Manila Electric (MER) Q4 2025 earnings summary

Executive summary

• Consolidated core net income (CCNI) for 2025 grew 12% to PHP 50.6 billion, driven by steady distribution and strong power generation growth, supported by disciplined financial management.

• System-wide sales volume reached 67,630 GWh, with DU sales flattish at 53,997 GWh and customer count up 2.2% to 8.22 million.

• Major milestones included the energization of MTerra Solar’s 500-kV substation, connection to the Luzon grid, and a 25-year franchise renewal starting July 2028.

• Significant expansion in renewables and LNG, with major investments and project completions in solar and battery storage.

• Operational reliability reached record levels, with SAIFI and SAIDI improving by 12% and 10%, respectively.

Financial highlights

• Consolidated revenues rose 6% to PHP 497.3 billion, driven by higher pass-through charges, power generation revenues, and higher RES volumes.

• Core EBITDA increased 15% to PHP 86.4 billion; reported EBITDA up 16% to PHP 87.3 billion.

• Costs and expenses grew 6% to PHP 448.9 billion, with purchased power cost accounting for 84%.

• CAPEX surged 144% to PHP 108.9 billion, mainly for solar and distribution projects.

• Dividend payout was 62.5% of core EPS, totaling PHP 28/share, with a 5% yield at year-end price.

Outlook and guidance

• Expectation of continued growth in power generation, with new solar and LNG projects ramping up and focus on energy security.

• DU volume growth projected at 3.2% for 2026, with strategies to offset solarization impact via EV adoption and new connections.

• Regulatory reset application for 2026-2031 filed, with a proposed 14.6% WACC and maximum average price of PHP 2.34/kWh.

• Economic growth outlook is cautious (sub-5% GDP), likely affecting power demand through 2027.

• Terra Solar phase one to energize 250 MW in March 2026, with full ramp-up by August; renewables portfolio targeted to grow 649% by 2030.