Coteccons FY2026 Profit Up 72%, Bonuses Up to 8 Months Salary

Overview

Coteccons (CTD), Vietnam’s largest construction company, announced strong FY2026 results (fiscal year ending June 30, 2026) with revenue up 38% and net profit up 72%, beating its annual plan. The company also revealed a court-approved settlement worth VND 526 billion with a subsidiary of Tân Hoàng Minh Group, a major positive for its receivables recovery. These developments underscore improving operational efficiency and a strengthening balance sheet for the HOSE-listed contractor.

Key Facts

• FY2026 revenue reached VND 34,340 billion, up 38% year-on-year, exceeding the plan by 14.5%.
• FY2026 net profit after tax reached VND 788 billion, up 72% year-on-year, surpassing the plan by 12.6%.
• Q4 FY2026 revenue was VND 10,471 billion, up 25% year-on-year, while Q4 net profit was VND 146 billion, down 25%.
• Net profit margin improved from 1.83% to 2.29% in FY2026.
• Performance bonus pool averages 3.5 months’ salary; top performers (4.6% of staff) receive 6-8 months’ salary.
• Court-approved settlement with Tân Hoàng Minh subsidiary (Ngôi Sao Việt) valued at VND 526 billion.
• CTD closed at VND 59,100 on July 30, 2026.

What Happened

Coteccons Construction Joint Stock Company (CTD) released its Q4 and full-year FY2026 financial statements, showing robust growth. Full-year revenue rose 38% to VND 34,340 billion, while net profit after tax jumped 72% to VND 788 billion, both exceeding the company’s plan. Management highlighted that profit growth outpaced revenue growth, with net margin improving to 2.29% from 1.83%, reflecting enhanced operational efficiency.

In a letter to employees, leadership announced performance bonuses averaging 3.5 months’ salary, with top performers receiving up to 8 months. Separately, CTD disclosed that the Hanoi People’s Court had approved a settlement agreement with Công ty TNHH Đầu tư Bất động sản Ngôi Sao Việt, a subsidiary of Tân Hoàng Minh Group, under which CTD will recognize VND 526 billion. The settlement follows a construction contract dispute arising from a project in Hanoi, for which CTD had previously fully provisioned the receivables after Tân Hoàng Minh’s troubles in 2022.

Market Context

CTD shares closed at VND 59,100 on July 30, 2026, on the HOSE. The construction sector has been recovering as Vietnam’s real estate market stabilizes, and CTD’s results reflect improving margins and order momentum. The settlement with Tân Hoàng Minh is a significant overhang removal, as the provision had weighed on earnings in prior years. The stock’s valuation will likely re-rate as the market digests the earnings beat and the potential for further recovery of receivables.

Strategic Significance

For long-term investors, CTD’s FY2026 results signal a turning point: the company is not only growing revenue but also improving profitability, a key indicator of pricing power and cost discipline. The court-approved settlement of VND 526 billion, if fully collected, would directly boost cash flow and reduce risk provisions, strengthening the balance sheet. Management’s theme for FY2027, “Discipline – From Growth to Quality Growth,” suggests a focus on sustainable margins rather than top-line expansion alone. This aligns with a broader industry trend toward selective bidding and better contract terms.

What to Watch

• Collection of the VND 526 billion settlement and its impact on cash flow and provisions in upcoming quarters.
• Q1 FY2027 results (quarter ending September 2026) to see if margin improvement persists.
• New contract wins and order book growth, especially in industrial and infrastructure segments.
• Any further legal resolutions with other Tân Hoàng Minh-related projects.
• Management guidance for FY2027 revenue and profit targets in the annual shareholder meeting.