New overseas ports buoyed ICTSI Q1 profit

Newly activated terminals in South Africa and Indonesia powered International Container Terminal Services Inc. (ICTSI) to a strong first-quarter performance, with net income rising 21 percent to $314.69 million despite mounting geopolitical risks tied to the Middle East.

In a disclosure on Monday, the ports giant led by tycoon Enrique Razon Jr. said the volume of cargo it handled had risen 18 percent to 4.08 million twenty-foot equivalent units (TEUs) in the first quarter.

This growth was largely driven by ICTSI’s takeover of DCT Pier 2 at the Port of Durban in South Africa in January, as well as the addition of operations in Batam, Indonesia, in September last year.

Together, these expansions helped lift ICTSI’s consolidated revenues to $961.11 million, up 29 percent from a year earlier. Meanwhile, recurring net income rose 29 percent to $308.27 million.

Without contributions from the new terminals, ICTSI said cargo volume growth would have been just 1 percent, while revenues would have increased by 19 percent.

“ICTSI delivered a robust start to 2026, with double-digit growth in revenues, Ebitda (earnings before interest, taxes, depreciation and amortization) and net income reflecting the strength of our diversified global portfolio,” Razon said.  “The contribution from newly added terminals, alongside stable demand at our existing facilities, supported volume and earnings growth for the quarter.”

Improved trade activity in Asia and the Americas also supported ICTSI’s performance, offsetting softer volumes in Europe, the Middle East and Africa.

Revenue growth was also supported by tariff adjustments, higher ancillary service income and favorable foreign exchange movements, the company said.

Razon earlier said ICTSI had implemented adjustments to tariffs and handling rates across its global terminals to offset higher diesel and energy expenses tied to the conflict in Iran.

While ICTSI operates the Basra Gateway Terminal in Iraq—increasing its exposure to Strait of Hormuz disruptions—this terminal accounts for only about 4 percent to 5 percent of revenues.

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ICTSI’s capital expenditures (capex) for the first quarter reached $117.94 million, or 15.94 percent of its planned $740-million capex for 2026.

Cash flow as measured by Ebitda slipped to 64 percent from 66 percent, a change the company attributed to the impact of new operations.

While the South Africa and Indonesia terminals helped lift revenues, they also pushed up consolidated cash operating expenses, which climbed 40 percent to $261.81 million in the first quarter. Without the new operations, expenses would have grown by 16 percent. INQ

Moving forward, Razon said prudent cost management would continue to guide ICTSI.

“As we progress with strategic expansions across our network, we remain committed to maintaining financial discipline and executing our long-term strategy to deliver sustainable value for our shareholders,” he added.