Maynilad nine-month profit rises, sets 2027 CEO transition

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Maynilad profit, CEO transition

Highlights

Maynilad Water Services posts 10.2% net income growth to P12.6 billion for January–September 2026, driven by lower interest expenses and revenue up 3.5% to P28.6 billion.
Capital expenditure hits P19.5 billion in the first nine months, with a planned P27.5-billion capex for 2027, below 2026’s P30 billion, focusing on water security and loss reduction.
CEO Ramoncito S. Fernandez retires December 31, 2026, to be succeeded by Ramon B. Alikpala amid intensifying El Niño risks expected to persist until the first half of 2027.

Earnings growth and 2027 investment plan

As reported by BusinessWorld Online, Maynilad Water Services says net income rises 10.2% to P12.6 billion in the first nine months of 2026 from P11.4 billion a year earlier, helped by lower interest expenses and higher interest income. At a press briefing on Thursday, Chief Finance Officer Ricardo F. De Los Reyes says revenue increases 3.5% to P28.6 billion from P27.7 billion, supported by higher billed water volume, tariff adjustments and customer growth.

Billed volume increases 2.7%, while total billed customers reach 1.59 million as of end-September, up 1.5% from a year earlier. Water service coverage improves to 95.2% from 94.8%, and 94.5% of the service area has access to water around the clock at sufficient pressure.

Maynilad also reports progress in reducing non-revenue water to 29.3% as of end-September from 32.8% a year earlier. Capital expenditure reaches P19.5 billion in the January-to-September period, and the company is preparing a P27.5-billion capital expenditure program for 2027, below the P30 billion allocated for 2026, with spending focused on water security and loss reduction.

Leadership handover amid El Niño risk

President and Chief Executive Officer Ramoncito S. Fernandez is set to retire after nearly 11 years in the role and will step down on Dec. 31, 2026. Former Metropolitan Waterworks and Sewerage System Chairman Ramon B. Alikpala will succeed him effective Jan. 1, 2027.

Maynilad says wastewater service coverage rises to 95.7% from 90.4% a year earlier, while sewerage coverage improves to 27.7% from 25.9% and sanitation coverage to 68% from 64.5%. The incoming chief executive is expected to prioritize water security across the company’s service area as the very strong El Niño continues to raise the risk of below-normal rainfall and drought in several parts of the Philippines.

The Philippine Atmospheric, Geophysical and Astronomical Services Administration says a very strong El Niño is present in the tropical Pacific and is expected to persist until the first half of 2027, potentially peaking before the end of 2026. Maynilad provides water and wastewater services in the west zone of Metro Manila and parts of Cavite province.

In our earlier article on the Philippines’ planned sovereign bond-market reforms and expected inclusion in J.P. Morgan’s Government Bond Index-Emerging Markets, we explained that easier trading and broader foreign participation can support liquidity and price discovery, but won’t automatically translate into stronger business investment. We also noted that lasting gains depend on fiscal credibility, a deeper domestic investor base, and wider structural reforms—so cheaper funding can be channeled into productive spending rather than being offset by weak execution or governance risks.

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