Manila Electric (MER) Q4 2025 earnings summary

Executive summary

• Consolidated core net income (CCNI) for 2025 grew 12% to PHP 50.6 billion, driven by steady distribution and strong power generation growth, supported by disciplined financial management.

• System-wide sales volume reached 67,630 GWh, with DU sales at 53,997 GWh, and customer count up 2.2%.

• Major milestones included energization of MTerra Solar’s 500-kV substation, connection to the Luzon grid, and a 25-year franchise renewal starting July 2028.

• Significant expansion in renewables and LNG, with major investments and project completions in solar and battery storage.

• Operational indicators reached record levels: system losses below regulatory cap, improved reliability, and faster customer connections.

Financial highlights

• Consolidated revenues increased 6% year-over-year to PHP 497.3 billion, mainly from higher pass-through charges, power generation revenues, and higher RES volumes.

• Core EBITDA rose 15% to PHP 86.4 billion; reported EBITDA up 16% to PHP 87.3 billion.

• Dividend payout was 62.5% of core EPS, totaling PHP 28/share, with a 5% yield at year-end price.

• Capital expenditures reached PHP 108.9 billion, focused on solar plant development, renewables, and network improvements.

• Cash and cash equivalents stood at PHP 109.3 billion; consolidated debt at PHP 230 billion.

Outlook and guidance

• Expectation of continued growth in power generation, with new plants and solar projects ramping up through 2027.

• Regulatory reset application for 2026-2031 filed, with a proposed 14.6% WACC and maximum average price of PHP 2.34/kWh.

• Focus on capital-intensive projects to meet demand, modernize infrastructure, and support distributed energy resources, solar adoption, and EV infrastructure.

• Renewable energy portfolio set to grow by 649% by 2030, with new solar and battery projects coming online.

• S&P Global revised credit outlook to Positive, affirming BBB rating.