MODEC (6269) Q2 2026 earnings summary

Executive summary

• Revenue for 1H 2026 reached $2,447MM, up 18% year-over-year, driven by steady progress in FPSO construction projects and achieving 53% of FY2026 guidance.

• Net income was $224MM, a 54% increase year-over-year, achieving 60% of FY2026 guidance.

• Adjusted EBITDA rose 65% year-over-year to $297MM.

• Operating profit rose 70.2% to $293MM, and total comprehensive income reached $254MM, a 72.3% increase year-over-year.

• Orders received totaled $481MM, with an order backlog of $17,021MM, reflecting strong demand for deepwater oil and gas production facilities.

Financial highlights

• Gross profit for 1H 2026 increased 82% year-over-year to $337.6MM, reflecting higher earnings in both EPCI and O&M.

• Basic and diluted EPS were $3.28, up from $2.12 in the prior year period.

• Total backlog stood at $25.0B, down 7% from FYE2025 due to project progress.

• Charter business maintained $8.5B backlog with 11.4-year average contract life.

• Cash and cash equivalents increased to $1,914MM at period end, up from $1,327MM at the previous year-end.

Outlook and guidance

• FY2026 revenue guidance is $4,600MM; 1H 2026 achieved 53% of this.

• Net income guidance for FY2026 is $370MM; 1H 2026 achieved 60% of this.

• Annual dividend of JPY200 per share planned for FY2026, up from 140 yen in the prior year.

• Investments in R&D, digital technology, and new business development to accelerate in 2H 2026.

• Operating profit is projected at $460MM (up 5.1%).