Gross revenues rose 6 percent to P497.33 billion while power generation sales volume jumped 78 percent and distribution sales slipped 1 percent, showing growth came from new capacity rather than franchise demand, the company announced on Wednesday.
The shift pushed the unregulated share of consolidated core net income (CCNI) to 42 percent from 39 percent a year earlier.
"Meralco had another record year in 2025 - marked by a double-digit growth in our CCN/ and full-year profit that surpassed our target, " said company chair and 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. Our strategy of maintaining a balanced mix of regulated and unregulated operations has served us well," he added.
Power generation a key growth driver
Power generation growth was driven by Meralco’s LNG investments through Chromite Gas Holdings and higher earnings from Global Business Power, with MGEN delivering 27,289 GWh in 2025, up 78 percent year on year, on additional capacity from Chromite Gas.
Renewables also expanded with new solar plants in Nueva Ecija and Isabela, while the MTerra Solar project reached 75 percent completion and is set to start operating by March 2026, initially adding a 250-MW block to the Luzon grid.
Earnings outpace revenue
Reported income increased 11 percent to P51.13 billion and earnings before interest, taxes, depreciation, and amortization (EBITDA) rose 15 percent to P86.36 billion, outpacing revenue growth.
Costs and expenses climbed 6 percent to P448.85 billion, broadly in line with the top line.
Spending and debt rise with buildout
Capital spending (capex) surged 144 percent to P108.96 billion as the company expanded power plants and networks, funded largely by a 143 percent jump in borrowings to about P230 billion.
"Consolidated capex [was] largely for the development of solar power plants and distribution network projects,” a presentation of its 2025 results showed on Wednesday.
Cash and cash equivalents rose about 29 percent to roughly P108 billion, indicating funds were raised ahead of projects. The ramp-up in generation is helping sustain Meralco’s earnings growth even as distribution volumes slow with the economy.
—Edited by Miguel R. Camus
