SGN Net Profit Falls 23% in 2025 After Losing Vietjet Air Contract
This Aveluro analysis covers SGN on HOSE in the Industrial Goods & Services sector. The classified event type is earnings miss, with negative sentiment and a deterministic market-impact score of 8.4/10. Aveluro classifies this story as a negative catalyst and risk signal for the affected stock. Source coverage came from Tuổi Trẻ - Kinh doanh, classified as a primary/top-tier source.
Key Facts
Caveat: Not investment advice. · How Aveluro computed this: Aveluro combines extracted event facts, source credibility, ticker context, and market data. Scores are deterministic research signals, not recommendations.
Overview
Saigon Ground Services (SGN, HOSE) reported a 23% decline in 2025 net profit to VND 208 billion, driven by the loss of its domestic ground services contract with Vietjet Air and reduced operations from Bamboo Airways. The company faces rising fuel costs and intense competition but is pivoting toward the Long Thanh airport project and new airline partnerships.
Key Facts
- SGN’s 2025 consolidated net profit fell 23% year-on-year to VND 208 billion.
- Consolidated revenue reached VND 1,545 billion, down 1% from 2024.
- The company lost its domestic ground services contract with Vietjet Air at Tan Son Nhat from April 20, 2025, and international services from November 1, 2025.
- Bamboo Airways reduced domestic flight operations at Cam Ranh International Airport.
- SGN signed new contracts with Sun PhuQuoc Airways and United Airlines to partially offset the loss.
- 2026 targets: consolidated net revenue of VND 1,534.1 billion (-0.7%) and net profit of VND 170.6 billion (-18.1%).
- Q1 2026 net revenue was VND 388 billion (-7% YoY) and net profit VND 71 billion (-8.5% YoY).
What Happened
Saigon Ground Services (SAGS, ticker SGN) disclosed its 2025 annual report and 2026 AGM documents, revealing a sharp profit decline. The primary cause was the termination of ground services for Vietjet Air at Tan Son Nhat Airport, first domestic (April 20, 2025) and then international (November 1, 2025). Additionally, Bamboo Airways reduced its domestic flight volume at Cam Ranh, and Chinese carriers did not operate as planned.
To mitigate the impact, SGN secured contracts with new airlines, including Sun PhuQuoc Airways and United Airlines. The company also cited rising jet fuel costs, which have nearly tripled since pre-conflict levels, as a major headwind for the entire aviation services sector.
Market Context
SGN shares closed at VND 53,400 on June 1, 2026, up 0.75% on thin volume of 2,000 shares. The stock has likely been under pressure given the profit decline and uncertain outlook. SGN operates in the highly competitive ground handling market, facing direct competition from VIAGS and its subsidiary AGS at major airports. The company’s reliance on a few key carriers makes it vulnerable to contract losses.
Strategic Significance
The loss of Vietjet Air, a major domestic carrier, represents a structural shift in SGN’s revenue base. The company’s strategy now hinges on diversifying its client portfolio and expanding into the Long Thanh airport project, where it has established a new legal entity (75% owned) with a charter capital of VND 333 billion. Success at Long Thanh could provide a long-term growth catalyst, but near-term earnings will remain under pressure from competition and cost inflation.
What to Watch
- Q2 2026 earnings release to see if revenue stabilization materializes.
- Progress of the Long Thanh airport ground services facility and its revenue contribution timeline.
- New airline contract wins, especially with international carriers.
- Fuel cost trends and their impact on airline demand for ground services.
- Competitive dynamics with VIAGS and AGS at key airports.