Ayala trims 2026 capex amid global uncertainties
Zobel-led Ayala Corp. plans to scale back its P230-billion capital expenditure (capex) program for 2026, bringing it closer to last year’s level of about P180 billion, as global uncertainties persist.
“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,” Ayala president and CEO Cezar Consing said.
The move reflects a more cautious stance, with the conglomerate emphasizing financial resilience and tighter capital discipline amid a challenging operating environment.
“We are placing greater emphasis on cash flow, earnings and balance sheet strength, alongside more disciplined capital allocation,” Consing said.
Consing added that investment plans are being reviewed to ensure funds are directed toward opportunities with clear and sustainable returns, in line with the group’s shift toward more selective spending.
Ayala said it was navigating a more challenging operating environment driven by global and domestic headwinds, prompting it to recalibrate growth plans while preserving flexibility.
“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,” Consing said.
Chief financial officer Juan Carlos Syquia said the planned reduction in capex aligns with this strategy, allowing the group to stay agile as risks—from geopolitical tensions to inflation—continue to weigh on markets.
Consing said Ayala was sharpening execution across its businesses by improving operational efficiency and asset productivity, while reinforcing the performance of both core and emerging units.
The group is also taking a measured approach to growth, working with strategic partners, managing costs, and maintaining flexibility to respond to near-term challenges while staying positioned for long-term opportunities.
Despite the trimmed capex, Ayala remains confident in the Philippines’ long-term prospects and its role in supporting national development.
“If we are agile and disciplined, and notwithstanding the current challenges, 2026 may yet surprise us on the upside,” Consing said.
