Manila Electric (MER) investor relations material

Executive summary

• Nine-month CCNI rose 12% to PHP 44.8 billion, supported by Distribution Utility (DU), generation and Retail Electricity Supply (RES).

• Q3 CCNI increased 26% YoY to PHP 18.3 billion, with all segments contributing.

• Core EBITDA rose 13% to PHP 75.9 billion; system-wide sales reached 52,017 GWh.

• The first regulatory-period rate reset was approved and MTerra Solar Phase 1 began commercial operations.

Financial highlights

• Consolidated reported net income increased 21% to PHP 44.7 billion; the difference from CCNI reflected day-one gain adjustments, net FX gains and the sale of the remaining Radius Telecoms interest.

• Consolidated revenue increased 19% to PHP 443 billion, including PHP 435 billion in electric revenue; total costs and expenses rose 20% to PHP 397.7 billion, mainly on higher purchased power costs.

• Q3 CCNI grew 26% YoY to PHP 18.3 billion from PHP 14.9 billion.

• Core EPS rose 12% to PHP 39.774; reported EPS was PHP 39.642, up 21%.

Outlook and guidance

• FY 2026 CCNI guidance was PHP 56.6 billion, with results potentially higher barring significant unforeseen developments; consolidated EBITDA was projected at PHP 90–100 billion.

• 2026 energy-sales growth guidance remained 1%–2%; medium-term growth outlook was 3%–4%, with 2027 demand expected to benefit from El Niño, customer additions and sector recovery.

• MTerra Solar Phase 2’s additional 250 MW and commercial operations were targeted for Q1 2027, bringing expected supply to 850 MW.

• Regular dividends were expected to remain at 50% of core income; the board could consider a 10% increase after reviewing audited results.

• MGEN Renewables expected 2026 net income above PHP 700 million, with MTerra Solar’s growing earnings contribution supporting the anticipated turnaround.