Manila Electric Co. (Meralco), the Philippines’ largest power distributor, reported record financial results last year as surge in its power generation business complemented steady gains in its core distribution utility.

In a statement on Wednesday, Feb. 25, Meraco reported that the utility’s consolidated core net income reached ₱50.6 billion in 2025, up from ₱45.1 billion a year earlier.

Consolidated revenues also rose six percent to ₱497 billion from ₱470.4 billion in 2024, supported by higher pass-through rates and significant jump in earnings from its power generation and retail electricity units.

“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,” Meralco Chairman Manuel V. Pangilinan said.

Consolidated reported net income followed a similar trajectory, rising 11 percent to ₱51.1 billion by the end of December. While the distribution business remains Meralco’s primary engine—accounting for 58 percent of core profit at ₱29.6 billion—the power generation arm is rapidly narrowing the gap. Generation profits now account for 33 percent of the total, reaching ₱16.8 billion.

Consumers, however, faced higher costs during the year as average retail rate rose 12 percent to ₱11.81 per kilowatt-hour, largely due to external pricing pressures.

Generation charges jumped 15 percent on the back of rising fuel costs, while transmission charges surged 31 percent as ancillary service costs spiked in the Reserve Market. These increases were partially offset by an eight percent decline in the average distribution charge, following refunds mandated by the Energy Regulatory Commission.

Operationally, Meralco saw consolidated energy sales volumes reach 53,997 gigawatt-hours. Residential and commercial demand posted marginal declines, which the company attributed to cooler weather and the increasing adoption of rooftop solar panels.

Industrial sales, however, provided a modest buffer, growing one percent despite the mixed volume performance. Meralco’s customer base continued its steady expansion, growing two percent to finish the year at 8.2 million customers.

Meralco Executive Vice President and COO Ronnie L. Perocho noted that the company achieved its “all-time best reliability performance” during the period, even as it navigated shifts in consumption patterns.

Investment in infrastructure remained a priority, with capital expenditures reaching ₱108.9 billion. Notably, 73 percent of that spending was directed toward renewable energy projects, specifically through its subsidiary MGEN and the MTerra Solar initiative.

Meralco is now positioning itself for a multi-year modernization of its power grid. The company has filed for a ₱272.2 billion capital expenditure plan for the 2026 to 2030 regulatory period.

Stability remains a central theme for the utility, as it anticipates the July 2028 start of its 25-year franchise renewal.

“The 25-year renewal of Meralco's franchise, beginning July 2028, remains a key milestone for its long-term stability,” Pangilinan said.

To reward shareholders, the Board of Directors approved a final cash dividend of ₱16.672 per share, scheduled for payment on April 20, 2026.