411.2 million, compared with ₱537.8 million in the first half of 2025. The decline principally reflected higher lease costs and expenses associated with the discontinuance of LTP’s line-maintenance operations.

Food services remained the group’s largest revenue contributor, generating ₱2.63 billion, or 50 percent of consolidated revenues, representing a 12-percent year-on-year increase due to higher meal volumes and the continued expansion of institutional and non-airline food services.

Ground handling and aviation services generated ₱2.25 billion, accounting for approximately 43 percent of consolidated revenues, an increase of eight percent from the comparable period, as flight-handling volume increased by two percent despite cancellations affecting certain Middle East routes.

Water operations generated ₱369 million in revenues as billed water volume increased by 15 percent year-on-year, supported by continued expansion across the group’s water operations.

The group continues to diversify its revenue base beyond aviation through institutional food services, water infrastructure, and other adjacent businesses. - James A. Loyola