Water Keeps Flowing

Research evidence excerpt

Water Keeps Flowing

Update

August 4, 2026 09:00 AM GMT

Morgan Stanley Asia (Singapore) Pte.+MMaynilad Water Services, Inc. | Asia Pacific Ryan M Heng

Equity Analyst

Water Keeps Flowing Ryan.Heng@morganstanley.comMayank Maheshwari +65 6834-6465

Mayank.Maheshwari@morganstanley.com +65 6834-6719

AlphaSignals Earnings Reaction Vivek Rajamani

Strengthens our thesis Meaningful upside Modest revision higher Vivek.Rajamani@morganstanley.com +65 6834-6740

Impact to our thesis Financial results versus consensus Direction of next 12-month

consensus EPS Morgan Stanley India Company Private Limited+

Source: Company data, Morgan Stanley Research Hinal Choudhary

Research Associate

Hinal.Choudhary@morganstanley.com +91 22 6118-2044

Key Takeaways Pranitha Shetty

Core earnings was a 10% beat to MSe on higher volumes and margins despite Pranitha.Shetty@morganstanley.com +91 22 6118-3022

water conservation efforts and higher expected utilities and water chemical costs.

Billed volumes surprised positively and grew ~3.4% YoY to 145mn cm in 2Q26

despite efforts from regulators to limit consumption due to El Nino risks.

Non-revenue water (leakages) declined to 29.7%, a key positive, helping to grow

EBITDA per unit despite 62% higher materials cost and increased purchased Maynilad Water Services, Inc. (MYNLD.PS, MYNLD PM)

water. ASEAN Utilities and Infrastructure | Philippines

Stock Rating Equal-weight

Avg. tariff for the quarter increased PHP3/cm to PHP68.3/cm, in line with Industry View In-Line

inflation, which helped offset some opex increases. Price target PP23.00

Up/downside to price target (%) 20

Net debt increased PHP3bn QoQ to PHP80bn as concession assets grew PHP9bn Shr price, close (Aug 4, 2026) PP19.12

52-Week Range PP24.45-14.02

to PHP217bn.