Manila Electric (MER) Q1 2026 earnings summary

Executive summary

• Core net income for Q1 2026 rose 2% to PHP 11.4 billion, driven by stable distribution utility (DU) and a 51% surge in power generation contributions, despite a 1.8–2% decline in DU sales volume due to cooler weather and energy conservation.

• Consolidated reported net income increased 4% to PHP 10.8 billion, with consolidated revenues up 5% to PHP 120.8 billion, mainly from higher pass-through generation and transmission charges.

• System-wide sales volume reached 15,895 GWh, with growth in power generation and retail electricity supply offsetting lower DU sales.

• Operational highlights include improved system loss, faster connection times, and a 2.2% increase in customer count.

Financial highlights

• Core EBITDA rose 2% to PHP 19.6 billion; DU contributed 53%, power generation 39%, and RES/others 8%.

• Core EPS up 2% to PHP 10.137; reported EPS up 4% to PHP 9.611.

• Operating expenses increased 1% year-on-year, with cost efficiency measures offsetting inflationary pressures.

• Purchased power cost rose 7% to PHP 92.7 billion due to higher generation and transmission costs.

• Consolidated CapEx reached PHP 19.5 billion in Q1, with 71% allocated to solar and battery projects.

Outlook and guidance

• Sales volumes expected to recover in the summer months, with full-year growth forecast at 1–2% due to anticipated El Niño conditions.

• MTerra Solar remains on track to fulfill its 600 MW commitment by August 2026, with 250 MW and 450 MWh BESS already energized.

• DU CapEx for 2026 projected slightly above PHP 30 billion, up from PHP 28.5 billion in 2025.

• MGen CapEx guidance for 2026 is PHP 109 billion, focused on solar and battery storage expansion.

• Plans to expand renewable energy, explore nuclear and distributed energy resources, and support e-vehicle adoption.