Pomina Steel (POM) H1 2026 Loss Widens, Negative Equity Deepens

Overview

Pomina Steel (POM) reported a net loss of VND 325 billion in the first half of 2026, with accumulated losses exceeding VND 3,800 billion and negative equity of nearly VND 948 billion. Despite a 46% revenue increase, high interest expenses continue to weigh on the company, which is now heavily reliant on zero-interest loans from Vingroup.

Key Facts

• H1 2026 net loss: VND 325 billion, only VND 4 billion better than H1 2025.
• Q2 2026 net loss: VND 146 billion, versus VND 170 billion loss in Q2 2025.
• H1 2026 revenue: VND 2,177 billion, up 46% year-on-year.
• Q2 2026 revenue: VND 1,711 billion, 3.7x higher than Q2 2025’s VND 462 billion.
• H1 2026 gross profit: VND 167 billion, up 54% from VND 108 billion; gross margin improved to 7.7% from 7.3%.
• H1 2026 financial costs: VND 343 billion, including VND 322 billion in interest expenses—nearly double gross profit.
• Negative equity at June 30, 2026: VND 948 billion, up from negative VND 624 billion at start of year.
• Accumulated losses: VND 3,809 billion, exceeding paid-in capital of VND 2,797 billion.
• Operating cash flow in H1 2026: positive VND 536 billion, versus VND 114 billion a year earlier.

What Happened

Pomina Steel released its consolidated financial statements for Q2 2026, showing a net loss of VND 146 billion for the quarter and VND 325 billion for the first half. The company’s revenue surged to VND 1,711 billion in Q2, its highest quarterly level in years, but interest costs of VND 188 billion in the quarter and VND 322 billion in H1 overwhelmed gross profit.

According to the report, accumulated losses reached VND 3,809 billion by June 30, 2026, exceeding the company’s paid-in capital of VND 2,797 billion. Negative equity widened to VND 948 billion from VND 624 billion at the start of the year. The company has been relying on zero-interest loans from Vingroup since late 2025, after a planned partnership with THACO - Đại Quang Minh fell through. Payables to the Vin group increased from zero to VND 1,424 billion during 2026.

Market Context

POM trades on the UPCOM exchange, closing at VND 3,200 on August 2, 2026. The steel sector has faced headwinds from weak demand and high input costs, but Pomina’s situation is more acute due to its leveraged balance sheet and negative equity. The company’s revenue recovery is notable, yet the market is likely focused on its solvency and the sustainability of Vingroup’s support.

Strategic Significance

For long-term investors, Pomina’s turnaround hinges on whether it can generate enough operating profit to cover its financial costs and rebuild equity. The zero-interest loans from Vingroup provide temporary liquidity relief, but the company’s negative equity and accumulated losses suggest a need for a comprehensive restructuring, possibly including debt-to-equity swaps or asset sales. The improvement in operating cash flow to VND 536 billion is a positive sign, but it remains insufficient to offset the interest burden. The strategic question is whether Vingroup’s involvement will lead to a sustainable recovery or merely delay a more drastic outcome.

What to Watch

• Quarterly earnings releases for Q3 and Q4 2026 to see if revenue growth translates into narrower losses.
• Any announcements regarding debt restructuring, equity issuance, or asset divestitures.
• Changes in the payables to Vingroup and whether the zero-interest loan terms are extended or converted.
• Regulatory filings related to the company’s status as a listed entity with negative equity.
• Steel sector demand and pricing trends in Vietnam and export markets.