ICTSI 1Q2025 Net Income grew 14% to US$239.54M

International Container Terminal Services, Inc. (ICTSI) today Monday, May 5, 2025 reported unaudited consolidated financial results for the quarter ended March 31, 2025 posting revenue from port operations of US$745.42 million, an increase of 17 percent from the US$637.65 million reported for the same period in 2024.

Its Earnings Before Interest, Taxes, Depreciation and Amortization (EBITDA) of US$489.59 million, 18 percent higher than the US$413.76 million generated in the same period last year; and net income attributable to equity holders of US$239.54 million, 14 percent more than the US$209.88 million earned in the same period last year primarily due to higher operating income, partially tapered by higher depreciation and amortization charges.

Excluding the income from the settlement of legal claims at ICTSI Oregon and the impact of the deconsolidation of PT PBM Olah Jasa Andal (OJA), Jakarta, Indonesia in 1Q 2024, net income attributable to equity holders would have grown 25 percent.  Diluted earnings per share increased 17 percent to US$0.116 from US$0.099 in the first quarter of 2024.

Speaking on the revenue, Enrique K. Razon Jr., ICTSI Chairman and President said:  “I am pleased to report a strong start to the financial year with ICTSI delivering increase in revenues of 17 percent to US$745.42 million and setting another record high net income of US$239.54 million, up 14 percent.  Our international portfolio performed very well with consolidated volume up 12 percent, benefiting from our geographic diversification across 19 countries, which has enabled us to generate continued growth.

“Our balance sheet is robust and cash generation has been strong, reinforcing our ability to invest and capitalize on growth opportunities.  Looking ahead, we are mindful of the uncertainty over global trading arrangements and potential macroeconomic headwinds but for ICTSI, the direct impact of announced tariffs is small owing to limited exposure to US trade.  We look to the future with confidence, and with our highly disciplined business model and diversified operations, ICTSI remains resilient and in a strong position to continue to deliver financially and operationally for our stakeholders.”

ICTSI handled consolidated volume of 3,471,913 twenty-foot equivalent units (TEUs) in the first quarter of 2025, 12 percent higher than the 3,090,118 TEUs handled in the same period in 2024.  The growth was mainly due to the impact of new services and improvement in trade activities at certain terminals, volume recovery at Contecon Guayaquil S.A. (CGSA) and the contribution of Visayas Container Terminal (VCT), the new terminal in Iloilo, Philippines; partially offset by the deconsolidation of OJA, Jakarta, Indonesia.  Excluding the impact of new operations in the Philippines and discontinued operations in Indonesia, the Group’s consolidated volume would still have been up 12 percent.

Gross revenues from port operations for the quarter ended March 31, 2025 grew 17 percent to US$745.42 million from US$637.65 million reported in the same period in 2024 mainly due to volume growth with a favorable container mix, tariff adjustments, higher revenues from ancillary services, volume recovery at CGSA, and growth in general cargo activities in certain terminals.  This was partially reduced by unfavorable foreign exchange translation impact mainly from the depreciation of Mexican Peso (MXN)-, Brazilian Real (BRL)-, Philippine Peso (PHP)-, and Australian Dollars (AUD)- based revenues.  Excluding the impact of new operations in the Philippines and discontinued operations in Indonesia, the Group’s consolidated gross revenues would have increased by 16 percent.

Consolidated cash operating expenses in the first quarter of 2025 were nine percent higher at US$187.66 million compared to US$172.48 million in the same period in 2024.  The increase in cash operating expenses was mainly due to higher volumes, including increases related to the growth in revenue generating ancillary services and general cargo activities at certain terminals, and government-mandated and contracted salary rate adjustments.  This was tapered by continuous cost optimization measures and favorable foreign exchange effects mainly of BRL-, MXN-, and PHP- based expenses.

Consolidated EBITDA increased 18 percent to US$489.59 million for the quarter ended March 31, 2025, from US$413.76 million from the same period in 2024.  Consequently, the EBITDA margin improved to 66 percent from 65 percent.

Consolidated financing charges and other expenses in the first quarter of 2025 decreased five percent to US$44.02 million from US$46.35 million for the same period in 2024 mainly due to the deconsolidation of OJA, Jakarta, Indonesia, partially offset by higher interest on new loans.

Capital expenditures, excluding capitalized borrowing costs, amounted to US$133.22 million for the quarter ended March 31, 2025. These were mainly for ongoing expansions at Contecon Manzanillo S.A. (CMSA) in Mexico, certain Philippine terminals, and ICTSI DR Congo S.A. (IDRC) in Democratic Republic of Congo; and equipment acquisitions and upgrades at certain terminals.  The Group’s estimated capital expenditures for 2025 is approximately US$580 million which will be utilized mainly for the continued development of the new project in Batangas, Philippines, phase 3B expansion in CMSA, Manzanillo, Mexico, expansion of MICT, Manila, Philippines, and IDRC, Matadi, DRC; new expansion projects at ICTSI Rio, Brazil and Mindanao Container Terminal, Cagayan de Oro, Philippines; various other equipment acquisitions and upgrades; and maintenance capex.

ICTSI is a leading global developer, manager and operator of container terminals in the 50 thousand to 3.5 million TEU/year range.  ICTSI operates in six continents and continues to pursue container terminal opportunities around the world.