Vietnam’ steel giant Hoa Phat reports 30% profit surge in Q2

Vietnam’s largest steelmaker, Hoa Phat Group, posted after-tax profit of VND4.3 trillion ($164.4 million) in Q2/2025, up nearly 30% compared to both Q2/2024 and Q1/2025.

Its Q2 revenue was estimated at over VND36 trillion ($1.38 billion), down 9% year-on-year and 4% quarter-on-quarter, Hoa Phat, listed on the Ho Chi Minh Stock Exchange (HoSE) as HPG, reported.

For the first six months of 2025, the group recorded more than VND74 trillion ($2.83 billion) in revenue and over VND7.6 trillion ($290.55 million) in after-tax profit, representing year-on-year increases of 5% and 23%, respectively.

In 2025, Hoa Phat targets VND170 trillion ($6.5 billion) in revenue and VND15 trillion ($573.45 million) in after-tax profit.

With the results so far, the group has completed 44% and 51% of its revenue and profit goals for the year, respectively. The steel segment and related products were the main contributors, accounting for nearly 90% of consolidated revenue.

In Q2, Hoa Phat produced 2.5 million tons of crude steel, unchanged from Q1 and up 10% year-on-year. Sales of hot-rolled coil (HRC), construction steel, high-quality steel, and steel billets totaled 2.6 million tons, up 9% quarter-on-quarter and 18% year-on-year.

For the six-month period, the group produced 5.1 million tons of crude steel, a 17% increase over the same period in 2024. Sales of HRC, construction steel, high-quality steel, and billets reached 5 million tons, up 23% year-on-year. HRC alone saw a remarkable 42% increase compared to the first half of 2024.

Hoa Phat's agriculture segment also achieved outstanding results in the first half, with revenue and after-tax profit growing by 38% and 130% year-on-year, respectively.

A company representative stated that Blast Furnace No. 6, part of Phase 2 of the Hoa Phat Dung Quat 2 Integrated Steel Complex in the central province of Quang Ngai, is scheduled for completion in September 2025.

Once operational, the group’s total steel production capacity will reach 16 million tons per year, including 9 million tons of HRC - enough to fully meet Vietnam’s domestic demand for this product.

On August 19, Hoa Phat will break ground on a factory to produce high-speed rail tracks and special structural steel in Dung Quat, Quang Ngai.

The VND14 trillion ($541 million) facility is intended to supply key national projects such as the North-South high-speed railway, the Hai Phong-Hanoi-Lao Cai railway, and various urban rail projects in Hanoi and Ho Chi Minh City. Its first products is expected to be rolled out by May 2027.

In the stock market, HPG shares closed Wednesday at VND26,100 ($1) apiece.