Manila Electric (MER) Q2 2025 earnings summary

Executive summary

• First-half 2025 results driven by strong core distribution and accelerating power generation businesses, with consolidated core net income rising 10% year-over-year to PHP 25.5 billion and reported net income up 5% to PHP 23.6 billion.

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

• Interim cash dividend of PHP 11.328 per share declared, representing 50% of core EPS, payable September 22, 2025.

• Significant milestones achieved in power generation and LNG investments, including major solar and LNG projects.

Financial highlights

• Consolidated revenues increased 3% year-over-year to PHP 245.2 billion, mainly from higher pass-through charges and increased volumes.

• Core EBITDA rose to PHP 43.2 billion; capital expenditure reached PHP 47.5 billion, with 71% allocated to solar projects.

• Purchased power cost accounted for 85% of total expenses, rising 6% to PHP 185.7 billion.

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

• Average retail electricity rate increased 11.1% year-over-year to PHP 11.41/kWh, mainly from higher generation and transmission charges.

Outlook and guidance

• Full-year energy sales growth projected at 1–2%, revised down from earlier 4.5% estimate due to macroeconomic headwinds.

• Power generation expected to drive second-half profit, with full six months of Chromite and new plant contributions.

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

• S&P outlook revision to Positive signals confidence in future business integration and growth.