Listed D&L Industries Inc. remains upbeat about its outlook even as the Middle East conflict pushes up crude prices, tightens raw material supply, and disrupts global logistics.

“Looking ahead, 2026 presents a new set of uncertainties, particularly with the ongoing war in the Middle East and its potential impact on crude oil prices, raw material costs, and global supply chains,” D&L President and CEO Alvin D. Lao told reporters at a virtual briefing on Wednesday.

Still, he said “periods of disruption also create opportunities,” noting that the company hopes to strengthen its role as a reliable supplier offering customized solutions.

However, Lao still acknowledged that rising raw material costs and supply constraints remain a concern. 

“The price of everything is going up but it seems access to supply for a lot of products is also affected. And that’s a big worry,” Lao said, adding that some suppliers have declared force majeure.

At present, the company has 74 days of inventory but targets to build this further. 

Despite these headwinds, D&L’s recurring net income rose 10.6 percent to P2.6 billion in 2025 from P2.3 billion in 2024, supported by its biodiesel, plastics, and consumer businesses.

The Food Ingredients segment saw earnings fall 61 percent due to high coconut oil prices and a lag in passing on costs, but a recovery is expected as prices ease and the company shifts further toward higher-margin products.

Chemrez Technologies posted a 24 percent increase in volumes and a 96 percent rise in net income, driven by strong global demand and the higher biodiesel blend mandate. It remains optimistic about export opportunities.

Specialty Plastics reported nine percent earnings growth after a 32 percent increase in 2024, with new product developments supporting record margins.

The Consumer Products ODM segment surged 80 percent as Batangas operations ramped up. Exports now account for 16 percent of total sales, from virtually zero six years ago.