Infrastructure contractors post strong profit growth amid investment boom

Amid a wave of investment in transport infrastructure projects, infrastructure contractors such as FECON, Deo Ca, Lizen or CC1 continued to report strong business results in the second quarter of 2026.

A steady stream of major contract wins for expressway and urban railway projects, coupled with expectations of $43.2 billion in public investment in 2026, is opening up a potential ‘golden period’ for the sector.

At its 2026 AGM on August 10, FECON JSC approved a consolidated revenue target of $224 million and consolidated net profit of $10 million, representing a 160 per cent increase from 2025.

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In the first half of 2026, FECON generated nearly $128.5 million in revenue, up 49.6 per cent on-year, while pre-tax profit exceeded $4.28 million, 3.7 times the level recorded in the same period of 2025.

As of the end of Q2, FECON’s total assets stood at $444.2 million, up 9.1 per cent from the outset of the year.

Alongside its growth targets, FECON has identified financial restructuring, capital increases, improved cash-flow efficiency and the concentration of resources on strategic infrastructure fields as key priorities for its next phase of development.

According to its Q2/2026 financial statements, Deo Ca Traffic Infrastructure Investment JSC recorded consolidated revenue of more than $75.08 million and pre-tax profit of over $17.7 million in the first half of 2026, up 11.6 per cent and 20 per cent, respectively, from the same period of 2025.

In Q2, the company’s consolidated revenue exceeded $38.8 million, up nearly 2.5 per cent on-year, while pre-tax profit reached more than $7.93 million, an increase of 13.5 per cent.

Revenue from construction and installation reached more than $20.6 million, generated from a string of projects including the Dong Dang-Tra Linh, Quang Ngai-Hoai Nhon and second-phase Cam Lo-La Son expressways.

Deo Ca JSC said its order pipeline for the next phase is being replenished as the company has signed new contracts for the road connecting Danang’s Western Ring Road, the expansion of Nui Vung Tunnel, the expansion of three tunnels on the Quang Ngai-Hoai Nhon expressway, and the expansion of the Ho Chi Minh City-Trung Luong-My Thuan expressway.

The total value of the new contracts is nearly $80 million, helping increase the company’s construction backlog and creating room for revenue recognition in the second half of 2026 and subsequent years.

After reporting an on-year decline in business results in Q1 of 2026, Lizen JSC returned to growth in Q2, with revenue reaching $32.8 million, up 12.4 per cent, and pre-tax profit approximating $1.7 million, up 9.1 per cent.

For the first six months of 2026, Lizen posted a profit of $2.41 million, down slightly compared to the same period in 2025.

Lizen has also recorded positive results from its bidding activities. In particular, the Lizen-Phuong Thanh Traffic Investment and Construction JSC consortium won Package No. 01 for construction works under the initiative for the construction of a frontage road along National Highway 39, with a contract value of more than $66.1 million.

In addition, Lizen, together with two other contractors, was appointed to carry out Package XL02 for the construction of 20km section under Quy Nhon-Pleiku expressway project, with a contract value of around $137 million.

Diverse other companies also reported positive results. For instance, Dat Phuong Group JSC posted Q2/2026 pre-tax profit of $5.98 million, up 34.6 per cent on-year, bringing its six-month pre-tax profit to $10.2 million, an increase of 18.5 per cent.

Similarly, Construction JSC 47 reported Q2 pre-tax profit of $1.5 million, up 76 per cent, and six-month profit of $2.34 million, up 69.2 per cent.

Construction and Investment JSC No. 18 recorded Q2 pre-tax profit of $2.07 million, up 86.3 per cent, and six-month profit of $2.76 million, up 36 per cent.

Meanwhile, Construction Corporation No 1 JSC posted Q2 pre-tax profit of $3.95 million, up 182 per cent, while six-month profit reached $4.43 million, up 135.5 per cent.

According to KB Vietnam Securities, Vietnam’s public investment plan for 2026 stands at $43.2 billion and is expected to continue increasing in the upcoming years.

The outlook presents major opportunities for the infrastructure construction sector. However, from the corporate perspective, Nguyen Ba Khuong, director of 568 Construction Group JSC, said the industry is facing severe labour shortages as well as surging fuel and material costs.

“Therefore, companies need to step up the use of technology in management to optimise human resources and improve management efficiency. Those that fail to meet these requirements will find it very difficult to survive in the current challenging environment,” he said.

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