MANILA, Philippines — Manila Water Co. Inc., the Enrique Razon-led utility serving the East Zone of Metro Manila and Rizal, started 2026 with significant financial momentum. The company reported a 24-percent surge in its consolidated net income for the first quarter, reaching ₱4.41 billion, up from ₱3.56 billion in the same period last year.
The strong performance, detailed in a disclosure on Friday, May 8, 2026, was primarily driven by the implementation of higher water tariffs and effective cost management despite a challenging inflationary environment.
Manila Water’s bottom line outpaced its revenue growth, reflecting improved operational efficiency across its service areas.
- Consolidated Revenues: Increased 11 percent to ₱10.63 billion (from ₱9.54 billion).
- EBITDA: Rose 14 percent to ₱7.87 billion, maintaining a healthy margin of 74 percent.
- Net Income Margin: Improved by four percentage points to 42 percent.
While the core East Zone Concession remains the company’s primary engine, its regional and international business units saw even more aggressive growth.
- East Zone Performance: Net income for this segment climbed 28 percent to ₱4.1 billion, supported by an 11-percent revenue growth following the fourth tranche of the 2023-2027 rate rebasing.
- Non-East Zone (NEZ): Net income from hubs outside the capital surged by 56 percent. This was driven by tariff adjustments in Clark (Pampanga), South Luzon, and Boracay Island, as well as increased supervision fees from Laguna Water and Estate Water.
Despite the profit surge, Manila Water President and CEO Roberto Locsin emphasized that the company is bracing for the projected El Niño phenomenon later this year.
“With economic challenges and the threat of El Niño on the horizon, we fulfill our service obligations from a position of preparedness—backed by diversified sources, reinforced assets, and rigorous contingency planning,” Locsin said.
- Water Source Diversification: Expanding access to deep wells and alternative surface water sources to reduce reliance on Angat Dam.
- Infrastructure Investment: The company spent ₱2.8 billion in capital expenditures in Q1 alone, focusing on wastewater expansion, network reliability, and system efficiency.
- Contingency Systems: Mobilizing mobile water delivery solutions and optimizing treatment plants to maintain pressure during dry spells.
Following the announcement, Manila Water’s share price saw a positive uptick, rising by 0.9 percent to close at ₱44.90 on Friday. Analysts noted that the company’s ability to offset rising interest and depreciation costs through disciplined spending is a key indicator of its long-term resilience.
