Philippine Construction Firms Poised for Growth in 2025

Listed Philippine construction companies are expected to post strong results in 2025, buoyed by increased government infrastructure spending ahead of the May midterm elections, analysts say.

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Michael L. Ricafort, chief economist at Rizal Commercial Banking Corp., noted that infrastructure projects are likely to accelerate before the Commission on Elections (Comelec) implements a public works ban. He added that anticipated US Federal Reserve rate cuts could boost loan demand from property developers and construction firms.

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“Increased infrastructure spending will benefit construction companies involved in various projects nationwide,” Ricafort said.

State infrastructure spending rose by 2.52% in October year-on-year, according to the Department of Budget and Management.

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Toby Allan C. Arce, head of sales trading at Globalinks Securities and Stocks, Inc., shared a cautiously optimistic profitability outlook for 2025, hinging on sound economic policies and successful project implementation. However, he noted that the sector’s growth will be influenced by raw material costs, such as steel and cement, impacted by global markets and currency fluctuations.

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Company performances have varied. Megawide Construction Corp. returned to profitability in Q3 2023 with a net income of ₱142.7 million, reversing a ₱29.85 million loss the previous year, as revenue rose 10.9% to ₱5 billion.

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Meanwhile, EEI Corp. posted a net loss of ₱31.75 million in Q3, down from a ₱406 million profit a year earlier, as revenue declined 27.8% to ₱3.14 billion.

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Phinma Corp., which operates a construction materials unit, saw a 75.1% drop in Q3 net income to ₱144.86 million despite a 0.5% revenue increase to ₱6.61 billion, as expenses climbed by 2.4%.