Ayala Corp. is pulling back its ambitious 2026 capital expenditure plan, reducing it to approximately P180 billion from an earlier target of P230 billion, as the conglomerate adopts a more cautious stance amid persistent global uncertainties.
"I suspect the number will probably look more like last year's number, more or less. But that shows you, last year's number, P180 billion, that's still a big number," said Ayala president and CEO Cezar Consing.
The decision underscores a shift toward financial resilience and tighter capital discipline, with the group emphasizing cash flow generation, earnings stability, and balance sheet strength.
"We are placing greater emphasis on cash flow, earnings and balance sheet strength, alongside more disciplined capital allocation," Consing added.
Investment plans are undergoing rigorous review to ensure funds are directed toward opportunities with clear and sustainable returns, reflecting a more selective spending approach.
Despite the cuts, Consing expressed confidence in the resilience of Ayala's portfolio.
"All our businesses will be resilient, all of them, with no exception. We might have one or two businesses not being able to make the same profits or might register losses, but they will be resilient. Most probably in this environment, the business that has to make adjustments just because of higher interest rates, is probably a portion of our real estate business," he said.
Chief financial officer Juan Carlos Syquia said the reduced capex aligns with the group's strategy to remain agile amid headwinds ranging from geopolitical tensions to inflation.
Ayala is sharpening execution by improving operational efficiency and asset productivity while reinforcing core and emerging units. The group is taking a measured approach to growth, working with strategic partners, managing costs, and maintaining flexibility to address near-term challenges while staying positioned for long-term opportunities.
"If we are agile and disciplined, and notwithstanding the current challenges, 2026 may yet surprise us on the upside," Consing said.