Strong utility play fuels DMCI growth

Diversified engineering conglomerate DMCI Holdings Inc., controlled by the Consunji family, is cautiously optimistic about its short — to medium-term performance. Growth is seen coming from utilities, mining, construction, and its newly acquired cement business.

“We are cautiously optimistic about the group’s operating performance in the short and medium term,” chairperson and president Isidro A. Consunji said at the company’s annual stockholders’ meeting on Tuesday.

He identified key drivers as better plant performance in the energy segment, capacity expansions in power and mining, and revenue recognition from post-pandemic sales recovery in real estate.

The conglomerate is particularly bullish on Maynilad, DMCI Power, DMCI Mining, and the power segment of Semirara Mining and Power Corp. (SMPC).

Strong Maynilad prospect

“Maynilad is expected to perform well with rising water demand, tariff adjustments and continued improvements in non-revenue water,” Consunji said.

DMCI Power supplies electricity to off-grid areas and is expected to post stronger results due to new capacity additions.

“Performance should improve further with the addition of 43 megawatts in new capacity this year — a 26 percent increase from its 2024 capacity of nearly 160 megawatts,” he said.

In the mining segment, DMCI sees upside from both market conditions and operational ramp-up. “The Long Point mine in Palawan is also in the final stages of permitting, which could bring the number of active mines to three this year,” Consunji said, citing additional growth from nickel ore price recovery and commercial operations of Zambales Chromite Mining Co.

SMPC’s power business is likewise projected to improve. Consunji said the segment would benefit from “the full-year operation of SCPC Unit 2 at 300 megawatts, along with improved power availability across the board.”

Beyond its current operations, DMCI also invests in organic and strategic expansion. These include the potential revival of the 2x350-megawatt St. Raphael Power Generation project, broader real estate offerings outside Metro Manila, and further expansion of DMCI Power’s off-grid portfolio.

Longer term, the company expects to unlock value from its cement venture after acquiring a controlling stake in CEMEX Holdings Philippines, now rebranded as Concreat Holdings Philippines.

Despite the growth plans, Consunji flagged external headwinds such as high interest rates and the sluggish recovery in the construction and property sectors.

“Our priorities will remain focused on disciplined execution, cost control, and maximizing synergies within our ecosystem — especially with the recent addition of our cement business,” he said.