Maynilad nets P12.6B, braces for headwinds

Maynilad Water Services Inc. reported a 10.2-percent increase in net income to P12.6 billion in the first nine months of 2026, but warned that persistent inflation and water supply risks could continue to challenge its operations.

The West Zone water concessionaire said its earnings rose from P11.4 billion a year earlier, primarily driven by lower interest expenses and higher interest income, which more than offset rising operating costs.

Revenues climbed 3.5 percent to P28.6 billion from P27.7 billion, supported by higher water consumption, customer growth and a 2.85-percent rate adjustment approved by the Metropolitan Waterworks and Sewerage System.

Billed water volume increased 2.8 percent to 423.3 million cubic meters, while total billed connections grew 1.5 percent to 1.59 million.

Meanwhile, earnings before interest, taxes, depreciation, and amortization rose 5.1 percent to P20.1 billion, with margins improving to 70.3 percent from 69.2 percent despite higher oil prices.

Maynilad attributed the improvement to operational efficiency and reduced water losses, with non-revenue water declining to 29.3 percent as of September from 32.8 percent a year earlier.

The company also increased its capital expenditures by 5.1 percent to P19.5 billion to strengthen water supply reliability, improve network efficiency and expand wastewater infrastructure.

Service coverage improved to 95.2 percent, while wastewater coverage expanded to 95.7 percent from 90.4 percent a year earlier.

Looking ahead, Maynilad said it would sustain infrastructure investments and efficiency improvements to address supply risks, rising costs and growing customer demand.

“While water supply risks and elevated inflation continue to shape the operating environment, we remain focused on strengthening our water supply resilience and improving network reliability.

Our sustained investments in infrastructure and operational efficiency are intended to support growing demand, improve service delivery, and create long-term value for our customers and stakeholders,” Maynilad President and CEO Ramoncito S. Fernandez said.