EL7.AI
StocksMedium•28 October 2026•
3 min read

Meralco Posts 44.8 Billion Pesos in Core Income in 9 Months, Up 12%

Key Facts

1Consolidated core net income was 44.8 billion pesos in the first nine months of 2026, up 12% from the same period.
2Reported net income rose 21% to 44.7 billion pesos, and revenue increased 19% to 443 billion pesos.
3Distribution contributed 20.1 billion pesos, or 45% of consolidated core income, while generation contributed 18.2 billion pesos, or 41%.
4Capital expenditure totaled 76 billion pesos in the first nine months of 2026.
5The company expects consolidated core net income of about 56.6 billion pesos for 2026, barring major unforeseen developments.

Philippine utility Meralco recorded consolidated core net income of 44.8 billion pesos in the first nine months of 2026, up 12% from 40 billion pesos in the same period of 2025, according to the Daily Tribune. The company also reported net income of 44.7 billion pesos, up 21% from 36.8 billion pesos a year earlier, while revenue rose 19% to 443 billion pesos. These figures cover the nine-month period, not the full fiscal year. Core income growth came as power procurement costs continued to rise, while retail electricity tariffs increased from the comparable period. Chairman and Chief Executive Manuel Pangilinan said the company was on track to meet its annual target, barring major unforeseen developments.

Distribution remained the largest contributor to consolidated core net income, generating 20.1 billion pesos, or 45% of the total, in the nine months. Power generation ranked next, contributing 18.2 billion pesos, or 41%. Retail electricity supply and non-electricity activities accounted for the remaining 14%. The breakdown shows generation now represents a substantial share of the company's earnings alongside its core electricity distribution business. The Daily Tribune attributed income growth to the distribution and power generation businesses.

Revenue rose 19% to 443 billion pesos during the period, while power procurement costs increased 20% to 338.7 billion pesos. The company attributed the higher procurement costs to continued fuel price pressures and a weaker peso. The average retail electricity tariff was 13.43 pesos per kilowatt-hour, up 15% from 11.63 pesos a year earlier. The report said higher generation and transmission charges contributed to the increase in the average tariff. These movements put higher revenue alongside increased energy costs and tariffs over the same period.

The company's capital expenditure totaled 76 billion pesos in the first nine months of 2026. Meralco directed the investments mainly to renewable energy, battery storage and improvements to its distribution network, according to the Daily Tribune. The spending plan combines development of energy assets with upgrades to the network that supports its distribution business. The investments come in a period when distribution accounted for 45% of consolidated core income and generation contributed 41%. The company said the capital expenditure covered the same period as its reported financial results.

Meralco expects consolidated core net income of about 56.6 billion pesos in 2026, according to a statement by Pangilinan cited by the Daily Tribune. He said the company was "on track to achieve consolidated core net income of about 56.6 billion pesos for full-year 2026, barring major unforeseen developments." The target follows core income of 44.8 billion pesos in the first nine months of the year. The statement makes the annual outlook conditional on there being no major extraordinary developments. The full-year figure therefore remains an approximate, conditional target, while the current results cover only the first nine months.