Vivant Corporation (Vivant or “the Company”) (PSE: VVT) reported a 1Q2026 Consolidated Core Net Income (CCNI) of Php 313 mn, a marginal 2% decline from the previous year.

Accounting for non-core items, which includes net losses incurred due to an unplanned downtime of a subsidiary’s generating unit, and forex gains, Net Income Attributable to Equity Holders of the Parent Company (NIAT) stood at Php 267 mn, 6% lower YoY.

“The Php 313 mn CCNI posted in the first quarter of 2026 was supported by the steady contribution of our DU business, reliable performance of our On Grid generation assets, improving results from our RES arm, and the positive contribution of our growing water business. We remain on track to meet our midterm goals,” said Arlo G. Sarmiento, Vivant Corporation Chief Executive Officer (CEO).

Vivant’s consolidated revenues stood at Php 2.6 billion (bn), higher by 9% compared with 2025. This increase was due to higher revenues from the sale of power and the finance income recognized from the concessions of IMCC and PPWRLC. Revenues from the Sale of Power increased by 4% due to the combined effect of higher revenues from a subsidiary’s increased participation in the WESM, higher volumes resulting from a subsidiary’s short term supply agreement and improved plant availability of a majority owned conventional plant in Bukidnon. Wholly owned Corenergy, likewise, recorded an enhanced topline performance on the back of a robust volume expansion.

Operating expenses increased by 12% to Php 400 mn driven by increased employee headcount, higher professional fees and outside services largely driven by business development initiatives, and higher depreciation and amortization costs due to fixed asset acquisitions and leasehold improvements completed in 2025.

Vivant’s consolidated assets stood at Php 36.0 bn while total equity attributable to parent was at Php 22.5 bn. Total consolidated interest-bearing notes amounted to Php 7.8 bn.

Vivant’s current ratio as of the end 2025 stood at 2.50x versus 1.70x at yearend 2025, while debt-to-equity ratio was at 0.49x compared with 0.48x at yearend 2025.

Energy Business

Vivant Energy contributed Php 476 mn to the Company’s net income. Energy distribution was the largest contributor in 1Q2026 accounting for 56% or Php 267 mn. This was followed by the power generation business which brought in Php 233 mn. Lastly, retail energy recorded a Php 23 mn loss contribution, albeit an improvement from 2025.

Net income contribution from DU VECO was at Php 267 mn, 6% lower compared with 1Q2025. Despite a 4% increase in electricity volumes to 975 GWh, the high base effect of a distribution and wheeling service (DWS) charge booked in 1Q2025 for back charges from prior periods caused the decline in contribution.

Vivant’s portfolio of plants, which includes coal, oil, and solar assets, delivered a total of 886 GWh. On Grid volumes totaled 827 GWh while Off Grid assets sold 59 GWh of energy to its customers. While overall energy volumes sold saw an 8% increase from 1Q2025, volumes dispatched by Off Grid assets reflected a 3% YoY drop.

Vivant’s On Grid coal plants performed well during the quarter, driven by improved Wholesale Electricity Spot Market (WESM) sales. 40%-owned Abovant Holdings, Inc., which operates a 246 MW facility in Toledo City, Cebu contributed Php 114 mn. Although lower than 2025, the contribution remained significant on the back of a 108% increase in WESM volumes. Additionally, 40%-owned Minergy Power Corporation (MPC) which operates a 165 MW plant in Balingasag, Misamis Oriental brought in Php 79 mn, a 69% improvement from the same period in 2025, driven by a 462% surge in spot market volumes.

Vivant’s On Grid oil plants contributed a combined Php Php 81 mn, up 14% versus 2025. The main driver of this growth is wholly owned subsidiary Meridian Power, Inc. (MPI) which operates a 70 MW oil facility in Cebu City. MPI contributed Php 46 mn on the back of higher margins from the WESM, which saw a 105% YoY increase in volumes.

Meanwhile, Vivant’s first On Grid RE facility, 40%-owned SSREC, which owns and operates a 49.2 MW solar plant in Samal, Bataan, contributed Php 9 mn to the Company’s bottomline. SSREC delivered a total of 18 GWh of energy during the quarter. SSREC is fully contracted with Corenergy.

On the other hand, the performance of Off Grid plants was affected by lower energy volumes sold during the period, recording a decline to 59 GWh from 61 GWh the prior year. This was exacerbated by higher generation costs, as well as the preventive maintenance activities conducted on the plants. Wholly owned Delta P, Inc. (DPI), which operates a 31 MW oil facility in Puerto Princesa, recorded a loss contribution as a result of the downtime of one of its engines.

Water Business

Vivant’s water business recorded a positive Php 75 mn income contribution in 1Q2026, a reversal of the Php 12 mn loss recorded in the prior year.

Income contribution from IMCC was at Php 76 mn on account of its concession asset. We began recognizing finance income from IMCC as a result of the joint venture agreement (JVA) between Vivant Hydrocore Holdings, Inc. (VHHI) and the Metropolitan Cebu Water District (MWCD) signed in April 2025. Under the concession, VHHI will supply Metro Cebu with potable water from the 20 megaliter per day (MLD) seawater desalination plant of IMCC.

Additionally, FLOWS’ contribution was at Php 6 mn, recording a 168% increase from Php 2 mn in the same period last year. Total volume of treated wastewater reached 191 mn liters in 1Q2026.

After establishing management control at the end of 2025, VHHI, a subsidiary of Vivant Water, strengthened its position in the wastewater treatment sector by finalizing the increase in its equity stake in FLOWS to 90% in March 2026. FLOWS serves as a private sector partner of the local government of Puerto Princesa in PPWRLC, the city’s sole wastewater and septage treatment facility.

In April 2026, Vivant Transcore Holdings Inc. (VTHI), a wholly owned subsidiary of Vivant Water, completed the full acquisition of Bantayan Resource Management and Development Corporation (BREMANDCOR), a water distribution company mainly servicing the municipality of Bantayan. The company is poised to deliver reliable water services to more than 4,000 households.

Also in April, Vivant Water’s majority owned subsidiary, Bantayan Island Water Solutions Corporation (BIWSC), which owns and operates a distribution and wastewater facility in Bantayan Island, Cebu, began commercial operations. BIWSC has approximately 1,000 households.

Outlook

“While the first quarter of the year was not without challenges, the resilience of our Bais (employees) still showed in our results. Furthermore, Vivant remains committed to achieving our aspirational goals. We are beginning to recognize the value of our previous investments. Our energy business development initiatives in SPUG and On Grid RE segments continue to progress. Corenergy has secured new customers and has begun expanding its footprint in the contestable market. And lastly, in water, we marked our first foray in the water distribution business with BREMANDCOR and BIWSC, complementing our utility-scale seawater desalination facility,” added Mr. Sarmiento.

“Amid uncertainties in the current environment, especially considering the ongoing Middle East conflict, sound fiscal management will be key for our business sustainability. Internally, we have strengthened our capability to monitor market risks and movements. The proactive measures being undertaken will secure our strong financial position which will support both operations and business development initiatives moving forward. Consequently, we not only continue to improve our services to our customers, but also increase value for our shareholders,” concluded Ms. Minuel Carmela N. Franco, Vivant Corporation Group Chief Finance Officer (CFO) and Chief Risk Officer (CRO).