Meralco 2025 profit grows 12% to P50.6 billion

PANGILINAN-LED Manila Electric Co. (Meralco) achieved its P50-billion profit target for 2025, driven by power generation growth and contributions from its distribution business.

The company’s 2025 consolidated core net income (CCNI), which excludes non-recurring items to reflect underlying performance, rose 12% to P50.6 billion from P45.1 billion in the previous year, Meralco Chief Finance Officer Betty C. Siy-Yap said during a briefing on Tuesday.

Meanwhile, the company’s reported net income, which represents total profit including one-time gains and losses, climbed 11% to P51 billion from P45.9 billion in 2024.

Consolidated revenues grew 6% year on year to P497.3 billion, supported by higher distribution charges, increased power generation revenues, and higher volumes sold by the retail electricity supply (RES) business.

“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 (CEO) Manuel V. Pangilinan said.

“These results were driven by the steady performance of the core distribution business and solid growth of the power generation business, supported by disciplined financial management,” he said. “Our strategy of maintaining a balanced mix of regulated and unregulated operations has served us well.”

Meralco’s distribution utility business accounted for the largest share of earnings at 58%, amounting to P29.6 billion. Power generation contributed 33% or P16.8 billion, while the RES business and non-electricity operations had a combined 9% share of the bottom line.

For the full year, the power distributor recorded a nearly flat energy sales volume, with a 0.7% decline to 53,997 gigawatt-hours (GWh), affected by softening demand due to extreme weather, increased solar rooftop adoption, and slower economic growth.

Meanwhile, Clark Electric Distribution Corp. and Shin Clark Power Corp. reported increases of 35% and 18%, respectively, contributing a combined 20.7 GWh in energy sales.

By segment, the commercial sector remained the largest contributor to energy sales, which slightly declined by 0.4% to 20,326 GWh.

Sales volume in the residential sector fell 2% to 19,060 GWh as temperatures began cooling in May, while the industrial sector posted a 1% uptick to 20,326 GWh, anchored on resilient demand in the semiconductor and construction-related industries.

“Our commitment that no one will be left in the dark remains constant — through investments in innovative solutions like microgrid systems that bring electricity to communities that are not connected to the country’s main power grid,” Meralco Executive Vice-President and Chief Operating Officer Ronnie L. Aperocho said.

Meralco PowerGen Corp. (MGEN), a wholly owned Meralco subsidiary, reported a 52% increase in earnings contribution, driven by investments in liquefied natural gas and higher income from thermal assets.

“2025 was a year of strong growth for MGEN, driven by sustained reliability across our diverse portfolio, with global recognition underscoring the strength of our strategic direction and our people,” MGEN President and CEO Emmanuel V. Rubio said.

Asked if Meralco has set a new profit target for 2026, Mr. Pangilinan said the company is a bit “reluctant” as it still needs to gauge how its large-scale solar farm and energy storage project will contribute this year.

“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.

Meralco is the country’s largest private electric distribution utility, serving more than 8.2 million customers in Metro Manila and nearby provinces, including Bulacan, Cavite, Rizal, and parts of Laguna, Batangas, Pampanga, and Quezon.

The company sought a tariff adjustment of P2.34 per kilowatt-hour as part of its application before the Energy Regulatory Commission for the first regulatory period (1RP) rate reset.

“Finally, the timely implementation of new distribution tariffs under the 1RP will further allow Meralco to undertake capital-intensive projects that will not only meet growing power demand and modernize energy infrastructures, but also future-proof our operations — all of which will benefit our customers in the long term,” Mr. Pangilinan said.

Meralco’s controlling stakeholder, Beacon Electric Asset Holdings, Inc., is partly owned by PLDT Inc. Hastings Holdings, Inc., a unit of PLDT Beneficial Trust Fund subsidiary MediaQuest Holdings, Inc., has an interest in BusinessWorld through the Philippine Star Group, which it controls. — Sheldeen Joy Talavera