Maynilad profit rises 19% to P15.2-B
From AB Capital's The Opening Bell: Three Moves
Event
Maynilad Water Services, Inc. reported 2025 net income of P15.2 billion (+19% YoY), driven by tariff adjustments and stable billed water connections. Revenues grew 9.4% to P36.6 billion, while EBITDA rose 14.9% to P25.3 billion, with EBITDA margin expanding to 69%, reflecting strong operating leverage and disciplined cost management.
View
As we highlighted yesterday, this reinforces our view that Maynilad is firmly in an earnings upcycle, with visibility improving meaningfully. The 69% EBITDA margin underscores the quality and defensiveness of the franchise. With regulatory clarity and a stronger earnings base, the conversation now shifts toward potential valuation re-rating and dividend capacity rather than recovery risk.
Catalyst
The upside was largely tariff-driven, with rate adjustments flowing directly to revenues given the stable connection base. The improvement in EBITDA margin highlights the inherent operating leverage of the regulated water model, where incremental tariff increases translate efficiently into earnings expansion. The results confirm that Maynilad is now fully benefiting from the current rebasing cycle.
Action
We maintain a constructive stance and see justification for upgrading versus our prior P19 target, given the stronger earnings trajectory and margin profile. Maynilad remains an attractive defensive name offering regulated growth, improving cash flows, and medium-term yield potential, particularly in a volatile macro backdrop.
Disclaimer: The information, analyses, and views contained herein is based on sources which we, AB Capital Securities, believe are reliable, but is not guaranteed by us and is not to be considered all inclusive. It is not to be construed as an offer or solicitation of an offer to sell or buy the securities herein mentioned. AB Capital Securities and its Directors and Officers and/or members of their families may have a position in the securities herein mentioned and may make purchases and/or sales of the securities from time to time in the open-market and otherwise.
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