Novaland says revenue, profit inflection point to come from 2027

Major Vietnamese developer Novaland said it expects a meaningful pickup in revenue and profit from 2027, as 2026 will only see limited recognition despite the resumption of sales.

The developer maintains that 2026 will mark the final year of its restructuring phase, laying the groundwork for a return to growth thereafter.

According to documents prepared for its 2026 AGM, Novaland (HoSE: NVL) plans net revenue of VND22.72 trillion ($862.69 million), more than tripling from the previous year. Net profit is targeted at VND1.85 trillion ($70.26 million), broadly in line with last year’s result.

Speaking at a media briefing on Tuesday, chief financial officer Vo Quoc Duc said the company's management had initially set more ambitious targets, but rising tensions in the Middle East, along with inflation risks and the prospect of prolonged high interest rates, prompted a revision to more conservative goals.

Key projects to drive 2026-2027 revenue

Growth this year will be supported by new income streams from core projects, with Novaland planning to hand over more than 2,600 units and sell over 2,100 units. Furthermore, by 2030, the cumulative cash flow potential at ongoing projects is expected to reach over VND470 trillion ($17.85 billion).

However, executives said only a small portion of revenue will be booked in 2026, with the main contribution expected from 2027 onwards.

In Ho Chi Minh City, the group plans to deliver two major projects this year - Grand Manhattan in the former District 1 and Victoria Village in the former Thu Duc city - while Palm City in the former District 9 and The Park Avenue in the former District 11 are scheduled to break ground this year and be handed over in 2027.

Elsewhere, the Aqua City project in Dong Nai province is expected to receive sales permits by late second quarter or early third quarter. NovaWorld Phan Thiet has obtained approval to switch its land payment structure to a one-off payment, with land pricing under review and legal procedures expected to be completed by May or June. Legal processes for the Ho Tram project are also nearing completion, with the remainder expected in the third quarter.

After three years of restructuring, Novaland said its most challenging period has passed, with operations stabilizing and shifting from a “survival” phase to development.

More than 6,000 units have been delivered across ongoing projects, with thousands of ownership certificates issued. Key projects in Ho Chi Minh City and Dong Nai have resolved legal bottlenecks and construction is accelerating.

Improving debt structure eases short-term pressure

Novaland’s financial structure is also improving, helping to ease short-term liquidity pressure.

Its audited 2025 consolidated financial statements show total borrowings rising to nearly VND67.39 trillion ($2.56 billion) from nearly VND61.57 trillion, mainly due to increased bank loans to fund projects, while bond-related liabilities declined.

Outstanding bonds fell to VND25 trillion ($951 million) at end-2025, down VND12.27 trillion from the start of the year. Maturing bond obligations were reduced to VND14.16 trillion ($537.9 million) from VND22.73 trillion.

The company restructured several bond issuances with advisory support from firms including VPS Securities, Tien Phong Securities, Techcom Securities, and PetroVietnam Securities.

At the same time, Novaland secured new credit facilities, with total approved and expected credit lines for projects reaching nearly VND30.5 trillion ($1.16 billion), being disbursed in line with construction progress.

Positioning for post-restructuring growth

Novaland reaffirmed its goal of completing restructuring in 2026, fulfilling commitments to customers and investors, and preparing for sustainable growth.

Post-restructuring, the company plans to expand its land bank in line with major national infrastructure development and urbanization trends. It currently holds more than 2,400 hectares of undeveloped land in strategic locations with strong economic and tourism potential.

Its product strategy is also being repositioned, with urban real estate serving as the core pillar, focusing on genuine housing demand and improving living standards. Tourism real estate will be developed under an integrated “Stay-Eat-Play-Wellness” model to enhance long-term value.

Novaland said it is also strengthening its workforce and upgrading governance and operations through digital transformation and the application of artificial intelligence, as it prepares to appoint a new board of directors at its upcoming shareholder meeting.

On the Ho Chi Minh Stock Exchange, NVL shares closed Tuesday at VND17,500 ($0.66) apiece.