Manila Water delivers solid first half of 2026 performance with double-digit revenue and EBITDA growth

Despite investment-cycle challenges and a more complicated operating environment, Manila Water Company, Inc. (Manila Water) maintained its strong financial and operational performance for the first half of the year, demonstrating the beneficial effects of authorized tariff adjustments, steady demand, and ongoing cost discipline.

Manila Water's consolidated revenues for the first half of 2026 rose by 11% to Php22.2 billion, supported by both the implementation of tariff adjustments across key operating units and steady contributions from its core business. Effective cost control and operational efficiency initiatives complemented this topline growth, resulting in a 13% increase in EBITDA to Php16.4 billion. The company's continued focus on efficiency enhancements and strict cost controls throughout the organization was reflected in the EBITDA margin's further strengthening to 74%. In addition, net income increased by 6% to Php8.5 billion, indicating Manila Water's ability to generate profits in spite of increased depreciation and interest costs. This demonstrates the business's capacity to strike a balance between the demands of an ongoing investment cycle and short-term financial performance.

Due to consistent customer demand and tariff adjustments, Manila Water's East Zone Concession saw a 12% increase in revenues to Php17.9 billion, indicating a strong business performance. Despite increased depreciation and interest costs from strategic infrastructure investments, the core business continued to be strong, as evidenced by the 13% increase in EBITDA to Php13.7 billion and the 9% improvement in net income to Php7.8 billion.

Non-East Zone Philippines (NEZ PH) business units also produced strong growth outside of Manila Water's East Zone Concession. Tariff adjustments in key operations in Clark, South Luzon, and Boracay contributed significantly to the 2% growth in NEZ PH revenues and the 7% increase in EBITDA. Higher supervision fees from projects under the company's Laguna Water and Estate Water divisions further supported this, demonstrating Manila Water's growing portfolio contribution outside of its East Zone Concession and each company's capacity to seize expansion opportunities.

Manila Water is still concentrating on vital infrastructure that facilitates long-term water security, service dependability, and capacity growth. In accordance with the company's service commitments, capital expenditures totaled Php6.8 billion during that time.

“Our first half results show that even in uncertain times, our company can still deliver strong performance, provide reliable service, and create lasting value for our stakeholders. While geopolitical concerns and El Niño present real challenges for our sector, we are confident in our ability to navigate these conditions by improving the way we operate, optimizing resources, and strengthening service delivery. In doing so, we can translate operational gains into meaningful financial results, while continuing to provide reliable and essential water service to our customers.” ~Mr. Roberto R. Locsin, Manila Water President and CEO

Manila Water continues to take a proactive approach to managing external risks, such as the current El Niño conditions and market disruptions brought on by the Middle East crisis. The business is still taking a methodical and focused approach to water supply augmentation, operational resilience, and cost control.