First Gen Bullish on 2026 Amid Geothermal Energy Push

Why It Matters

The strategic pivot to renewables positions First Gen to capture higher margins from growing Philippine clean‑energy demand and reduces exposure to volatile gas markets, signaling stronger long‑term investor appeal.

Key Takeaways

• 2025 profit rose 8% to $264 million.
• Revenue increased 6% to $906 million.
• Geothermal capacity to add 6 MW in 2026.
• Hydro profit surged 73% to $33 million.
• Company sold gas assets, focusing on renewables.

Pulse Analysis

First Gen’s 2025 results underscore a broader transformation in the Philippines’ power sector, where utilities are scrambling to meet the government’s aggressive renewable‑energy targets. By shedding its gas‑asset control and reallocating capital to hydro, geothermal, solar and wind, First Gen aligns with the country’s goal of 35 GW renewable capacity by 2030. This strategic realignment not only diversifies its generation mix but also insulates earnings from the volatility of fossil‑fuel spot prices, a factor that compressed margins for many regional peers last year.

Financially, the firm’s 8% profit lift to $264 million and 6% revenue rise to $906 million were driven largely by hydro performance, where recurring profit jumped 73% to $33 million thanks to the 132‑MW Pantabangan‑Masiway plant. Although EDC’s geothermal earnings fell 31% to $52 million, the addition of 77 MW geothermal capacity and 40 MWh of battery storage reflects a commitment to scale. The announced partnership with Prime Infra, valued at roughly $1.35 billion (P75 billion), will see First Gen co‑develop 600 MW of Wawa and 1,400 MW of Pakil pumped‑storage projects, marking its debut as a greenfield hydro developer.

Looking ahead to 2026, First Gen expects its drilling program with Energy Development Corp. to start delivering tangible output, adding an estimated 6 MW of geothermal power. Coupled with the pumped‑storage ventures, this expansion could lift the company’s renewable share well above the current 87% of top‑line revenue. For investors, the move signals a higher‑growth, lower‑carbon profile, potentially unlocking premium valuations as the Philippines accelerates its transition to a sustainable energy future.