Company Overview - Global Ship Lease, Inc. is a leading independent owner of containerships with a diversified fleet of mid-sized and smaller containerships [3] - The company commenced operations in December 2007 and was listed on the New York Stock Exchange in August 2008 [3] Upcoming Financial Results - The company will hold a conference call to discuss its second quarter 2025 results on August 5, 2025, at 10:30 a.m. Eastern Time [1][2] - Financial results for the second quarter 2025 will be issued before the market opens on the same day [1] Fleet and Charter Information - As of March 31, 2025, the company had a fleet of 69 vessels with an average age weighted by TEU capacity of 17.5 years, including 39 wide-beam Post-Panamax ships [4] - The average remaining term of the company's charters was 2.3 years on a TEU-weighted basis, with contracted revenue of $1.87 billion [5] - Including options under charterers' control, the total contracted revenue was $2.37 billion, representing a weighted average remaining term of 3.0 years [5]

Group 1 - The company GSL has shown steady operations and reported positive Q1 figures, reinforcing the investment thesis that it is a strong buy [1] - The analyst has a diverse professional background across multiple industries, which contributes to a comprehensive understanding of market dynamics [1] - The investment strategy focuses on cyclical industries, aiming for significant returns during economic recovery while balancing risk through fixed-income investments [1] Group 2 - The analyst holds a beneficial long position in GSL shares, indicating confidence in the company's future performance [2]

Core Viewpoint - Global Ship Lease, Inc. has received stable credit ratings from leading agencies, reflecting its strong financial performance and strategic positioning in the containership industry [1][2][3]. Group 1: Credit Ratings - Moody's has maintained a Ba2 Corporate Family Rating with a stable outlook for Global Ship Lease [1] - S&P Global Ratings affirmed a long-term issuer credit rating of BB+ with a stable outlook [1] - Kroll Bond Rating Agency kept the corporate rating at BB+ and affirmed the BBB/stable investment grade rating for the company's 5.69% Senior Secured Notes due 2027 [1][2] Group 2: Financial Performance - The credit rating agencies highlighted the company's strong cash flow used for deleveraging and a disciplined low leverage strategy [2] - GSL has demonstrated revenue stability through attractive multi-year time charter agreements [2] - The company has shown resilience during industry disruptions, maintaining strong earnings and cash flow through market cycles [2] Group 3: Strategic Positioning - GSL's management team is experienced, and the company has a conservative chartering policy [2] - The focus on mid-sized and smaller containerships positions GSL in sub-segments less exposed to fleet growth, enhancing value through high-reefer capacity [2] - The average age of the fleet is 17.5 years, with 39 ships classified as wide-beam Post-Panamax as of March 31, 2025 [5] Group 4: Contracted Revenue - As of March 31, 2025, the average remaining term of the company's charters was 2.3 years on a TEU-weighted basis, with contracted revenue of $1.87 billion [6] - Including options under charterers' control, contracted revenue was $2.37 billion, representing a weighted average remaining term of 3.0 years [6]

Company Overview - Global Ship Lease, Inc. (GSL) is a leading independent owner of containerships with a diversified fleet of mid-sized and smaller containerships [2] - The company commenced operations in December 2007 and was listed on the New York Stock Exchange in August 2008 [2] Fleet and Operations - As of March 31, 2025, GSL's fleet consisted of 69 vessels with an average age weighted by TEU capacity of 17.5 years, including 39 wide-beam Post-Panamax ships [3] - The average remaining term of the company's charters, on a TEU-weighted basis, was 2.3 years, with contracted revenue amounting to $1.87 billion [4] - Including options under charterers' control, the total contracted revenue was $2.37 billion, representing a weighted average remaining term of 3.0 years [4] Recent Corporate Actions - On June 17, 2025, GSL held its 2025 Annual Meeting of Shareholders in Athens, Greece, where shareholders re-elected three directors to serve until the 2028 Annual Meeting [1] - The appointment of PricewaterhouseCoopers S.A. as the independent public accounting firm for the fiscal year ending December 31, 2025, was ratified [1]

Core Viewpoint - Global Ship Lease reported strong quarterly earnings, exceeding expectations and showing growth compared to the previous year [1][2]. Financial Performance - The company achieved earnings of $2.65 per share, surpassing the Zacks Consensus Estimate of $2.27 per share, and up from $2.53 per share a year ago, representing an earnings surprise of 16.74% [1]. - Revenues for the quarter reached $190.98 million, exceeding the Zacks Consensus Estimate by 14.73% and up from $179.56 million year-over-year [2]. Market Performance - Global Ship Lease shares have increased approximately 15% since the beginning of the year, significantly outperforming the S&P 500's gain of 1.3% [3]. Future Outlook - The company's earnings outlook will be crucial for assessing future stock performance, with current consensus EPS estimates at $2.29 for the next quarter and $9.36 for the current fiscal year [4][7]. - The estimate revisions trend for Global Ship Lease is currently unfavorable, resulting in a Zacks Rank 4 (Sell), indicating expected underperformance in the near future [6]. Industry Context - The Transportation - Shipping industry, to which Global Ship Lease belongs, is currently ranked in the bottom 23% of over 250 Zacks industries, suggesting potential challenges ahead [8].

Financial Data and Key Metrics Changes - The company reported an increase in earnings and cash flow compared to Q1 2024, which was already a strong quarter [14] - Gross debt increased to just under $778 million due to financing of recently acquired vessels, while cash position stood at $428 million, with $90 million restricted [14][15] - The net debt to EBITDA ratio has improved to under 1, down from 8.4 times at the end of 2018, indicating significant deleveraging [15][16] Business Line Data and Key Metrics Changes - The company added 19 charters worth approximately $352 million in contracted revenues during Q1 2025, bringing total contracted revenues to nearly $1.9 billion with an average remaining contract cover of 2.3 years [11][12] - The charter market remains strong, with the company’s breakeven rate at approximately $9,300 per vessel per day, significantly lower than current market charter rates [33][36] Market Data and Key Metrics Changes - The container ship charter market has remained exceptionally tight, with essentially zero idle capacity globally [6] - The overall order book for ships over 10,000 TEU is 54.3%, contrasting with only 11.5% for ships under 10,000 TEU, indicating a limited replacement capacity for the company’s focus segment [32] Company Strategy and Development Direction - The company aims to maximize optionality and financial resilience while maintaining a disciplined approach to fleet renewal and capital allocation [12][36] - The strategy includes opportunistically monetizing older ships to build cash reserves for future investments [8][36] Management's Comments on Operating Environment and Future Outlook - Management highlighted the macroeconomic uncertainty and its impact on the container shipping industry, noting that the situation remains fluid with potential uneven effects from tariffs and trade barriers [6][7] - The company is well-positioned to capitalize on opportunities as they arise, with a strong balance sheet and increased return of capital to shareholders through a raised dividend [9][36] Other Important Information - The company has successfully reduced its cost of debt to a blended rate of 3.99%, despite rising interest rates in the broader market [16] - The company’s fleet includes 10 Chinese-built ships, with only four larger than 4,000 TEU, minimizing exposure to potential U.S. tariffs on Chinese-built vessels [25] Q&A Session Summary Question: Interest in extending existing charters at better rates - Management indicated that while some charters fixed during the super cyclical high of COVID may see a reduction in rates, there is still appetite for attractive new charters [43][44] Question: Acquisition front and asset prices - Management stated they are always looking at deals but maintain strict criteria for acquisitions, focusing on financial sense rather than growth for its own sake [47][48] Question: Charter market dynamics and recent activity - Management noted a temporary slowdown in the charter market in April, but recent interest has picked up following a surge in spot freight rates [55][56] Question: Cash position and future plans - Management emphasized the importance of maintaining a robust cash position for flexibility and resilience, while continuing to deleverage and manage risks [60]

Financial Data and Key Metrics Changes - The company reported an increase in earnings and cash flow compared to Q1 2024, which was already a strong quarter [12] - Gross debt increased to just under $778 million due to financing of recently acquired vessels, while cash position stood at $428 million, with $90 million restricted [12][13] - The net debt to EBITDA ratio has improved to under 1, down from 8.4 times at the end of 2018, indicating significant deleveraging [14] Business Line Data and Key Metrics Changes - The company added 19 charters worth approximately $352 million in contracted revenues during Q1 2025, bringing total contracted revenues to nearly $1.9 billion with an average remaining contract cover of 2.3 years [9][10] - The company has maintained a disciplined approach to fleet renewal and capital allocation, focusing on maximizing optionality while covering CapEx obligations [10] Market Data and Key Metrics Changes - The container ship charter market remains exceptionally tight, with essentially zero idle capacity globally, despite normalization of headline freight rates [5] - The company noted that tariffs and trade barriers have complicated the macroeconomic picture, but demand for mid-sized and smaller container ships remains strong [5][6] Company Strategy and Development Direction - The company aims to maximize optionality to take advantage of the cyclical nature of the industry while ensuring long-term strength in any market conditions [7][8] - The strategy includes opportunistically monetizing older ships to build cash reserves for investment and fleet renewal [6][10] Management's Comments on Operating Environment and Future Outlook - Management highlighted the extraordinary volatility and uncertainty in the macro and geopolitical environment, focusing on financial resilience and maximizing optionality [33] - The company is well-positioned to pursue opportunities as they arise, particularly in renewing its fleet as older vessels age out [35] Other Important Information - The company has increased its annualized dividend to $2.1 per share, a 40% increase from the previous year [7] - The average cost of debt has been reduced to 3.99%, providing a strong financial position amid rising operating expenses [14][33] Q&A Session Summary Question: Interest from charter customers to extend existing charters at better rates - Management indicated that it depends on which charters are rolling off, with some fixed during high periods likely to be lower if re-fixed now, but overall appetite for attractive rates remains strong [40][41] Question: Acquisition front and asset prices - Management stated they are always looking at deals but maintain strict criteria for acquisitions, only pursuing financially sensible opportunities [43][44] Question: Charter market characterization over the past week - Management noted a similar change in sentiment in the charter market, with a brief slowdown in April followed by renewed interest and appetite in recent weeks [52][53] Question: Cash position and future plans - Management emphasized the importance of maintaining a robust cash position for flexibility and resilience, while continuing to deleverage and manage risks [56][57]

1 st Quarter 2025 Results Presentation | 1Q 2025 Results 1 Disclaimer | 1Q 2025 Results 2 This presentation does not constitute or form part of, and should not be construed as, an offer to sell or an invitation, solicitation, or inducement to purchase or subscribe for securities with respect to any transaction, nor shall it or any part of it form the basis of, or be relied on in connection with, any contract or commitment whatsoever. This presentation does not constitute either advice or a recommendation re ...

Core Insights - Global Ship Lease, Inc. reported strong financial results for the first quarter of 2025, with a significant increase in net income and earnings per share, reflecting resilience amid geopolitical challenges in the transportation industry [3][4][25]. Financial Performance - Operating revenue for Q1 2025 was $191.0 million, up 6.3% from $179.6 million in Q1 2024 [4][8]. - Net income available to common shareholders was $121.0 million, translating to earnings per share (EPS) of $3.40, a 35.2% increase from the previous year [4][25]. - Normalized net income for Q1 2025 was $94.3 million, with a normalized EPS of $2.65, reflecting a 5.8% increase year-over-year [4][26]. - Adjusted EBITDA for the quarter was $132.3 million, up 5.5% from $125.4 million in Q1 2024 [4][17]. Operational Highlights - The company added $352 million in contracted revenues during Q1 2025, bringing total contracted revenues to $1.87 billion over a weighted average remaining duration of 2.3 years [4][35]. - Fleet utilization for Q1 2025 was 93.7%, down from 98.8% in the prior year, attributed to increased off-hire days for scheduled drydockings [8][10]. - Vessel operating expenses increased by 4.4% to $50.0 million, primarily due to the addition of new vessels and inflationary pressures [12]. Strategic Developments - The company has locked in forward contract cover for 93% of 2025 days and 75% of 2026 days, amounting to nearly $1.9 billion [3][4]. - A quarterly dividend of $0.525 per Class A common share was declared, increasing the annualized dividend to $2.10 per share [4][3]. - The company completed the sale of three vessels for a total gain of $28.5 million during the quarter [4][16]. Debt and Financing - As of March 31, 2025, total debt was $777.7 million, with a weighted average cost of debt at 3.99% and a maturity runway of 5.1 years [18][20]. - Interest expense for Q1 2025 was $9.9 million, down from $10.5 million in the prior year, reflecting a decrease in the blended cost of debt [20]. Market Context - The company continues to navigate a dynamic geopolitical landscape affecting supply chains, emphasizing the importance of flexibility and optionality in operations [3][4]. - Demand for mid-sized and smaller container ships remains strong as liner operators seek to adapt to changing cargo flows [3].

Company Overview - Global Ship Lease, Inc. is a leading independent owner of containerships with a diversified fleet of mid-sized and smaller containerships [2] - The company commenced operations in December 2007 and was listed on the New York Stock Exchange in August 2008 [2] Fleet and Operations - As of December 31, 2024, the company had a fleet of 71 vessels with an average age weighted by TEU capacity of 17.6 years [3] - The company agreed to purchase newly acquired vessels, with three delivered in December 2024 and one in January 2025 [3] - The company sold an older vessel, Tasman, with expected delivery in late March 2025, and two more vessels, Akiteta and Keta, in February 2025 [3] Charter Agreements - The average remaining term of the company's charters, on a TEU-weighted basis, was 2.3 years as of December 31, 2024 [4] - Contracted revenue on a TEU-weighted basis was $1.88 billion, while total contracted revenue, including options under charterers' control, was $2.37 billion, representing a weighted average remaining term of 2.9 years [4] Dividend Declaration - The company's Board of Directors declared a dividend of $0.525 per Class A common share for the first quarter of 2025, to be paid on June 3, 2025 [1]