ICTSI H1 profit climbs 22% on stronger port revenues

Revenue reached $1.92b as trade improved across Asia and the Americas.

International Container Terminal Services, Inc. (ICTSI) reported a net income attributable to equity holders of $589.98m in the first half (H1) of 2026, up 22% from $483.84m a year earlier, driven primarily by higher operating income.

Excluding the non-recurring charge from the sale of Yantai International Container Terminal (YICT) in Shandong Province, China, recurring net income increased 25% to $604.69m.

Revenue from port operations increased 27% to $1.92b in H1. In the second quarter, revenue rose 25% to $958.73m from $764.63m a year earlier.

Earnings before interest, taxes, depreciation and amortisation (EBITDA) increased 24% to $1.23b, whilst diluted earnings per share rose 23% to $0.289.

ICTSI handled 8.12 million twenty-foot equivalent units (TEUs) during H1, up 16% from 6.99 million TEUs a year earlier.

The increase came mainly from the addition of Durban Gateway Terminal (DGT) in South Africa, which began operations in January 2026, and Batu Ampar Container Terminal in Indonesia, which ICTSI took over in September 2025.

Higher trade activity in Asia and the Americas also supported volumes.

It said lower volumes in Europe, the Middle East and Africa due to the conflict in the Middle East and the deconsolidation of YICT partly offset the increase.

Excluding contributions from the new terminals and discontinued YICT operations, consolidated throughput increased 1%.

Gross revenue growth reflected higher throughput, a favourable container mix, ancillary service revenue, tariff adjustments, contributions from the two new terminals, and favourable foreign exchange movements.

These gains were partly offset by lower volumes at Basra Gateway Terminal in Iraq, the deconsolidation of YICT and the depreciation of the Philippine peso. Excluding new and discontinued operations, consolidated gross revenue increased 18%.

Cash operating expenses increased 39% to $529.34m due to contributions from DGT, higher operating expenses linked to volume growth, fuel price increases, and salary adjustments.

ICTSI said cost optimisation measures and favourable movements in Philippine peso-based expenses partly offset the increase.

EBITDA margin fell to 64% from 66%, reflecting the impact of newly acquired operations. Excluding new and discontinued operations, EBITDA increased 18% and the EBITDA margin would have been 66%.

Capital expenditure reached $320.05m in H1, excluding capitalised borrowing costs.

ICTSI maintained its full-year capital expenditure estimate of $740m, which it plans to use for expansion projects in Mexico, the Philippines, Brazil, the Democratic Republic of Congo, Honduras, Australia, and Ecuador, alongside equipment upgrades and maintenance.

"ICTSI delivered a strong H1, with double-digit growth in volumes, revenues, and earnings supported by contributions from recently added terminals and stable performance across our existing portfolio," said Enrique K. Razon Jr., Chairman and President of ICTSI.

Razon said ICTSI's diversified terminal portfolio helped offset weaker conditions in some markets and supported its financial and operating performance.

He said ICTSI would continue its expansion programme, integrate new operations, and invest to increase capacity across its terminal portfolio.