ICTSI profit rises 20% as new terminals lift volumes

International Container Terminal Services Inc. (ICTSI) reported a 20% increase in net income attributable to equity holders to USD 898.89 million in the first nine months of 2026, as new terminals helped lift cargo volumes and higher operating income boosted earnings.

For importers, exporters, and consumers, the stakes extend to the capacity and cost of moving goods, with the company expanding ports in the Philippines and overseas while facing higher fuel bills and operating expenses.

The results also show how much new operations contributed to growth, with overall container volumes rising 13% but increasing just 0.1% when new and discontinued operations were excluded.

ICTSI’s unaudited consolidated financial results showed that revenue from port operations reached USD 2.90 billion, up 24% from USD 2.34 billion in the same period in 2025.

Earnings before interest, taxes, depreciation, and amortization, or EBITDA, increased 21% to USD 1.87 billion from USD 1.54 billion.

Net income attributable to equity holders rose from USD 751.56 million a year earlier, primarily because of higher operating income.

Excluding a nonrecurring charge from the sale of Yantai International Container Terminal (YICT) in Shandong province, China, net income attributable to equity holders would have increased 22% to USD 913.59 million.

Diluted earnings per share climbed 21% to USD 0.442 from USD 0.365.

“ICTSI delivered a strong performance in the first nine months of 2026, with double-digit growth in volumes, revenues and earnings,” said Enrique K. Razon Jr., ICTSI chairman and president.

“Recently added terminals contributed to growth across the Group, while our existing operations continued to deliver solid revenue and earnings growth.

“Our diversified portfolio continues to provide resilience in a more challenging operating environment.”

Razon said the company would continue integrating its new operations and investing across its network.

“We remain focused on integrating our new terminals and investing to strengthen capacity and service levels across our network, and we are confident in the long-term contribution these operations will make.

“Disciplined capital allocation and operational execution remain central to delivering sustainable value for our shareholders.

“I would like to thank our employees around the world for their continued commitment.”

For the third quarter ended Sept. 30, 2026, revenue from port operations increased 19% to USD 984.05 million from USD 827.74 million in the same period in 2025.

Quarterly EBITDA rose 15% to USD 635.74 million from USD 552.99 million, while net income attributable to equity holders increased 15% to USD 308.90 million from USD 267.72 million.

Diluted earnings per share for the quarter reached USD 0.153, compared with USD 0.130 a year earlier.

ICTSI handled 12,114,429 twenty-foot equivalent units, or approximately 12.11 million TEUs, in the first nine months of 2026, up 13% from 10,687,128 TEUs a year earlier.

A TEU is a standard measure of container cargo based on the capacity of a 20-foot shipping container.

The company attributed much of the volume increase to Durban Gateway Terminal (DGT), which took over operations of DCT Pier 2 at the Port of Durban in South Africa in January 2026, and Batu Ampar Container Terminal (BACT), which assumed port operations in Batam, Indonesia, in September 2025.

Improved trade activity in Asia and the Americas also supported volumes, although declines at certain terminals in Europe, the Middle East, and Africa partly offset those gains.

The company cited lower volumes at Basra Gateway Terminal (BGT) in Iraq because of geopolitical conflict in the Middle East, along with the removal of YICT from its consolidated results.

Excluding DGT, BACT, and discontinued operations at YICT, consolidated volumes would have increased by only 0.1%.

Third-quarter throughput rose 8% to 3,998,671 TEUs from 3,698,053 TEUs in 2025.

ICTSI said its nine-month revenue growth reflected higher volumes, a favorable container mix, increased revenue from ancillary services, tariff adjustments at certain terminals, and contributions from DGT and BACT.

The appreciation of the Mexican peso, Australian dollar, and Brazilian real also increased the U.S. dollar value of revenues earned in those currencies.

These gains were partly offset by lower revenue resulting from reduced volumes at BGT, the removal of YICT from consolidated results, and the depreciation of the Philippine peso, which reduced the U.S. dollar value of peso-denominated revenues.

Excluding new and discontinued operations, consolidated gross revenue would have increased 15%.

Consolidated cash operating expenses rose 37% to USD 801.40 million in the first nine months from USD 585.96 million a year earlier.

The company attributed the increase partly to costs from DGT and higher expenses accompanying volume and revenue growth, including the expansion of revenue-generating ancillary services.

Fuel price increases linked to the geopolitical crisis in the Middle East, government-mandated and contracted salary adjustments, and unfavorable foreign exchange movements affecting expenses in Mexican pesos, Australian dollars, and Brazilian reais also raised costs.

Cost optimization measures and the favorable foreign exchange effect on Philippine peso-denominated expenses partly offset those increases.

Excluding new and discontinued operations, cash operating expenses would have risen 16%.

Although EBITDA increased, the group’s EBITDA margin narrowed to 64% from 66%, mainly because of the integration of newly acquired operations.

Excluding new and discontinued operations, EBITDA would have grown 15%, while the EBITDA margin would have improved slightly to above 66%, indicating that existing operations maintained their profitability.

Capital expenditures, excluding capitalized borrowing costs, reached USD 507.43 million in the first nine months against an estimated full-year capital expenditure program of USD 740 million.

The 2026 program includes completing the phase 3B expansion of Contecon Manzanillo S.A. (CMSA) in Mexico.

In the Philippines, the spending program covers ongoing expansions at Manila International Container Terminal (MICT), Manila North Harbour Port Inc. (MNHPI), Mindanao Container Terminal (MCT), and South Luzon Container Terminal (SLCT).

It also supports ongoing expansions at ICTSI Rio in Brazil and Matadi Gateway Terminal (MGT) in the Democratic Republic of Congo, along with equipment acquisitions, upgrades, and maintenance capital expenditures.

Four new expansion projects are also included: Operadora Portuaria Centroamericana S.A. de C.V. (OPC) in Honduras, Victoria International Container Terminal Ltd. (VICT) in Australia, Contecon Guayaquil S.A. (CGSA) in Ecuador, and phase 4 of CMSA in Mexico.

ICTSI develops, manages, and operates common-user origin and destination container terminals serving the global container shipping industry, with operations on six continents and a continuing search for terminal opportunities worldwide.