X-Stock | PVS VND 52,300, +28%: Q1 2026 earnings update

EARNINGS UPDATE

Q1 2026 results: PVS recorded net revenue = VND 8,699 billion (+44.6% YoY), NPAT-MI = VND 416 billion (+25% YoY).

• M&C segment posted a strong breakout: The M&C segment contributed revenue of VND 5,863 billion (+47% YoY), driven by the execution progress of key upstream projects (Block B – O Mon, Lac Da Vang), as well as offshore wind foundation fabrication contracts (Baltica 2, Formosa 4).
• Gross margin improved significantly: Gross margin reached 9.8% (+5.5 percentage points YoY) supported by: (i) a +7.9 percentage-point YoY improvement in the M&C segment’s gross margin, as upstream oil and gas projects contributed a higher proportion; and (ii) a +4.4 percentage-point YoY recovery in the technical vessel segment’s gross margin. Notably, PVS continued to accrue VND 1,977 billion in payables (the EPCI#1 package of Block B accounted for VND 798 billion).
• SG&A expenses increased sharply due to provisioning: SG&A expenses reached VND 623 billion (+58% YoY). Selling expenses rose significantly to VND 307 billion, mainly due to a VND 282 billion warranty provision for ongoing projects.
• Financial income remained solid: Financial income reached VND 214 billion, including VND 107 billion from deposit interest and VND 107 billion from FX gains. Financial expenses stood at VND 72 billion, with interest expenses remaining low at VND 17 billion.
• Profit from associates and joint ventures declined: Profit from associates and joint ventures reached VND 157 billion (-27% YoY), mainly due to lower revenue from the FPSO Lam Son project. We expect this contribution to improve from late Q3 2026, supported by the FSO Lac Da Vang project (expected to commence operations from September 2026) and potential FPSO projects under the Block B – O Mon value chain from 2027 onward.

BSC’S ASSESSMENT

• PVS’s Q1 2026 results were broadly in line with BSC’s forecast, completing 20% of the full-year revenue forecast and 24% of the full-year earnings forecast. This is a positive execution rate, as Q1 is typically a low season in the project implementation cycle. BSC expects to MAINTAIN its forecasts in the near term.
• Key points to watch: Business outlook and 2026 earnings forecast are discussed in detail on (pages 2 and 3) of the report.