Manila Water Co. Inc. reported another period of double-digit net income growth during the first half of 2025, with earnings increasing 15 percent to almost P8 billion.
The company’s strong performance was driven by continued top-line growth in its East Zone Concession and Non-East Zone Philippines (NEZ PH) businesses.
Manila Water also saw a 15 percent increase in earnings before interest, taxes, depreciation and amortization (EBITDA), reaching P14.6 billion, thanks to ongoing initiatives aimed at operating efficiency and productivity. This resulted in a four-percentage-point improvement in the EBITDA margin to 73 percent.
Revenues for Manila Water’s East Zone Concession rose 11 percent to P16 billion, bolstered by the third tranche of the approved Rate Rebasing tariff adjustment in January 2025.
Billed water volume, however, saw a 1 percent decline due to lower consumption from residential customers and reduced cross-border volume.
Costs for new facilities were offset by lower direct costs, keeping total costs at a 1 percent growth to P1.9 billion.
East Zone EBITDA increased 11 percent to P5.7 billion, and the EBITDA margin improved to 75 percent.
Outside the East Zone, the company’s businesses across the Philippines saw a 12 percent net income growth, reaching P852 million. This was driven by implemented tariff adjustments and an 8 percent increase in total billed volume.
Key contributors were Clark Water, Boracay Water, Cebu Water, and Estate Water. These gains pushed revenues up 11 percent to P4.7 billion.
The company’s international arm, Manila Water International, saw its equity share in net income increase 15 percent to P46 million, with improved performance from its Thu Duc Water business in Vietnam and the IWP2 management contract in Saudi Arabia.
Manila Water invested P11 billion in group-wide capital expenditures (CAPEX) for the first half of the year, with the East Zone Concession accounting for 86 percent of the total at P9.3 billion.
On June 30, Manila Water signed a term sheet to acquire 100 percent ownership of Wawa JVCo from Prime Infrastructure Inc. and minority shareholders.
The Wawa JVCo’s Bulk Water Supply Project is a direct raw water source that can produce up to 712 million liters per day (MLD).
Integrating this asset is expected to provide financial benefits, optimize water operations, and enhance the resilience and sustainability of the company’s water supply in its East Zone Concession.
The acquisition will augment the water supply from the Angat Dam and help mitigate future water supply risks.
Manila Water president and chief executive Jocot de Dios called the acquisition a “vital component” of the company’s strategy for sustainable water security.
“Our acquisition of Wawa JVCo aligns squarely with our objective of ensuring a credible, consistent and stable source of water for the communities we serve,” de Dios said.
“Equally important, it enables us to establish an integrated approach to water distribution across our network, resulting to better levels of efficiency and reliability in our operations. We recognize the value of the resource we steward and the importance of the service that we provide. We readily accept this responsibility, and we will continue our efforts to support future growth and expand service coverage to underserved areas for many years to come.”
