Jaime Augusto Zobel de Ayala, chairman of the diversified Ayala Corp., said the group is prioritizing resilience and disciplined capital deployment as global volatility and softening demand reshape operating conditions.
Addressing shareholders, Zobel said Ayala has hedged foreign exchange exposures to protect costs and liabilities from currency swings, reflecting a more defensive stance. “We have taken steps to manage our foreign exchange risks,” he said, underscoring the need to shield the balance sheet amid uncertainty.
Even so, Zobel pointed to emerging opportunities. “Elevated oil prices are accelerating the shift to renewable energy,” he said, adding that higher fuel costs are also “supporting stronger demand for electric vehicles.” These dynamics, he noted, reinforce the group’s long-term positioning in energy transition themes.
He added that capital allocation is being sharpened, with greater emphasis on cash flow, earnings quality, and balance sheet strength. “We are focusing on disciplined growth,” Zobel said, highlighting a more selective approach to expansion in a volatile environment.
Cezar Consing, chief executive officer of the group, said the pivot builds on a year of strong earnings despite external challenges. “We delivered record results in 2025,” Consing said, with Ayala posting consolidated net income of P61.4 billion and core earnings of P48.3 billion, up 46 percent and 7 percent, respectively.
Core equity earnings rose 6 percent, supported by strong contributions from banking and property units and a P2.5 billion positive swing from non-core businesses. “This reflects the resilience of our portfolio,” he said.
Consing added that Ayala is shifting emphasis from expansion to efficiency. “We are tightening capital allocation discipline and pushing our business units to improve cash generation, dividends, and capital efficiency,” he said.
The shift is already visible across subsidiaries. Globe Telecom has moderated capital spending, enabling positive free cash flow, while ACEN reduced its 2030 capacity target to 15 gigawatts from 20 gigawatts, improving cash generation and easing funding needs.
Consing also noted that incoming equity partners in healthcare and logistics will reduce capital exposure. “Less can be more in a year of external shocks,” he said, signaling a more cash-driven growth strategy going forward.
