MANILA Water Co. Inc. said net income in the first nine months of 2026 dipped 2.4 percent to P12.83 billion from P13.15 billion a year earlier, as higher revenues failed to offset the impact of increased costs and expenses.
In a quarterly report, the East Zone water concessionaire said operating revenues rose 11 percent to P33.40 billion from P30.05 billion, driven by higher tariffs and sustained demand.
“Our nine-month performance demonstrates the resilience of our business and the strength of our fundamentals,” Manila Water President and CEO Roberto Locsin said.
He added that profitability was sustained “while navigating inflationary pressures and absorbing the near-term costs of bringing critical new assets online.”
“As we prepare for a potentially strong El Niño, we remain confident in our ability to manage near-term challenges with discipline while sustaining dependable, long-term value creation for our customers and shareholders,” Locsin said.
Consolidated cost of services and expenses increased to P9.63 billion from P8.69 billion, with the increase reflected in all related cost segments.
The combined net income of the parent company (East Zone Concession) and WawaJVCo rose to P11.12 billion, higher than the East Zone net income of P10.58 billion booked last year.
Manila Water had decided to combine the financial reports of the East Zone business and WawaJVCo after it acquired WawaJVCo from Prime Infrastructure Inc. in 2025.
The Non-East Zone-Philippine segment saw net income rise 19 percent to P1.36 billion from P1.14 billion, thanks to higher tariffs and higher supervision fees from Laguna Water and Estate Water.
Net income of the Non-East Zone-International segment plunged 98 percent to P19 million from P1.12 billion, reflecting the impact of a one-off gain booked in 2025.
The company’s capital expenditures (capex) fell 33 percent to P11.70 billion in the first nine months, with 82 percent of the amount taken up by the East Zone Concession and WawaJVCo.
Bulk of the East Zone Concession’s spending went to wastewater expansion, network reliability and water supply projects in line with attaining service obligations outlined in its government-approved Rate Rebasing Service Improvement Plan.
Domestic subsidiaries’ total capex amounted to P2.10 billion, of which P1.7 billion was used by Laguna Water, Clark Water, Estate Water and Laguna Water District Aquatech Resources Corp. for their water, and greenfield and brownfield projects, with the balance going to the remaining subsidiaries.
Separately, Manila Water disclosed that it had signed a 10-year term loan facility worth up to P10 billion with the Land Bank of the Philippines to partially finance its East Zone capex program and for general corporate requirements.
Manila Water shares on Tuesday shed P0.10, or 0.34 percent, to close at P29 apiece.
