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To our valued shareholders,looking back at your Company's 2025 performance, I am encouraged by what we achieved: strong revenue growth and an expanding portfolio. In the areas where results did not meet our targets, we have a clear understanding of why it happened and a plan to address these.
On some fronts, the Company performed well above plan: consolidated revenue growth was meaningful, reaching Php 14.94 billion, 17% above budget and 19% above previous year 2024 levels. Earnings per share of Php 0.126 grew 10% year-on-year, reflecting both income growth and the equity positions we built in SEC, WMPC, and SPPC during the year.
In 2025, we continued to expand your Company's facility portfolio with an additional 18MW capacity for Mapalad Power's Bohol In-Island Diesel Power Station in the Municipality of Ubay. The project has a total installed capacity of 95.2MW. This diesel facility was established to serve as a vital backup and emergency power supply for the province of Bohol. This provides critical support during grid failures or calamity-related outages. It is a meaningful addition to the region's energy resilience and a reflection of our commitment to ensuring reliable power where it is needed most.
Your Company has been actively advancing its renewable energy development program, conducting feasibility and interconnection studies for solar and integrated energy storage projects in General Santos City, Sarangani Province, and other locations in Mindanao and the Visayas. This work has not been without its challenges. Rapidly evolving technology, global supply chain pressures, and price volatility driven by geopolitical events have made it harder to finalize EPC contracts at returns that meet our investment thresholds. These are the conditions we continue to navigate in.
The most advanced of these projects is the Bawing Solar project, where we broke ground just this month, May 2026, with a target commercial operations date of June 2027. We are also positioning the Company to participate actively in the government's Green Energy Auction Program, which provides a structured and competitive pathway for new renewable energy capacity. In this regard, we are pleased to share that we have already secured our first GEAP contract, with the phase 1 of our SPPC Solar winning a GEAP Round 4 award with committed delivery by September 2027. This is an important milestone for ACR, as it marks our formal entry into the government's renewable energy auction program and validates the commercial viability of our solar program.
Beyond solar, your Company is also advancing the development of hydro power facilities in Bago, Negros Occidental and Siayan, Zamboanga del Norte. These projects represent our continuing commitment to expanding our renewable energy portfolio across multiple technologies and geographies. In Siayan, we are encountering developmental challenges. We hope to get these two projects started before the year ends.
Our hydro portfolio proved challenging in 2025. Last September, our Siguil Hydro Power plant experienced a significant operational incident. The disruption is expected to continue through the current year. We remain committed to restoring the plant to full operations by the fourth quarter of 2026.
While we are not where we hoped to be on every front, we are in a stronger position than we were a year ago, and we are clear on what adjustments are needed. The foundations we have built, the portfolio we are assembling, and the commercial relationships we have strengthened over the past year give me confidence that we are moving forward.
For 2026, our priorities are clear.
We are committed to energy transition and adopting new technologies to meet the changing demands of the Philippine energy market. We want to provide greener alternatives for our customers while harnessing opportunities this transformation presents.
We will maintain the reliable performance of our existing generation assets, because the revenues and stability they generate are what fund the growth we are building toward. These are not legacy obligations, they are the engine of our transition. This includes continuing the high standard of operations of the 210MW Sarangani Energy Corporation coal facility and the restoration of the 14MW Siguil Hydro Power plant to full operations.
And we will continue to invest in the people and organizational capabilities the business needs to grow. It takes capable, committed people to develop projects, manage relationships, and deliver results. Building that team is as important as any asset we are putting on the ground.
We are realistic about timelines. Large energy projects take several years from inception to commercial operation. The work being done today, the studies, the permits, the contracts, is what creates future capacity. We are building a portfolio of projects that we expect to deliver meaningful results over the next three to five years. We ask for your continued patience and confidence as we do that work.
To our Board of Directors: thank you for your guidance, your counsel, and your commitment to the long-term interests of this Company. Your oversight and your willingness to engage seriously with the challenges and opportunities before us is something we in management truly appreciates.
To our management team and my fellow employees, I thank you for the continued effort to do better than we did before. To our customers, partners, regulators, and host communities: thank you for the trust you place in ACR. And to our stockholders: thank you for your continued confidence in this Company.
ACR has been in Mindanao for nearly three decades, and we will continue to grow our business in Mindanao.
We will continue to provide reliable, affordable, and increasingly clean energy to the customers and communities we serve, while creating lasting value for the people who have placed their trust and their capital in ACR. That purpose has not changed. It guides every decision we make and every investment we commit to.
Thank you very much.
NICASIO I. ALCANTARA
Chairman & President
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