International Container Terminal Services Inc. (ICTSI), the Philippine global port operator chaired by Enrique Razon Jr., said net income attributable to equity holders rose 20% to $898.89 million in the first nine months of 2026, from $751.56 million a year earlier, as newly acquired terminals in South Africa and Indonesia added to cargo volume and revenue.

The result matters for investors in Asia because ICTSI, a Philippine company, earns largely in foreign currencies, The Philippine Star noted, which has insulated it from a weaker peso at a time when Philippine inflation and slowing growth are weighing on domestically focused stocks.

ICTSI revenue and volume growth

Revenue from port operations rose 24% to $2.90 billion in the nine months to Sept. 30, from $2.34 billion, according to the company's results statement. Stripping out new and discontinued operations, revenue grew 15%. ICTSI attributed the gain to higher volumes, a more favorable container mix, ancillary services, tariff increases and contributions from new terminals. Firmer Mexican, Australian and Brazilian currencies helped, while the Philippine peso had an unfavorable effect.

Consolidated throughput rose 13% to 12,114,429 twenty-foot equivalent units (TEUs). Most of that gain came from deals rather than existing ports. Excluding Durban Gateway Terminal, Batu Ampar Container Terminal and the Yantai terminal in China, volume rose only 0.1%, the company said.

The new assets are recent. ICTSI took over Pier 2 of the Durban Container Terminal in South Africa in January 2026 and began running Batu Ampar Container Terminal in Batam, Indonesia, in September 2025. It deconsolidated Yantai International Container Terminal in China's Shandong province after selling it. Volume at Basra Gateway Terminal in Iraq fell because of conflict in the Middle East.

Recurring net income, which excludes a one-off charge from the Yantai sale, rose 22% to $913.59 million. Diluted earnings per share increased 21% to $0.442.

In a statement, Razon, the chairman, said ICTSI's "diversified portfolio continues to provide resilience" in a tougher operating environment.

Third-quarter results and cost pressure

Growth slowed in the third quarter. Revenue from port operations rose 19% to $984.05 million from $827.74 million, and net income attributable to equity holders rose 15% to $308.90 million from $267.72 million. Third-quarter throughput increased 8% to 3,998,671 TEUs.

Costs are rising faster than revenue. Cash operating expenses for the nine months jumped 37% to $801.40 million, or 16% excluding new and discontinued operations. ICTSI cited the cost of running new terminals, volume-related spending, salary adjustments, unfavorable currency moves and higher fuel prices tied to the Middle East crisis. Ongoing cost optimization measures offset part of the increase.

That showed up in margins. Earnings before interest, taxes, depreciation and amortization (EBITDA) rose 21% to $1.87 billion, but the EBITDA margin narrowed to 64% from 66%. The company said the decline mainly reflected integrating the new operations, and that the margin would have been above 66% without those effects. Third-quarter EBITDA rose 15% to $635.74 million.

$740 million capex plan for 2026

ICTSI spent $507.43 million on capital projects in the first nine months, excluding capitalized borrowing costs. The Philippine Star put that at 69% of the $740 million the company budgeted for the full year.

The company said the budget covers completing phase 3B of the Contecon Manzanillo expansion in Mexico and ongoing expansions at four Philippine terminals, including Manila International Container Terminal, as well as ICTSI Rio in Brazil and Matadi Gateway Terminal in the Democratic Republic of Congo. It is also funding four new expansion projects: in Honduras, at Victoria International Container Terminal in Australia, at Contecon Guayaquil in Ecuador and a fourth phase in Manzanillo.

With about $233 million of the 2026 budget left to spend in the fourth quarter, the next test is whether the Durban and Batam terminals keep adding volume fast enough to offset fuel and integration costs when ICTSI reports full-year results.