Novaland posts surprise profit in 2025 as legal hurdles cleared

Vietnam's leading property developer Novaland surprised the market by reporting a net profit of VND1.82 trillion ($69.96 million) for 2025, driven by a sharp turnaround in Q4 after legal obstacles at its Lakeview City project in Ho Chi Minh City were resolved.

NovaGroup-backed Novaland's (NVL) consolidated Q4/2025 financial statements show that the company recorded net profit of nearly VND3.64 trillion ($139.9 million) in the quarter.

The results marked a sharp reversal from a net loss of over VND4.39 trillion ($169 million) in 2024 and came as a surprise, given that Novaland had reported a loss of VND1.82 trillion ($69.96 million) in the first nine months of 2025, while business activity in the final quarter was not seen as exceptional.

Q4 net revenue fell 67% year-on-year to nearly VND1.58 trillion ($60.61 million). However, cost of goods sold turned positive at nearly VND1.02 trillion, lifting gross profit to over VND2.58 trillion ($99.34 million).

Novaland said the improvement was largely due to the reversal and adjustment of provisions related to land-use fees and land rental obligations at its Lakeview City project in HCMC, amounting to VND2.2 trillion ($84.49 million) during the quarter.

In the first half of 2024, the company had made provisions totalling nearly VND6.71 trillion ($257.94 million) for land-use fees, land rental payments, and late-payment penalties at the project, including VND1.58 trillion in penalties.

Following regulatory clarifications under Decree No. 76/2025 and coordination with HCMC authorities and other agencies, Novaland said its management believed there was sufficient basis to reverse and reduce previously recognized obligations. As a result, total provisions recorded in Q4/2025 consolidated accounts stood at over VND1.01 trillion ($39 million).

The resolution of the Lakeview City issues also allowed the group to reverse VND1.27 trillion ($48.88 million) in late-payment tax penalties. Other income reached VND891 billion in the quarter, compared with a loss of VND45 billion a year earlier.

Financial income rose to over VND1.7 trillion ($65.53 million) from VND598 billion, while financial expenses declined to VND562 billion from over VND1.26 trillion.

During the quarter, Novaland completed the divestment of several subsidiaries, including the entire Cao Nguyen Xanh (VND10 billion or $384,600), 99.99% of An Phu Dong (VND6.6 billion), Nova Property (VND139 billion), and 99.99% of Tan Kim Yen (VND164 billion), with gains recognized in its profit and loss statement.

For the full year, Novaland reported consolidated net revenue from sales and services of VND6.97 trillion ($268 million), including VND6.37 trillion from property sales and VND600 billion from services. The company recorded deliveries at projects such as NovaWorld Phan Thiet, NovaWorld Ho Tram, Aqua City, Sunrise Riverside, and Palm City.

The results far exceeded Novaland’s 2025 business plan, under which the company had expected a net loss of between VND12 billion and VND688 billion ($26.46 million).

As of December 31, 2025, Novaland’s total assets stood at VND249.8 trillion ($9.61 billion), up 5% from the start of the year. Inventory amounted to VND153.4 trillion, largely comprising land bank and projects under development.

Total borrowings reached VND67.19 trillion ($2.58 billion), including VND31.52 trillion in short-term debt. Short-term borrowings declined by VND5.46 trillion year-on-year due to partial bond repayments, while long-term debt rose by VND11.09 trillion ($426.5 million) following new loan disbursements to support project implementation.

Novaland said it had largely completed the first phase of its restructuring, focused on resolving legal bottlenecks at key projects, and would accelerate construction and handovers in the next phase to meet commitments to customers, partners and creditors.

On the Ho Chi Minh Stock Exchange (HoSE), NVL shares closed Friday at VND12,850 ($0.49) apiece.