Profit of Vietnam’s top construction contractor Coteccons hits 5-year high in fiscal year 2025

Ho Chi Minh City-headquartered construction giant Coteccons reported a post-tax profit of VND454 billion ($17.32 million) for the 2025 fiscal year (from Q3/2024 to Q2/2025), up 47% year-on-year.

That marked the company’s (HoSE: CTD) highest annual earnings since 2020, a period that saw the Covid-19 pandemic and economic downturn.

Full-year revenue rose 18% to nearly VND24.87 trillion ($948.86 million), according to its report.

Coteccons posted gross profit of over VND778 billion ($29.68 million) in the fiscal year, up 9% from the previous year. However, its gross margin edged down to 3.13% from 3.38%.

In Q4 of the fiscal year alone, equivalent to Q2/2025, consolidated net revenue came in at VND8.35 trillion ($318.6 million), up 26.6% year-on-year. Net profit stood at over VND196 billion ($7.48 million), 2.8 times higher than the same period last year.

The company’s financial expenses nearly doubled in this fiscal year to VND205 billion ($7.82 million), driven mainly by a 50% surge in interest payments, which totaled almost VND143 billion ($5.6 million), alongside losses from securities investments and other financial costs.

Offsetting this, the company slashed its administrative expenses by nearly half, aided by the reversal of provisions for doubtful debts.

In fiscal 2025, Coteccons secured new contracts worth over VND29.1 trillion ($1.11 billion), up about 32% and surpassing the year's target. Meanwhile, its carried-over backlog reached VND35.35 trillion ($1.35 billion).

Repeat sales - contracts won or assigned by existing clients - accounted for over 70% of total sales, a ratio the firm continued to maintain.

This forms the foundation for Coteccons to secure stable revenue from strategic clients while gradually expanding into new segments and markets.

Bad debt remains a key concern among shareholders and investors. By the end of the fiscal year, the company reported non-performing loans of VND1.56 trillion ($59.51 million), down nearly VND684 billion ($26.09 million), or about 30.5%. As a result, provisions for bad debt were reduced by more than VND419 billion ($15.99 million) in the fiscal year.

Coteccons now has only two remaining bad debts, tied to Ngoi Sao Viet - a subsidiary of major developer Tan Hoang Minh - and Saigon Glory – the developer of a six-star complex project in Ho Chi Minh City’s Ben Thanh quadrilateral. The company has set aside more than VND1.21 trillion ($46.16 million) in provisions, indicating it deems nearly 78% of these receivables as unlikely to be recovered.

At a shareholder meeting in September 2024, chairman Bolat Duisenov said the company’s principle is to make provisions as soon as receivables appear difficult to recover.

He stressed, however, that bad debt has had limited impact relative to the company’s overall financial health.

Coteccons said it has a rigorous process in place to handle such cases, with a dedicated team closely monitoring the situation to ensure sustainable growth.

The company was recently recognized as Vietnam’s largest construction contractor in Fortune magazine’s ranking of the 500 biggest companies in Southeast Asia. Notably, it rose 72 places in the Fortune Southeast Asia 500 Ranking 2025, from No. 376 in 2024 to No. 304 in 2025.

On the Ho Chi Minh Stock Exchange, CTD shares closed Friday at VND82,000 apiece ($3.13).