ACV Forecasts 2025 Pre-Tax Profit at 5-Year Low, Down 53.9% on Investment Costs

Overview

ACV, the operator of Vietnam’s airports and the developer of Long Thanh International Airport, has issued a 2025 pre-tax profit forecast of VND 7,011 billion, the lowest in five years and a 53.9% decline from 2024. The sharp drop is attributed to rising depreciation, operating costs, and interest expenses as the company enters a peak investment phase. The guidance was disclosed in materials for the upcoming annual general meeting on June 19.

Key Facts

• ACV forecasts 2025 pre-tax profit of VND 7,011 billion, down 53.9% from VND 15,203 billion in 2024.
• 2025 revenue is expected to reach VND 21,141 billion, up 2% year-on-year.
• Total investment for 2025 is estimated at VND 286,900 billion, with planned capital expenditure of VND 40,570 billion.
• The company is the main investor in Long Thanh International Airport, a national key project with total investment of nearly VND 337,000 billion.
• In the first four months of 2025, international passenger traffic at ACV-managed airports rose 15% year-on-year, while domestic traffic increased nearly 7%.
• ACV’s board noted that several senior executives have been prosecuted, negatively impacting the company’s reputation.
• ACV shares closed at VND 44,600 on June 17, down 1.55% with volume of 844,200 shares.

What Happened

ACV released its 2025 business plan in documents for the annual general meeting scheduled for June 19. The company provided parent-company figures only, forecasting a 2% revenue increase to VND 21,141 billion but a sharp 53.9% drop in pre-tax profit to VND 7,011 billion, the lowest since 2021. Management cited the peak investment phase and completion of major projects, which increase depreciation, operating, maintenance, and interest costs. Additionally, accumulated cash reserves are being deployed for national key projects, reducing interest income from bank deposits.

The board stated that some new facilities entering operation in 2025-2026 will provide core long-term benefits but will raise short-term costs and pressure profit margins. The company also highlighted that international air travel demand is recovering, with a 15% increase in international passengers in the first four months of 2025, though geopolitical risks and fuel price volatility remain concerns.

Market Context

ACV, listed on HOSE, has seen its stock decline 1.55% to VND 44,600 on June 17, with relatively low volume. The profit warning comes amid a broader market environment where infrastructure and aviation stocks are under scrutiny due to rising costs and regulatory changes. The company’s heavy investment in Long Thanh airport, a national priority, is a key driver of near-term earnings pressure, but the project is expected to boost long-term capacity and revenue.

Strategic Significance

The profit guidance underscores the financial burden of ACV’s role as the developer of Long Thanh International Airport, Vietnam’s largest infrastructure project. While the airport will significantly enhance ACV’s asset base and long-term earnings potential, the current phase of high capital expenditure and depreciation is compressing margins. Investors should weigh the short-term earnings drag against the strategic value of the expanded airport network, which positions ACV to capture growing air travel demand in Vietnam.

What to Watch

• Approval of the 2025 business plan at the AGM on June 19 and any additional guidance.
• Progress on Long Thanh airport construction milestones and cost updates.
• Trends in international passenger traffic and airline capacity expansion.
• Impact of fuel price volatility and geopolitical tensions on travel demand.
• Developments in legal proceedings involving senior management and their effect on operations.