Interim report
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Note : This document has been translated from the Japanese original for reference purposes only . In the event of any discrepancy between this translated document and the Japanese original , the original shall prevail . Consolidated Financial Results for the Six Months Ended June 30 , 2026 ( IFRS ) August 7 , 2026 Company name : MODEC , INC . Listing : Tokyo Stock Exchange Securities code : URL : 6269 https://www.modec.com Representative : Inquiries : Telephone : + 81-3-5290-1200 Hirohiko Miyata , President & CEO Daisuke Tachibana , Executive Officer , General Manager of Accounting Scheduled date to file semi - annual securities report : Scheduled date to commence dividend payments : August 7 , 2026 September 9 , 2026 Preparation of supplementary material on financial results : Yes " 2026 Semi - Annual Results Presentation " Holding of financial results briefing : Yes ( to institutional investors and analysts ) ( US dollar amounts are rounded down to thousands . ) 1. Consolidated financial results for the six months ended June 30 , 2026 ( from January 1 , 2026 to June 30 , 2026 ) ( 1 ) Consolidated operating results ( cumulative ) ( Percentages indicate year - on - year changes . ) Revenue Operating profit Profit before tax Profit Six months ended June 30 , 2026 June 30 , 2025 Six months ended June 30 , 2026 June 30 , 2025 Profit attributable to owners of parent US $ thousand 224,046 54.4 145,076 17.0 US $ thousand % 2,447,050 18.0 2,074,296 10.5 US $ thousand 293,022 70.2 172,196 ( 7.8 ) % US $ thousand 307,947 196,532 % 56.7 8.1 US $ thousand 248,682 50.8 164,894 10.7 % Total comprehensive income Basic earnings Diluted earnings per share per share % US $ thousand 254,423 147,705 % US $ US $ 72.3 3.28 3.28 ( 8.0 ) 2.12 2.12 ( 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 June 30 , 2026 December 31 , 2025 US $ thousand 5,077,087 4,762,572 US $ thousand 1,678,872 1,474,043 US $ thousand 1,646,899 1,452,809 % 32.4 30.5 Note : The original condensed consolidated financial statements of MODEC , INC . and its subsidiaries ( hereinafter " the Company " ) for the six months ended June 30 , 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 .
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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 － 100.00 Year ending December 31, 2026 (Forecast) － 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.) Revenue Operating profit Profit before tax Profit attributable to owners of parent Basic earnings per share US$ thousand % US$ thousand % US$ thousand % US$ thousand % US$ Full Year 4,600,000 0.4 460,000 5.1 500,000 (1.6) 370,000 2.6 5.41 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.
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* Notes (1) Significant changes in the scope of consolidation during the period: None (2) Changes in accounting policies and changes in accounting estimates (i) Changes in accounting policies required by IFRS: None (ii) Changes in accounting policies due to other reasons: None (iii) Changes in accounting estimates: None (3) Number of issued shares (ordinary shares) (i) Total number of issued shares at the end of the period (including treasury shares) As of June 30, 2026 68,345,300 shares As of December 31, 2025 68,345,300 shares (ii) Number of treasury shares at the end of the period As of June 30, 2026 1,040 shares As of December 31, 2025 4,629 shares (iii) Average number of shares outstanding during the period (cumulative from the beginning of the year) Six months ended June 30, 2026 68,341,782 shares Six months ended June 30, 2025 68,317,715 shares * Semi-annual financial results reports are exempt from review conducted by certified public accountants or an audit firm. * Proper use of earnings forecasts and other special matters ・Accompanying condensed interim 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.
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[Reference] Consolidated financial results for the six months ended June 30, 2026 and earnings forecast for the year ending December 31, 2026 presented in Japanese yen (Yen amounts are rounded down to millions.) 1. Consolidated financial results for the six months ended June 30, 2026 (from January 1, 2026 to June 30, 2026) (1) Consolidated operating results (cumulative) (Percentages indicate year-on-year changes.) Revenue Operating profit Profit before tax Profit Six months ended million yen % million yen % million yen % million yen % June 30, 2026 397,376 32.3 47,583 90.8 50,007 75.7 40,383 69.1 June 30, 2025 300,378 (0.7) 24,935 (17.1) 28,459 (2.8) 23,878 (0.4) Profit attributable to owners of parent Total comprehensive income Basic earnings per share Diluted earnings per share Six months ended million yen % million yen % yen yen June 30, 2026 36,382 73.2 41,315 93.2 532.37 532.37 June 30, 2025 21,008 5.2 21,389 (17.3) 307.51 307.39 (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 % June 30, 2026 824,468 272,632 267,439 32.4 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: June 30, 2026 at US$1.00 = 162.39 Japanese yen (TTM rate of Sumitomo Mitsui Banking Corporation as of June 30, 2026) June 30, 2025 at US$1.00 = 144.81 Japanese yen (TTM rate of Sumitomo Mitsui Banking Corporation as of June 30, 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 percentages indicating year-on-year changes for the consolidated operating results are 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.) Revenue Operating profit Profit before tax Profit attributable to owners of parent Basic earnings per share million yen % million yen % million yen % million yen % yen Full Year 720,038 0.4 72,003 5.1 78,265 (1.6) 57,916 2.6 847.46 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 percentages indicating year-on-year changes are calculated on Japanese yen basis.
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1 ○ Contents 1. Qualitative information on quarterly financial results ....................................................................... 2 (1) Results of operations ............................................................................................................................... 2 (2) Financial position ....................................................................................................................................... 2 2. Condensed interim consolidated financial statements and selected notes ............................. 3 (1) Condensed interim consolidated statement of financial position ......................................... 3 (2) Condensed interim consolidated statement of profit or loss and condensed interim consolidated statement of other comprehensive income ....................................... 5 (3) Condensed interim consolidated statement of change in equity .......................................... 7 (4) Condensed interim consolidated statement of cash flows ....................................................... 9 (5) Selected notes to the condensed interim consolidated financial statements ................. 10 (Note to ability to continue as a going concern) ..................................................................... 10
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2 1. Qualitative information on quarterly financial results (1) Results of operations In the first half of this year, the global economy experienced a rapid increase in uncertainty as energy prices soared due to the suspension of transit through the Strait of Hormuz following a military conflict between the United States, Israel and Iran. Although a memorandum of understanding on the cessation of hostilities was signed between the United States and Iran in late June, geopolitical tensions remain ongoing. Against the backdrop of these tense circumstances, energy prices remained elevated, pushing up price levels once again in major countries where inflation had been cooling, which further intensified concerns over a global economic downturn. Oil prices spiked in response to the escalation of military conflict in the Middle East and the turmoil surrounding the blockade of the Strait of Hormuz, temporarily soaring above US ＄110 per barrel. Subsequently, as the countries involved agreed to a ceasefire and prospects for supply normalization grew with the reopening of the strait, oil prices began to calm down. However, due to concerns about the future outlook, prices fluctuated between US＄70 and around US＄80 per barrel, remaining at a higher level than before the conflict. While coexisting with the trend toward decarbonization, maintaining a stable energy supply remains an important issue, and oil companies continue to pursue projects to develop deepwater oil fields. 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 six months ended as of June 30, 2026, orders received amounted to US$481,202 thousand. The order backlog amounted to US$17,021,399 thousand. In terms of revenue and profit, revenue was US$2,447,050 thousand (up 18.0% from YTD 2Q 2025) due to the recognition of revenue and gross profit from the steady progress of the FPSO construction projects. Due to the share of profit of investments accounted for using equity method of US$86,101 thousand (down 0.1% from YTD 2Q 2025), operating profit was US$293,022 thousand (up 70.2% from YTD 2Q 2025). And the profit attributable to owners of parent for the six months amounted to US$224,046 thousand (up 54.4% from YTD 2Q 2025). (2) Financial position The total assets at the end of second quarter of this year increased by US$314,515 thousand to US$5,077,087 thousand from the end of previous year mainly due to an increase in cash and cash equivalents. The total liabilities increased by US$109,685 thousand to US$3,398,215 thousand from the end of previous year mainly due to an increase in trade and other payables. The total equity increased by US$204,829 thousand to US$1,678,872 thousand from the end of previous year mainly due to an increase in retained earnings.
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3 2. Condensed interim consolidated financial statements and selected notes (1) Condensed interim consolidated statement of financial position in thousands of US dollars December 31, 2025 June 30, 2026 Assets Current assets Cash and cash equivalents 1,326,950 1,914,443 Trade and other receivables 977,796 649,958 Contract assets 70,703 75,821 Loans receivable 120,866 108,547 Other financial assets 60,194 69,360 Other current assets 223,100 234,065 Total current assets 2,779,612 3,052,197 Non-current assets Property, plant and equipment 92,291 82,200 Intangible assets 28,527 23,933 Investments accounted for using equity method 1,576,538 1,638,304 Loans receivable 222,105 222,105 Other financial assets 15,426 15,728 Deferred tax assets 44,599 39,014 Other non-current assets 3,471 3,603 Total non-current assets 1,982,960 2,024,890 Total assets 4,762,572 5,077,087
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4 in thousands of US dollars December 31, 2025 June 30, 2026 Liabilities and equity Liabilities Current liabilities Trade and other payables 1,121,319 1,291,184 Contract liabilities 1,061,755 1,046,594 Bonds 237,679 238,226 Income taxes payable 105,849 105,353 Provisions 137,834 138,260 Other financial liabilities 217,939 187,021 Other current liabilities 82,372 74,091 Total current liabilities 2,964,750 3,080,732 Non-current liabilities Bonds 182,604 182,789 Deferred tax liabilities 3,521 5,247 Defined benefit liability 51,530 50,517 Provisions 22,295 22,993 Other financial liabilities 63,100 55,399 Other non-current liabilities 727 536 Total non-current liabilities 323,779 317,482 Total liabilities 3,288,529 3,398,215 Equity Share capital 190,495 190,495 Capital surplus 168,496 168,160 Retained earnings 1,027,407 1,216,116 Treasury shares (127) (25) Other components of equity 66,537 72,152 Equity attributable to owners of parent 1,452,809 1,646,899 Non-controlling interests 21,233 31,973 Total equity 1,474,043 1,678,872 Total liabilities and equity 4,762,572 5,077,087
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5 (2) Condensed interim consolidated statement of profit or loss and condensed interim consolidated statement of other comprehensive income Condensed interim consolidated statement of profit or loss For the six months ended June 30 in thousands of US dollars 2025 2026 Revenue 2,074,296 2,447,050 Cost of sales (1,879,633) (2,109,478) Gross profit 194,662 337,571 Selling, general and administrative expenses (108,775) (130,618) Share of profit of investments accounted for using equity method 86,212 86,101 Other income 155 18 Other expenses (58) (51) Operating profit 172,196 293,022 Finance income 48,986 44,653 Finance costs (24,650) (29,728) Profit before tax 196,532 307,947 Income tax expense (31,638) (59,264) Profit for the period 164,894 248,682 Profit attributable to Owners of parent 145,076 224,046 Non-controlling interests 19,818 24,635 Profit for the period 164,894 248,682 in US dollars Earnings per share Basic earnings per share 2.12 3.28 Diluted earnings per share 2.12 3.28
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6 Condensed interim consolidated statement of other comprehensive income For the six months ended June 30 in thousands of US dollars 2025 2026 Profit for the period 164,894 248,682 Other comprehensive Income Items that will not be reclassified subsequently to profit or loss Remeasurements of defined benefit liability (1,681) (238) Total items that will not be reclassified subsequently to profit or loss (1,681) (238) Items that may be reclassified subsequently to profit or loss Effective portion of cash flow hedges 17,557 (349) Exchange differences on translation of foreign operations 7,659 (4,701) Share of other comprehensive income of investments accounted for using equity method (40,724) 11,030 Total items that may be reclassified subsequently to profit or loss (15,507) 5,979 Total other comprehensive income, net of tax (17,189) 5,740 Total comprehensive income for the period 147,705 254,423 Total comprehensive income attributable to Owners of parent 123,850 229,423 Non-controlling interests 23,854 24,999 Total comprehensive income 147,705 254,423
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7 (3) Condensed interim consolidated statement of changes in equity For the six months ended June 30, 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 － － 145,076 － － － Other comprehensive income － － － － (1,645) (27,453) Total comprehensive income for the period － － 145,076 － (1,645) (27,453) Dividends to owners of parent － － (22,837) － － － Dividends to non-controlling interests － － － － － － Share-based payment transactions － (467) － 965 － － Transfer from other components of equity to retained earnings － － (1,645) － 1,645 － Total transactions with owners － (467) (24,483) 965 1,645 － At June 30, 2025 190,495 168,496 843,317 (127) － 99,966 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 － － 145,076 19,818 164,894 Other comprehensive income 7,872 (21,226) (21,226) 4,036 (17,189) Total comprehensive income for the period 7,872 (21,226) 123,850 23,854 147,705 Dividends to owners of parent － － (22,837) － (22,837) Dividends to non-controlling interests － － － (14,000) (14,000) Share-based payment transactions － － 498 － 498 Transfer from other components of equity to retained earnings － 1,645 － － － Total transactions with owners － 1,645 (22,339) (14,000) (36,339) At June 30, 2025 (20,202) 79,764 1,281,946 27,888 1,309,834
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8 For the six months ended June 30, 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 － － 224,046 － － － Other comprehensive income － － － － (238) 10,202 Total comprehensive income for the period － － 224,046 － (238) 10,202 Dividends to owners of parent － － (35,099) － － － Dividends to non-controlling interests － － － － － － Acquisition of treasury shares － － － (1) － － Share-based payment transactions － (336) － 103 － － Transfer from other components of equity to retained earnings － － (238) － 238 － Total transactions with owners － (336) (35,338) 102 238 － At June 30, 2026 190,495 168,160 1,216,116 (25) － 96,745 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 － － 224,046 24,635 248,682 Other comprehensive income (4,587) 5,376 5,376 364 5,740 Total comprehensive income for the period (4,587) 5,376 229,423 24,999 254,423 Dividends to owners of parent － － (35,099) － (35,099) Dividends to non-controlling interests － － － (14,259) (14,259) Acquisition of treasury shares － － (1) － (1) Share-based payment transactions － － (232) － (232) Transfer from other components of equity to retained earnings － 238 － － － Total transactions with owners － 238 (35,334) (14,259) (49,593) At June 30, 2026 (24,593) 72,152 1,646,899 31,973 1,678,872
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9 (4) Condensed interim consolidated statement of cash flows For the six months ended June 30 in thousands of US dollars 2025 2026 Cash flows from operating activities Profit before tax 196,532 307,947 Depreciation and amortization 20,399 19,642 Increase (decrease) in provisions (1,646) 852 Increase (decrease) in defined benefit liability 2,377 (1,005) Share of profit of investments accounted for using equity method (86,212) (86,101) Finance income and finance costs (24,335) (14,924) Decrease (increase) in trade and other receivables 241,977 324,427 Decrease (increase) in contract assets 93,553 (4,999) Decrease (increase) in other current assets (44,555) (6,913) Increase (decrease) in trade and other payables (35,966) 164,108 Increase (decrease) in contract liabilities (23,516) (12,154) Increase (decrease) in other current liabilities 43,928 (11,775) Other (38,832) (39,344) Subtotal 343,704 639,758 Interest received 34,437 35,189 Dividends received 30,675 37,189 Interest paid (17,119) (14,790) Income taxes paid (54,869) (52,150) Net cash provided by operating activities 336,829 645,196 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 (1,658) (4,156) Net cash provided by investing activities 5,183 3,919 Cash flows from financing activities Repayments of long-term borrowings (95,626) － Payments of lease liabilities (8,514) (9,058) Receipts of CMS deposit liabilities 22,951 6,335 Disbursements of CMS deposit liabilities (4,437) (6,843) Dividends paid (22,819) (35,082) Dividends paid to non-controlling interests (14,000) (14,259) Acquisition of treasury shares － (1) Net cash used in financing activities (122,446) (58,910) Effect of changes in exchange rates on cash and cash equivalents 19,028 (2,711) Net increase (decrease) in cash and cash equivalents 238,595 587,493 Cash and cash equivalents at beginning of period 1,253,276 1,326,950 Cash and cash equivalents at end of period 1,491,872 1,914,443
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10 (5) Selected notes to the condensed interim consolidated financial statements (Note to ability to continue as a going concern) There are no material uncertainties that require disclosure.