The full-year target would represent growth of nearly 12 percent from 2025. Meralco, the country's biggest electricity distributor, had already earned P44.8 billion in the first nine months, up 12 percent, with its power plants now contributing nearly as much profit as its traditional electricity distribution business.
Power generation gains ground
Power generation contributed P18.2 billion, up 24 percent, and accounted for 41 percent of group earnings, compared with P20.1 billion or 45 percent from electricity distribution.
Much of the growth came from Meralco PowerGen Corp. (MGEN), the group's power generation arm, which has been expanding its conventional and renewable energy portfolio.
“We are realizing gains from investments made in previous years, particularly through MGEN that has been steadily increasing its earnings contribution,” Meralco chair and CEO Manuel V. Pangilinan said during the company's quarterly briefing on Wednesday.
Solar drives profit turnaround
One of the biggest developments is the expected turnaround of MGEN Renewables Inc., formerly SP New Energy Corp., which is targeting its first full-year profit of more than P700 million in 2026 after years of building its renewable energy portfolio.
The turnaround is being driven by MTerra Solar, which MGEN CEO Emmanuel V. Rubio described as one of the world's largest integrated solar and battery storage facilities.
The project, designed to have 3,500 megawatts of peak solar capacity and 4,500 megawatt-hours of battery storage when completed, began commercial operations in August and is initially supplying 600 megawatts of electricity to Meralco under a 20-year agreement.
MGEN Renewables has expanded its net saleable solar capacity more than eightfold to 1,082.2 megawatts as of September from 132.2 megawatts in 2025, with MTerra Solar expected to deliver another 250 megawatts of contracted supply in 2027.
Traditional business holds steady
Meralco's electricity distribution business remained its largest earnings contributor as its customer base grew to 8.4 million, supported by demand from households and commercial establishments.
The group's reported net income climbed 21 percent to P44.7 billion in the first nine months, while consolidated revenues increased 19 percent to P443 billion.
Meralco also spent P76 billion on capital projects during the period, with P54.6 billion directed toward renewable energy and battery storage as it accelerates its expansion beyond electricity distribution.
—Edited by Miguel R. Camus
