REE Q3 2026: Record VND 3,270B Revenue, Profit Up 12% as M&E Offsets Real Estate

Overview

Cơ Điện Lạnh (REE), listed on HOSE, reported its highest-ever quarterly revenue of VND 3,270 billion for Q3/2026, up 28% year on year, with after-tax profit of nearly VND 926 billion, up 12%. Growth came from the mechanical and electrical (M&E) and power segments, while the real estate arm contracted. The results matter because REE is a diversified industrial, energy and property holding whose earnings mix is shifting away from real estate toward engineering and power.

Key Facts

• Q3/2026 net revenue: VND 3,270 billion, +28% YoY, the highest in company history.
• Cost of goods sold rose 35% to VND 2,182 billion, limiting gross profit growth to 16% at VND 1,088 billion.
• After-tax profit: nearly VND 926 billion, +12% YoY; profit attributable to parent shareholders VND 788 billion, +17%.
• M&E and trading: nine-month revenue VND 3,208 billion (+41%), after-tax profit VND 205 billion (+86%); REE M&E signed new contracts worth VND 9,069 billion in 9M/2026.
• Real estate: nine-month revenue VND 961 billion (-7%), profit VND 404 billion (-13%); property development revenue fell nearly 100%, from VND 175 billion to about VND 1 billion, as no further sales were booked at The Light Square.
• 9M/2026: revenue VND 8,167 billion (+14%), after-tax profit VND 2,647 billion (+11%), parent profit VND 2,134 billion (+12%), equal to 76% of the annual plan.
• Total assets at 30 September 2026: VND 44,398 billion (+11% since year-start); construction-in-progress nearly doubled from VND 2,433 billion to VND 4,857 billion; total liabilities VND 18,019 billion (+18%), with borrowings of about VND 11,465 billion (+6%).

What Happened

According to the consolidated Q3/2026 financial statements released by the company, REE booked net revenue of VND 3,270 billion, up 28% from the same period last year. Gross margin compressed because cost of goods sold rose faster than sales, at 35%, leaving gross profit at VND 1,088 billion, up 16%. Financial income more than doubled to VND 213 billion, while financial expenses rose 9% to VND 201 billion and selling and administrative costs increased 43% and 48% to VND 48 billion and VND 185 billion respectively.

The profit driver was the M&E segment, which contributed an additional VND 48 billion versus a year earlier as several projects were accepted and completed during the quarter. The power segment added VND 44 billion, helped in part by the divestment of the Sử Pán 2 hydropower stake. Real estate moved the other way: nine-month revenue fell 7% to VND 961 billion and profit fell 13% to VND 404 billion, with property development revenue collapsing from VND 175 billion to roughly VND 1 billion because no further sales were recognised at The Light Square.

Market Context

REE closed at VND 45,500 on 29 October 2026 on HOSE. The stock sits in the utilities and industrial conglomerate bracket of the Vietnamese market, a segment that has traded on the strength of power demand and infrastructure spending rather than residential property recovery. The record top line reinforces REE’s pivot toward engineering and renewable energy, but margin pressure from a 35% rise in cost of goods sold and a near-doubling of construction-in-progress to VND 4,857 billion signal a capital-intensive phase tied to the Duyên Hải 2, Duyên Hải 3 and Phú Cường 1A and 1B wind projects.

Strategic Significance

The investment case now rests on whether REE can convert its VND 9,069 billion M&E order book into margin rather than volume, and whether the wind buildout earns an adequate return under Vietnam’s power pricing framework. The real estate drag is close to fully reflected, with development revenue down to about VND 1 billion, so future earnings growth depends on engineering execution and electricity generation rather than property handovers. Rising borrowings of VND 11,465 billion and inventory up 37% to VND 2,090 billion bear watching as the capex cycle peaks.

What to Watch

• Q4/2026 and full-year results, including whether parent profit meets the remaining 24% of the annual plan.
• M&E backlog conversion and gross margin trend after the 35% cost-of-goods increase.
• Construction-in-progress movement on the Duyên Hải 2, Duyên Hải 3 and Phú Cường 1A/1B wind projects.
• Any new sales recognition at The Light Square that would revive real estate revenue.
• Borrowings and inventory disclosures in the next quarterly filing.