Bangkok Expressway and Metro Public Company Limited (SET: BEM) delivered a steady performance for the first quarter of 2026, navigating a complex economic landscape with focused operational growth. The company reported a Net Profit of Baht 875 million, a marginal 0.5% increase over the Baht 871 million recorded in the same period last year. Total service revenue rose 1% year-over-year to Baht 4,283 million, underpinned by robust demand for core transit services despite broader economic headwinds.
Key Financial Highlights
- Net Profit: Baht 875M (+0.5% YoY).
- Service Revenue: Baht 4,283M (+1% YoY).
- Earnings Per Share (EPS): Baht 0.06 (Flat YoY).
- Daily Expressway Traffic: 1.13 million trips (+1.6% YoY).
- Daily MRT Blue Line Ridership: 447,000 trips (+2% YoY).
The Rail Business emerged as the quarter’s star performer, with revenue climbing 2% to Baht 1,784 million. Ridership on the MRT Blue Line was bolstered by its strategic role as a circular line connecting various networks, reaching an average of 506,000 trips on working days.
The Expressway Business remained the primary revenue driver at Baht 2,275 million, up 1%. Growth was supported by the late-2025 opening of Motorway M82 and commuters opting for expressways to bypass construction zones for the new Orange Line. Conversely, the Commercial Development segment was the laggard, with revenue plummeting 15% to Baht 224 million as an economic slowdown cooled advertiser spending.
Earnings quality remains high, driven by core operational volume rather than one-time gains. While service costs rose 3% due to higher non-cash amortization, the company successfully reduced administrative expenses by 6% and finance costs by 5% through proactive debt management and declining market rates.
BEM’s balance sheet reflects its aggressive expansion strategy. Total liabilities rose 8% to Baht 133,001 million, primarily to fund the MRT Orange Line. However, the company maintains a solid liquidity profile, recently issuing Baht 8,000 million in sustainability debentures which were oversubscribed by 2.6 times. The Net Interest-Bearing Debt to Equity (Net IBD/E) ratio stands at 2.17x, comfortably below its 2.5x covenant.
Management is doubling down on infrastructure. The MRT Orange Line project is approximately 30% complete, with the East section slated for a 2028 opening. To handle the expected surge in ridership, BEM is also 39% through a Baht 7,200 million procurement of 21 additional rolling stocks for the Blue Line. While debt levels are expected to remain elevated during this construction phase, the company anticipates a significant de-leveraging event once these projects commence commercial operations.
