PANGILINAN-LED Manila Electric Co. (Meralco) achieved its P50-billion profit goal for 2025, driven by power generation growth and contributions from its distribution business.
The corporate’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 within the previous 12 months, Meralco Chief Finance Officer Betty C. Siy-Yap said during a briefing on Tuesday.
Meanwhile, the corporate’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% 12 months on 12 months to P497.3 billion, supported by higher distribution charges, increased power generation revenues, and better volumes sold by the retail electricity supply (RES) business.
“Meralco had one other record 12 months in 2025 — marked by a double-digit growth in our CCNI and full-year profit that surpassed our goal,” Meralco Chairman and Chief Executive Officer (CEO) Manuel V. Pangilinan said.
“These results were driven by the regular performance of the core distribution business and solid growth of the ability generation business, supported by disciplined financial management,” he said. “Our strategy of maintaining a balanced mixture of regulated and unregulated operations has served us well.”
Meralco’s distribution utility business accounted for the most important 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 underside line.
For the total 12 months, the ability distributor recorded a virtually flat energy sales volume, with a 0.7% decline to 53,997 gigawatt-hours (GWh), affected by softening demand attributable 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 business sector remained the most important contributor to energy sales, which barely declined by 0.4% to twenty,326 GWh.
Sales volume within the residential sector fell 2% to 19,060 GWh as temperatures began cooling in May, while the commercial sector posted a 1% uptick to twenty,326 GWh, anchored on resilient demand within the semiconductor and construction-related industries.
“Our commitment that nobody will likely be left in the dead of night stays constant — through investments in revolutionary solutions like microgrid systems that bring electricity to communities that are usually not connected to the country’s predominant power grid,” Meralco Executive Vice-President and Chief Operating Officer Ronnie L. Aperocho said.
Meralco PowerGen Corp. (MGEN), a completely owned Meralco subsidiary, reported a 52% increase in earnings contribution, driven by investments in liquefied natural gas and better income from thermal assets.
“2025 was a 12 months 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 brand new profit goal for 2026, Mr. Pangilinan said the corporate is a bit “reluctant” because it still must gauge how its large-scale solar farm and energy storage project will contribute this 12 months.
“Terra Solar goes to steadily turn into profitable for the 12 months… the earlier it generates power and sells to the grid, the higher the prospects for 2026 would seem like for Meralco,” he said.
Meralco is the country’s largest private electric distribution utility, serving greater than 8.2 million customers in Metro Manila and nearby provinces, including Bulacan, Cavite, Rizal, and parts of Laguna, Batangas, Pampanga, and Quezon.
The corporate sought a tariff adjustment of P2.34 per kilowatt-hour as a part of its application before the Energy Regulatory Commission for the primary regulatory period (1RP) rate reset.
“Finally, the timely implementation of recent distribution tariffs under the 1RP will further allow Meralco to undertake capital-intensive projects that won’t only meet growing power demand and modernize energy infrastructures, but additionally future-proof our operations — all of which is able to profit our customers in the long run,” 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 Useful Trust Fund subsidiary MediaQuest Holdings, Inc., has an interest in BusinessWorld through the Philippine Star Group, which it controls. — Sheldeen Joy Talavera