First Gen Corp. experienced a significant surge in profitability during 2025, reporting an 8% increase in net income. This positive outcome was largely fueled by a substantial rise in electricity sales, directly linked to heightened hydropower production.
The company’s attributable recurring net income reached $264 million, a notable climb from the $245 million recorded the previous year. Revenue also saw a healthy 6% increase, totaling $906 million, driven by increased energy sales volumes.
A remarkable 87% of First Gen’s total revenue stemmed from its diverse portfolio of geothermal, wind, and solar assets managed under Energy Development Corp. (EDC). Hydroelectric plants contributed a significant 11%, with the remaining 2% originating from affiliates and the parent company.
The company’s hydropower platform demonstrated exceptional growth, with earnings soaring 73% to $19 million. This impressive performance was largely attributed to the 132-megawatt Pantabangan-Masiway power plant, which benefited from unusually high initial water levels.
These elevated water levels allowed the plant to maximize electricity generation and sales throughout the year. This strong hydro performance proved crucial in offsetting a decline in earnings from other areas of the business.
Despite increased kilowatt-hour production at the Bacman and Palinpinon geothermal plants, EDC’s overall earnings experienced a 31% decrease, settling at $75 million. Maintenance and well workovers in Leyte and Mindanao partially hindered gains.
Increased debt related to drilling programs and project expansions also contributed to higher interest expenses for EDC, further impacting profitability. However, the company continued to invest in future growth.
EDC successfully completed 77 MW of geothermal capacity and 40 megawatt-hours of battery and energy storage projects. An additional 6 MW of geothermal capacity is slated for commissioning in the near future.
The partial sale of First Gen’s natural gas assets also contributed to the financial picture. Income from the remaining 40% stake in these assets, beginning in November 2025, totaled $11 million.
Earlier in the year, First Gen sold a 60% equity stake in its natural gas business for P50 billion. Prior to this sale, the gas business had generated $200 million as discontinued operations from January to October.
This strategic decision to divest from gas assets signaled a clear shift in First Gen’s focus towards renewable energy investments. The company is actively preparing for a new phase of development.
Looking ahead, First Gen anticipates positive results from EDC’s ongoing drilling program. Furthermore, the company is poised to enter greenfield development with planned investments in 2,000 MW of hydropower projects.
Despite the company’s strong financial performance, its shares experienced a slight dip on the day the results were announced, closing at P16.96 each, down 0.24%.
