MacroAsia Corporation, the aviation support and services company controlled by tycoon Lucio Tan, reported a 93 percent jump in net income in the second quarter this year, but lower income from associates, particularly Lufthansa Technik Philippines Inc. (LTP) failed to shore up overall first semester performance.
In its disclosure to the Philippine Stock Exchange, MacroAsia reported that for the second quarter of 2026, consolidated net income increased by approximately 93 percent to PHP359.9 million from PH186.6 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.
For the first six months this year, MacroAsia’s unaudited consolidated revenue reached PHP5.26 billion, up 9 percent from PHP4.81 billion in the comparable period in 2025, supported by continued growth in food services, ground handling and aviation support, and water operations.
However, margins of the Group’s consolidated operating businesses continued to reflect higher manpower, airport-related and other operating costs.
This resulted in lower consolidated net income for the first half amounted to PHP546.5 million, compared with PHP777.1 million in the same period last year. Net income attributable to equity holders amounted to PHP449.6 million, 34.7 percent lower compared with PHP679.7 million in 1H 2025.
According to MacroAsia, the first-half performance 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 LTP.
LTP remained the largest associate contributor, generating MacroAsia’s equity share of PHP411.2 million, compared with PHP537.8 million in 1H 2025. The decline principally reflected higher lease costs and expenses associated with the discontinuance of LTP’s line-maintenance operations.
Outlook
As of June 30, 2026, total assets stood at PHP18.15 billion, 10 percent higher than the PHP16.57 billion recorded at year-end 2025, reflecting continued investment in associates, property and equipment, working capital and ongoing expansion projects.
Management Statement MacroAsia Corporation President and COO, Eduardo Luis T. Luy said, “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.”
“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, our priorities are to improve margins through cost recovery and operating efficiencies, strengthen cash conversion and maintain disciplined execution of our growth investments.”
For the balance of 2026, MacroAsia management said they will focus on improving operating margins through customer rate adjustments and recovery of higher airport-related costs, productivity improvements, supply-chain initiatives and tighter management of manpower and other operating expenses.
Management will likewise prioritize cash generation and liquidity, with increased emphasis on collections, working-capital discipline and the prudent phasing and financing of capital expenditures. The Group will continue to execute its diversification and growth initiatives across food services, aviation support, MRO, water infrastructure and shared services.
Major projects will continue to be evaluated and funded with consideration for their expected operating cash flows, project timelines and the Group’s overall leverage and liquidity position.
