Generation Boom Propels Meralco To Historic Earnings, Surpassing ₱50-B Target
- February 27, 2026
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Manila Electric Co. (Meralco) achieved a record ₱50.57-billion consolidated core net income (CCNI) in 2025, driven by strong expansion in its power generation business that offset a slight decline in electricity sales volumes from its distribution operations.
Meralco officials reported that CCNI rose 12 percent from ₱45.14 billion in 2024, surpassing the company’s ₱50-billion profit target for the year. Reported net income, which includes non-recurring items, increased 11 percent to ₱51.13 billion from ₱45.85 billion previously.
Gross revenues grew 6 percent to about ₱497.3 billion, supported by higher power generation revenues, distribution charges, and contributions from the retail electricity supply (RES) segment.
“Meralco had another record year in 2025 — marked by a double-digit growth in our CCNI and full-year profit that surpassed our target,” Meralco Chairman and Chief Executive Officer Manuel V. Pangilinan said. He added that results were driven by the steady performance of the core distribution business and solid growth in power generation, supported by disciplined financial management and a balanced mix of regulated and unregulated operations.
Generation Business Lifts Earnings
Power generation emerged as the key growth driver during the year, with Meralco’s generation arm increasing its earnings contribution by 52 percent to ₱16.8 billion, equivalent to 33 percent of total core profit.
Meralco PowerGen Corp. (MGEN) delivered 27,289 gigawatt-hours (GWh) in 2025, up 78 percent year on year, reflecting additional capacity from liquefied natural gas (LNG) investments, including Chromite Gas Holdings, and improved earnings from Global Business Power. The expansion of renewable energy assets also supported growth, including new solar plants in Nueva Ecija and Isabela.
The MTerra Solar project, which the company describes as poised to become the world’s largest solar facility once fully operational, reached 75 percent completion as of January. Phase one is expected to begin supplying an initial 250-megawatt block to the Luzon grid by March 2026, with full completion targeted by 2027.
Capital expenditures surged 144 percent to ₱108.96 billion, largely allocated to solar power plant development and distribution network upgrades. The expansion was financed primarily through a 143 percent increase in borrowings to around ₱230 billion. Cash and cash equivalents rose 29 percent to approximately ₱108 billion, indicating funds raised ahead of project implementation.
Earnings before interest, taxes, depreciation, and amortization (EBITDA) climbed 15 percent to ₱86.36 billion, outpacing revenue growth. Costs and expenses increased 6 percent to ₱448.85 billion, broadly in line with the rise in revenues.
Distribution Volumes Slightly Down
Despite higher earnings, consolidated energy sales volumes slipped marginally. Meralco recorded 53,997 GWh in total energy sales in 2025, representing a slight decline from 54,325 GWh in 2024.
The company attributed the softer demand to extreme weather shifts, increased adoption of solar rooftop systems, and slower economic growth. In the previous year, electricity demand had been boosted by the El Niño climate phenomenon.
The distribution utility business remained the largest contributor to core profit at 58 percent, or ₱29.6 billion. However, distribution sales volumes fell about 1 percent overall.
By customer segment, the commercial sector remained the largest contributor, with sales of 20,326 GWh, down slightly from the prior year. Residential sales declined 2 percent to 19,060 GWh as temperatures began cooling in May. The industrial segment posted a 1 percent increase in sales, supported by demand from semiconductor and construction-related industries.
Meanwhile, Clark Electric Distribution Corp. and Shin Clark Power Corp. posted growth of 35 percent and 18 percent, respectively, contributing a combined 20.7 GWh in energy sales.
Meralco serves more than 8.2 million customers across Metro Manila, Bulacan, Cavite, Rizal, and parts of Laguna, Batangas, Pampanga, and Quezon.
Tariff Reset
The company has applied for a ₱2.34-per-kilowatt-hour tariff adjustment before the Energy Regulatory Commission as part of the first regulatory period rate reset. Pangilinan said the timely implementation of new distribution tariffs would enable Meralco to undertake capital-intensive projects aimed at meeting growing power demand and modernizing infrastructure.
On its 2026 outlook, Pangilinan said the company is “reluctant” to set a new profit target pending clearer contributions from its large-scale solar and energy storage projects. “Terra Solar is going to gradually become profitable for the year… the sooner it generates power and sells to the grid, the better the prospects for 2026 would look like for Meralco,” he said.
The 2025 results demonstrate the company’s increasing reliance on its expanding generation portfolio to sustain earnings growth amid moderating demand within its franchise area.
Source:
https://insiderph.com/power-generation-boom-drives-meralco-2025-profit-jump-despite-softer-demand
https://business.inquirer.net/576015/power-generation-lifts-meralcos-2025-profit-by-12
