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 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]