PVS – Continuing growth momentum on stronger M&C business – [Beat] – Earning Flash

• 1Q26 net profit (NP) increased 25.4% YoY to VND416bn (USD16mn) mainly due to stronger M&C business.
• 1Q26 NP was ahead of our expectation at 25.5% of our full-year forecast.
• We see upward pressure on our target price of VND41,800, which we will update after further review.

Stronger 1Q26 revenue was driven by most segments

1Q26 revenue surged 44.6% YoY to VND8.7tn (USD3331mn), driven by increases in most segments.

• The key contributor – M&C business – surged 47.1% YoY to VND5.9tn (USD225mn), as key projects such as Block B, LDV and offshore wind continue their progress.
• Other segments also posted positive revenue growth, including Offshore support vessel (+33.8% YoY), Port base (+40.8% YoY) and O&M (+75.2% YoY), partially indicating vibrant domestic E&P activity.

GM expanded due to stronger M&C margin and changes in provisioning accounting methodology

1Q26 blended GM expanded 5.6% pts YoY to 9.8% – the highest quarterly level since 2020, mainly driven by stronger M&C margin (+7.9% pts YoY). Alongside major projects such as Block B and LDV entering peak execution, PVS also revised its approach to recognizing long-term project maintenance provisions in this quarter, booking VND282bn (USD11mn) of maintenance provisions in selling expenses instead of COGS previously. If including it, M&C margin still expanded 3.1% pts YoY. In addition, Offshore support vessel was another driver for blended GM expansion with GM rising to 17% (+4.4% pts YoY) while other segments remained mostly stable.

NP growth continues to show positive signs, beating our expectation

1Q26 SG&A expenses surged 57.5% YoY to VND623bn (USD24mn), mainly as PVS recognized VND282bn (USD11mn) of maintenance provisions in selling expenses. Meanwhile, net financial income slid 53.4% YoY to VND143bn (USD5mn) due to a 78% YoY decrease in net FX gain overwhelming a 26% YoY increase in deposit income.

In general, net profit continued to show positive signs in 1Q26 with growth of 25.5% YoY to VND416bn (USD16mn), beating our expectations at 25.5% of our full-year forecast.

Read the full report: Here