Core Viewpoint - Dorian LPG Ltd. is positioned as a global leader in LPG shipping, emphasizing fuel-efficient vessels that provide a cost advantage over less compliant, single-fuel vessels [1] Group 1: Company Overview - Dorian LPG Ltd. operates in the LPG shipping sector, focusing on fuel-efficient vessels [1] - The company is benefiting from the recent growth in US LPG exports [1] - High demand for LPG is noted from Asian markets, particularly China and India [1] Group 2: Investment Strategy - The company is part of a broader investment strategy that emphasizes building a resilient, income-generating portfolio with a long-term growth mindset [1] - The investment approach is primarily long-only, blending dividend-paying equities, REITs, and selective growth opportunities [1] - There is a focus on disciplined, fundamentals-driven investing, prioritizing capital preservation while compounding returns over time [1]

In the latest close session, Dorian LPG (LPG) was down 1.36% at $32.03. The stock fell short of the S&P 500, which registered a loss of 0.1% for the day. Elsewhere, the Dow saw an upswing of 0.57%, while the tech-heavy Nasdaq depreciated by 0.33%. Shares of the liquified petroleum gas shipping company witnessed a gain of 7.84% over the previous month, beating the performance of the Transportation sector with its loss of 0.53%, and the S&P 500's gain of 2.57%.The investment community will be paying close att ...

For those looking to find strong Transportation stocks, it is prudent to search for companies in the group that are outperforming their peers. Dorian LPG (LPG) is a stock that can certainly grab the attention of many investors, but do its recent returns compare favorably to the sector as a whole? By taking a look at the stock's year-to-date performance in comparison to its Transportation peers, we might be able to answer that question.Dorian LPG is a member of the Transportation sector. This group includes ...

Core Viewpoint - Dorian LPG has shown strong stock performance recently, with a return of +9.2% over the past month, significantly outperforming the S&P 500 composite's +1.5% and the Zacks Transportation - Shipping industry's +2.5% [2] Earnings Estimate Revisions - For the current quarter, Dorian LPG is expected to report earnings of $1.40 per share, reflecting a substantial increase of +300% year-over-year, with the consensus estimate remaining unchanged over the last 30 days [5] - The consensus earnings estimate for the current fiscal year stands at $3.91, indicating a year-over-year increase of +72.3%, also unchanged in the last month [5] - For the next fiscal year, the consensus estimate is $2.65, which represents a decrease of -32.2% compared to the previous year, with no changes in the estimate over the past month [6] - Dorian LPG holds a Zacks Rank 1 (Strong Buy), indicating a positive outlook based on earnings estimate revisions [7] Revenue Growth Forecast - The consensus sales estimate for the current quarter is $120.72 million, which indicates a year-over-year increase of +47.8% [11] - For the current fiscal year, the sales estimate is $410.88 million, reflecting a growth of +17.4%, while the next fiscal year's estimate is $349.94 million, indicating a decline of -14.8% [11] Last Reported Results and Surprise History - In the last reported quarter, Dorian LPG generated revenues of $82.87 million, a decrease of -27.5% year-over-year, and reported EPS of $0.27, down from $1.26 a year ago [12] - The company experienced a revenue surprise of -4.14% compared to the Zacks Consensus Estimate and an EPS surprise of -55.74% [12] - Over the last four quarters, Dorian LPG has surpassed consensus EPS estimates multiple times and has also exceeded consensus revenue estimates during this period [13] Valuation - Dorian LPG's valuation is assessed using various multiples, including price-to-earnings (P/E), price-to-sales (P/S), and price-to-cash flow (P/CF), to determine if the stock is fairly valued compared to its historical values and peers [15] - The company has a Zacks Value Style Score of C, indicating it is trading at par with its peers [17]

Core Viewpoint - The Zacks Transportation - Shipping industry is facing challenges such as inflation, high interest rates, tariffs, and supply chain disruptions, but there are positive factors like a 90-day extension on tariffs against China, low oil prices, and improved demand for goods and commodities post-pandemic [1][4]. Industry Overview - The Zacks Transportation - Shipping industry is cyclical and primarily provides liquefied natural gas and crude oil marine transportation services under long-term contracts with major energy and utility companies. The industry is heavily reliant on the health of the economy, with a recovery from COVID-19 standstill benefiting its prospects [3]. Shipping Industry Trends - The extension of the tariff deadline on Chinese goods is a significant positive for the shipping industry, likely leading to a short-term increase in imports and stabilizing global trade flows [4]. - Elevated compliance costs due to regulations and rising technology-related expenses are expected to impact profits in the short term, but these investments will support long-term margins [5]. - The demand for liquefied natural gas (LNG) is increasing, particularly due to geopolitical factors, which is favorable for shipping stocks [6]. - Low oil prices are beneficial for the industry as they reduce fuel costs, which are a major expense for transportation companies. Oil prices have declined by 6% in the April-June period, benefiting oil tanker companies [7]. Industry Performance - The Zacks Transportation - Shipping industry has underperformed compared to the S&P 500 index, declining by 20.2% over the past year, while the S&P 500 increased by 16% [11]. - The industry currently has a Zacks Industry Rank of 98, placing it in the top 40% of 246 Zacks industries, indicating positive near-term prospects [9]. Valuation - The industry is trading at a forward price-to-earnings (P/E) ratio of 6.82X, significantly lower than the S&P 500's 22.86X and the sector's 14.36X [14]. Stock Recommendations - Dorian LPG has seen a stock increase of 56% over the past six months, driven by rising demand for liquefied petroleum gases [16]. - Euroseas has gained 41% over the past year, benefiting from profitable contracts and a time charter equivalent rate exceeding $30,000 per day [20]. - Ardmore Shipping's stock has increased by 18% over the past six months, with a focus on product and chemical tankers [23].

The consensus estimate for SkyWest's current year EPS has increased 7.2% over the past three months. The stock currently has a Zacks Rank #1 (Strong Buy). Looking more specifically, Dorian LPG belongs to the Transportation - Shipping industry, a group that includes 38 individual stocks and currently sits at #152 in the Zacks Industry Rank. On average, stocks in this group have lost 1.2% this year, meaning that LPG is performing better in terms of year-to-date returns. Dorian LPG is one of 122 individual sto ...

Group 1 - BW LPG Limited (NYSE: BWLP) has a strong dividend policy that is expected to ensure that the high rates from Very Large Gas Carriers (VLGCs) are passed directly to shareholders, with a current leverage translating to a 75% payout [1] - The second quarter is anticipated to be weak, indicating potential challenges ahead for the company [1] - The analyst has a diverse professional background across various industries, which contributes to a comprehensive understanding of market dynamics [1] Group 2 - The analyst has been actively investing for over a decade, focusing on cyclical industries while maintaining a diversified portfolio that includes bonds, commodities, and forex [1] - There is an emphasis on the potential for significant returns in cyclical sectors during periods of economic recovery and growth [1] - The importance of balancing risk is acknowledged, leading to the incorporation of fixed-income investments [1]

[PART I. FINANCIAL INFORMATION](index=11&type=section&id=PART%20I.%20FINANCIAL%20INFORMATION) [ITEM 1. FINANCIAL STATEMENTS](index=11&type=section&id=ITEM%201.%20FINANCIAL%20STATEMENTS) Unaudited Q2 2025 financial statements reveal decreased net income, cash flow from operations, and slightly reduced total assets [Unaudited Condensed Consolidated Balance Sheets](index=11&type=section&id=Unaudited%20Condensed%20Consolidated%20Balance%20Sheets) Total assets decreased to $1.749 billion as of June 30, 2025, with liabilities and equity also slightly reduced Condensed Consolidated Balance Sheet Data (in USD) | Account | June 30, 2025 | March 31, 2025 | | :--- | :--- | :--- | | **Total Current Assets** | $371,659,818 | $382,356,404 | | **Total Assets** | $1,749,083,305 | $1,778,660,280 | | **Total Current Liabilities** | $111,845,782 | $107,884,142 | | **Total Liabilities** | $714,283,780 | $732,554,095 | | **Total Shareholders' Equity** | $1,034,799,525 | $1,046,106,185 | [Unaudited Condensed Consolidated Statements of Operations](index=12&type=section&id=Unaudited%20Condensed%20Consolidated%20Statements%20of%20Operations) Q2 2025 net income sharply declined to $10.1 million from $51.3 million, primarily due to lower revenues and higher expenses Consolidated Statements of Operations Highlights (in USD) | Metric | Three months ended June 30, 2025 | Three months ended June 30, 2024 | | :--- | :--- | :--- | | **Total Revenues** | $84,211,966 | $114,353,042 | | **Total Expenses** | $69,265,521 | $59,525,460 | | **Operating Income** | $15,591,809 | $55,473,525 | | **Net Income** | $10,082,101 | $51,288,140 | | **EPS - Diluted** | $0.24 | $1.25 | [Unaudited Condensed Consolidated Statements of Shareholders' Equity](index=13&type=section&id=Unaudited%20Condensed%20Consolidated%20Statements%20of%20Shareholders'%20Equity) Shareholders' equity decreased to $1.035 billion, mainly from dividends and stock repurchases, partially offset by net income - Key changes in shareholders' equity for the quarter ended June 30, 2025 included: net income of **+$10.1 million**, dividend payment of **-$21.3 million**, and purchase of treasury stock of **-$1.8 million**[21](index=21&type=chunk) [Unaudited Condensed Consolidated Statements of Cash Flows](index=14&type=section&id=Unaudited%20Condensed%20Consolidated%20Statements%20of%20Cash%20Flows) Net cash from operations significantly decreased to $0.8 million, with financing activities leading to a net decrease in cash Consolidated Statements of Cash Flows Highlights (in USD) | Cash Flow Activity | Three months ended June 30, 2025 | Three months ended June 30, 2024 | | :--- | :--- | :--- | | **Net cash provided by operating activities** | $814,474 | $41,224,784 | | **Net cash used in investing activities** | ($3,056,789) | ($1,251,982) | | **Net cash provided by/(used in) financing activities** | ($36,999,660) | $30,830,300 | | **Net increase/(decrease) in cash** | ($38,950,698) | $70,778,056 | [Notes to Unaudited Condensed Consolidated Financial Statements](index=16&type=section&id=Notes%20to%20Unaudited%20Condensed%20Consolidated%20Financial%20Statements) Notes detail the 26-vessel VLGC fleet, newbuilding, Helios Pool JV, debt, and dividend declarations - As of June 30, 2025, the company's fleet consists of **26 VLGCs**, with one newbuilding Very Large Gas Carrier / Ammonia Carrier (VLGC/AC) of **93,000 cbm capacity** expected for delivery in the second calendar quarter of 2026[24](index=24&type=chunk) - The company holds a **50% interest** in the Helios LPG Pool, a joint venture with MOL Energia, which operated **29 VLGCs** as of June 30, 2025, including 26 from Dorian's fleet[44](index=44&type=chunk) Total Debt Obligations (in USD) | Category | June 30, 2025 | March 31, 2025 | | :--- | :--- | :--- | | 2023 A&R Debt Facility | $180,000,000 | $185,000,000 | | Total Japanese Financings | $307,250,806 | $314,152,330 | | BALCAP Facility | $56,202,020 | $58,266,112 | | **Total debt obligations** | **$543,452,826** | **$557,418,442** | - On August 1, 2025, the Board of Directors declared an irregular cash dividend of **$0.60 per share**, totaling approximately **$25.6 million**, payable around August 27, 2025[91](index=91&type=chunk) [MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS](index=33&type=section&id=MANAGEMENT'S%20DISCUSSION%20AND%20ANALYSIS%20OF%20FINANCIAL%20CONDITION%20AND%20RESULTS%20OF%20OPERATIONS) Management attributes 26.4% revenue decrease to lower TCE rates and fewer available fleet days, with increased operating and administrative expenses [Overview](index=33&type=section&id=Overview) Dorian LPG operates 26 VLGCs in the Helios Pool, with a newbuilding VLGC/AC on order for 2026 delivery - The company's fleet consists of **26 VLGCs** with a total capacity of **~2.2 million cbm** and an average age of **8.7 years**, with all vessels operating within the Helios Pool[93](index=93&type=chunk)[95](index=95&type=chunk) - A newbuilding VLGC/Ammonia Carrier (**93,000 cbm**) is scheduled for delivery in the second calendar quarter of 2026[93](index=93&type=chunk) [Our Fleet](index=34&type=section&id=Our%20Fleet) The fleet, as of July 30, 2025, consists of 21 owned and 5 time chartered-in VLGCs, mostly ECO-design, with most in the Helios Pool Fleet Composition as of July 30, 2025 | Category | Count | Total Capacity (Cbm) | | :--- | :--- | :--- | | Dorian Owned VLGCs | 21 | 1,762,000 | | Time Chartered-in VLGCs | 5 | 424,265 (approx.) | | **Total Fleet** | **26** | **~2,200,000** | [Results of Operations](index=36&type=section&id=Results%20of%20Operations) Q2 2025 revenues decreased 26.4% to $84.2 million due to lower TCE rates, with increased operating and administrative expenses Revenue Comparison (in USD) | Revenue Type | Q1 FY2026 (ended June 30, 2025) | Q1 FY2025 (ended June 30, 2024) | Change (%) | | :--- | :--- | :--- | :--- | | Net pool revenues—related party | $83,842,752 | $109,407,054 | (23.4)% | | **Total Revenues** | **$84,211,966** | **$114,353,042** | **(26.4)%** | - The decrease in revenue was primarily due to TCE rates declining by **$10,517 per available day**, from **$50,243 to $39,726**, driven by lower spot rates[103](index=103&type=chunk) - General and administrative expenses increased by **$6.5 million (62.2%)**, mainly due to a **$5.9 million** increase in cash bonuses resulting from differences in the timing of approvals compared to the prior year[105](index=105&type=chunk) [Operating Statistics and Reconciliation of GAAP to non-GAAP Measures](index=37&type=section&id=Operating%20Statistics%20and%20Reconciliation%20of%20GAAP%20to%20non-GAAP%20Measures) Q2 2025 Adjusted EBITDA was $38.6 million, down from $78.0 million, with the TCE rate significantly declining to $39,726 per day Reconciliation of Net Income to Adjusted EBITDA (in USD) | Line Item | Three months ended June 30, 2025 | Three months ended June 30, 2024 | | :--- | :--- | :--- | | Net income | $10,082,101 | $51,288,140 | | Interest and finance costs | $7,714,797 | $9,518,430 | | Unrealized loss on derivatives | $1,183,841 | $421,627 | | Realized gain on interest rate swaps | ($539,429) | ($1,717,249) | | Stock-based compensation expense | $1,757,879 | $1,275,459 | | Depreciation and amortization | $18,379,147 | $17,170,986 | | **Adjusted EBITDA** | **$38,578,336** | **$77,957,393** | Key Operating Statistics | Metric | Three months ended June 30, 2025 | Three months ended June 30, 2024 | | :--- | :--- | :--- | | Available days | 2,086 | 2,260 | | Time charter equivalent rate (TCE) | $39,726 | $50,243 | | Daily vessel operating expenses | $11,466 | $10,717 | [Liquidity and Capital Resources](index=41&type=section&id=Liquidity%20and%20Capital%20Resources) As of June 30, 2025, the company held $277.9 million in cash, with future liquidity needs including debt repayments and a newbuilding VLGC/AC commitment - As of June 30, 2025, the company held cash and cash equivalents of **$277.9 million**[120](index=120&type=chunk) - During the quarter, the company repurchased **100,000 shares** for **$1.8 million** under its 2022 Common Share Repurchase Authority[126](index=126&type=chunk) - A dividend of **$0.50 per share** (**$21.3 million** total) was paid in May 2025, and another irregular dividend of **$0.60 per share** (**$25.6 million** total) was declared in August 2025[127](index=127&type=chunk)[128](index=128&type=chunk) - The company has approximately **$86.2 million** in outstanding contractual commitments for its newbuilding VLGC/AC expected for delivery in 2026[140](index=140&type=chunk) [Critical Accounting Estimates](index=47&type=section&id=Critical%20Accounting%20Estimates) The primary critical accounting estimate is long-lived asset impairment, with no impairment charges recognized for VLGCs as of June 30, 2025 - Based on independent appraisals as of June 30, 2025, there were no indications of impairment on any of the company's VLGCs, and no impairment charges were recognized[146](index=146&type=chunk) [ITEM 3. QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK](index=49&type=section&id=ITEM%203.%20QUANTITATIVE%20AND%20QUALITATIVE%20DISCLOSURES%20ABOUT%20MARKET%20RISK) The company mitigates interest rate risk on its SOFR-based debt facility using swaps, with a 20 basis point change impacting unhedged interest expense by $0.1 million annually - The company hedges its interest rate risk on the 2023 A&R Debt Facility, where a hypothetical **20 basis point change** in SOFR would result in a **$0.1 million** change in annual interest expense on the unhedged portion of its debt[151](index=151&type=chunk) [ITEM 4. CONTROLS AND PROCEDURES](index=49&type=section&id=ITEM%204.%20CONTROLS%20AND%20PROCEDURES) Management concluded disclosure controls were effective as of June 30, 2025, with no material changes to internal control over financial reporting - Management concluded that as of June 30, 2025, the company's disclosure controls and procedures are effective[152](index=152&type=chunk) - No material changes were made to the company's internal control over financial reporting during the three months ended June 30, 2025[153](index=153&type=chunk) [PART II. OTHER INFORMATION](index=50&type=section&id=PART%20II.%20OTHER%20INFORMATION) [ITEM 1. LEGAL PROCEEDINGS](index=50&type=section&id=ITEM%201.%20LEGAL%20PROCEEDINGS) The company is involved in ordinary course legal proceedings but is unaware of any material claims requiring financial statement disclosure or provision - The company is not aware of any material legal claims that are reasonably possible or probable and would require disclosure or provision[155](index=155&type=chunk) [ITEM 1A. RISK FACTORS](index=50&type=section&id=ITEM%201A.%20RISK%20FACTORS) This section updates risk factors previously disclosed in the Annual Report on Form 10-K for the fiscal year ended March 31, 2025 - This section serves as an update to the risk factors detailed in the Annual Report on Form 10-K for the year ended March 31, 2025[156](index=156&type=chunk) [ITEM 2. UNREGISTERED SALES OF EQUITY SECURITIES AND USE OF PROCEEDS](index=50&type=section&id=ITEM%202.%20UNREGISTERED%20SALES%20OF%20EQUITY%20SECURITIES%20AND%20USE%20OF%20PROCEEDS) During Q2 2025, the company repurchased 100,000 common shares for $1.8 million, with $94.4 million remaining available under the repurchase program Issuer Purchases of Equity Securities (Quarter ended June 30, 2025) | Period | Total Shares Purchased | Average Price Paid Per Share | Maximum Dollar Value Remaining for Repurchase | | :--- | :--- | :--- | :--- | | April 1-30, 2025 | 100,000 | $18.23 | $94,397,162 | | May 1-31, 2025 | 0 | N/A | $94,397,162 | | June 1-30, 2025 | 0 | N/A | $94,397,162 | | **Total** | **100,000** | **$18.23** | **$94,397,162** | [ITEM 5. OTHER INFORMATION](index=50&type=section&id=ITEM%205.%20OTHER%20INFORMATION) No director or officer adopted or terminated any Rule 10b5-1 or non-Rule 10b5-1 trading arrangements during the three months ended June 30, 2025 - No director or officer adopted or terminated any Rule 10b5-1 or non-Rule 10b5-1 trading arrangements during the quarter[158](index=158&type=chunk) [ITEM 6. EXHIBITS](index=50&type=section&id=ITEM%206.%20EXHIBITS) This section refers to the Exhibit Index, listing all exhibits filed or furnished with the Form 10-Q report, including certifications and XBRL data - A list of exhibits filed with the report is provided, including CEO/CFO certifications and XBRL data[159](index=159&type=chunk)[161](index=161&type=chunk)

Group 1 - Dorian LPG (LPG) is a strong performer in the Transportation sector, with a year-to-date return of approximately 11.1%, significantly outperforming the sector average return of -8.6% [4] - The Zacks Rank for Dorian LPG is 1 (Strong Buy), indicating a positive outlook based on earnings estimates and revisions, with a consensus estimate for full-year earnings increasing by 83.6% over the past three months [3] - Dorian LPG is part of the Transportation - Shipping industry, which has an average return of -2.7% this year, further highlighting LPG's superior performance [5] Group 2 - The Transportation group ranks 14 out of 16 in the Zacks Sector Rank, indicating a relatively lower performance compared to other sectors [2] - SkyWest (SKYW) is another Transportation stock that has outperformed the sector, with a year-to-date return of 9% and a Zacks Rank of 1 (Strong Buy) [4][5] - The Transportation - Airline industry, to which SkyWest belongs, is ranked 89 and has seen a slight increase of 0.3% this year [6]

Core Viewpoint - DorianG reported significant underperformance in Q1 FY2026, with adjusted EPS of $0.27, missing the analyst target of $0.74, and GAAP revenue of $84.2 million, down $30.1 million year-over-year, reflecting pressures from lower shipping rates, reduced vessel availability, and increased operating expenses [1][2]. Financial Performance - Adjusted EPS for Q1 FY26 was $0.27, a decline of 78.6% from $1.26 in Q1 FY25 [2] - GAAP revenue was $84.2 million, down 26.4% from the previous year [2] - Adjusted EBITDA decreased by 50.6% to $38.6 million [2] - Time Charter Equivalent (TCE) rate fell to $39,726 per day, down 20.9% from $50,243 in Q1 FY25 [2] - Available vessel days decreased by 7.7%, from 2,260 in Q1 FY25 to 2,086 in Q1 FY26 [5] Operational Challenges - Revenue decline attributed to lower TCE rates and fewer available vessel days due to a heavy drydocking schedule [5] - General and administrative expenses surged by 62.2% year-over-year, primarily due to increased employee bonuses [6] - Vessel operating expenses rose by 7.0% to $21.9 million, driven by costs associated with drydocking and maintenance [6] Market Conditions - The Baltic Exchange LPG Index averaged $63.50 per metric ton in Q1 FY26, down from $72.67 in Q1 FY25, indicating lower freight rates [7] - Freight rate volatility and rerouted LPG trade flows due to U.S.-China tariffs and Middle East conflicts contributed to uncertainty in the market [7] Strategic Focus - DorianG operates a fleet of 26 modern Very Large Gas Carriers, focusing on fleet management, environmental compliance, and strategic partnerships [3] - The company is committed to maintaining a young, fuel-efficient fleet with emission-reducing technology [4] - The Helios Pool partnership represents approximately 97% of DorianG's revenues for FY2025, central to its business model [9] Future Outlook - Management did not provide formal financial guidance for the next quarter or full year but indicated a positive outlook for bookings early in Q2 FY26 [11] - Investors should monitor the company's ability to manage costs and scheduled drydockings, which will impact vessel availability and day rates [12]