MANILA, Philippines — Manila Electric Co. (Meralco) proved that its big bets on power generation are paying off, reporting a steady climb in its first-quarter earnings despite a dip in residential electricity use.
The Pangilinan-led energy giant announced on Monday that its consolidated core net income hit P11.43 billion for the first three months of 2026, a 2% increase from the previous year. While the distribution side—the poles and wires we see on the streets—remains the biggest moneymaker, it was the company’s power generation arm that provided the real “spark” this quarter.
Interestingly, Meralco’s distribution unit saw a 2% drop in sales volume, largely due to cooler temperatures early in the year which led to lower air conditioning use. However, the slack was picked up by Meralco PowerGen Corp. (MGEN), which saw a massive 25% surge in energy sales.
MGEN’s contribution to the bottom line has now nearly matched the distribution segment, accounting for 45% of the total profit. This shift is largely credited to new assets coming online, including the massive MTerra Solar project in Luzon.
“The first quarter of 2026 marks MGEN’s shift from building capacity to delivering tangible impact to the grid,” said MGEN President and CEO Emmanuel Rubio. He noted that the MTerra Solar facility has already started injecting 250 megawatts into the grid, helping stabilize the country’s energy supply.
Despite the positive numbers, Meralco Chairman Manuel V. Pangilinan remains vigilant. With global fuel markets feeling the heat from the Middle East conflict, the company is doubling down on “prudent sourcing” to keep electricity prices from swinging wildly for consumers.
The company is also keeping an eye on the future, exploring newer technologies like nuclear energy to ensure the Philippine grid remains reliable for its growing base of 8.3 million customers.
