Manila Water continued its strong performance, reporting another period of double-digit net income growth. Earnings rose by 25%, reaching almost ₱12.6 billion. The company’s solid results were largely driven by sustained revenue momentum in both the East Zone Concession and the Non-East Zone Philippines (NEZ PH) operations. Supported by ongoing efforts to boost efficiency and productivity, Manila Water achieved a 14% increase in EBITDA, exceeding ₱21 billion. This pushed its EBITDA margin up by three percentage points from the previous year, reaching 73%. The company also recorded a ₱1.1-billion gain from the sale of its investment in Thailand’s East Water. Excluding such one-off items, core net income grew by 15% to ₱11.6 billion, with the core net income margin improving by two points to 39%.
For Manila Water’s East Zone Concession, revenues similarly increased by double-digits to reach ₱24 billion for the period, driven primarily by the implementation of the 3rd tranche of the approved Rate Rebasing tariff adjustment in January 2025. On the other hand, water demand saw a 1% decline in billed volume with lower consumption from residential customers with lower reading days, as well as lower cross-border volume. Expenditures related to technology platform costs drove operating expenses for the period, but overall, were offset by efficiencies realized in power and other direct costs. These kept total costs muted at a 1% growth to ₱5.9 billion. EBITDA increased by 14% to ₱18.2 billion, with EBITDA margin improving by two percentage points to 75%.
Beyond the East Zone Concession, the company’s businesses across the rest of the country saw earnings growth of 11% to reach ₱852 million in net income for the period. This was driven by strong contributions from several of its key business units, by way of implemented tariff adjustments and a 5% increase in total billed volume. Main contributors during the period are several of the group’s core domestic businesses, namely Clark Water, Estate Water, as well as several subsidiaries operating in Visayas-Mindanao namely Boracay Water, Cebu Water and Tagum Water in Davao. This solid performance pushed revenues up by 8% to ₱7 billion, resulting in a 5% improvement in net income to ₱1.1 billion. For Manila Water International, equity share in net income jumped significantly to ₱1.1 billion. This was driven mainly by the gain on the sale of the East Water investment which was fully impaired in prior years.
Manila Water continued to invest in critical infrastructure towards the fulfillment of its regulatory and service commitments. Group-wide capital expenditures (CAPEX) reached nearly ₱18 billion for the first nine months of the year, with the East Zone Concession accounting for 85% of total CAPEX at ₱14.9 billion.
Manila Water President and CEO Jocot de Dios is encouraged by the solid performance of the business units, even as the company begins to see significant benefits from its disciplined management of its portfolio, and its deliberate approach to new business growth:
“We are happy to see that the foundation laid for efficient and responsible operations, both within and outside our Metro Manila Concession, is lending towards the resilient performance we are seeing in our businesses. Equally important, our disciplined approach to managing our portfolio is now beginning to bear fruit.
“We will maintain the same level of rigor and discipline in managing our current operations and in seeking new growth opportunities. We understand that consistently executing our strategy is key to creating long-term value for both our shareholders and stakeholders.”
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