MODEC (6269) Q2 2025 earnings summary

Executive summary

• Revenue for 1H 2025 reached $2,074MM, up 10% year-over-year, achieving 56% of FY2025 guidance.

• Net income was $145MM, a 17% increase compared to 1H 2024, at 53% of annual guidance.

• Orders received surged 1327.5% year-over-year to $5,042.8M, driven by major FPSO contracts for Brazil's Gato do Mato field.

• Total backlog rose to $25.5B, up 16% from FYE2024, driven by new contract awards.

• Operating performance was solid and in line with expectations, with steady O&M and charter earnings.

Financial highlights

• EPCI revenues increased due to Raia and new projects (Gato do Mato, Hammerhead), offsetting declines from mature projects.

• O&M revenues grew, reflecting higher West African operations and stable Brazilian performance.

• Gross profits for EPCI/O&M were nearly flat year-over-year, as higher EPCI profits offset lower O&M earnings.

• Charter earnings remained predictable and stable under long-term contracts, with five new FPSOs entering charter phase in the past three years.

• Cash and deposits reached $1.5B, with net debt at negative $1.07B as of 1H 2025.

Outlook and guidance

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

• Annual dividend projected to increase to 120 JPY per share, up from 80 JPY.

• Profit before tax expected at $420MM, with EPS of $3.95.