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MacroAsia Corp. reported a consolidated net income of P669.6 million in the first nine months of 2026, 42% lower than P1.161 billion in the same period in 2025
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The drop was due to higher costs and restructuring-related expenses at Lufthansa Technik Philippines, Inc.
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Food services, ground handling and aviation support, and water operations recorded revenue growth, resulting to a 4.7% increase in consolidated net revenue to P7.76 billion
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MacroAsia said it continues to advance projects intended to diversify its earnings base and expand capacity
MacroAsia Corp. (MAC) reported a consolidated net income of P669.6 million in the first nine months of 2026, 42% lower than the P1.161 billion posted in the same period in 2025 due to higher costs and restructuring-related expenses at Lufthansa Technik Philippines, Inc. (LTP).
Consolidated net revenue grew 4.7% to P7.76 billion for January-September 2026 from P7.41 billion in the comparable period of 2025.
The food services, ground handling and aviation support, and water operations recorded revenue growth, MacroAsia said in a statement.
Revenue from the food services business increased 9% to P3.87 billion and represented approximately 50% of consolidated net revenues.
Meal volume rose 19% to 23.33 million from 19.56 million in the prior-year period, led by institutional and other non-airline customers. Non-airline meal sales represented 28% of food group revenues.
Revenue from ground-handling and aviation services likewise rose 5% to P3.28 billion, or approximately 42% of consolidated net revenues, notwithstanding a 5% decline in handled flights to 138,959. Partial customer rate adjustments and non-core service billings helped mitigate lower volumes associated with route disruptions and airline schedule rationalization.
The water operations segment also posted a 6% growth in revenue to P569.7 million. Billed water volume rose 13% to approximately 17.24 million cubic meters, supported by customer connection growth and higher demand across operating service areas.
Higher input costs, wages, lease
Earnings for the period, however, reflected elevated direct and operating costs as well as lower contributions from associates, including LTP.
Net income attributable to equity holders of the parent company likewise declined 45.2% to P560.4 million from P1.02 billion.
Gross margin narrowed to 18% from 21%, as direct costs grew faster than revenue. Cost pressures included raw materials and other operating inputs, the full-period effect of prior-year wage adjustments, and higher airport-related lease and facility charges.
The group’s share in net earnings of associates also declined 29.8%, principally reflecting lower contributions from LTP and Japan Airport Service Co., Ltd.
At LTP, the impact included higher recurring lease costs under its revised arrangements and restructuring costs associated with the discontinuance of line maintenance operations. The latter are transition-related in nature, whereas the higher lease expense remains an ongoing cost that requires operational and commercial mitigation, MacroAsia noted.
“MacroAsia’s underlying businesses remain resilient, as reflected in our continued revenue growth across food services, ground handling, and water operations,” MacroAsia president and chief operating officer Eduardo Luis Luy said.
READ: MacroAsia net income jumps 17% to P1.61B in 2025
Luy said the decline in third-quarter earnings was partly attributable to transient input costs associated with global inflationary factors as well as transitory restructuring costs at LTP as they adjust to higher lease rates within the MacroAsia Special Economic Zone at the Ninoy Aquino International Airport.
Luy added: “Our aviation-related business units are implementing adjustments toward a more efficient and sustainable operating structure. While cost pressures remain, we are confident that our diversified businesses, ongoing efficiency measures, and strategic investments will position MacroAsia for progressive margin recovery and stronger long-term earnings. Our priority remains clear: protect profitability, maintain financial discipline, and create sustainable value for our shareholders.”
Q3 performance
For the third quarter of 2026 alone, consolidated net revenues were at P2.49 billion, down 3.9% year-on-year. Consolidated net income contracted 68% to P123.1 million, reflecting lower gross profit and a reduced share in associate earnings, including LTP’s restructuring as it adjusts to higher lease rates.
MacroAsia said it considers the restructuring-related portion transitory, as these costs are not expected to recur at the same level. However, not all third quarter earnings pressures were one-off: higher lease charges and broader cost inflation are continuing exposures, and the pace of normalization will depend on cost mitigation, pricing recovery and operating volumes.
MacroAsia said it continues to advance projects intended to diversify its earnings base and expand capacity. In Cebu, the 20-million-liter-per-day Punta Engaño seawater desalination plant is undergoing installation of major components, with commercial operations targeted by end-2026. In Iloilo, construction is underway on the approximately P2-billion Pototan surface water plant and transmission line, designed for 50 million liters per day.
In food services, the approximately P1.2-billion, 11,000 square meters (sqm) expansion of the MSFI commissary in Muntinlupa is targeted for completion in the first quarter of 2027 and is expected to raise production capacity to 90,000 meals per day.
LTP in Clark
Separately, associate LTP broke ground in August 2026 on its planned 157,000 sqm Clark base maintenance complex, with initial operations targeted for 2028.
MacroAsia said its management expects the group’s broader revenue base to support progressive earnings recovery, although near-term margins may remain under pressure from airport lease costs, wages and other operating inputs.
At LTP, the exit from line-maintenance operations and related restructuring are intended to establish a more sustainable operating model under its revised lease arrangements, while its widebody base-maintenance business and planned Clark expansion support longer-term positioning.
Across its consolidated businesses, MacroAsia is pursuing selective customer rate adjustments, productivity initiatives, centralized procurement and shared services to restore margins, without assuming an immediate reversal of cost inflation.
Growth in institutional catering and water volumes, together with new or expanded facilities in Cebu, Iloilo and Muntinlupa, offers additional medium-term revenue capacity, subject to project completion and market demand. Delays in the Cebu, Iloilo or Muntinlupa projects could affect the timing of this revenue contribution, MacroAsia noted.
