MODEC (6269) Q1 2025 earnings summary

Executive summary

• Revenue for Q1 2025 reached $873MM, up 6.1% year-over-year, achieving 23% of FY2025 guidance, driven by steady FPSO project progress.

• Adjusted EBITDA was $81MM, nearly flat compared to 1Q 2024.

• Net income was $55.6MM, down 11% year-over-year, mainly due to higher costs and FX losses.

• Credit rating upgraded to BBB/Stable by Fitch, reflecting improved financial profile and negative net debt.

• Orders received surged 1952.8% year-over-year to $4.79B, led by major FPSO contracts for Shell's Gato do Mato field.

Financial highlights

• Gross profit increased 10% year-over-year to $86.95MM, reflecting steady EPCI and O&M performance.

• SG&A expenses rose to $57.94MM from $47.33MM.

• Charter earnings remain stable under long-term contracts, with 12.3-year average remaining life.

• Backlog reached historical highs in both EPCI and O&M, supported by new contract awards, up 32.7% to $17.17B.

• Cash and deposits rose to $1.49B, with net debt at -$988MM as of 1Q 2025.

Outlook and guidance

• FY2025 guidance unchanged: revenue $3.7B, operating income $410MM, net income $270MM.

• Annual dividend forecast increased to 120 JPY per share.