Full Year Ended December 31, 2025 FINANCIAL PERFORMANCE REPORT Media, Investors and Analysts Briefing
Distribution Utility
CCNI contribution of PhP2G.6B, 6% higher; 58% of CCNI
Sales volume flattish at 53,GG7 GWh vs. 54,325 GWh in 2024
Meralco Refunds
PhPG38.5M refunded out of PhPG87.2M in ERC reset costs
PhP4.GB was refunded from April-December as part of the PhP1G.G6B AWAT refund over 36 months
Meralco distribution rate cut by PhP0.0023/kWh in February to PhP1.3499/kWh due to ERC
removal of regulatory reset cost embedded in the average interim rate
On September 18, 2025, the ERC approved the average distribution, supply, and metering (DSM) charges of Shin Clark of PhP4.023 per kWh
Power Generation
CCNI contribution at PhP16.8 billion, up 52%; 33% of CCNI
Sales volume at 27,28G GWh, 78% higher than 15,296 GWh in 2024 driven primarily by LNGPH's volume
Thermal plants generated PhP3.6B CCNI from the Reserve Market
MGreen:
On March 17, Actis acquired a 40% stake in Terra Solar through a PhP2G.GB subscription of
common shares
In October 2025, ownership in SPNEC increased to 6G.25% with the acquisition of additional 10.8B common shares from Solar Philippines Power Project Holdings, Inc.
MGas:
Acquisition of 40.2% effective interest in SPPC, EERI, LFC and IPIEC on January 27, 2025 with
total paid investment of PhP6G.7B
All three (3) units of EERI obtained a Final Certificate of Approval to Connect (FCATC) from NGCP and Provisional Authority to Operate (PAO) from the ERC by April 30, 2025 and July 1, 2025, respectively
Dividends from unconsolidated investees totaled PhPG.2B, largely from PacificLight and San Buenaventura
Retail Electricity Supply (RES)
Sales volume of 7,510 GWh up by 11%, mainly from new customer accounts
Dividends, Share Price and Credit Rating
Dividends declared out of 2025 CCNI, close to 62.5% of Core EPS or a total of PhP28.00 per share; dividend yield at 5%*
On July 21, 2025, SsP Global affirmed Meralco's BBB Credit Rating and revised its outlook to Positive, citing strong market position and improving business integration
Highest MER share price at PhP618.00 on November 24, 2025; PhP574.00 at end-2025, up
18% vs. the 2024 year-end price of PhP488.00
* Computed using dividends declared out of Core EPS and year-end stock price
▲ 12%
Sales volume (in GWh)
vs. last year
DU 53,GG7 ▼ 1%
Power Gen 27,28G ▲ 78%
RES 7,510 ▲ 11%
Note: System-wide power sales volume at 67,630 GWh, slightly higher vs. 67,411 GWh in 2024
2024
Reported Income
▲ 11% 51,130
45,859
CAPEX
▲ 144%
108,875
44,705
2024
2025
Gross Revenues
▲ 6% 497,325
470,362
2024
2025
Borrowings
230,046
▲ 143%
94,776
2024
2025
2025
▲ 15%
86,356
74,916
2024
2025
Cash & Cash Equivalents
▲ 29% 109,317
84,480
2024
2025
Costs & Expenses
▲ 6%
425,329
448,852
2024
2025
Core EBITDA
▲ 12%
Distribution Utility
Power Generation
RES & Service Subsidiaries
Sales volume (in GWh)
vs. last year
DU 53,GG7 ▼ 1%
Power Gen 27,28G ▲ 78%
RES 7,510 ▲ 11%
Note: System-wide power sales volume at 67,630 GWh, slightly higher vs. 67,411 GWh in 2024
[a] Gross of eliminations
2024
2025
2024
2025
2024
2025
Core EBITDA
44,823
53,263
19,672
25,528
10,421
7,565
2024
2025
2024
2025
2024
2025
27,846
2025
2024
2025
2024
2025
2024
59,624
54,881
29,405
4,186
416,289
395,098
Gross Revenues[a]
CCNI Contribution
27,787
29,550
11,101
16,834
6,254
System-wide power sales volume was at 67,630 GWh, slightly higher vs. 67,411 GWh in 2024
MGEN
27,289 GWh
21,600 GWh within PH
Third Parties
11,358 GWh
(5,669 GWh within PH; 5,689 GWh PacificLight)
15,309
GWh
211
GWh
411
GWh
33,454 GWh
5,875 GWh
within franchise area
Distribution Utility 54,849 GWh*
* Inclusive of sales volume of PELCO II
1,013 GWh
Outside franchise area
Retail Electricity
7,510 GWh
Gross Revenues
Generation, Transmission and others
Distribution
Energy
Fee
12% lower due to deconsolidation of MIDC at the end of
September 2024
Non-electric
2025
2024
2025
2024
Up 8% due to higher fuel cost of gas plants, increase in ancillary service charges of the NGCP and implementation of a higher MAR by NGCP beginning July 2025
9% increase due to higher revenues from the Reserve Market, partly offset by lower fuel costs and decrease in WESM sales as WESM prices in Panay declined
Rose 6% with the higher pass-through charges of the DU, increase in Power Generation revenues from the Reserve Market and higher volume sold by the RES business
Down 2% due to Regulatory Reset Fee Adjustments starting February 2025, mitigated by adjustment of Shin Clark's distribution revenue to include OHLRC and Administrative Charges from June 2024 to April 2025 and approval of PhP4.023 per kWh DSM rate in September 2025
2025 Revenues Breakdown
Total Costs and Expenses
Purchased Power Costs
OPEX
2025
2024
2025
2024
Up 6% due to higher purchased power cost and OPEX
Increased by 9% due to higher generation and transmission charges
Increased by 6%, attributable to higher repair and maintenance costs for distribution assets, sustained investments in IT systems and software, and higher salary-related expenses of MGEN in support of its expanding base of operating power plants
2025 Costs s Expenses Breakdown
4% higher with the completion of CAPEX projects
during the year
Depreciation s Amortization
19% lower with the decrease in fuel and coal prices, partly offset by higher maintenance cost due to TPC scheduled outage
Coal and Fuel Power Plant OsM
Consists of present value adjustments pertaining to long-term liabilities and over/under-recoveries of pass-through charges; and net provision reversals after settlement of real property taxes and reassessment of previously recognized provisions
Others
Consolidated CAPEX largely for the development of solar power plants and distribution network projects
▲ 144%
For new connections (PhP8.6 billion), asset renewals (PhP 6.7 billion), load growth (PhP 7.2 billion), pole relocation works to support government infrastructure projects
(PhP 0.3 billion), and non-electric projects (PhP 5.7 billion)
2c%
Development cost of solar power plants:
3,500 MWdc MTerra Solar
52.7 MWac of Greenergy
19.8 MWac of Greentech Bongabon
74%
CCNI's G3.4% CAGR from 2021-2025 is driven by substantial MGas contribution and MThermal's Reserve Market participation
PowerGen CCNI (PhP Bn) | 2025 | 2024 | Change |
MThermal | 6.5 | 4.3 | 50% |
GBP | 4.8 | 2.7 | 78% |
SBPL | 1.7 | 1.6 | 3% |
MGas | 14.4 | 7.8 | 84% |
PacificLight | 7.4 | 7.8 | -c% |
LNGPH | 7.0 | - | 100% |
MGreen | (2.4) | (1.0) | 153% |
Parent and Other Entities | (1.6) | (0.1) | -18x |
Total | 16.8 | 11.1 | 52% |
Core Income Contribution in PhP Bn
CAGR of G3.4%
Dec-25 Dec-24 %△
Cash, cash equivalents & short-term investments | 109,457 | 93,306 | 17.3% |
Gross debt | 230,046 | 94,776 | 142.7% |
Net debt | 120,589 | 1,470 | 8103.3% |
Gross debt/EBITDA | 2.63 | 1.25 | 110.4% |
Net debt/EBITDA | 1.38 | 0.02 | 6800.0% |
Gearing ratio | 0.70 | 0.01 | 6900.0% |
Interest expense | 8,892 | 5,302 | 67.7% |
Interest income | 3,459 | 3,884 | (10.9%) |
Debt Repayment Schedule |
2025 Total Debt and Breakdown
49%
51%
0%
2025 Core EPS was at Php 44.868, up 12%; Php 28.00 dividend per share representing close to 62.5% of Core EPS
60%
(50%)
70%
60%
70% 10%
60%
10%
13.736
11.235
12.5%
16.672
(50%)
20%
10.226
20%
11.028
Year-end stock price | 295.20 | 298.80 | 399.00 | 488.00 | 574.00 |
Dividend yield* | 5.2% | 5.6% | 5.0% | 4.9% | 4.9% |
CCNI (in PhP Mn) | 24,608 | 27,105 | 37,110 | 45,142 | 50,570 |
* Computed using dividends declared out of Core EPS and year-end stock price
TOTAL 5 YEARS
163.726
(Core EPS)
103.903
(Dividend per Share)
184,535
CCNI (in PhP Mln)
Manila Electric Company outlook revised to positive on improving business
integration; 'BBB' Rating Affirmed
BBB
positive
MER tracked ahead of the PSEi, closing the year 18% up at PhP574 per share while the PSEi was at 6,052.G2, down 7% vs. year-end 2024
MER Share PSEi
618.00
574.00
488.00 448.00
6,528.7G
5,862.5G
6,021.5G 6,052.G2
31-Dec-24 31-Jan-25 28-Feb-25 31-Mar-25 30-Apr-25 31-May-25 30-Jun-25 31-Jul-25 31-Aug-25 30-Sep-25 31-Oct-25 30-Nov-25
Full Year Ended December 31, 2025 OPERATIONAL PERFORMANCE REPORT Media, Investors and Analysts Briefing
FY 2025 Operational Highlights
DISTRIBUTION UTILITY
Business Drivers Service Performance
Electricity Rate per kWh
Energy Sales
53,GG7 GWh
▼0.6% vs 54,325 in 2024
DU Net System Input
55,855 GWh
▼0.8% vs 56,293 in 2024
Meralco Peak Demand
G.13 GW
April 23, 2025
▼2.0% vs 9.32 in 2024
Customer Count
8.221 Million
▲2.2% vs 8.043 Million in 2024
System Loss (12-MMA)
5.85%
▼0.14 ppt vs 5.99 in 2024
18th Consecutive Time to be lower than cap
Total SAIFI
0.G11 times
▼12% vs 1.041 in 2024
All-Time Best Performance
Total SAIDI
G7.501 minutes
▼10% vs 108.213 in 2024
All-Time Best Performance
Time to Connect
1.3G days
▼4.1% vs 1.45 in YTD 2024
Average Retail Rate
PhP 11.81
▲12.1% vs 10.54 in YTD 2024
Notes: 12-MMA - 12-Month Moving Average; SAIFI - System Average Interruption Frequency Index; SAIDI - System Average Interruption Duration Index Estimated year-to-date incremental losses from solar at 74 GWh (427 GWh vs 353 GWh in 2024; 20.8% increase)
CUSTOMER REPORT
FY 2025 Consolidated Energy Sales in GWh
Flattish vs. El Nino-leap year 2024, as contribution from new customers tempered impact of extreme weather patterns
15,234
33%
16,G12
37%
43,572 46,073
48,916 51,046
54,325 53,GG7
1G,008
37%
17,781
35%
▼ 0.6%
DU Sales Drivers
12,176
26%
14,766
35%
16,488
39%
14,221
30%
17,403
35%
17,148
35%
1G,455
20,406
37%
36%
1G,060
36%
Residential
14,465
26%
20,326
37%
Contracted 2.0% due to impact of extreme weather patterns and cooler temperatures
Commercial
Slightly down 0.4% as expansions in Retail and Restaurants were tempered by office and hotel vacancies
Industrial
Grew 1% with resilient Semicon, Steel, and Construction-related sectors
13,782
30%
14,318
26%
14,113
28%
2020 2021 2022 2023 2024 2025
Parent is 99% | CEDC + SCPC is 0.1% |
Flat Streetlights account for < 1% | FY 2025: 134 GWh
NETWORK REPORT
Q4 2025 Networks Project Updates
Capacity Addition and Reliability
Improvement Projects (Q42025)
166 MVA
Additional Capacity
PhP 1.48B
Total Capital Expenditures
(ERC-filed amount)
Supporting load growth and improving
service reliability in the following areas:
San Jose Del Monte City
San Ildefonso
Caloocan City
Bacoor City
Imus City
Biñan City
Sta. Rosa
Noveleta
Kawit
San Pedro
Replacement of 34.5kV MCS No.1 and Construction of Switchgear Building at LIIP Substation
Energized on Oct. 30, 2025
CAPEX: Php 78.67 million
Development of Island Cove 115 kV - 34.5 kV GIS Substation
Energized on Dec. 5, 2025
CAPEX: Php 489.82 million
Construction of CND-Alagao Line 2 (Part of Development of Alagao and Casalat Switching Station)
Energized on Nov. 25, 2025
CAPEX: Php 632.56 million
Expansion of Camarin 115 kV -
34.5 kV GIS Substation (2nd Bank)
Energized on Dec. 12, 2025
CAPEX: Php 208.45 million
Replacement of 34.5kV MCS No. 1 to Modular Switchgear at Sta.
Rosa II Substation
Energized on Nov. 29, 2025
CAPEX: Php 34.09 million
Replacement of 34.5kV GIS No. 1 at San Pedro Substation
Energized on Dec. 29, 2025
CAPEX: Php 33.11 million
REGULATORY REPORTFirst Regulatory Period (1RP) Reset Application covering July 1, 2026 - June 30, 2031 (RY 2027-2030)
Rate of Return
Weighted Average Cost of Capital2
14.6%
Timelines | |
February 2, 2026 | Application filed as ERC Case No. 2026-016RC |
March 3, 2026 | Jurisdictional hearing and Expository Presentation |
March 10, 2026 | Pre-trial hearing |
May/June 2026 | ERC Decision |
July 1, 2026 | Start of 1RP |
Assets
Opening RAB as of June 30, 20261 ₱35G B | Carry-over CAPEX (RY 2027-2028) ₱31 B | 4-Yr New CAPEX (RY 2027-2030) ₱242 B |
Rate
Smoothed Maximum Average Price 4
₱2.34/kWh
Volume
4-Year Sales3
225 B kWh
Regulatory Asset Base (RAB) includes CPI inflation adjustments for assets prior to 1RP and includes a 25% contingency allowance.
WACC based on January 2026 report by independent expert (NERA).
3 Sales forecast based on Dec 2025 EIU forecast and
considers expected volume reduction of 8.4B kWh due to solarization over 4 years.
4 Application also includes rate translation of the MAP into distribution, supply, and metering charges for different customer classes.
OPEX
4-Year OPEX
Proposal
₱156 B
4-Year
Other Taxes
₱6 B
Meralco CAPEX Overview
CAPEX Program (1RP) | Amount |
Electric Capital Projects (for customer growth, system reliability, power quality, and customer service improvements) | 154 B |
Non-network Assets (expansion of sector offices, business centers, and fleet) | 26 B |
Information Communication Technology Projects | 20 B |
Cybersecurity Projects | 7 B |
Advanced Metering Infrastructure (AMI) Projects | 34 B |
Carry-over Projects | 31 B |
Total | 272 B |
Group A Proposed Rates for the 1RP (RY2027 - RY2030)
DECORP | MERALCO | CEPALCO | CLPC | |
RY2027 | 2.0549 | 2.3436 | 1.5004 | 4.4168 |
RY2028 | 2.1997 | 2.3463 | 1.9935 | 4.4086 |
RY2029 | 2.3532 | 2.3455 | 2.6485 | 4.4199 |
RY2030 | 2.5197 | 2.3436 | 3.5188 | 4.4408 |
Average | 2.281G | 2.3448 | 2.4153 | 4.4215 |
Competitive Selection Process for Procurement of PSA for RE Contract Capacity of 200 MW (AC, net), effective February 2026 1/2
February 16, 2026: Bid Submission and Opening
Out of the 14 bidders that submitted expressions of interest, only 10 submitted bids.
Out of the 10 bidders that submitted bids, only 8 passed the pre-qualification evaluation.
Reserve Price: PhP6.5120/kWh (VAT and Line Rental inclusive)
Bidders and Bid Prices
BIDDER'S NAME | Contract Capacity | TOTAL DELIVERED HEADLINE RATE (VAT and Line Rental Inclusive) | RESERVE PRICE COMPLIANT? |
1. SUAL POWER INC. (BEST BID) | 200 MW | 4.2G55 PhP/kWh | Yes |
2. MARIVELES POWER GENERATION CORP. (NEXT BEST BID) | 200 MW | 4.3805 PhP/kWh | Yes |
3. BAC-MAN GEOTHERMAL INC. | 35 MW | 4.5187 PhP/kWh | Yes |
4. SAN MANUEL SOLAR INC. | 46 MW | 4.5787 PhP/kWh | Yes |
5. ACEN CORPORATION | 25 MW | 5.2087 PhP/kWh | Yes |
6. FIRST GEN HYDRO POWER CORPORATION | 25 MW | 5.4906 PhP/kWh | Yes |
7. NEGROS ISLAND SOLAR POWER INC. | 67 MW | 6.6487 PhP/kWh | No |
8. THERMA LUZON, INC. | 25 MW | 6.9238 PhP/kWh | No |
TOTAL | 623 MW | ||
Competitive Selection Process for Procurement of PSA for RE Contract Capacity of 200 MW (AC, net), effective February 2026 2/2
Following CSP commenced on December 12, 2025, the Bids and Awards Committee-Power Supply Agreements (BAC-PSA) found the Bid submitted by the following Bidder to be the Best Bid, whose total offered contract capacity (200 MW) completed the required Contract Capacity of said CSP.
Tariff Breakdown (in Php/kWh) | ||||||
Bidder | Contract Capacity in MW (AC, net) | Contract Price for Energy | Plant Gate (VAT exclusive) at 100% PCF | Line Rental Cap | Total Delivered Rate (VAT inclusive) at 100% PCF | Reserve Price |
Sual Power Inc. ("SPI") | 200 | 4.1955 | 4.1955 | 0.1000 | 4.2G55 | 6.5120 |
200 MW (AC, net) PSA SALIENT FEATURES | |
Operations Effective Date (OED) | 200 MW (AC, net) by the later between January 26, 2026 and ERC PA/IR |
Term | 4 Contract Years from 26 January 2026, or until January 25, 2030 |
Tariff Structure of Contract Price | Straight energy price (fixed during the Term, without any escalation or price adjustment) |
Minimum Energy Off-Take (MEOT) | 100% PCF with respect to the Contract Capacity, reckoned annually |
Change In Circumstance Claims (CIC)
Status of Recovery for/Rate Impact of ACEN, PEDC, SPPC and SPI CIC
On January 27, 2026, MERALCO received various ERC Orders, all dated January 26, 2026, granting Price
Adjustments (CIC) in MERALCO's PSAs with the following suppliers: ACEN, PEDC, SPPC and SPI.
MERALCO is authorized to implement the adjustments starting March 2026 billing month, until full recovery of the approved amounts. For March 2026, this is equivalent to P0.28 per kWh increase in generation charge.
ERC Case Nos. | Name of Supplier | Approved Amount in million PhP | Approved Rate per kWh | Est. Months of Recovery |
2019-078 RC | ACEN-Mid-merit | 220.1 | 0.0054 | 12 |
2019-079 RC | ACEN-Baseload | 1,528.9 | 0.0373 | 12 |
2022-001 RC | PEDC* | 380.6 | 0.0093 | 12 |
2019-081 RC | SPPC | 15,850.1 | 0.1246 | 36 |
2019-083 RC | SPI | 13,362.5 | 0.1051 | 36 |
TOTAL | 31,342.2 | 0.2817 | ||
*CIC of P884M which was previously approved by ERC was directed to be included in MERALCO's true-up filing that is still awaiting decision by ERC.
Interim Extension of Power Purchase Agreement (PPA) with First Gas Power Corporation - UPDATES
January 30, 2026:
ERC approved the Second Extension of the First Gas Sta. Rita PPA until June 25, 2026, noting the following:
ERC's overarching consideration of critical balance between energy security and consumer welfare.
If not extended, shutdown of Sta. Rita Plant will force Malampaya and the LNG terminal to shutdown as well which presents a critical energy security risk in the Luzon Grid with dire consequences extending beyond power rate increases.
Sta. Rita Plant has contributed to energy security through the frequent operation of its available units at full capacity, providing the needed increase in supply and stabilizing WESM prices
Reliable and flexible capacity offered by Sta. Rita Plant is much needed during the summer months.
It is imperative that power grids maintain sufficient capacity available to avert yellow/red alerts power interruptions, or worse, widespread outages.
f***j",/ JEBALCO
**"yGEN
JEIdALCO