Analysis of business results & financial statements · Quý 1/2026
▼▼ Declining sharply
Trailing net profit reached 5.6bn, fell 49.0bn compared with the same period last year. Key positives came from lower tax. Offsetting pressure came mainly from lower gross profit and higher finance costs. Detailed impact is shown below:
See what is changing ↓- P/E
- 12.19x
- P/B
- 0.73x
- EPS
- 279
- BVPS
- 4,658
- ROE
- 6.2%
- ROA
- 1.3%
- Market price
- 3,400 16 Oct 2026
The current picture
What Is Changing
On a TTM 2026Q1 basis, TNS posted a very sharp profit drop versus the same period, showing that pressure has clearly fed through to the bottom line — profit momentum has been slowing across consecutive periods. The key watch now is how long the business needs to stabilize its profit base.
Profit bridge
Vs last year · TTM
- Tax
- Gross profit
- Finance costs
Across periods
A single data point, or a trajectory?
Latest eight quarters · Quý 1/2026
| Metric | Q1'26 | Q4'25 | Q3'25 | Q2'25 | Q1'25 | Q4'24 | Q3'24 | Q2'24 |
|---|---|---|---|---|---|---|---|---|
| Revenue | 412.0 | 139.5 | 182.2 | 287.5 | 450.0 | 238.3 | 592.9 | 919.9 |
| LNST | 0.3 | 1.2 | 1.0 | 3.1 | 8.8 | 21.7 | 10.9 | 13.2 |
| Net margin | 0.07% | 0.86% | 0.54% | 1.08% | 1.95% | 9.11% | 1.83% | 1.44% |
Revenue
412bnNet income
0bnNet margin
0.07%Inside the statements
A closer look at what is happening inside the business
A company's statements are read with the questions that fit its type of business.
Is the profit sustainable?
Margins narrowed but earnings quality remains clean — pressure is mainly operational.
What is driving the margin?
▼Net margin fell to 0.55%, losing 1.9pp. The main pressure comes from Gross margin fell 0.9pp and SG&A / Revenue rose 0.5pp (in addition, Other profit / Revenue rose 0.0pp added support while Net financial result / Revenue fell 0.8pp remained a drag).
Margin is under pressure from multiple sides — temporary and structural components need to be separated to properly assess the risk.
- Net Margin
- 0.55% −1.9pp
- Gross Margin
- 2.41% −0.9pp
- SG&A / Revenue
- 1.32% +0.5pp
TTM YoY · 2025Q1 -> 2026Q1
Is capital being used efficiently?
Capital efficiency is declining — check whether the drag is from margins or turnover.
Is capital being deployed efficiently?
▼▼ROIC fell to 4.65%, losing 41.0pp. That translates to 4.65 in after-tax operating profit for every 100 units of operating capital. Both NOPAT margin narrowed 1.9pp and capital turnover fell 10.05x, with invested capital holding roughly steady — pressure came from both operational efficiency and asset efficiency.
Both margin and turnover weakened — this is a broad-based decline, and cyclical versus structural components need to be separated.
ROIC is currently 4.65% — below the typical cost-of-capital threshold; worth tracking whether upcoming periods can rise above this level.
Balance Sheet
▲ROIC declined — the balance sheet shows how capital is being deployed. Capital structure is conservative with low leverage — liabilities at 3.45x equity, net debt at 0.45x equity.
Inventory ended the period at 170.1bn, roughly 41.2% of total assets.
Over the last 12 months, working capital absorbed 1.5bn of cash, mainly because of higher receivables. Part of that drag was offset by lower inventories and higher payables.
Working Capital Efficiency
▲Working capital is being managed more efficiently, supporting overall capital efficiency. Cash conversion cycle improved by 7.2 days versus the same period last year. The main moves came from DIO rose 25.1 days, DSO rose 15.0 days, and DPO rose 47.3 days.
Extended payment timing is the main driver — consider whether this trades off supplier relationships.
DSO increased by +15.0 days, pointing to slower receivables turnover.
DIO increased by +25.1 days, suggesting more capital is being tied up in inventories.
DuPont
What drives ROE?
ROE fell from 88.0% to 6.2% — all three components weakened, with net margin being the main drag.
Is financial risk significant?
Financial risk is low — leverage is safe, both CFO and FCF are positive.
Leverage & Liquidity
●Leverage is balanced for now, with net debt / equity at 0.45x and interest coverage at 2.96x.
At present, cash equals 6.6% of debt and total debt stands at 34.8bn.
Cash / debt stands at 6.6%, leaving limited liquidity buffer to monitor.
- Net Debt / Equity
- 0.45x +0.00x
- Interest Coverage
- 2.96x −3.09x
- Cash / Debt
- 6.6% −5.1pp
- Short-term Debt / Total Debt
- None
TTM YoY · 2025Q1 -> 2026Q1
Cash Flow
▼With safe leverage noted above, cash flow below shows the self-funding capacity. Operating cash flow reached 23.2bn in 2025, against investing cash flow of -4.6bn.
Post-investment cash flow was positive +18.6bn. Financing cash flow was negative +18.3bn.
CFO / net income was 2,22 lần.
After spending +6.0bn on fixed-asset investment, the business generated trailing free cash flow of +6.4bn.
In summary
Research synthesis
What this reporting period is showing
The business is under real pressure, but the current picture has not turned broadly adverse. A notable area has clearly weakened, making the near-term outlook hard to call bright; even so, other parts of the business are still holding up, with margins remain under pressure remaining the main constraint, with net margin down 1.9 pp. The main offsetting support comes from earnings conversion is confirmed, with CFO/NI at 2.22x.
- Improvement: earnings conversion looks more confirmed, with CFO / net income at 2.22x.
- Key risk: profitability remains under pressure, with trailing-12M net margin at 54.63% after a 1.9pp decline versus the same period last year.
What to verify next
Questions for the next period
Ability to stabilize revenue after a −53,6% YoY decline.
Ability to hold margins around the current 0.55% level.
Cash-flow quality, with operating cash flow currently at 23.2bn in 2025.
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