First Gen bullish on 2026 amid geothermal energy push
First Gen Corp. remains optimistic on a stronger financial performance in 2026 as it expects gains from investments in drilling for geothermal energy.
The Lopez Group firm recorded an 8-percent profit boost in 2025, driven by its hydro portfolio, even as the firm saw cheaper power spot prices.
The firm’s attributable recurring net income rose to $264 million from the year-ago $245 million.
The company’s revenues also went up by 6 percent to $906 million from $857 million, thanks to a higher volume of power sold during the period.
First Gen currently has 1,700 megawatts (MW) of generating capacity from 30 hydro, geothermal, solar and wind facilities across the country.
The company’s renewable presence is expected to go bigger as First Gen sets its focus on building more clean energy assets, particularly geothermal plants, after slashing its control in gas facilities.
“The previous year brought about a fundamental change in First Gen as we decided to sell down our controlling stake in the gas assets. We decided to strategically pivot into our renewable energy investments,” First Gen president and COO Francis Giles Puno said in a statement on Wednesday.
The year 2026 will be when “… EDC’s (Energy Development Corp.) investments in its drilling program bear significant fruit, while the recently announced partnership with Prime Infra for the 600 MW Wawa and 1400 MW Pakil Pumped Storage Hydro Projects marks our debut as greenfield hydro developers,” Puno said.
Eighty-seven percent of First Gen’s top line in 2025 came from EDC geothermal, wind and solar assets. The group’s hydroelectric power plants, meanwhile, provided the other 11 percent.
First Gen said its hydro operations’ contribution to recurring profit soared by 73 percent to $33 million from $19 million. This was on the back of the stronger performance of its 132-MW Pantabangan-Masiway power plants.
EDC’s attributable recurring earnings, meanwhile, fell by 31 percent to $52 million from $75 million. While its BacMan and Palinpinon geothermal facilities generated more electricity last year, the firm witnessed a drop in gross sales volume in Leyte and Mindanao.
EDC also logged higher interest expenses as it pursued more drilling operations and expansion. But, as it scaled up its operations, EDC strengthened its portfolio with the addition of 77 MW of geothermal power capacity and 40 megawatt-hours of battery and energy storage projects.
A total of 6 MW of geothermal power is expected to come online within 2026.
