MODEC Q1 Revenue Rises 23% as FPSO EPCI and O&M Activity Advances
MODEC reported first-quarter 2026 revenue of $1.08 billion, up 23% year over year, and net income of $99 million. The company said construction progressed on the Hammerhead, Gato do Mato, Raia and Uaru FPSO projects, while operating performance across its existing fleet remained steady. Total backlog stood at $25.9 billion, including $5.3 billion of EPCI backlog, $11.9 billion of O&M backlog and $8.7 billion of charter backlog.
Confirmed: MODEC reported $1.077 billion of revenue, $128 million of adjusted EBITDA and $99 million of net income for the first quarter of 2026. Revenue increased by 23% and net income by 80% from the corresponding 2025 quarter. EPCI revenue increased to $663 million as Gato do Mato and Hammerhead moved further into construction, while O&M revenue increased to $394 million. MODEC reported steady construction progress across Hammerhead, Gato do Mato, Raia and Uaru and steady operating performance from its existing vessels. Total backlog was $25.9 billion, down 3% from year-end 2025 as work was executed.
The backlog remains weighted toward long-duration floating-production activity. MODEC reported $5.3 billion of EPCI backlog, $11.9 billion of O&M backlog and $8.7 billion of charter backlog. Gato do Mato and Hammerhead, awarded in 2025, support both the current construction pipeline and future O&M revenue through respective 20-year and 10-year service arrangements. The average remaining O&M backlog life was 14.2 years, while the charter portfolio had an average remaining life of 11.6 years.
Interpretation: Progress on four simultaneous FPSO developments provides continuing demand visibility for engineering, fabrication, equipment and marine installation supply chains. The decline in backlog appears execution-driven rather than evidence of a cancellation or project delay. MODEC’s $1.96 billion cash position was attributed largely to advance payments on major EPCI projects, giving the company liquidity to support the construction program, although such cash is linked to future contractual delivery obligations. The presentation does not identify a new FPSO award, first-oil milestone or construction completion during the quarter.