MODEC : 2026 First Quarter Financial Results［PDF：831.2KB］

May 13, 2026

Company name: MODEC, INC.

Listing: Tokyo Stock Exchange Securities code: 6269

URL: https://www.modec.com/ Representative: Hirohiko Miyata, President & CEO

Inquiries: Daisuke Tachibana, Executive Officer, General Manager of Accounting Telephone: +81-3-5290-1200

Scheduled date to commence dividend payments: － Preparation of supplementary material on quarterly financial results: None Holding of quarterly financial results briefing: None

(US dollar amounts are rounded down to thousands.)

1. Consolidated financial results for the three months ended March 31, 2026 (from January 1, 2026 to March 31, 2026)
   1. Consolidated operating results (cumulative) (Percentages indicate year-on-year changes.)

      	Revenue		Operating profit		Profit before tax		Profit
      Three months ended	US$ thousand	%	US$ thousand	%	US$ thousand	%	US$ thousand	%
      March 31, 2026	1,077,078	23.4	122,741	63.2	130,424	81.2	108,917	72.5
      March 31, 2025	873,038	6.1	75,200	(2.1)	71,975	(12.4)	63,151	(11.3)

      	Profit attributable to owners of parent		Total comprehensive income		Basic earnings per share	Diluted earnings per share
      Three months ended	US$ thousand	%	US$ thousand	%	US$	US$
      March 31, 2026	99,144	78.2	106,221	114.8	1.45	1.45
      March 31, 2025	55,635	(11.0)	49,445	(46.8)	0.81	0.81

   2. Consolidated financial position

   	Total assets	Total equity	Equity attributable to owners of parent	Ratio of equity attributable to owners of parent to total assets
   As of	US$ thousand	US$ thousand	US$ thousand	%
   March 31, 2026	4,862,082	1,545,164	1,514,750	31.2
   December 31, 2025	4,762,572	1,474,043	1,452,809	30.5

   Note: The original condensed consolidated financial statements of MODEC, INC. and its subsidiaries (hereinafter "the Company") for the three months ended March 31, 2026 and 2025 and for the year ended December 31, 2025 are presented in US dollars, which is the Company's functional currency. Therefore, the consolidated operating results and the consolidated financial position above are also presented in US dollars.

   For convenience purposes the consolidated financial results converted to Japanese yen in expediential manner are presented on page 4 of this summary information.

2. Cash dividends

   	Annual dividends per share
   	First quarter-end	Second quarter-end	Third quarter-end	Year-end	Total
   	yen	yen	yen	yen	yen
   Year ended December 31, 2025	-	60.00	-	80.00	140.00
   Year ending December 31, 2026	-
   Year ending December 31, 2026 (Forecast)		100.00	-	100.00	200.00

   Note: Revisions to the forecast of cash dividends most recently announced: None

3. Earnings forecast for 2026 (from January 1, 2026 to December 31, 2026)

(Percentages indicate year-on-year changes.)

Note: Revisions to the forecast most recently announced: None

The consolidated earnings forecast of the Company is prepared in US dollars, which is the Company's functional currency. For convenience purposes the consolidated earnings forecast converted to Japanese yen in expediential manner is presented on page 4 of this summary information.

1. Significant changes in the scope of consolidation during the period: None

2. Changes in accounting policies and changes in accounting estimates

   1. Changes in accounting policies required by IFRS: None

   2. Changes in accounting policies due to other reasons: None

   3. Changes in accounting estimates: None

3. Number of issued shares (ordinary shares)

   1. Total number of issued shares at the end of the period (including treasury shares)

      As of March 31, 2026	68,345,300 shares
      As of December 31, 2025	68,345,300 shares

   2. Number of treasury shares at the end of the period

      As of March 31, 2026	4,633 shares
      As of December 31, 2025	4,629 shares

   3. Average number of shares outstanding during the period

• Review of the Japanese-language originals of the attached consolidated quarterly financial statements by certified public accountants or an audit firm: Yes (voluntary)

• Proper use of earnings forecasts and other special matters

・Accompanying condensed quarterly consolidated financial statements and selected notes are presented in US dollars, which is the Company's functional currency.

・The US dollar amounts in the first page of this summary information is not tagged to XBRL data.

・Earnings forecast and other forward-looking statement included in this material are based on information currently available to the Company and are based on assumptions deemed reasonable. They are not meant to be a guarantee of future performance or outcomes. Actual results may differ materially subject to various factors.

(Yen amounts are rounded down to millions.)

1. Consolidated financial results for the three months ended March 31, 2026 (from January 1, 2026 to March 31, 2026)
   1. Consolidated operating results (cumulative)

      (Percentages indicate year-on-year changes.)

      	Revenue		Operating profit		Profit before tax		Profit
      Three months ended	million yen	%	million yen	%	million yen	%	million yen	%
      March 31, 2026	172,224	31.9	19,626	74.5	20,854	93.8	17,415	84.4
      March 31, 2025	130,545	4.8	11,244	(3.3)	10,762	(13.4)	9,443	(12.3)

      	Profit attributable to owners of parent		Total comprehensive income		Basic earnings per share	Diluted earnings per share
      Three months ended	million yen	%	million yen	%	yen	yen
      March 31, 2026	15,853	90.6	16,984	129.7	231.97	231.97
      March 31, 2025	8,319	(12.1)	7,393	(47.4)	121.79	121.72

   2. Consolidated financial position

   	Total assets	Total equity	Equity attributable to owners of parent	Ratio of equity attributable to owners of parent to total assets
   As of	million yen	million yen	million yen	%
   March 31, 2026	777,446	247,071	242,208	31.2
   December 31, 2025	745,485	230,731	227,408	30.5

   Note: The amounts presented above are converted to Japanese yen in expediential manner from the consolidated financial results on page 1 of this summary information using the following exchange rates:

   March 31, 2026 at US$1.00 = 159.90 Japanese yen (TTM rate of Sumitomo Mitsui Banking Corporation as of March 31, 2026) March 31, 2025 at US$1.00 = 149.53 Japanese yen (TTM rate of Sumitomo Mitsui Banking Corporation as of March 31, 2025) December 31, 2025 at US$1.00 = 156.53 Japanese yen (TTM rate of Sumitomo Mitsui Banking Corporation as of December 30, 2025)

   The percentage indicating year-on-year changes for the consolidated operating results is calculated on Japanese yen basis presented above.

2. Earnings forecast for 2026 (from January 1, 2026 to December 31, 2026)

   (Percentages indicate year-on-year changes.)

   Full Year	Revenue		Operating profit		Profit before tax		Profit attributable to owners of parent		Basic earnings per share
   	million yen 720,038	% 0.4	million yen 72,003	% 5.1	million yen 78,265	% (1.6)	million yen 57,916	% 2.6	yen 847.46

   Note: The amounts presented above are converted to Japanese yen in expediential manner from the earnings forecast on page 2 of this summary information at US$1.00 = 156.53 Japanese yen at the TTM rate of Sumitomo Mitsui Banking Corporation as of December 30, 2025.

   The percentage indicating year-on-year changes is calculated on Japanese yen basis.

   • Contents

     1. Qualitative information on quarterly financial results 2

        1. Results of operations 2

        2. Financial position 2

     2. Condensed quarterly consolidated financial statements and selected notes 3

        1. Condensed quarterly consolidated statement of financial position 3

        2. Condensed quarterly consolidated statement of profit or loss and condensed quarterly consolidated statement of other comprehensive income 5

        3. Condensed quarterly consolidated statement of change in equity 7

        4. Condensed quarterly consolidated statement of cash flows 9

        5. Selected notes to the condensed quarterly consolidated financial statements 10

(Note to ability to continue as a going concern) 10

(Applicable financial reporting framework) 10

(Note to segment information) 10

1. Qualitative information on quarterly financial results

   1. Results of operations

      In the first quarter of this year, global energy prices surged due to rising uncertainty in the Middle East. These developments pushed up price levels in major economies where inflation had previously begun to stabilize, heightening concerns regarding the future outlook of the global economy.

      Oil prices fluctuated generally between the upper US$50s and the US$60s per barrel early in the year, as outlooks for an oversupply strengthened against the backdrop of the dissolution of voluntary production cuts by OPEC Plus and increased production in the U.S. Subsequently, oil prices surged, hovering between US$80 and over US$100 per barrel, due to the intensification of Middle East tensions, triggered by military strikes on Iran by the U.S. and Israel that began at the end of February.

      While coexisting with the trend toward decarbonization, maintaining a stable energy supply remains an important issue, and the development of deepwater oil and gas fields by oil companies continues to be promoted as an area where sufficient reserves are confirmed for the future and where they are cost competitive. Demand for the Group's main business related to floating offshore oil and gas production facilities especially for large-scale ultra-deepwater projects, in which the Group has a competitive advantage, has also remained firm. Under these circumstances, as for the Group's operating results for the three months ended as of March 31, 2026, due to specification changes in existing FPSO construction projects, orders received amounted to US$129,315 thousand (down 97.3% from YTD 1Q 2025). The order backlog amounted to US$17,859,461 thousand (down 3.9% from the end of previous year).

      In terms of revenue and profit, revenue was US$1,077,078 thousand (up 23.4% from YTD 1Q 2025) due to the recognition of revenue and gross profit from the steady progress of the FPSO construction projects. In addition, due to the share of profit of investments accounted for using equity method of US$46,389 thousand (up 0.6% from YTD 1Q 2025), operating profit was US$122,741 thousand (up 63.2% from YTD 1Q 2025).

      And the profit attributable to owners of parent for the three months amounted to US$99,144 thousand (up 78.2% from YTD 1Q 2025).

   2. Financial position

      The total assets at the end of first quarter of this year increased by US$99,509 thousand to US$4,862,082 thousand from the end of previous year mainly due to an increase in cash and cash equivalents.

      The total liabilities increased by US$28,388 thousand to US$3,316,918 thousand from the end of previous year mainly due to an increase in contract liabilities.

      The total equity increased by US$71,121 thousand to US$1,545,164 thousand from the end of previous year mainly due to an increase in retained earnings.

2. Condensed quarterly consolidated financial statements and selected notes

   1. Condensed quarterly consolidated statement of financial position

      in thousands of US dollars

      	December 31, 2025	March 31, 2026
      Assets
      Current assets
      Cash and cash equivalents	1,326,950	1,961,484
      Trade and other receivables	977,796	445,934
      Contract assets	70,703	71,866
      Loans receivable	120,866	108,097
      Other financial assets	60,194	60,254
      Other current assets	223,100	230,633
      Total current assets	2,779,612	2,878,270
      Non-current assets
      Property, plant and equipment	92,291	87,535
      Intangible assets	28,527	26,103
      Investments accounted for using equity method	1,576,538	1,590,007
      Loans receivable	222,105	222,105
      Other financial assets	15,426	15,729
      Deferred tax assets	44,599	38,694
      Other non-current assets	3,471	3,635
      Total non-current assets	1,982,960	1,983,811
      Total assets	4,762,572	4,862,082

      in thousands of US dollars

      	December 31, 2025	March 31, 2026
      Liabilities and equity
      Liabilities
      Current liabilities
      Trade and other payables	1,121,319	1,111,726
      Contract liabilities	1,061,755	1,127,006
      Bonds and borrowings	237,679	237,951
      Income taxes payable	105,849	99,493
      Provisions	137,834	139,680
      Other financial liabilities	217,939	192,041
      Other current liabilities	82,372	86,551
      Total current liabilities	2,964,750	2,994,449
      Non-current liabilities
      Bonds and borrowings	182,604	182,696
      Deferred tax liabilities	3,521	3,611
      Defined benefit liability	51,530	51,238
      Provisions	22,295	23,037
      Other financial liabilities	63,100	61,246
      Other non-current liabilities	727	637
      Total non-current liabilities	323,779	322,468
      Total liabilities	3,288,529	3,316,918
      Equity
      Share capital	190,495	190,495
      Capital surplus	168,496	168,496
      Retained earnings	1,027,407	1,091,452
      Treasury shares	(127)	(127)
      Other components of equity	66,537	64,433
      Equity attributable to owners of parent	1,452,809	1,514,750
      Non-controlling interests	21,233	30,414
      Total equity	1,474,043	1,545,164
      Total liabilities and equity	4,762,572	4,862,082

   2. Condensed quarterly consolidated statement of profit or loss and condensed quarterly consolidated statement of other comprehensive income

      Condensed quarterly consolidated statement of profit or loss

      For the three months ended March 31

      in thousands of US dollars

      	2025	2026
      Revenue Cost of sales	873,038 (786,084)	1,077,078 (932,310)
      Gross profit	86,953	144,767
      Selling, general and administrative expenses	(57,940)	(68,393)
      Share of profit of investments accounted for using equity method	46,125	46,389
      Other income	81	5
      Other expenses	(18)	(26)
      Operating profit	75,200	122,741
      Finance income	19,422	22,202
      Finance costs	(22,648)	(14,520)
      Profit before tax	71,975	130,424
      Income tax expense	(8,823)	(21,506)
      Profit for the period	63,151	108,917

      Profit attributable to Owners of parent Non-controlling interests	55,635 7,515	99,144 9,772
      Profit for the period	63,151	108,917

      in US dollars

      Earnings per share
      Basic earnings per share	0.81	1.45
      Diluted earnings per share	0.81	1.45

      Condensed quarterly consolidated statement of other comprehensive income

      For the three months ended March 31

      in thousands of US dollars

      	2025	2026
      Profit for the period	63,151	108,917
      Other comprehensive Income Items that will not be reclassified subsequently to profit or loss Remeasurements of defined benefit liability	(212)	-
      Total items that will not be reclassified subsequently to profit or loss	(212)	-
      Items that may be reclassified subsequently to profit or loss Effective portion of cash flow hedges Exchange differences on translation of foreign operations Share of other comprehensive income of investments accounted for using equity method	11,128	(2,869)
      	3,425	(3,187)
      	(28,047)	3,361
      Total items that may be reclassified subsequently to profit or loss	(13,493)	(2,696)
      Total other comprehensive income, net of tax	(13,705)	(2,696)
      Total comprehensive income for the period	49,445	106,221

      Total comprehensive income attributable to Owners of parent Non-controlling interests	39,091 10,353	97,040 9,180
      Total comprehensive income	49,445	106,221

   3. Condensed quarterly consolidated statement of changes in equity

      For the three months ended March 31, 2025

      in thousands of US dollars

      	Equity attributable to owners of parent
      	Share capital	Capital surplus	Retained earnings	Treasury shares	Other components of equity
      					Remeasurements of defined benefit liability	Effective portion of cash flow hedges
      At January 1, 2025	190,495	168,963	722,724	(1,093)	-	127,419
      Profit for the period Other comprehensive income	- -	- -	55,635 -	- -	- (194)	- (19,895)
      Total comprehensive income for the period	-	-	55,635	-	(194)	(19,895)
      Dividends paid to owners of the parent	-	-	(22,837)	-	-	-
      Transfer from other components of equity to retained earnings	-	-	(194)	-	194	-
      Total transactions with owners	-	-	(23,032)	-	194	-
      At March 31, 2025	190,495	168,963	755,328	(1,093)	-	107,524

      	Equity attributable to owners of parent			Non-controlling interests	Total equity
      	Other components of equity		Total equity attributable to owners of parent
      	Exchange differences on translation of foreign operations	Total other components of equity
      At January 1, 2025	(28,075)	99,344	1,180,435	18,033	1,198,468
      Profit for the period Other comprehensive income	- 3,545	- (16,543)	55,635 (16,543)	7,515 2,838	63,151 (13,705)
      Total comprehensive income for the period	3,545	(16,543)	39,091	10,353	49,445
      Dividends paid to owners of the parent Transfer from other components of equity to retained earnings	- -	- 194	(22,837) -	- -	(22,837) -
      Total transactions with owners	-	194	(22,837)	-	(22,837)
      At March 31, 2025	(24,529)	82,994	1,196,688	28,387	1,225,076

      For the three months ended March 31, 2026

      in thousands of US dollars

      	Equity attributable to owners of parent
      	Share capital	Capital surplus	Retained earnings	Treasury shares	Other components of equity
      					Remeasurements of defined benefit liability	Effective portion of cash flow hedges
      At January 1, 2026	190,495	168,496	1,027,407	(127)	-	86,543
      Profit for the period Other comprehensive income	- -	- -	99,144 -	- -	- -	- 994
      Total comprehensive income for the period	-	-	99,144	-	-	994
      Dividends paid to owners of the parent Acquisition of treasury shares Transfer from other components of equity to retained earnings	- - -	- - -	(35,099) - -	- (0) -	- - -	- - -
      Total transactions with owners	-	-	(35,099)	(0)	-	-
      At March 31, 2026	190,495	168,496	1,091,452	(127)	-	87,537

      	Equity attributable to owners of parent			Non-controlling interests	Total equity
      	Other components of equity		Total equity attributable to owners of parent
      	Exchange differences on translation of foreign operations	Total other components of equity
      At January 1, 2026	(20,005)	66,537	1,452,809	21,233	1,474,043
      Profit for the period Other comprehensive income	- (3,097)	- (2,103)	99,144 (2,103)	9,772 (592)	108,917 (2,696)
      Total comprehensive income for the period	(3,097)	(2,103)	97,040	9,180	106,221
      Dividends paid to owners of the parent Acquisition of treasury shares Transfer from other components of equity to retained earnings	- - -	- - -	(35,099) (0) -	- - -	(35,099) (0) -
      Total transactions with owners	-	-	(35,100)	-	(35,100)
      At March 31, 2026	(23,103)	64,433	1,514,750	30,414	1,545,164

   4. Condensed quarterly consolidated statement of cash flows

      For the three months ended March 31

      in thousands of US dollars

      	2025	2026
      Cash flows from operating activities
      Profit before tax	71,975	130,424
      Depreciation and amortization	10,283	9,857
      Increase (decrease) in provisions	(2,386)	1,711
      Increase (decrease) in defined benefit liability	1,060	(286)
      Share of profit of investments accounted for using equity method	(46,125)	(46,389)
      Finance income and finance costs	3,225	(7,682)
      Decrease (increase) in trade and other receivables	278,328	532,757
      Decrease (increase) in contract assets	105,085	(1,055)
      Decrease (increase) in other current assets	(5,645)	(4,760)
      Increase (decrease) in trade and other payables	(89,627)	(15,670)
      Increase (decrease) in contract liabilities	(84,109)	64,467
      Increase (decrease) in other current liabilities	40,010	1,814
      Other	(38,950)	(22,582)
      Subtotal	243,124	642,606
      Interest received	20,130	20,940
      Dividends received	28,675	37,189
      Interest paid	(10,073)	(8,916)
      Income taxes paid	(30,921)	(21,030)
      Net cash provided by operating activities	250,936	670,788
      Cash flows from investing activities
      Net decrease (increase) in short-term loans receivable	-	8,075
      Repayments of long-term loans receivable	6,842	-
      Acquisition of property, plant and equipment and intangible assets	(742)	(1,578)
      Net cash provided by in investing activities	6,100	6,497
      Cash flows from financing activities
      Repayments of long-term borrowings	(14,449)	-
      Payments of lease liabilities	(5,015)	(4,571)
      Receipts of CMS deposit liabilities	17,378	1,625
      Disbursements of CMS deposit liabilities	(2,204)	(3,174)
      Dividends paid	(22,421)	(34,670)
      Net cash used in financing activities	(26,713)	(40,790)
      Effect of changes in exchange rates on cash and cash equivalents	5,657	(1,961)
      Net increase (decrease) in cash and cash equivalents	235,980	634,533
      Cash and cash equivalents at beginning of period	1,253,276	1,326,950
      Cash and cash equivalents at end of period	1,489,257	1,961,484

   5. Selected notes to the condensed quarterly consolidated financial statements (Note to ability to continue as a going concern)

There are no material uncertainties that require disclosure.

(Applicable financial reporting framework)

The Company's condensed quarterly consolidated financial statements (condensed quarterly consolidated statement of financial position, condensed quarterly consolidated statement of profit or loss, condensed quarterly consolidated statement of comprehensive income, condensed quarterly consolidated statement of changes in equity, condensed quarterly consolidated statement of cash flows and selected notes) have been prepared in accordance with Article 5, Paragraph 2 of the Standards for the Preparation of Quarterly Financial Statements of Tokyo Stock Exchange, Inc. (However, Article 5, Paragraph 5 of the Standards, which describes excludable items for disclosure, is applied.) Accordingly, some of the disclosures and notes required by International Accounting Standard 34 Interim Financial Reporting are not presented.

(Note to segment information)

The Group is solely engaged in construction of floating, production, storage and offloading systems for oil and gas productions and various related services as single business; therefore, general information of reportable segments is not presented.