PLDT Flags Material Weakness as Auditor Pulls 2025 Opinions
PHI sits 15% above its 52-week low of $17.05.
Summary
PLDT disclosed a material weakness in internal controls and its auditor withdrew opinions on 2025 financials; the company will amend its 20-F, but expects no material impact on key metrics.
Key Events · Legal and Risk Events · PHI
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Material Weakness Disclosed
Management concluded that control deficiencies related to structured hedge arrangements constituted a material weakness in internal controls over financial reporting as of December 31, 2025.
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Auditor Withdraws Opinions
SGV withdrew its opinions on PLDT's internal controls and financial statements for fiscal year 2025, stating they can no longer be relied upon.
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20-F Amendment Planned
PLDT will amend its Original 20-F to correct hedge-accounting errors and reclassify amounts within 'Other Expenses-net' to appropriate line items.
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No Material Impact Expected
Revisions are not expected to materially affect net income, EPS, cash flows, EBITDA, EBIT, Telco Core Income, or Core Income.
Analysis · PHI · Technology
A material weakness in internal controls over financial reporting as of December 31, 2025, has been disclosed by PLDT, and its auditor, SGV, has withdrawn its opinions on the 2025 financial statements and internal controls. The company intends to amend its Form 20-F to correct hedge-accounting errors and reclassify certain line items, though it expects no material impact on net income, EPS, cash flows, or key operating metrics. An independent Audit Committee review is ongoing. This is a significant governance and financial-reporting event that undermines confidence in prior financial statements and could lead to regulatory scrutiny or investor concerns.
At the time of this filing, PHI was trading at $19.61 on NYSE in the Technology sector, with a market capitalization of approximately $4.3B. The 52-week trading range was $17.05 to $24.51. This filing was assessed with negative market sentiment and an importance score of 9 out of 10.