Core Viewpoint - Star Bulk Carriers Corp. reported a significant decline in financial performance for Q2 2025 compared to Q2 2024, with voyage revenues dropping by 30% and net income decreasing to $39,000 from $106.1 million, reflecting challenging market conditions in the dry bulk shipping sector [2][20][22]. Financial Highlights - Voyage revenues for Q2 2025 were $247.4 million, down from $352.9 million in Q2 2024 [2][22]. - Net income for Q2 2025 was $39,000, compared to $106.1 million in Q2 2024 [2][20]. - Adjusted net income for Q2 2025 was $13.2 million, down from $89.1 million in Q2 2024 [2][20]. - EBITDA for Q2 2025 was $55.9 million, a decrease from $171.0 million in Q2 2024 [2][21]. - Adjusted EBITDA for Q2 2025 was $68.9 million, compared to $153.5 million in Q2 2024 [2][21]. Operational Metrics - The average number of vessels decreased to 147.6 in Q2 2025 from 155.0 in Q2 2024 [2][38]. - The Daily Time Charter Equivalent (TCE) rate fell to $13,624 in Q2 2025 from $19,268 in Q2 2024, indicating weaker market conditions [2][22][38]. - Daily operating expenses per vessel (as adjusted) were $4,928 in Q2 2025, down from $5,319 in Q2 2024 [2][24][38]. Dividend and Share Repurchase - The company declared a quarterly cash dividend of $0.05 per share, marking the 18th consecutive quarter of capital returns [9][11]. - From the start of Q2 2025, the company repurchased 3.3 million shares at an average price of $16.47, totaling $54.0 million [12][9]. Fleet and Sales Activity - The company sold nine vessels in Q2 2025, enhancing cash reserves and liquidity, which now exceeds $520 million [10][11]. - The company expects to deliver eight additional vessels to new owners by the end of 2025, with gross proceeds estimated at approximately $104 million [15][14]. Market Outlook - Despite near-term challenges due to geopolitical tensions, the company remains optimistic about the long-term dry bulk market, driven by a low order book and regulatory tailwinds [11].

Group 1 - Star Bulk Carriers' stock increased by 2.88% to $18.96, outperforming the S&P 500's daily gain of 0.06% [1] - The stock has risen by 11.36% over the past month, leading the Transportation sector's gain of 4.05% and the S&P 500's gain of 5.88% [1] Group 2 - The upcoming earnings report for Star Bulk Carriers is expected on August 6, 2025, with an estimated EPS of $0.03, down 96.15% from the prior-year quarter, and revenue of $239.12 million, down 32.24% from the prior-year quarter [2] - For the entire fiscal year, Zacks Consensus Estimates predict earnings of $1.49 per share and revenue of $1.07 billion, indicating changes of -43.35% and -15.72% respectively from the previous year [3] Group 3 - Recent changes in analyst estimates for Star Bulk Carriers reflect evolving short-term business trends, with positive revisions indicating optimism about the business outlook [4] - Adjustments in estimates are directly associated with imminent stock price performance, and the Zacks Rank system has a history of outperforming, with 1 stocks returning an average annual gain of +25% since 1988 [5][6] Group 4 - Star Bulk Carriers currently has a Forward P/E ratio of 12.37, which is a premium compared to the industry average Forward P/E of 9.41 [7] - The Transportation - Shipping industry holds a Zacks Industry Rank of 58, placing it in the top 24% of all 250+ industries [7][8]

Core Points - Star Bulk Carriers Corp. will release its second quarter results for the period ended June 30, 2025, after market close on August 6, 2025 [1] - A conference call to discuss the financial results will be held on August 7, 2025, at 11:00 a.m. Eastern Time [1] Conference Call Details - Participants should dial in 10 minutes before the scheduled time using the numbers (+1) 416 764 8646 or (+1) 888 396 8049, quoting "Star Bulk Carriers" and conference ID 13754842 [2] - A live and archived webcast of the conference call will be available on the Company's website [3] Company Overview - Star Bulk is a global shipping company specializing in seaborne transportation solutions in the dry bulk sector, transporting major and minor bulk commodities [4] - The company operates a fleet of 146 vessels with an aggregate capacity of 14.4 million deadweight tons (dwt), including various types of bulk carriers [4]

Financial Performance - Net Income was $42 million and Adjusted Net Income was $41 million[10] - Adjusted EBITDA reached $104 million[10] - A dividend of $009 per share was declared, with a record date of March 4th, 2025[10] - TCE per vessel was $16,129, while average daily OPEX per vessel was $5,056[9] - Average daily net cash G&A expenses per vessel were $1,264, resulting in TCE less OPEX less G&A expenses of $9,809[9] Eagle Bulk Merger & Synergies - Synergies achieved from the Eagle Bulk integration have resulted in more than $22 million in savings to date[10] - Q4 2024 synergies from the Eagle Bulk integration amounted to $126 million, implying an annualized run-rate of $50 million[26] Capital Allocation & Liquidity - Proforma cash was approximately $452 million, and proforma debt and lease obligations were $1266 million as of February 17th, 2025[10] - Additional liquidity of $50 million is available through an undrawn Revolver Facility, bringing proforma liquidity to almost $05 billion[10] - Thirteen debt-free vessels have an aggregate market value of $250 million[10] - Total actions of $26 billion in shareholder value creation since 2021[12] Fleet & Coverage - The company has one of the largest dry bulk fleets among U S and European listed peers, with 155 vessels on a fully delivered basis[39] - Fleet-wide coverage for Q1 2025 is 801% at a TCE of $12,305 per day[63] Market Dynamics - Dry bulk NET fleet growth was +30% in 2024, compared to +31% in 2023[48] - Total dry bulk trade in 2024 is estimated at +33% in tons and +50% in ton-miles[49]

Group 1 - The company is focused on closing the valuation gap through buybacks funded by asset sales, aiming to align stock trading closer to its $24 NAV [1] - A strong dividend policy is expected to support the stock's performance and valuation [1] Group 2 - The analyst has a long position in the shares of SBLK, indicating a positive outlook on the company's stock [2] - The article reflects the analyst's personal opinions and is not influenced by external compensation [2]

Company Overview - Star Bulk Carriers Corp. is a global shipping company specializing in seaborne transportation solutions in the dry bulk sector, transporting major and minor bulk commodities [2] - The company was incorporated in the Marshall Islands in 2006 and has executive offices in Athens, New York, Stamford, and Singapore [2] - Star Bulk operates a fleet of 146 vessels with a total capacity of 14.4 million deadweight tons (dwt), including various types of bulk carriers [2] Share Buyback Announcement - The company has repurchased 1,985,169 shares since March 31, 2025, for a total of $32.22 million, at an average price of $16.21 per share [1] - Following the cancellation of the repurchased shares, the total number of issued and outstanding shares is now 115,603,652 [1]

Company Performance - Star Bulk Carriers (SBLK) closed at $17.40, marking a +2.29% increase from the previous day, outperforming the S&P 500 which fell by 1.13% [1] - Over the past month, shares of Star Bulk Carriers have appreciated by 1.25%, while the Transportation sector experienced a slight loss of 0.07% and the S&P 500 gained 3.55% [1] Financial Forecast - The upcoming financial results for Star Bulk Carriers are expected to show an EPS of $0.04, reflecting a significant 94.87% decrease from the same quarter last year [2] - Revenue is forecasted to be $243.45 million, indicating a 31.01% decline compared to the previous year’s quarter [2] Annual Projections - For the full year, Zacks Consensus Estimates project earnings of $1.32 per share and revenue of $1.02 billion, representing declines of 49.81% and 19.64% respectively from the prior year [3] - Recent adjustments to analyst estimates for Star Bulk Carriers are important as they indicate changing near-term business trends, with positive revisions seen as a favorable sign for the business outlook [3] Valuation Metrics - Star Bulk Carriers has a Forward P/E ratio of 12.89, which is a premium compared to the industry average Forward P/E of 9.41 [6] - The Transportation - Shipping industry, which includes Star Bulk Carriers, holds a Zacks Industry Rank of 178, placing it in the bottom 28% of over 250 industries [6] Zacks Rank System - The Zacks Rank system, which ranges from 1 (Strong Buy) to 5 (Strong Sell), currently ranks Star Bulk Carriers as 4 (Sell) [5] - The Zacks Consensus EPS estimate has increased by 6.09% in the past month, indicating some positive momentum despite the overall ranking [5]

Core Viewpoint - ZIM Integrated Shipping is positioned favorably due to its asset-light model and strong operational efficiency, while Star Bulk Carriers is benefiting from improving trade relations and fleet expansion, but faces challenges in earnings consistency [2][3][10][12]. Group 1: ZIM Integrated Shipping - ZIM operates an asset-light model focusing on leasing vessels, which allows it to maintain strong pricing power and profitability by avoiding low-margin segments [3]. - The company has a high dividend yield, with a regular dividend of approximately $382 million or $3.17 per share declared in the December quarter, and $89 million or 74 cents per share in the first quarter of 2025, reflecting about 30% of the quarter's net income [4]. - ZIM has consistently beaten earnings expectations, demonstrating resilience despite challenging market conditions [5]. - Ongoing trade tensions, particularly with significant exposure to China and the U.S., pose risks, but ZIM's business model allows it to shift capacity to more profitable routes if needed [6][16]. - Elevated spot and contracted rates are expected to support ZIM's performance in 2025, making it a more attractive investment compared to SBLK [17]. Group 2: Star Bulk Carriers - Star Bulk has grown to be one of the largest dry bulk shipping companies, focusing on operational efficiency and environmental sustainability [9]. - The company declared a dividend of 5 cents per share in March, marking its 17th consecutive quarter of capital returns, and is also active in share buybacks [11]. - Easing U.S.-China trade relations are expected to positively impact the dry bulk market, with strong economic growth in China likely to boost demand for commodities like iron ore and coal [10]. - However, SBLK has not demonstrated a strong earnings surprise history, missing earnings estimates twice in the last four quarters [12]. - SBLK may face significant risks from ongoing trade conflicts, particularly with China, which could lead to lower import demand for key commodities [16].

Financial Data and Key Metrics Changes - The company reported a net income of $500,000 with an adjusted net loss of $7,800,000 or $0.07 adjusted loss per share for Q1 2025 [4] - Adjusted EBITDA for the quarter was $49,000,000 [4] - Pro forma total cash stands at $437,000,000, while pro forma total debt is $1,200,000,000 [5] - The average net debt per vessel decreased from $11,600,000 to $5,400,000 since 2021, a reduction of over 50% [7] Business Line Data and Key Metrics Changes - The time charter equivalent (TCE) rate was $12,439 per vessel per day, with combined daily operating expenses and net cash G&A expenses per vessel at $6,217 [5] - Operating expenses for Q1 2025 were $4,898 per vessel per day, with net cash G&A expenses at $13.19 per vessel per day [12] Market Data and Key Metrics Changes - Total dry bulk trade is projected to contract by 1.2% in tons and 0.4% in ton miles during 2025 [22] - Chinese dry bulk imports contracted by 8.3% year on year during Q1 2025, driven by elevated inventories and rising domestic production [26] - Iron ore trade is projected to contract by 1.3% in tons and 0.6% in ton miles during 2025 [28] Company Strategy and Development Direction - The company continues to prioritize returns to shareholders through dividends and share buybacks, having taken actions totaling $2,600,000,000 since 2021 [6] - The integration of the Eagle Bulk transaction has resulted in almost $40,000,000 in synergies since its completion [5][10] - The company plans to invest in energy-saving technologies and fleet upgrades to comply with IMO carbon reduction regulations [14] Management Comments on Operating Environment and Future Outlook - Management expressed cautious optimism about the medium-term outlook for the dry bulk market, citing favorable supply conditions and stricter environmental regulations [34] - The geopolitical landscape and potential reconstruction efforts in conflict areas could positively impact trade and demand [40] - However, challenges such as reduced coal imports from China and uncertainties in global trade dynamics were noted as potential negatives [44] Other Important Information - The company has completed 42 installations of energy-saving technologies, with another 21 planned for 2025 [14] - The average steaming speed of the fleet has reached a record low of 10.8 knots, influenced by soft freight rates and environmental regulations [21] Q&A Session Summary Question: Market outlook and asset values - Management acknowledged the current holding pattern in dry bulk rates and the stability of asset values, indicating that something must give in the market [36][38] Question: Timing for asset sales and cash flow - The company confirmed that proceeds from announced vessel sales will be received in the second and early third quarters of 2025, totaling approximately $38,500,000 [51] Question: Use of sales proceeds - The priority for the use of sales proceeds will be share buybacks as long as shares trade at a significant discount to net asset value [53] Question: Future demolition rates - Management indicated that environmental regulations could lead to increased demolition rates in the future, particularly for older, less efficient vessels [61] Question: Buyers' intentions for older ships - The company noted that buyers are not scrapping older vessels as long as they are not making a loss, and the return on investment for these vessels is not sufficient for the company [59]

Financial Data and Key Metrics Changes - The company reported a net income of $500,000 with an adjusted net loss of $7,800,000 or $0.07 adjusted loss per share for Q1 2025 [4] - Adjusted EBITDA for the quarter was $49,000,000 [4] - Pro forma total cash stands at $437,000,000, while pro forma total debt is $1,200,000,000 [5] - The average net debt per vessel decreased from $11,600,000 to $5,400,000 since 2021, a reduction of over 50% [7] Business Line Data and Key Metrics Changes - The time charter equivalent (TCE) rate was $12,439 per vessel per day, with combined daily operating expenses and net cash G&A expenses per vessel at $6,217 [5] - Operating expenses for Q1 2025 were $4,898 per vessel per day, with net cash G&A expenses at $13.19 per vessel per day [12] Market Data and Key Metrics Changes - Total dry bulk trade is projected to contract by 1.2% in tons and 0.4% in ton miles during 2025 [22] - Chinese dry bulk imports contracted by 8.3% year on year during Q1 2025, driven by elevated inventories and rising domestic production [25] - The average steaming speed of the fleet reached a new record low of 10.8 knots in February due to soft freight rates and environmental regulations [21] Company Strategy and Development Direction - The company continues to prioritize returns to shareholders, having taken actions totaling $2,600,000,000 in dividends, share buybacks, and debt repayments since 2021 [6] - The integration of the Eagle Bulk transaction has resulted in almost $40,000,000 in cumulative cost synergies [11] - The company plans to invest in energy-saving technologies and upgrade its fleet to comply with IMO carbon reduction regulations [14] Management's Comments on Operating Environment and Future Outlook - Management expressed cautious optimism about the medium-term outlook for the dry bulk market, citing favorable supply conditions and stricter environmental regulations [34] - The geopolitical landscape and macroeconomic factors are seen as potential positives, while challenges include reduced coal imports from China and uncertainties in global trade [40][44] - The company anticipates a moderate year with potential upward movement if geopolitical tensions ease [46] Other Important Information - The company has completed the integration process of the Eagle Bulk transaction across all departments [5] - The expected drydock expense schedule for the remainder of 2025 is estimated at $47,000,000 for 38 vessels [13] Q&A Session Summary Question: Market outlook and asset values - Management noted that while rates are stable, asset values are holding up well, and the market may see gradual progress in the coming quarters [36][38] Question: Timing for asset sales and cash inflow - The company confirmed that proceeds from announced vessel sales will be received in the second and early third quarters of 2025, totaling approximately $38,500,000 [51] Question: Use of sales proceeds - The priority for the use of sales proceeds will be share buybacks as long as shares trade at a significant discount to NAV [52] Question: Demolition rates and future outlook - Management indicated that environmental regulations could lead to increased scrapping of older vessels, but the immediate effect will be on operational speeds and drydock delays [60][62] Question: Buyers' intentions for older ships - The company explained that as long as vessels are not making a loss, they are not scrapped, and buyers may have different return expectations [58]