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| 2025 Earnings Report |
First Gen Corporation’s 2025 fiscal year was defined by a massive strategic reorganization. By selling a 60% stake in its natural gas business to Prime Infrastructure Capital, Inc., the company has unlocked significant capital while shifting its core focus toward a broader renewable portfolio.
1. Income Statement: The Impact of Discontinued Operations
The headline figures for 2025 reflect the deconsolidation of the gas business effective November 17, 2025.
Net Income: Consolidated net income rose to $436.9 million in 2025, a 29.3% increase from $337.8 million in 2024.
One-Off Gains: This growth was largely fueled by a $159.2 million gain from the sale of investments in the gas companies.
Operational Performance: Net income from discontinued operations (the gas business until the sale date) contributed $200.0 million, up from $164.6 million the previous year.
Renewable Growth: FG Hydro saw a dramatic 356.8% increase in net income contribution, rising to $24.4 million due to higher water reservoir levels and better contracted prices.
2. Balance Sheet: Asset Realignment
The balance sheet underwent a significant transformation as many operational assets were moved to "Investments in Associates."
Cash Position: Cash and cash equivalents jumped to $978.2 million at year-end 2025, compared to $676.8 million in 2024, reflecting the liquidity infusion from the gas stake sale.
Investments in Associates: This account surged to $526.5 million (from nearly zero in 2024) as the remaining 40% interest in the gas business is now accounted for under the equity method.
Current Ratio: The company maintained a strong liquidity position with total current assets of $1.72 billion against total current liabilities of $585.3 million.
3. Cash Flow: Unlocking Liquidity
The cash flow statement illustrates a company in the midst of heavy reinvestment and debt management.
Investing Activities: The sale of the gas business provided a massive cash inflow, which FGEN is already deploying. In early 2026, the company executed a P49.4 billion subscription for a 33.33% stake in Prime Infra’s pumped storage hydroelectric portfolio.
Financing Activities: FGEN utilized its strong cash position to prepay long-term debt, including a P20.0 billion parent-level loan.
Dividends: Despite the restructuring, FGEN remained committed to shareholders, declaring $51.8 million in total dividends during 2025.
The Bull Case: Why to be Optimistic
Capital Recycling: The $50.0 billion (PHP) sale of the gas stake provides a massive "war chest" for FGEN to acquire or develop new renewable assets without over-leveraging.
Pumped Storage Leadership: The strategic entry into the 1,400MW Pakil and 600MW Wawa pumped storage projects positions FGEN as a leader in energy storage, which is critical for balancing the Philippine grid.
Operational Efficiency: The Casecnan Hydro Electric Power Plant, acquired in 2024, completed its first full year of operations, contributing steady renewable revenue.
The Bear Case: Potential Risks
Reduced Direct Control: By moving the gas business to an "associate" status, FGEN no longer has full operational control over these assets, though it retains 40% ownership to ensure stability.
Geothermal Volatility: EDC (the geothermal arm) saw a 32.7% drop in net income contribution due to lower Wholesale Electricity Spot Market (WESM) prices and higher maintenance expenses.
Execution Risk: The massive pumped storage projects in Laguna and Rizal are multi-year developments that carry significant construction and regulatory risks before they become cash-flow positive.
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