Financial Data and Key Metrics Changes - The company reported adjusted EPS for Q4 2025 of $7.14 per share, compared to $6.93 per share in Q4 2024, reflecting a slight increase in adjusted net income to $131.2 million from $133.3 million [7][8] - Adjusted EBITDA increased by 0.2% or $0.3 million to $190 million in Q4 2025 from $189.7 million in Q4 2024 [12] - Net debt stood at $141 million, translating to a net debt to Adjusted EBITDA ratio of 0.2x, with 61 out of 85 vessels being unencumbered and debt-free [13] Business Line Data and Key Metrics Changes - The increase in the containership fleet produced $5.2 million of incremental operating revenues, supplemented by $10.5 million from higher fleet utilization and $2.2 million from increased charter income in the dry bulk fleet [9] - However, there was a decrease of $7.8 million in revenues from the container segment due to lower contracted charter rates [9] Market Data and Key Metrics Changes - The company noted that container volumes reached record highs, driven by strong demand for midsize vessels as trade patterns shift [3] - The company secured 10-year charters for four new vessels, contributing to a total contract revenue of $4.3 billion, enhancing earnings visibility [4] Company Strategy and Development Direction - The company continues to focus on securing long-term employment for existing vessels through forward fixtures and investing in modern container vessels [3] - Danaos has begun exploring investments in the energy sector, becoming a strategic investor in the Alaska LNG project, which is expected to produce 20 million tons per annum [5] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about the business community's adaptation to geopolitical disruptions, with no significant slowdown in the U.S. economy and increasing optimism around AI-related investments [3] - The company remains focused on positioning itself at the forefront of shipping and energy growth areas for shareholder benefit [5] Other Important Information - The company declared a dividend of $0.0090 per share for the quarter and has $65 million remaining under its $300 million share repurchase program [13] - Total liquidity at year-end reached $1.4 billion, providing ample flexibility for capital deployment opportunities [14] Q&A Session Summary Question: Alaska LNG project details - The project is expected to be completed by 2030, requiring between 6 to 10 ships, with long-term employment anticipated for 10 to 20 years [24] Question: Future orders for Newcastlemax vessels - The company plans to charter the new Newcastlemax vessels mainly on index, as they are expected to have a high index due to their characteristics [31] Question: Capesize time charter rates - The company prefers to employ Capesize vessels mainly on the spot market, with potential to secure medium-term contracts if extraordinary spikes occur [32]

Financial Performance - Danaos Corporation reported operating revenues of $266.3 million for the three months ended December 31, 2025, a 3.1% increase from $258.2 million in the same period of 2024 [28] - The net income for the same period was $117.9 million, or $6.42 per diluted share, compared to $90.4 million, or $4.70 per diluted share, in the prior year [26] - Adjusted net income for the three months ended December 31, 2025 was $131.2 million, or $7.14 per diluted share, slightly down from $133.3 million, or $6.93 per diluted share, in the previous year [21][50] Segment Performance - The container vessels segment generated adjusted net income of $123.6 million for the three months ended December 31, 2025, compared to $128.7 million in the same period of 2024 [22] - The drybulk vessels segment saw adjusted net income increase to $7.2 million for the three months ended December 31, 2025, up from $2.3 million in the previous year [23] Operating Metrics - Fleet utilization for container vessels was 99.3% in Q4 2025, up from 96.4% in Q4 2024, while drybulk vessels utilization improved to 99.8% from 84.2% [20] - The average number of container vessels increased to 74.6 in Q4 2025 from 72.9 in Q4 2024, while the average number of drybulk vessels remained at 10 [20] Financial Position - As of December 31, 2025, total cash liquidity and marketable securities reached $1.4 billion, compared to $806.7 million in the previous year [3] - Gross debt increased to $1.177 billion from $744.5 million year-over-year, primarily due to the issuance of a $500 million senior unsecured bond [67] Revenue Growth - For the year ended December 31, 2025, operating revenues increased by 2.8% to $1.042 billion from $1.014 billion in 2024 [56] - The container vessels segment's operating revenues rose by 2.0% to $955.4 million, while the drybulk vessels segment's revenues increased by 13.0% to $87.0 million [56] Cost Management - Vessel operating expenses increased to $208.8 million for the year ended December 31, 2025, up from $185.7 million in 2024, attributed to a larger fleet and higher daily operating costs [57] - General and administrative expenses rose to $64.4 million from $54.2 million, driven by a one-off discretionary cash bonus and increased management fees [62] Strategic Developments - The company entered a strategic partnership with Glenfarne Group for the Alaska LNG project, involving a $50 million equity investment and becoming the preferred tonnage provider for LNG carriers [11] - Danaos has secured long-term charters for several new vessels, contributing to a total contracted revenue backlog of $4.3 billion [16]

Core Viewpoint - Danaos Corporation has announced a strategic partnership with Glenfarne Group to advance the Alaska LNG project, which includes a significant investment and the provision of LNG carriers for global delivery [1][2]. Group 1: Investment and Partnership - Danaos Corporation will invest $50 million in Glenfarne Alaska Partners LLC as part of the partnership [2]. - The company will also be the preferred tonnage provider for constructing and operating at least six LNG carriers for the Alaska LNG project [2]. Group 2: Project Phases and Development - The Alaska LNG project is being developed in two phases: Phase One involves a 765-mile pipeline to transport natural gas for domestic energy needs, while Phase Two will include an LNG liquefaction terminal to export 20 million tonnes per annum (MTPA) of LNG [3]. - Glenfarne has secured preliminary commercial commitments for 11 MTPA of LNG from buyers in Japan, Korea, Taiwan, and Thailand [4]. Group 3: Company Background - Glenfarne Group is a global developer and operator of energy infrastructure, with a North American LNG portfolio totaling 32.8 MTPA of capacity under development [5]. - Danaos Corporation operates a fleet of 75 container vessels with a total capacity of 477,491 TEUs and has invested in the dry bulk sector with 11 capesize drybulk vessels [6].

Financial Data and Key Metrics Changes - For Q3 2025, the company reported revenues of $178 million and an EBITDA-equivalent cash flow of $113 million, with a total EBITDA of $473 million over the past 12 months, indicating strong operational stability [3][6] - The net income for the quarter was $8.6 million, translating to $0.07 per share, with total operating expenses reduced to $69 million from $86 million in the previous quarter [16][17] Business Line Data and Key Metrics Changes - The container vessel segment contributed $82 million to adjusted EBITDA, while the car carrier fleet added $23 million, and the tanker segment generated $44 million [14] - Dry bulk contributed $6 million, down from $19 million, due to the divestiture of 13 dry bulk carriers as part of the fleet renewal strategy [14][15] Market Data and Key Metrics Changes - The charter backlog stands at approximately $4 billion, with two-thirds contracted to investment-grade counterparties, providing strong cash flow visibility [6][17] - The overall utilization across the shipping fleet in Q3 was about 98.7%, with adjusted utilization at 99.9% [9] Company Strategy and Development Direction - The company is focused on fleet renewal, having sold five older dry bulk vessels and redelivered eight Cape-sized bulkers, which has improved operational and fuel efficiency [4][8] - Investments in cleaner technology are ongoing, with 11 vessels now capable of operating on LNG fuel, including five newbuildings under construction [4][11] Management's Comments on Operating Environment and Future Outlook - Management remains optimistic about securing new employment for the Hercules drilling rig, despite its current idle status [5][19] - The company emphasizes the importance of energy efficiency and emissions reduction to attract and retain high-quality charterers, with ongoing investments in modernizing the fleet [11][12] Other Important Information - The company has returned approximately $2.9 billion to shareholders over 87 consecutive quarters, with a dividend yield of over 10% based on the recent share price [6][17] - The company has about $80 million remaining on a $100 million share buyback program, having repurchased $10 million worth of shares at an average price of $7.98 per share [26] Q&A Session Summary Question: Expectations for Hercules leasing in the new year and impact of Gulf of Mexico lease sale - Management is exploring all opportunities for the Hercules rig, focusing on areas where it has unique capabilities, such as the North Sea and Canadian markets [19][20] Question: Consideration of well intervention opportunities for Hercules - The company is open to any opportunity for the Hercules, including well intervention or exploration drilling, and has made upgrades to the rig for development drilling [22] Question: Outlook for securing long-term work for tankers - It is too early to secure long-term work for vessels rolling off charters, but there is significant value linked to profit-sharing features in existing contracts [23] Question: Update on the $100 million buyback - Approximately $80 million remains on the buyback program, with $10 million repurchased so far this year [26] Question: Impact of Houthi attacks on commercial shipping in the Red Sea - Management is cautious and believes a slow return to normal activity in the Red Sea is likely, with potential reductions in operating expenses if vessels return to the region [28][29] Question: Purchase obligations in charter contracts - The company has transformed its business model to focus on time charters, reducing the prevalence of purchase obligations in contracts [30] Question: Outlook for new transactions outside the container segment - The company is open to opportunities across various maritime segments, focusing on strong counterparties and favorable deal structures [31][32]

Financial Data and Key Metrics Changes - For Q3 2025, the company reported revenues of $178 million and an EBITDA-equivalent cash flow of $113 million, with a total EBITDA of $473 million over the past 12 months, indicating strong operational stability [3][12] - Net income for the quarter was $8.6 million, translating to $0.07 per share, with total operating expenses reduced to $69 million from $86 million in the previous quarter [15][16] Business Line Data and Key Metrics Changes - The container vessel segment contributed $82 million to adjusted EBITDA, while the car carrier fleet generated $23 million, down from $26 million due to scheduled dry docking of SFL Composer [12][14] - The tanker segment produced $44 million, benefiting from long-term charters, while dry bulk contributed $6 million, down from $19 million due to divestitures [12][14] Market Data and Key Metrics Changes - The charter backlog stands at approximately $4 billion, with two-thirds contracted to investment-grade counterparties, providing strong cash flow visibility [5][16] - The overall utilization of the shipping fleet in Q3 was about 98.7%, with adjusted utilization reaching 99.9% when accounting for unscheduled technical issues [8] Company Strategy and Development Direction - The company is focused on fleet renewal, having sold older vessels and invested in cargo handling and fuel efficiency upgrades, with 11 vessels now capable of operating on LNG fuel [4][10] - The strategy includes securing long-term charters with strong counterparties, as evidenced by new five-year charters for three container vessels, adding approximately $225 million to the charter backlog from 2026 onwards [4][5] Management's Comments on Operating Environment and Future Outlook - Management remains optimistic about securing new employment for the Hercules drilling rig, despite its current idle status, and is exploring various opportunities for its deployment [5][19] - The company emphasizes the importance of energy efficiency and emissions reduction in attracting and retaining charterers, highlighting ongoing investments in modernizing the fleet [10][11] Other Important Information - The company declared a quarterly dividend of $0.20 per share, marking the 87th consecutive dividend, with a total of approximately $2.9 billion returned to shareholders over the years [5][17] - The financial position remains strong, with approximately $278 million in cash and cash equivalents and $40 million in undrawn credit lines, totaling $320 million in liquidity [15][16] Q&A Session Summary Question: Expectations for Hercules leasing in the new year and impact of Gulf of Mexico lease sale - Management is exploring all opportunities for Hercules, focusing on markets where its unique capabilities are needed, such as the North Sea and Canada, rather than the Gulf of Mexico [19][20] Question: Consideration of well intervention opportunities for Hercules - The company is open to any opportunity for the rig, including well intervention or exploration drilling, and has made upgrades to facilitate development drilling [23] Question: Outlook for securing long-term work for tankers - It is too early to secure long-term work for vessels rolling off charters, but there is significant value linked to profit-sharing features in existing contracts [24] Question: Update on the $100 million buyback implementation - Approximately $80 million remains on the buyback, with $10 million of shares repurchased at an average price of $7.98 per share [27] Question: Impact of potential pause in Houthi attacks on commercial shipping in the Red Sea - Management is cautious and believes it will take time for container ship operators to return to the region, with a focus on safety and risk evaluation [30][32] Question: Purchase obligations in charter contracts - The company has shifted from bareboat charters to time charters, reducing purchase obligations and maintaining upside in residual values [34] Question: Outlook for new transactions outside the container segment - The company is open to opportunities across various maritime sectors, focusing on strong counterparties and structuring deals with favorable return characteristics [35][36]

Core Viewpoint - Costamare Inc. reported its financial results for Q3 2025, highlighting a strong performance in continuing operations following the spin-off of its dry bulk business, with significant liquidity and contracted revenues. Group I: Profitability and Financial Performance - Adjusted Net Income from Continuing operations for Q3 2025 was $98.0 million, or $0.81 per share, while Net Income from Continuing operations was $92.6 million, or $0.77 per share [7] - For the nine-month period ended September 30, 2025, the company reported a slight decrease in voyage revenue of 0.4%, totaling $644.0 million compared to $646.8 million in the same period of 2024 [60][62] - The company maintained a liquidity position of $569.6 million as of Q3 2025 [7] Group II: Fleet and Operations - Costamare's fleet was fully employed for 2025, with 100% of the containership fleet fixed for 2025 and 80% for 2026, resulting in contracted revenues of approximately $2.6 billion with a TEU-weighted duration of 3.2 years [8][15] - The company concluded two newbuilding contracts for 3,100 TEU containerships, bringing the total to six, with deliveries expected in Q1 2028 [7][14] Group III: Debt and Financing - Costamare successfully refinanced four of its 14,424 TEU vessels and two of its 12,690 TEU vessels, with total drawn amounts of $361.6 million and a repayment tenor of five years [8] - The company has no significant debt maturities until 2027, indicating a stable financial outlook [8] Group IV: Investment and Dividends - The company declared a dividend of $0.115 per share on common stock, payable on November 6, 2025, and also declared dividends on its preferred stock series [17] - Costamare's investment in Neptune Maritime Leasing Limited amounted to $182.2 million, representing 91.1% of its total committed investment [17]

Financial Data and Key Metrics Changes - The company reported revenues of $194 million for the quarter, with an EBITDA equivalent cash flow of $112 million [5][24] - The EBITDA equivalent over the last twelve months was $526 million [5] - The net profit for the second quarter was approximately SEK 1.5 million or $0.01 per share, compared to a net loss of approximately SEK 32 million or $0.02 per share in the previous quarter [26] Business Line Data and Key Metrics Changes - The container vessel segment generated approximately $2 million in revenue, while the car carrier fleet generated approximately NOK 26 million, slightly up from the last quarter [21][22] - The tanker fleet's gross charter hire decreased to approximately NOK 41 million from NOK 45 million in the previous quarter due to scheduled dry dockings [22] - The overall utilization across the shipping fleet was 98.1%, with an adjusted utilization of 99.9% [15] Market Data and Key Metrics Changes - The charter backlog currently stands at $4.2 billion, with two-thirds of this backlog from customers with investment-grade ratings [10][29] - The company has a diversified fleet consisting of 60 maritime assets, including 30 containerships, 16 large tankers, and two drilling rigs [12] Company Strategy and Development Direction - The company is focused on strengthening its charter backlog by securing agreements with strong counterparties and investing in cargo handling and fuel efficiency upgrades [6][10] - The company has divested older, less efficient vessels and is committed to fleet renewal and new technology, with 11 vessels now capable of operating on LNG fuel [7][12] - The company aims to enhance its fleet to position itself for organic growth and comply with strict regulatory demands aimed at reducing shipping emissions [13][14] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about finding new employment for the idle drilling rig Hercules, despite current market volatility and oil price fluctuations [8][9] - The decision to adjust the dividend to $0.20 per share was made to ensure that distributions are not subsidized by idle assets, particularly the Hercules rig [10][36] - The company has a strong liquidity position, including undrawn credit lines and unencumbered vessels, which will enable continued investment in new assets [11][27] Other Important Information - The company has returned nearly $2.9 billion to shareholders over 86 consecutive quarters [10] - The average age of the vessels sold was about 18 years, reducing the fleet average by about two years [12] Q&A Session Summary Question: What’s the status with the lawsuit with Seadrill? - The company is involved in two lawsuits, with the larger one regarding the redelivery of the Hercules scheduled for 2026, and a guarantee for an adjustment amounting to approximately $45 million to $50 million has been received from Seadrill [30] Question: Can you walk us through your thought process on the decision to lower the dividend? - Management acknowledged disappointment regarding the dividend adjustment, attributing it to the idle status of the Hercules rig and the need to ensure that distributions are not subsidized by non-operational assets [34][36] Question: What are the expected costs for dry docking in the second half of the year? - Management expects dry docking costs to be significantly lower in Q3 and Q4 compared to Q2, with estimates around $3 million to $3.5 million for Q3 and $1 million to $2 million for Q4 [42][44] Question: How is the company viewing opportunities for potential acquisitions? - The company continues to look for acquisition opportunities, although the market has been slower due to general uncertainty. They have significant investment capacity following recent divestitures [46][47] Question: What should be expected for the organic EBITDA contribution from the energy side? - The energy segment is expected to have a negative drag going forward, but the shipping fleet is generating solid contributions and cash flow [50][54]

Financial Data and Key Metrics Changes - The company reported adjusted EPS of $6.36 per share or $117 million for Q2 2025, a decrease from $6.78 per share or $132.3 million in Q2 2024, reflecting a $15.3 million decline in adjusted net income primarily due to increased operating costs and lower dividend income [10][11][14] - Total operating costs increased by $24.7 million, driven by a higher average number of vessels in the fleet, while net finance costs rose by $3.6 million [10][11] - Adjusted EBITDA decreased by 0.5% to $176 million compared to $176.8 million in Q2 2024 [12] Business Line Data and Key Metrics Changes - The company added approximately $113 million to its contracted revenue backlog, bringing the total to $3.6 billion with a 3.8-year average charter duration [8][13] - Contracted charter coverage stands at 99% for 2025 and 88% for 2026, indicating strong revenue visibility [8][13] - The drybulk segment experienced seasonal firming, but broader weakness persists due to deflationary conditions in China [9] Market Data and Key Metrics Changes - The U.S. economy remains stable, with consumer demand for foreign goods continuing, which is expected to improve trade flows as inventories normalize [6][7] - Geopolitical tensions, particularly in Ukraine and Gaza, have not led to new disruptions in global shipping routes [7] Company Strategy and Development Direction - The company is maintaining a disciplined approach to capital allocation, avoiding speculative orders in the feeder segment where pricing is disconnected from long-term fundamentals [7] - The focus remains on operational excellence and value creation for shareholders, with a strong balance sheet and cash generation capacity to support strategic priorities [9][10] Management's Comments on Operating Environment and Future Outlook - Management noted that uncertainties around global trade are subsiding, with clarity on tariffs improving [5][6] - The company is cautious about capital deployment, particularly in light of potential stock market corrections that could impact shipping companies [22][23] Other Important Information - As of June 30, 2025, net debt stood at $224 million, with a net debt to adjusted EBITDA ratio of 0.3 times [14] - The company declared a dividend of $0.85 per share and has $94.3 million remaining under its share repurchase program [14] Q&A Session Summary Question: Charter market and demand outlook - The market is stable with demand for ships, but the pace of forward fixing has slowed [18][20] Question: Capital allocation and buyback strategy - The buyback has been paused due to stock appreciation, which could lead to short-term trading rather than long-term shareholder value [21][22] Question: Operating costs and future rate expectations - Current operating costs may normalize as the year progresses, following a spike due to bulk orders [24] Question: Expectations for feeder ships and order book - A shortage of ships could provide a tailwind, but long-term contracts for feeders are challenging due to market dynamics [29][30] Question: Newbuild addition and delivery management - The recent newbuild was secured through a strong relationship with the yard, allowing for prompt delivery [31][32]

Company Overview - Danaos Corp. is a ship-owning company focused on maritime transport, with a portfolio of 74 container vessels and 10 dry bulk vessels, positioning it as a significant competitor in the industry [1] Investment Focus - The company is appealing to individual investors who seek value in companies linked to commodity production, particularly those with sustained free cash flows, low leverage, and sustainable debt levels [1] - There is a preference for analyzing companies in sectors that are often overlooked by the market, such as oil & gas, metals, and mining, especially in emerging markets [1] Shareholder Value - Danaos Corp. is noted for its solid pro-shareholder attitude, maintaining consistent buyback programs and dividend distributions over time, which enhances its attractiveness to investors [1]

Company Overview - Danaos Corporation is one of the largest independent owners of modern, large-size container vessels, with a fleet of 74 containerships aggregating 471,477 TEUs and 15 under construction vessels aggregating 128,220 TEUs, ranking among the largest container vessel charter owners globally based on total TEU capacity [5] - The company has recently expanded into the drybulk sector by acquiring 10 Capesize drybulk vessels aggregating 1,760,861 DWT [5] - Danaos Corporation's shares are traded on the New York Stock Exchange under the symbol "DAC" [5] Upcoming Financial Results - Danaos Corporation will release its results for the first quarter ended March 31, 2025, after the market closes in New York on May 13, 2025 [1] - A conference call to discuss the results will be hosted by the management team on May 14, 2025, at 9:00 A.M. ET [1] Conference Call Details - Participants can join the conference call by dialing in 10 minutes before the scheduled time using specific toll-free numbers for the U.S., U.K., and standard international calls [2] - A telephonic replay of the conference call will be available until May 21, 2025, with specific dial-in numbers provided [3] - A live audio webcast of the conference call will be available on the Danaos Corporation website, with an archived version accessible within 48 hours post-call [4]