Manila Electric (MER) Q1 2026 earnings summary

Executive summary

• Core net income (CCNI) for Q1 2026 grew 2% year-over-year to PHP 11.4 billion, driven by stable distribution utility operations and a 51% surge in power generation contributions, despite lower DU sales volume due to cooler weather and energy conservation.

• Consolidated reported net income rose 4% to PHP 10.8 billion, with core EBITDA up 2% to PHP 19.6 billion.

• Consolidated revenues increased 5% to PHP 120.8 billion, mainly from higher pass-through generation and transmission charges and increased power generation revenues.

• System-wide sales volume reached 15,895 GWh, with customer count up 2.2% to 8.26 million.

• Power generation's share of CCNI surged to 45% (PHP 5.1 billion), up from 30% last year, reflecting a 51% growth, mainly from LNGPH's full-quarter contribution.

Financial highlights

• Gross revenues rose 5% year-over-year to PHP 120.8 billion, driven by higher pass-through generation and transmission charges and increased power generation revenues.

• Electric revenues made up 98% of total revenues; generation, transmission, and other pass-through charges rose 17% to PHP 94.7 billion.

• Purchased power costs rose 7% to PHP 92.7 billion, representing 84% of total costs; OpEx increased 1% to PHP 10.4 billion.

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

• Consolidated capital expenditures reached PHP 19.5 billion, with 71% allocated to solar and battery energy storage projects.

Outlook and guidance

• April volumes dropped 4% year-on-year due to a high base and cooler weather, but recovery is expected with the onset of El Niño, with full-year sales forecasted to grow 1%-2%.

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

• CapEx for PowerGen in 2026 is PHP 109 billion, with DU CapEx guidance slightly above PHP 30 billion.

• Anticipates positive growth in energy sales for the year, supported by accelerated customer energization and pipeline projects.

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