Manila Electric Company (Meralco), the country’s largest power distributor, reported a 14 percent increase in consolidated core net income to P40.02 billion for the first nine months of 2025, driven by higher earnings from its power generation business and steady contributions from its regulated distribution operations.

In a press briefing at the company’s headquarters in Ortigas on 27 October 2025, Meralco said reported net income rose 9 percent to P36.82 billion from P33.76 billion in the same period last year. Core earnings per share stood at P35.51, up 14 percent, while reported earnings per share climbed to P32.67.

Consolidated revenues grew 5 percent to P371.8 billion, supported by higher pass-through generation and transmission charges and improved performance in retail electricity and power generation. Electricity sales volume across Meralco’s distribution, generation, and retail businesses rose to 50,880 GWh from 50,641 GWh a year earlier.

Operating costs and expenses increased 4 percent to P332.3 billion, while income before tax rose 8 percent to P46.1 billion. Core EBITDA (earnings before interest, taxes, depreciation, and amortization) expanded 14 percent to P67.2 billion, reflecting improved profitability across segments.

Generation, renewables, and distribution

Meralco’s power generation arm, Meralco PowerGen Corporation (MGen), contributed P14.7 billion, or 37 percent of total core income, up sharply from P9 billion last year. The growth was fueled by higher output from liquefied natural gas facilities in the Philippines and Singapore and revenue gains from the Reserve Market.

MGen’s renewable subsidiary, MGreen, boosted production to 557 GWh following new solar projects in Nueva Ecija and Isabela. The company also advanced development of its 1,500-megawatt Terra Solar project and a 49-megawatt battery energy storage facility in Cebu.

The core distribution utility business remained Meralco’s main earnings driver, contributing P21.9 billion, or 55 percent of core net income, as year-to-date electricity sales were largely flat at 40,719 GWh. Residential and commercial demand softened due to cooler weather and lower consumer activity, partly offset by industrial growth in the semiconductor and construction sectors.

Retail rate, debt, and capital expenditures

Meralco’s average retail rate rose 11 percent to P11.63 per kilowatt-hour, mainly from higher fuel and ancillary service costs passed on to customers. Generation charges increased 14 percent, while transmission charges jumped 31 percent amid higher ancillary service rates from the National Grid Corporation of the Philippines.

As of end-September, Meralco’s consolidated debt reached P213.4 billion, including P98.1 billion from subsidiaries. Net debt stood at P123.7 billion, equivalent to a net debt-to-EBITDA ratio of 1.5 times, indicating a strong balance sheet position.

The company also allocated P78.8 billion in capital expenditures, with P58.8 billion directed toward solar power development and P19.8 billion for distribution network upgrades and new customer connections.