Manila Electric (MER) Q3 2025 earnings summary

Executive summary

• Core net income rose 14% year-over-year to PHP 40 billion, driven by robust power generation and steady distribution performance, with reported net income up 9% to PHP 36.8 billion.

• Power generation's share of core net income surged to 37% (PHP 14.7 billion), up 63% year-over-year, while distribution utility contributed 55% (PHP 21.9 billion), up 8%.

• Consolidated revenues increased 5% to PHP 371.8 billion, mainly from higher pass-through charges and improved power generation revenues.

• System-wide power sales volume reached 50,880 GWh, with distribution utility sales at 40,719 GWh.

• Strong financial and operational results were supported by growth in both the Philippines and Singapore.

Financial highlights

• Core EBITDA rose 14% to PHP 67.2 billion; consolidated revenues up 5% to PHP 371.8 billion.

• Costs and expenses increased 4% to PHP 332.3 billion, with purchased power cost accounting for 85%.

• Capital expenditures reached PHP 78.8 billion, with 75% allocated to solar projects and significant investments in network improvements.

• Cash and cash equivalents stood at PHP 88.2 billion; consolidated debt at PHP 213.4 billion.

• Core EPS up 14% to PHP 35.509; reported EPS up 9% to PHP 32.67.

Outlook and guidance

• Management is confident in achieving full-year core profit guidance of PHP 50 billion, supported by growth in power generation and steady distribution.

• DU volume growth expected to remain slightly negative for Q4 2025 due to La Niña and sluggish demand, with potential recovery in 2026.

• Terra Solar project phase one is 65% complete, with commercial operations allowed up to August 2026.

• Spot market prices expected to stay low as new capacities come online; excess Terra Solar output may be sold to the retail market.

• Regulatory developments and new guidelines on indigenous gas procurement expected to impact future operations.