Manila Electric (MER) Q2 2025 earnings summary

Executive summary

• First half 2025 saw strong results with consolidated core net income up 10% to PHP 25.5B, driven by core distribution and accelerating power generation, including significant milestones in renewables and LNG investments.

• Distribution utility contributed 54% (PHP 13.7B) and power generation 37% (PHP 9.4B) to CCNI.

• Interim cash dividend of PHP 11.328/share (50% of core EPS) declared, payable September 22, 2025.

• S&P Global affirmed BBB credit rating and revised outlook to Positive, citing strong market position and improved business integration.

Financial highlights

• CCNI up 10% year-over-year to PHP 25.5B; reported net income up 5% to PHP 23.6B.

• Core EBITDA rose 9% to PHP 43.2B; consolidated revenues up 3% to PHP 245.2B, mainly from higher pass-through charges and increased volumes.

• Core EPS at PHP 22.655/share, up 10% YoY; dividend yield at 4.7%.

• Capital expenditure reached PHP 47.5B, mainly for solar plant development and distribution network, up 173% YoY.

• Cash and cash equivalents at PHP 91.6B; consolidated debt at PHP 204.8B.

Outlook and guidance

• Full-year energy sales growth projected at 1–2%, revised down from earlier 4.5% estimate; core net income expected to grow by low double digits over 2024.

• Continued focus on expanding renewable energy portfolio, with MTerra Solar becoming the largest solar PV installation in the Philippines.

• LNG investments and new baseload projects to support grid reliability and transition to low-carbon energy.

• Distribution tariff expected to remain at PHP 1.35/kWh through year-end; generation charges may rise due to fuel price volatility and peso depreciation.

• Industrial and construction segments expected to drive second-half demand recovery.