HBC 2025 Net Profit Falls 74%, Misses Target; Backlog of 10 Trillion VND

Overview

Hoa Binh Construction Group (HBC) reported 2025 revenue of over 4,620 billion VND and net profit of nearly 251 billion VND, down 28% and 74% respectively year-on-year, missing its annual targets. Chairman Le Viet Hai described the results as reflecting a comprehensive restructuring amid a challenging construction sector. However, the company enters 2026 with a backlog of nearly 10,000 billion VND and targets doubling revenue to 10,000 billion VND this year.

Key Facts

• HBC’s 2025 revenue: over 4,620 billion VND, down 28% year-on-year.
• 2025 net profit: nearly 251 billion VND, down 74% year-on-year.
• Backlog entering 2026: approximately 10,000 billion VND.
• 2026 revenue target: 10,000 billion VND (more than double 2025).
• 2026 net profit target: 250 billion VND (roughly flat vs 2025).
• Total value of contracts won in 2025: over 13,500 billion VND.
• Employee count at end-2025: nearly 1,300, net increase of 35.

What Happened

In its recently published annual report, HBC Chairman Le Viet Hai stated that the company has passed the “struggling to survive” phase following the pandemic and global geopolitical shocks. The 2025 financial results reflect a comprehensive restructuring period, with revenue and profit both declining sharply versus the prior year. The company missed its revenue target by nearly half and its profit target by about 30%, citing project execution delays and rising input costs for materials and labor.

Despite the miss, Hai highlighted a “dawn breaking” with a backlog of nearly 10,000 billion VND entering 2026, supported by a more diversified project portfolio and strategic clients. Major contract wins in 2025 include Eaton Park Thu Duc (1,900 billion VND), H2 Hoang Huy Commerce in Hai Phong (1,500 billion VND), and NewTown Diamond Da Nang (900 billion VND). The company also noted that 40% of new hires in 2025 were former employees returning, signaling strong internal culture.

Market Context

HBC shares closed at 5,000 VND on April 10, 2026, down 3.85% on volume of 1,070,800 shares on HOSE. The stock has been under pressure as the company navigates a prolonged downturn in the construction sector. HBC posted losses in 2022-2023 but returned to profit in 2024 and 2025, though margins remain thin. The broader construction sector faces headwinds from rising material costs and uneven project disbursement, though public investment and industrial construction demand are expected to support growth in 2026.

Strategic Significance

HBC’s 2026 target of 10,000 billion VND in revenue represents a critical inflection point: if achieved, it would mark the first time since 2022 that the company returns to five-digit revenue. The large backlog provides visibility, but margin pressure from input costs and the flat profit target suggest limited earnings leverage. The company’s restructuring appears to be stabilizing operations, but the wide gap between revenue and profit growth indicates that cost control and project execution will be key to restoring profitability. The return of former employees and diversified project mix are positive signals for long-term competitiveness.

What to Watch

• Q1 2026 earnings release for revenue and backlog conversion progress.
• Trends in construction material costs (steel, cement) and labor availability.
• Progress on major projects: Eaton Park, H2 Hoang Huy Commerce, NewTown Diamond.
• Any further changes in senior management following the resignation of CEO Le Van Nam.
• Public investment disbursement data for the construction sector in 2026.