DMCI Holdings’ Profitability Falls 22% as Energy Prices Normalize, Cement Losses Bite

DMCI Holdings, Inc. (PSE: DMC) posted a 22 percent drop in consolidated net income to ₱11.8 billion for the nine months ended September 30, 2025, from ₱15.1 billion in the same period last year, as margin pressures and segment headwinds eroded profitability despite higher revenues.

The diversified conglomerate reported ₱87.6 billion in revenues, up 13 percent year-on-year, but operating expenses surged 55 percent, compressing margins. Earnings per share fell to ₱0.89 from ₱1.14.

Energy Price Normalization Hits Core Earnings

Semirara Mining and Power Corp. (SMPC), the group’s largest contributor, saw profits plunge 34 percent to ₱5.8 billion as global coal prices and spot electricity rates normalized from 2024 highs. Despite record shipment and generation volumes, weaker pricing dragged margins.

Cement Integration Losses Deepen

Newly consolidated Concreat Holdings incurred a ₱1.62 billion loss, weighed down by high financing costs and intense industry competition. Management said cost optimization and synergy capture are underway, but profitability remains under pressure.

Construction and Cost Inflation Add Strain

D.M. Consunji, Inc. posted a 60 percent decline in earnings to ₱187 million due to project delays and conservative revenue recognition. Operating expenses rose sharply on higher material costs, labor, and cement-related overhead, outpacing topline growth.

Offsetting Gains

Real estate arm DMCI Homes delivered ₱2.7 billion, up 11 percent, supported by stronger collections and rental income. DMCI Power and DMCI Mining also posted gains, with nickel mining swinging to a ₱726 million profit from a loss last year. Equity earnings from Maynilad Water Services climbed 23 percent, providing some cushion.

Margins Under Pressure

Gross margin narrowed to 31 percent from 40 percent, while net margin fell to 17 percent from 28 percent, underscoring the impact of energy cyclicality and cement integration costs.

Outlook: DMCI expects continued headwinds in the fourth quarter from normalized energy prices and cement restructuring costs, but sees resilience from real estate, off-grid power, and nickel mining. The group remains financially sound with ₱289 billion in assets and ₱153 billion in equity.

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